According to media reports, Flipkart Group chief executive Kalyan Krishnamurthy in an exclusive interview with ET, said that India’s online retail market penetration is low, need to solve a considerable number of problems, in order to achieve a considerable scale.
Kalyan Krishnamurthy, chief executive of Flipkart Group, said: “We believe that if more participants operate in this area, it will further expand the market and benefit all stakeholders, such as Kilana stores, small and medium-sized merchants and consumers, They will benefit from innovation in the industry. ”
Krishnamurthy said Flipkart supported any regulatory measures that would help create stability in the industry and drive growth-driven regulatory frameworks that would benefit businesses and customers. He said Flipkart’s business had not been affected in any terms since the electronic commerce rules came into effect on February 1. The rule prohibits online markets from selling products through suppliers holding their equity and restricting changes such as exclusive brand cooperation.
Last week Wal-Mart chief executive Doug McMillen visited India for the first time since the US company announced it was investing 16 billion of dollars in Indian domestic electronics retailers last May.
Macmillan had said during his visit that Flipkart and digital payment company PhonePe would be fully supported to implement its growth strategy. PhonePe recently obtained Flipkart approval to split up and raise funds separately.
Focus on the grocery store
Flipkart launched its grocery business two years ago but has been unable to expand aggressively. “In India, the grocery industry still needs a lot of solutions. When this is resolved, we will further expand grocery sales and experiment with fruit and vegetable sales. ” Kalyan Krishnamurthy said。
When asked about Flipkart’s plans around the fresh food and vegetable market, Kalyan Krishnamurthy said if Flipkart into the field of fresh food, it was just a pilot project and would not be fully rolled out. We are more concerned with staple foods, FMCG and dry goods.
In the next 6 months, Flipkart will launch a grocery business in 3-4 new cities, while in the next phase, Flipkart will focus on product selection and affordability in order to bring the next 100 million users to their shopping sites.
E-commerce is a global trend, reflected in every market around the world. The potential of the Indian e-commerce market is unquestionable, with the total size of the Indian retail market exceeding $500 billion. In addition, the entire Indian e-commerce market will grow rapidly over the next few years, with the market expected to reach $65 billion in 2023, more than twice times the size of 2018 years.
The pattern of future Indian e-commerce markets will be rewritten after Wal-Mart’s acquisition of Flipkart, while Flipkart is also trying to overtake its number one rival, Amazon.
Clearly, the online grocery business has provided Wal-Mart with a big turnover in the Indian market, and the growth in its online grocery business is expected to increase from $1 billion in 2018 to $5 billion in 2021.