NEW DELHI: On his brand new go-to to India earlier this month, Walmart CEO Doug McMillon expressed his bullishness now not on the retailing behemoth’s worldwide bread-and-butter commercial enterprise of grocery but style. He turned into reportedly “mesmerized” the way fashion is performing at Flipkart and Myntra and desired it to be the targeted category in India for increase and profitability, in keeping with human beings familiar with the problem.
Walmart ultimate yr snapped up India’s most enormous e-commerce corporation Flipkart Group for $16 billion. Analysts said the idea in the back of the buyout changed to push Walmart’s expertise in everyday-low-rate everyday gadgets in India adore it does inside the US. But the point of interest seems to be transferring for the world’s biggest retailer after Walmart checked out the income data at Flipkart and its subsidiary Myntra.
“Walmart doesn’t look a long way in India. There is a prepared example in Big Bazaar, in which a bit of annual income might be coming from food and grocery. However, the actual boom and earnings over the years have come from an increasing style portfolio,” said Nitin Chhabra, CEO of e-commerce consultancy firm Ace Turtle. Fashion accounted for approximately 24% of income at Big Bazaar around 5-six years ago. Still, the category now accounts for 37% of the chain’s annual revenues, stated Rakesh Biyani, joint MD of Future Group.
“This section has grown in relevance through the years and keeps to play an excellent extra pivotal component in driving higher numbers and benchmarks for the shops,” Biyani stated. India’s booming style and lifestyle market draw each of the world’s biggest retailers or even nearby manufacturers. Thailand-based style brands Lyn is making ready to go into India. So is Poland-based sports wear brand 4F. Last yr, a delegation of several small and medium Turkish manufacturers turned into reading the Indian market, in line with executives at department stores. The vastness of India’s fashion marketplace, with the promise of the boom at every price point, is attracting manufacturers from China to Poland – both offline and online.