F lipkart group on Thursday announced the launch of Flipkart Wholesale, a new digital marketplace and the acquisition of 100 per cent interest in WalMart India Private Limited, which operates the Best Price cash and-carry business. It will launch ‘Flipkart Wholesale’ next month, as the home grown e-commerce major looks to tap into the USD 650 billion B2B retail market in India. Walmart India runs 28 Best Price wholesale stores in the country
Flipkart Wholesale will launch its operations in August 2020 and will pilot services for the grocery and fashion categories. It will be headed by Adarsh Menon, a veteran at Flipkart. Sameer Aggarwal, Chief Executive Officer at Walmart India, will remain with the company to ensure a smooth transition, after which time he will move to another role within Walmart.
Flipkart claims Kiranas and MSMEs are an integral part of this new venture. The company plans to provide small businesses with significant value powered by technology to make various business processes easier.
What’s in it?
Using the new platform businesses can access grocery, general merchandise or Fashion segments. Flipkart claims these businesses will have one-stop access to an extensive selection of products. The company also plans to provide attractive schemes and incentives, supplemented with data-driven recommendations for stock selection. The products will be delivered through the company’s logistical network to provide greater efficiency. The current supply chain infrastructure of Flipkart Group will be used to reach kiranas and MSMEs.
Merging of WalMart
Walmart India employees will join the Flipkart Group and the home office teams will integrate over the next year. The Best Price brand will continue to function via its omni channel network of 28 stores and e-commerce operations. The move will further intensify competition with Flipkart’s rival Amazon that has a similar offering for the B2B segment. “The B2B market for finished goods is estimated to be worth USD 650 billion. To start with, we will be focusing on USD 140 billion of that USD 650 billion, which is largely the categories of fashion, grocery, general merchandise, large and small electronics,” Menon said.
The company claims top Indian brands, local manufacturers and sellers have partnered with them to ensure the availability of an exhaustive range of products and merchandise for kiranas and MSMEs.