Morgan Stanley sends Walmart a warning to her; Flipkart may leave new FDI rules

MUMBAI: Biggie Wall Street, Morgan Stanley, said Walmart could leave Flipkart in a similar move to the Amazon that was made in China if the retailer could not see the long-term track for profit. The intenseness in a report dated 4 February stated that "leaving tends, not out of question, with its" hugely complicated Indian trade market " . The report comes into line with the new Foreign Trade Direct (FDI) rules for the Indian trade trading department put forward by the government on 1 February.

The Government News Note 2, which was released in December last year, brings online markets and their group companies from the " ownership of the sellers and disqualify them to & # 39; control the list that was sold on their platforms. "There is a prospect of leaving Amazon's Amazon since late in 2017 after seeing that the model was no longer working for them," said Morgan Stanley's report with the title & # 39; EK's Risk to Walmart Flipkart Assessment


Morgan Stanley said that Flipkart could use some 25% of its products to be removed from its site in accordance with the new regulations. Most smartphones and electronics would have the highest level of emotion; may have an impact due to the necessary changes in supply chain and current issues, said its intestines. "We estimate that Flipkart receives 50% of the revenue from this section, which means that Breakdown can have meaningful breakdown and pressure on the stage in the period short, "he said. Historically, a large Flipkart sale is driven by smartphones and high-quality electronic sales.

Responding to the question of ET, Walmart spokeswoman said: "Despite the recent changes made in the regulations, we are optimistic about giving opportunity International trade in India according to market size, is involved in commercial trading in the sales channel and its growing pace. Walmart screen in India, its company will continue to create a sustainable economic growth over agriculture, food and sale. Future investments will support national initiatives and will take sustainable future for the country. "

Amazon and Flipkart are the biggest markets that have an impact on the internet and have dropped by 25-35% in sales after they have redefined their retail units where they did not keeping a proper interest.

Amazon – Retailte and Appario Retail's two biggest retailers – were removing goods that were sold after the start of the new guidance on 1 February as they were joint ventures created with a & # 39; American online trading company.

Source link