Don't chase the activity of bricks and mortar stores in India anymore: Walmart, et brandedquity

Doug McMillon, president and CEO of Walmart, does not mince the words. In an interview, McMillon (59), who supervised the acquisition of the US retail giant of a control participation in Flipkart in 2018 in an agreement of 16 billion dollars, tells Toi that the company is looking for a level level field in the countries that operates. He also says that Walmart is no longer chasing his business in brick stores in India. Extracts from the interaction with McMillon and Walmart International President and CEO Kathryn McLay:Is there a race to stock up before the mutual rates return? How do rates influence you and American buyers?Doug McMillon: We are doing everything possible to keep our prices as low as possible as long as possible. The supply from India is important for us. We have long -term view. We will balance the various pressures.

Did the rates change the supply dynamics? Have you increased your purchases from US suppliers?

McMillon: There are many advantages in the purchase near where your question is … you can create more jobs, have less delivery time. More than two thirds of what we sell in the United States is made, cultivated or assembled in the United States. Whether it’s in the United States or Mexico or in other countries, we try to buy first of all …

Kathryn McLay: During Covid, we learned that if I had an excessive dependence on a particular commercial way, then it could be very disruptive. So, over the past five years, we have tried to build a resilient supply chain. The supply from India is an excellent option for us and it is an excellent option for India.‘China+1’ has led to a greater supply from India?

McMillon: it was nice to see the expansion of the amplitude of the categories. When we started here, we were buying a lot of soft goods. And now we are buying food products, categories of more general goods other than that at home. What we see in India is that we can buy all types of things. We hope that the diversification of the manufacturing base in continuous India.

Flipkart came late to enter rapid trade. What will your growth trajectory be like?McLay: When the Flipkart team decided to switch to rapid trade, they moved on speed. Not only did they have really strong plans around the launch, but they continue to explode us as regards the speed: to make a delivery in a few minutes.

Does it mean more cash burning?

McLay: We have always said that we are interested in making sure we are positioned around the growth and market share and delight in customers before concentrating on profits. Obviously, we have to make profits, but we think about that order. Flipkart is in this wonderful position of having access to 500 million customers.

As you can see the political panorama here as there are questions that Amazon and Flipkart comply with the rules in letters and the spirit or not?

McMillon: our work is to comply. This is our goal. The work two is to communicate to everyone what we see that it would help us to be able to better serve customers and what we think that the rules could help support the economy. We always communicate with this government and other Govt as regards this.

Allowing a model based on Flipkart inventory something that Walmart would look for?

McMillon: we like the management of the inventory, the management of the inventory is difficult but it is one of the areas in which we have experience. I hope that, at some point, it will happen.

Would you be interested in bricks and mortar stores in India if the rules of the IDE allow it?

McMillon: it’s not something we are pursuing. We learned that it is very difficult. We are very excited to have invested in Flipkart.

Is it also because of the changing nature of consumers? Since Amazon is overcoming in terms of revenue, how are you facing us?

McMillon: all over the world, e-commerce has grown and continues to grow. But in particular in India, e-commerce activity has a really bright future; Flipkart has a really brilliant future and I am really grateful to have made the investment when we did it.

Is it a field that plays at the level since the rules allow a model based on the inventory for Indian companies?

McMillon: the rules do not depend on us. While we operate all over the world, everything we ask is a playing field.