Economic Times says Walmart to enter indian markets. But the timeline isnt decided yet. India will have more unemployed ppl as a giant like Walmart with so much cash at hand could raze local sellers. But it would generate few employment.
http://economictimes.indiatimes.com/articleshow/1401604.cms
BANGALORE: The world’s largest retailer Wal-Mart is moving a senior official from its headquarters in Bentonville, Arkansas to head its market research and business development functions pertaining to its retail plans in India.
Lance Rettig will be responsible for building a team that will prepare the ground for Wal-Mart’s local foray when foreign direct investment (FDI) is allowed in general merchandise retailing.
In its edition dated February 2 ET had reported about Wal-Mart filing an application with the Reserve Bank of India (RBI) to set up a market research and retail business development office in Bangalore. “Mr Rettig will be coming from our Bentonville home office where he is helping to lead our market research office regarding the retail market in India,” a Wal-Mart spokesperson told ET
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Let’s not get either complacent or agitated by the entry of global behemoths into the Indian marketplace. This is at the end of the day our backyard and there must be a way to come up with good entrepreneural response.
How about creating a retail buying chain- that enrols the corner stores and Kirana merchants. The enterprise won’t own any outlets, but will do the procurement- supply chain management in Walmart speak- for small and medium shops who pay a membership fee. With the volumes committed, the enterprise could go and negotiate with the suppliers for better discounts, which would result in a better buying experience at your street corner.
In a nut shell, instead of an HLL, ITC, etc. talking terms to the local stores, there is an opportunity to talk back to them esp. since they also save money
on the distribution, sales and pre-sales volume booking.
Question is- who in this forum or any other is willing to get the eco-system together and come up with an effective implementation plan. Would be happy to contribute!
India is a different market.
Fodworld, FabMall and Nilgiris have been around for some time now – but the surprise package – at least in South Bangalore – is a chain known as FoodDays. These guys offer a great combination of supermarkets and the corner kirana shop – huge variety – all grades of stuff – 3% discount if you order exceeds 500 and you pay cash, home delivery and extremely helpful staff which recognizes you (You’d be surprised how effective the last one is). They’re typically the more successful store in any neighbourhood they are in, and this is a city where a significant population has been exposed to the K-Marts and Walmarts of the world.
Again – Food bazaar is cheaper but has hardly meant the demise of other stores around.
Walmart will have to learn a few new rop tricks to make an impact here. They’ll end up being a premium choice of a few here – a la McD’s if they don’t.
There are points of diagreement.
a) It is a question of better effeciencies. Walmart will have a better supply chain and hence the consumer stands to benefit by virtue of cheaper prices.. We should not let lacunae in the system to affect us.
b) The producers especially from the agricultural segment will have huge increase in incomes. They are now at the mercy of middle men who are mercernary to say the least.
c) I think there is a place for everyone in our market. The Kirana stores will serve a certain segment and the Walmarts of the world another.
d) Retail, the world over has contributed to significant employment. India will be no exception.
Finally – let the consumer decide what is good for him or her!!!