Jim Fosina, CEO Fosina Marketing Group shares commentary with Jacqueline Renfrow, FierceRetail with her article, A Flipkart acquisition could expand Walmart’s global reach.
- Jim Fosina, CEO of Fosina Marketing Group, agreed that the pairing of Walmart and Flipkart shows Walmart’s hunger to compete on a global scale against Amazon.
- “India is a huge and emerging market and the relationship with Flipkart would get Walmart into the game on a worldwide stage,” Fosina told FierceRetail. “They would be buying in while at the same time learning to build an Amazon-like product/service on a grand scale.”
- Fosina believes that the pairing would increase the product selection for India-based customers by connecting Walmart products to the India market within Flipkart model. Plus, Walmart would provide a gateway for U.S. brands that it currently has relationships with to enter the Indian market.
- Fosina noted that these mergers also represent a sign that the big players are waking up to the direct-to-consumer (DTC) market threat. Tired of losing to Amazon, larger retailers are making the strategic moves to slow down the giant marketplace.
- “It remains to be seen if this clash of the titans really results in one-to-three major retailing brands or whether consumers will see this consolidation as a good thing from a price/value standpoint. What’s incredibly important is that these brands aren’t just doing financial engineering … they MUST build a higher level of service and customer support, innovative ideas in how to connect with customers into the model in order to be truly successful,” he said.
- Again, he stressed that retailers must build a DTC strategy for 2018. Plus, there must be a hyper-local strategy built so that customer engagement and service are put front and center.
- “Customer service and engagement are critical for all retailers to enhance, the level of personalization at all customer touch points is essential to retaining customers. Local retailers must become known for the level of service that they provide on a local level,” Fosina added.
- Fosina: “It signals that there is going to be a lot more fierce activity in the retailing space. The giants have awakened and are making their moves to do battle. This signals another wake-up call for all retailers to examine their strategies and become more aggressive as I have indicated above.”