Two American companies will be affected adversely by India’s e-commerce investment rule, effective February 1st, 2019.
- Walmart cannot sell products via Flipkart in which it has 77% equity interest.
- Amazon cannot make deals with sellers to sell exclusively on their platform.
The rule protects India’s small retailers and traders at the expense of large online retailers’ operations in India.
Video Spotlight: Here’s why India is a huge threat for Amazon and Walmart
This post is based on the Reuters article, U.S. voices concern as India’s e-commerce restrictions hit Amazon, Walmart – sources, by Aftab Ahmed, Aditya Kalra, and Nandita Bose, January 24, 2019; and the YouTube video, Here’s why India is a huge threat for Amazon and Walmart, by CNBC Television, February 1, 2019. Image source: Shutterstock/xtock.
1. Why did Walmart and Amazon decide to operate as online retailers in India?
Guidance: They wanted to tap into India’s booming e-commerce market and attract India’s growing population of tech-savvy shoppers with low-cost strategies.
2. What are the global operational risks for Walmart and Amazon?
Guidance: The global operational risks include tougher scrutiny of foreign business players, trade/investment policy that adversely affects foreign business Continue reading