Soon, Walmart's Battle with Amazon will Get Underway in India

BENGALURU: A rivalry which has been given many expletives over the last few years–the world’s biggest retailer, Walmart against Amazon, the world’s biggest online marketplace. Now, the American retail war is all set to enter India; thanks to the central government’s decision to allow 100 percent FDI in trading food products.

A few years ago, nobody in their sane minds would’ve thought that Amazon would outwit and overtake a company like Walmart. Yet, Amazon did it, partly due to Walmart’s reluctance for investing in e-commerce. Realizing their mistake, Walmart announced last year that it will be making an investment of up to 2 billion US dollars for revamping its e-commerce platform. Better to be late than never, Walmart.

As the battle comes to India, both companies will be looking for a head start in one of the world’s largest retail markets. The new policy allows 100 percent FDI in retail for both online as well as offline sellers. Though Walmart mostly sells food products through brick and mortar stores, the company will explore selling products via online stores as well, Walmart’s CEO Krish Iyer told Economic Times. Furthermore, Amazon has also disclosed its plans to market fruits and vegetables online through a new platform called Amazon Fresh. So, the battle lines have been drawn.

On the other hand, the competition between these international giants can actually turn out to be a blessing for farmers and the country’s food processing sector as a whole. According to a recent statistic, India wastes about 59 million tonnes of fruits and vegetables annually due to the lack of proper storage facilities and cold chain infrastructure. Hopefully, the entry of global players like Walmart and Amazon will help revive the country’s agricultural sector and reduce the wastage of food products.

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