MUST COMPLY WITH INDIA’S RULES: WALMART CEO
WE’RE REALLY PROUD OF THE HISTORY THAT WE’VE HAD IN THE COUNTRY, AS WE WORK TO BUILD A BUSINESS THERE. WE THINK THE FUTURE IS BRIGHT, AND WE ARE GOING TO SEE A MARKET THAT’S NORTH OF A TRILLION US DOLLARS BY 2025
DOUG MCMILLON, CEO, Walmart
India is a diverse country and Walmart has to think and execute locally and comply with its rules, said Doug Mcmillon, chief executive officer (CEO) and president of the world’s largest retailer.
“It has its own rules. So we’ve got to comply with them,” said Mcmillon during a fireside chat with Prof Murali Mantrala of The University of Kansas School of Business at Converge @ Walmart, the flagship event of Walmart Global Tech India. “Today we’re not allowed to make foreign direct investment (FDI) in a multi-brand retail store, the physical bricks and mortar store. So, we operate differently.” He said the company has to solve the problem of food business in that kind of model.
Mcmillon said the Indian market is very unique and is one of the most exciting around the world. It is among the top three, along with the US and China. The Bentonville-based firm (in Arkansas) is locked in a battle with US rival Jeff Bezosfounded Amazon, Mukesh Ambaniowned Reliance’s Jiomart, and Tataowned Bigbasket for dominance in India’s online retail market through Flipkart, which it bought for $16 billion in 2018. Digital payments giant Phonepe also came to Walmart as part of the acquisition.
India’s retail market is estimated to reach over $1 trillion by 2025.“We’re really proud of the history that we’ve had in the country, as we work to build a business there,” said Mcmillon. “We think the future is bright, and we are going to see a market that’s north of a trillion US dollars by 2025.”
Mcmillon said he is excited about the leadership teams at Flipkart and Phonepe and the associates in India, and the businesses that are being built. He said the Flipkart business has now reached over 300,000 marketplace sellers and Phonepe business has more than 300 million users. “Both are growing very well,” said Mcmillon. “It’s been really fun to see how our team there solves problems because you have to be so creative, open, and fast and that inspires us around the world.”
Mcmillon said when Walmart was thinking about making the investment in Flipkart and Phonepe, his key takeaways were the teams there can solve problems.
“No doubt every market where we operate, especially in India, is going to have challenges. It is a dynamic environment. Rules, customers, and competitions are changing,” said Mcmillon. “The real question is can you show up every day and have a really capable engaged set of associates and leaders that want to solve tomorrow’s problems.”
The role of technology in all of Walmart’s markets, including India, is now even more important than ever. “We are fortunate at Walmart that we inherit a strong set of DNA from our founder Sam Walton who loved change,” said Mcmillon. He said purpose and values are constant at Walmart and everything else is open to change.