Walmart-Flipkart Will Embrace 'Shared Value' Concept in India
There are multiple examples of how this concept of “Creating Shared Value” has contributed significantly to the growth of various partner members at Walmart India.
Walmart and Flipkart will now jointly and firmly bring in, adopt and execute the concept of `Shared Value’ in India. This would mean that the two companies would work together with a business model designed to benefit all stakeholders: members, associates, farmers, suppliers, communities and society in general, said Rajneesh Kumar, Senior Vice President, Walmart India.
“Without question, India’s future is filled with excitement and possibilities. In the new scheme of things, both Walmart and Flipkart, who are now partners, have made it clear that they would share the same vision and are committed to standing with India as it grows into the future,” said Kumar.
There are multiple examples of how this concept of “Creating Shared Value” has contributed significantly to the growth of various partner members at Walmart India. A case in point is of a new entrepreneur Vinay Kotra in Hyderbad, who in March 2017 was venturing into retail through “SKS Daily Needs” a Modern retail, for the first time. Walmart Best Price store team got involved helping Vinay with the design concept/store layout/margin benefits/payment solutions/customer service, delivery solutions, assortment mix and other retail operations nuances. Now he plans to open more of such stores basis his success in the first.
Similar is the success story of Deepti Chauhan from Lucknow who after quitting her job in a city two years back went back to her farm at BassiKaTalaab, 30 km away from the Best Price store in Lucknow. Walmart onboarded her as its supplier in 2016 and started sourcing exotic vegetables. Gauging her potential and willingness to scale up and experiment, Walmart strengthened her understanding of Food Safety compliance guidelines for packed produce. They guided her through various methods of packaging and supported her in extending her supply chain so that she could cater to stores in Meerut and Agra.
On the vendor development front the case of Annkoot Agro Food, a papad manufacturer from Jodhpur, Rajasthan, stands out. In 2008 it began supplying to three of Walmart India’s Best Price Stores with a turnover of Rs. 3 lakhs per month. Annkoot has now grown to be multi crores enterprise employing over 150 people today, 40 percent of whom are women.
Interestingly, over the years, Walmart India has built a solid foundation in the country, with the mission of enabling small businesses to prosper. Since throwing open its first Cash and Carry store in 2009, Walmart India has so far served more than a million members, with a keen focus on kiranas and other small businesses.
Walmart has always been creating value for members, small farmers, local and regional suppliers, associates, and women-owned businesses. That has been one of the key business drivers. And now, subsequent to the partnership between Walmart and Flipkart, these efforts can reach new heights. The newly formed partnership would also enable the businesses to grow alongside, within its many local communities and contribute to significant national initiatives such as ‘Make in India’, Skilling India and ‘Digital India’.
He said that India is experiencing transformative change across society, which makes the timing of this partnership important. India is growing rapidly, with e-commerce growing at an even faster rate. Flipkart brings a passion for customers, combined with an ability to innovate and solve the challenges that can get in the way of a great customer experience. Kumar said that when Walmart and Flipkart start working together, that will certainly accelerate their commitments to drive job creation, small business growth, expand markets for rural farmers.