#141 Transnational Takeover Alert: Bentonville goes Bangalore

This will be short: I haven’t posted a “Transnational Take-Over Alert” in a long time, but given Walmart’s history of failures in international markets, it seemed important to write one now. As various news outlets recently reported, Wal-Mart has doubled down on the Indian market by acquiring Flipkart, India’s largest commerce platform – an Indian Amazon of sorts. Walmart, headquartered in Bentonville, Arkansas, has been active in the Indian market for many years now and still hasn’t cracked the market. With only 21 wholesale stores in a market of 1.35 billion people it currently only generates a disappointing 0.1 percent of Walmart’s global revenue there. Rules that protect local shopkeepers, a burgeoning bureaucracy, and a fragmented regulatory system have stifled Walmart’s expansion in India. If the acquisition of an online retailer will pay off remains to be seen – the Indian online market isn’t well developed, and it is also fraught with strict and confusing regulations. I have a feeling that there will be more to report on in the future…

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