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Not Amazon, local players are bigger competitors

Friday, 23 May 2014 - 7:35am IST | Agency: DNA
In an interview, the Bansals spoke to Suparna Goswami Bhattacharya about the deal and their future plans.

How did the deal come about?
Sachin Bansal:
We were drawing many strategies like should we have a strategic partnership or should we go for acquisition, etc. We felt acquisition is the best bet. We decided this two months ago.

Why have you decided to keep Myntra and Flipkart as separate brands?
Mukesh Bansal:
We decided to run both the companies separately as both entities are different in their dna. It was very essential to keep Myntra a separate entity and preserve its culture. I'm here for a long haul, and we will continue to grow in the market.

Now that Myntra and Flipkart -- two biggest players in the Indian e-commerce space -- have decided to merge, how is the equation likely to change. Is this a move to counter Amazon in India?
Sachin Bansal:
We feel local players are more of a competition than international players in the e-commerce space. And this is true across all economies not only India. As far as Amazon is concerned, we do not really feel threatened. In fact, in today's scenario we look up to Alibaba, the Chinese e-commerce giant.

How different is China from India when it comes to e-commerce market?
Sachin Bansal:
Well, China is very similar to India. I visit there often and have interacted with entrepreneurs. In terms of innovation, China is much ahead of the US. It is inspiring.

Since you mentioned that you look up to Alibaba, which plans to go for IPO soon. Are you also looking at an IPO sometime in the future?
Sachin Bansal:
We want to be a public company some day. But it is not in top of our minds right now.

What about profitability? When do you think as a company you will start making profits?
Sachin Bansal:
Profitability is not our goal right now. We can be profitable today if we stop investing in warehouse and back-end. But it would be a wrong strategy.

Mukesh, how do you feel today? You all started together, and now Flipkart has acquired Myntra?
Mukesh Bansal:
I have known them long enough and have great respect for them. There are absolutely no issues.
Binny Bansal: We have learnt a lot from him on fashion e-commerce. He is part of the board, and will make all investment decisions for both Flipkart and Myntra as far as fashion products are concerned.




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