The internet retailing channel in India is in a transitional phase. It is at a point where it is becoming one of the most used retail channels in the country, especially among the urban population. Both Flipkart and Myntra entered internet retailing in India in 2007 and have been able to change consumer perception of the channel. This has led to an increase in acceptance of online retailing and improved sales in this channel for many industries. Now there is speculation that these two companies are planning a merger in the next couple of months. This development would be the biggest partnership in online retail in India since its inception.
Flipkart and Myntra are two of the strongest players in internet retailing in India. Let me first introduce the companies to you. Flipkart is almost synonymous with internet retailing in India. The company came into existence in 2007 and gradually changed the face of online retail via its free shipping of books. Flipkart eventually entered other categories such as consumer electronics and appliances, beauty and personal care, personal accessories and eyewear, housewares and finally apparel and footwear. The company’s is currently valued at approximately US$1.6 billion and there is speculation that it plans to launch an IPO in the next fiscal year by offering its shares on the NASDAQ stock exchange in the US.