Horlicks and Fliplcart
First FlipKart. This e-commerce giant has
been acquired by American Walmart company by
purchasing 70 % share of it.So, Walmart will be
kingmaker and decession maker.Frankly saying this Flip kart now
under Walmart.
Another side business deal is the well known popular packaged food brand
Horlicks. I have seen in my village from
childhood the ads on black and
white television set.This brand now going to
sold out to Hindustan Unilever Limited.
The American company Unilever and Anglo-Dutch company Glaxo Smithkline's Horlicks nutrition business for $ 3.8 billion.That amount will be paid in cash in its Indian subsidiary.
The transaction covers GSK's 20 Asian markets including Indian and Bangladesh.
So, what is the main reason HCL to invest huge in health drink and food.
Simple , the rising of middle class and this region in next future would be the
much purchasing region and the acceptance of health concern towards health drinks.
Another reason is to be lunched and compete with global brand like Nestle and the coming brand of Coca-cola and from the local brands.
A growing awareness among younger and educated youth are seen .Urban and rural people now investing heavily on
their children.This region's baby producing rate also high and per ca pita income increasing.
Let us come to Flip kart. One astonishing thing i am seeing in India still e-commerce is in baby stage.
At this stage a leading e-commerce company is being sold by
Walmart. What it is saying ?
Clearly saying Mall culture still in premature stage in India.Indian customers not too old with mall culture.At that time e-commerce purchasing culture came.So, the two behaviours will fight surely in consumer brain.
Indians are now reversing to the known grocery shop or mall.The behaviour of customers
suddenly have changed due to duplicate product of e-commerce, govt restriction of discount and many more.
This deal may be the business conspiracy by Indian mall business group that in Indian when mall culture is not more than 20 years old huge investments in brick and mortar type business may dominate e-commerce companies.
Secondly Walmart what can not do in American with Amazon can take revenge in
all leading e-commerce American company like Amazon,e-Bay and others in Asian market.
Thirdly Walmart's Indian investment may be the future business acquisition to do business
in fastest growing economy.
But frankly this
is not not a good and hearty
deal sign for e-commerce companies in India.
To loose e-commerce market this
is purely a conspiracy by mall business group.