Abstract :
— In a fiercely competitive e-commerce market,
biggies are sounding a death knell for the small and midsized players threatening to eventually wipe them out of
India's burgeoning e-tailing landscape. The domestic
digital commerce market is expected to clock a higher
growth in 2014-15 due to better internet penetration,
increase in trust level and pricing advantage. Growing
number of internet users, a more secure and convenient
transaction system, coupled with lucrative offers and a
24x7 delivery system are the common drivers of growth.
With Flipkart raising $1 billion in fresh funds and Amazon
pouring $2 billion into the India market, many existing
players could fall off the investors' radar paving the way for
a two or three-way race between Amazon, Flipkart and
Snapdeal in India. Investor‘s appetite to pour money into
smaller horizontal players like Tradus, Infibeam and
ShopClues would come down substantially forcing some of
them to hit the exit button. But the specialized online
retailers such as Urban Ladder and HealthKart may hold on
to their turfs despite the onslaught from the big ecommerce players. So far, Flipkart has risen close to about
$1.7 billion from a clutch of investors as it fights out
Amazon and domestic rival Snapdeal in a fast-growing ecommerce market, projected to touch $8 billion by 2016.
India has 243 million internet users, and this number
continues to grow rapidly due to increased smartphone
penetration. Merger and Acquisitions are the most common
approach used by these major players to grow in size and
fight the competition across the world. This paper is an
effort to study the M&A of Flipkart and Myntra and its
impact on the e-tailing industry of India.
Keyword :
E-tailers, E-commerce, Entrepreneurs, Distinctive strategy, Mergers, acquisitions, Corporate restructuring