Afternoon Coffee: Walmart Buys Majority Stake in Flipkart, Aluminum Price Volatility Shakes Up Supply Chains

Following more than a year and a half of negotiations, Walmart is paying $16 billion for a 77% stake in Flipkart, India’s leading e-commerce platform, the New York Times reported. The deal puts Walmart directly in competition with Amazon, whose India site has been rapidly gaining popularity in relation to Flipkart.

India’s e-commerce market is currently limited, but Morgan Stanley has estimated that it will increase to $200 billion in a decade.

Aluminum Price Woes

The recent volatile state of aluminum prices has affected the supply chains of many companies that use the metal to “make everything from jets to beer cans,” the Wall Street Journal reported. Fluctuations in supply and price have led to cancelled deliveries, leading to uncertainty on the part of companies on whether they can meet production targets.

AI Fever at Google I/O

Google I/O, the technology giant’s annual developer conference, is currently going on in Mountain View, Calif., and the buzz around artificial intelligence is strong.

Some of the most remarkable announcements included a Google Assistant that can imitate a human’s voice and book your appointments; phones that automatically shift into “do not disturb” mode; and AI-powered Google News, as New York Magazine reported.

Sourcing from Vietnam

Adidas’ chief executive expects the footwear company to increasingly shift sourcing from China to Vietnam as uncertainty around U.S. tariffs on Chinese-made goods looms, Reuters reported.

Forty-four percent of Adidas footwear were produced in Vietnam in 2017. Only 19% were produced in China, down from more than 30% in 2012.

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