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| Edited By: Ashish K Tiwari |Source: DNA |Updated: Mar 19, 2018, 05:21 AM IST
Krish Iyer, president and chief executive officer, Walmart India, sees huge potential in the B2B e-commerce initiative introduced by the company in the Indian market recently. On the sidelines of India Retail Forum (IRF) 2014 Iyer spoke about the company's expansion plans for the online initiative among other topics:
On Walmart India's B2B online initiative
We have created an online B2B model for each store, which is something very unique to India. We have so far launched in Lucknow and Hyderabad and the response has been very good. We are learning more about the members, what they need, the challenges, etc and are fine-tuning the operations accordingly. We are very enthused about the response and propose to start rolling it out in other stores soon. We certainly expect to start the process in January. We currently have 20 stores, out of which the initiative has been rolled out in two locations. So 18 stores and whatever new stores that open up in the near future will see the B2B online initiative as well.
On key observations and indicators from the market:
The key was acceptance by the business members in the Tier I and II towns. We wanted to see whether small shop owners, hotels and restaurants, office and institutions will readily accept something like this or would want to continue with the traditional approach. A sizeable percentage of our members are excited about what we are doing because it enable them to shop more from us without having to visit the stores and focus more on servicing their customers. Besides, the online initiative also gives them greater transparency. It is what I call the omni-channel experience because these are the members who also come to our stores and are now buying things online. What drives a customer in every country is value – that is quality, price, convenience, etc.
On new cities being looked at for expansion:
We continue to study and are currently operational in 19 cities across nine states. We are in Punjab, Jammu, Rajasthan, UP, Andhra Pradesh, Madhya Pradesh, Maharashtra, Chhattisgarh and Telangana. North India contributes the maximum followed by south and west.
On expansion plans:
We have started expansion already and that's why we are talking about another 50 stores in the next five years. So by 2020 we should have a total of 70 stores operational in India. Currently, we are the largest pure-play cash and carry operator in terms of number of stores but don't know if that is also the case in terms of sales as well. But we certainly are the best. In the next 18 months, we should see some announcements on the new stores that will get operational.
On building an app for B2B online initiative:
We are working on those areas to enhance the shopping experience for our members. We will introduce it in the market at the right time. We continuously innovate and invest in technology to enhance the experience.
On interest in retail market and possible partnerships in India:
I believe retail market in India is a big opportunity and we are keeping a close tab on the developments as far as policy matters are concerned. However, there are no plans to enter the retail market as of now and our entire focus is on the cash and carry as well as B2B e-commerce operations.
On reports about acquiring Carrefour's stores in India:
I'd say a lot of it is speculation. We continue to look for all opportunities organic and inorganic and whatever is available in the market we evaluate them very carefully.
