Flipkart Myntra From a Merger to an Acquisition
The Indian e commerce market was worth 75,000 crore, in 2013, according to a joint report by KPMG and Internet and Mobile Association of India. India has the potential to double its economic contribution via Internet, from 1.6 percent GDP at present to 2.8 and 3.3 percent by 2015 [MCkensy'2012] Indian E commerce is most likely to generate employment for 1.45 million people in coming two years. Emergence of the new government and its innovative policies are developing hope to bring FDI in e commerce for local market players. Marking the biggest consolidation in the e commerce space in India, this report puts light on India's own Amazon; Flipkart and fashion e tailer Myntra which jointly exposes their vision to capture more than 50% e market share by strategic alliance. As Flipkart's annualized sales crossed over 6,100 crore a year ahead of target. It had estimated to reach the billion dollar mark for gross merchandise value by 2015; on the other hand Myntra's revenue was about 1,000 crore in the previous financial year. It aims to double its revenue in this financial year as it expands its seller base and adds products following China's biggest e retail model Alibaba.com. Myntra has about 100 sellers on board and plans to increase this number to 1,000 by fiscal end. The strategy of Flipkart is to invest around 600 crore in its fashion business in coming years to combat with global rivals like Amazon and eBay Inc. Furthermore it reveals the philosophy behind this giant acquisition and how this will contribute to the progression of Indian economy which will lead it to become a global player in Ecommerce.