Flipkart has set its next target — a gross merchandise value (GMV) of $17.6 Bn by 2020-21.
Since its acquisition by Walmart in May, the company has successfullycompleted its annual saleand continues to expand its portfolio of products while expanding its strategy to private labels as well.
People familiar with Flipkart’s three-year outlook reportedly claimed that the companyexpects about 45% ($7.4 Bn) of its 2020-21 GMV target to be contributed by mobile phones,followed by large appliances and fashion at $2.7 Bn and $2.6 Bn,respectively.Groceries are expected to contribute another $1 Bn.
Flipkart’s GMV target is in the same range as that of its major challenger, Amazon India. According to areport by Citi Research,Amazon India is expected to reach $17 Bn in GMV in 2020 and $23 Bn in 2021.
One of the most interesting revelations of the Citi Research report wasAmazon India’s valuation, whichwas pegged at $16 Bn, the same amount for which Walmart has acquired a 77% stake in Flipkart.
It must also be noted that a Forrester report had recently revealed thatFlipkart’s standalone market share was estimated to be 31.9% at the end of 2017 while Amazon India’s was 31.1%.
Amazon had started out in India with a 14% share in 2015 against 43% of Flipkart. Citi Research estimates thatAmazon India is currently in second place in the Indian ecommerce market with about $5 Bn in GMV.
With India’secommerce industry expected to touch $200 Bn by 2026, according to areportby Morgan Stanley, the market reached $33 Bn, registering a 19.1% growth in 2016-2017, as revealed in the Indian government’s EconomicSurvey 2018.