Global advertising revenue grew by almost 30 percent, led by Walmart Connect in the US and Flipkart advertising: Walmart
Am impressed by how Flipkart is innovating for its customers and driving the growth of Walmart: Walmart CFO
Flipkart continues to exceed our expectations, and the team is getting ready in preparation for Big Billion Days: Walmart
American retailer Walmart the day before (August 16) announced that its advertising business worldwide has risen in the last quarter of July 2022. The increase was mostly on the strength of performance by Flipkart and its US-based advertising division.
“Global advertising revenues grew by almost 30%, driven by Walmart Connect in the US and Flipkart advertising,” the company said in its quarterly Q2 report.
The retailer also expressed praise for its e-commerce offerings and said that Flipkart continues to exceed its goals.
“Flipkart continues to surpass our expectations, and the team is getting ready to prepare for Big Billion Days. I went to India this month, and I was impressed with what Flipkart and PhonePe’s Flipkart as well as the PhonePe teams are innovating to meet the needs of customers and stimulating the growth of the company,” Walmart chief financial officer John David Rainey said.
Regarding the performance of its eCommerce segment, Walmart said that ecommerce net sales made up 19% of net sales in the global market.
In a conference call to discuss earnings, Walmart executives also said that Flipkart’s spin-off the fintech arm PhonePe will be looking to build its financial services division.
Walmart is the owner of e-commerce giant Flipkart and the fintech giant PhonePe
While Walmart reported double-digit growth in its key markets like Mexico, Canada and China however, it didn’t disclose the specifics of its performance in India. Walmart reported an 8.4 percent increase in total revenue to $153 billion during its second quarter in Financial Year 2022-23 (FY23). The company’s sales outside of the United States also increased by 5.7 percent up to $24.4 Bn in the quarter which ended on July 2022.
The increase was partly fueled by the rise in inflation which has led to higher prices around the world.
Flipkart is primarily competing against the US-based ecommerce giant Amazon and the homegrown Snapdeal within India.
In recent times, Flipkart has been under some criticism. Trade organizations like The Confederation of All India Traders (CAIT) have demanded an action against the e-commerce giant with regards to the rigors of pricing and anti-competitive conduct by the business.
The problem has been made worse due to the recent crackdowns of authorities on marketplaces for e-commerce. In May it was said that the investigation division that is part of CCI was examining documents that suggested financial transactions between e-commerce platforms, like Flipkart as well as their most popular sellers.
In the Newsexposer report the addressable opportunity for Indian e-commerce is predicted to be $200 billion in 2026. Additionally, the number customers who shop online in India has risen to 140 million in 2021, according to the report.
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