Flipkart’s Big Billion Days (BBD) sales extravaganza helped Walmart’s foreign business soar in the third quarter of FY25. The retail behemoth revealed remarkable figures for all of its international regions, with India being a key contributor to the expansion of e-commerce and ad sales.
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Credits: Business Standard
Walmart’s International Sales Surge by 12.4%
At $31.5 billion, Walmart’s foreign sales represented a 12.4% increase in constant currency terms. The strategic significance of its operations in 18 non-US nations, such as China, Mexico, and India, is highlighted by this performance.
Walmart’s Indian e-commerce division, Flipkart, became a major growth engine because of its historic BBD sales event that took place during the holiday season.
“Flipkart’s The Big Billion Days event boosted growth in Q3 and will impact growth in Q4 as well,” Walmart stated in its results report.
E-Commerce and Advertising Dominate the Quarter
E-commerce continues to be a cornerstone of Walmart’s international strategy, with online sales growing by 43% during the quarter. This growth was fueled by Flipkart’s marketplace success and its focus on store-fulfilled pickup and delivery services, which catered to evolving consumer preferences.
Advertising revenue also saw remarkable growth, surging 50% year-on-year, led primarily by Flipkart’s ad business. The integration of ad tech and targeted campaigns during the BBD event further strengthened its revenue streams.
Big Billion Days: A Sales Extravaganza
Flipkart’s Big Billion Days sale, a marquee event for India’s festive shopping season, ran from September 26 to October 6, 2024, earlier than its traditional timing in October. This timing shift boosted Q3 results but will impact Q4 growth, Walmart noted.
Despite the timing adjustment, the BBD sale delivered stellar results. Flipkart leveraged deep discounts, exclusive product launches, and partnerships with sellers and brands to attract millions of shoppers. Categories like electronics, fashion, and home appliances witnessed unprecedented demand.
Challenges from Timing Shift
While Flipkart’s contribution significantly elevated Walmart’s international sales, the timing shift of the BBD event posed challenges. Walmart stated that the gross profit rate for the quarter, though up by 21 basis points to 24.2%, was partially offset by the earlier scheduling of Flipkart’s sales event.
This shift meant that revenue and cost structures that typically influence Q4 were accounted for in Q3, creating an unusual overlap.
Strong Overall Performance in Q3 FY25
Walmart’s global operations delivered robust results, with total revenue hitting $169.6 billion, a 6.2% year-on-year increase. Of this, Walmart US contributed $114.9 billion, with a 5% growth driven by improvements in supply chain efficiency and higher in-store traffic.
The company’s gross profit rate improvements were attributed largely to its U.S. operations, although Flipkart’s contributions played a pivotal role in the international segment.
Credits: Hindustan Times
The Long-Term Play: Flipkart’s Role in Walmart’s Growth
Walmart’s 2018 acquisition of Flipkart for $16 billion marked one of the largest bets on the Indian e-commerce market. Over the years, Walmart has raised its stake to over 80%, solidifying Flipkart’s role as a growth engine for its international business.
The BBD sales event has become a major milestone for Flipkart, transforming it into one of India’s most trusted e-commerce platforms. Beyond marketplace sales, Flipkart has been innovating with tech-driven solutions, omnichannel strategies, and ad revenue streams, making it a cornerstone of Walmart’s long-term strategy.
Looking Ahead: Optimistic Outlook for 2025
Walmart is still confident in its path of global expansion, projecting that advertising and e-commerce sales in the second half of FY25 will follow the first half’s impressive results.
Walmart’s dominance in the global retail industry will be further cemented as Flipkart maintains its growing pace with its innovative market strategy.
Flipkart’s Big Billion Days demonstrate the harmony between regional strategy and global ambition, while Walmart continues to manage a variety of regions. Walmart has a bright future ahead of it thanks to innovation, consumer focus, and a strong dedication to e-commerce excellence.
Conclusion
Walmart’s Q3 FY25 numbers highlight how crucial Flipkart’s Big Billion Days are to the company’s global expansion. Walmart’s global strategy is well suited to the retail industry’s future, with e-commerce and advertising at the forefront. Walmart is actively using India’s increasing importance in the global retail scene, as evidenced by Flipkart’s success story.
