WalMart will provide logistic and supply chain support to Bharati Enterprise ltd, its prospective partner in India. That means, over the next 8 years we should be seeing a whole new brand of retail shopping "departmental stores"/malls being introduced in India. If WalMart and Bharati work as aggressively as they did here in the US, we should be seeing slashed prices all the way through computers to scooters, specials galore and stiff competition to other nonexistent chains.
Or we could just see a lot of takeovers, of the independent retailing chains/shops. It would be safe to believe that Shoppers stop will survive.
The venture is Bharati's own, with walmart only providing logistic support.
WIll this mean death to the Indian ma and pa retail shops (Marwaris, variety shops, Tulshi baug style shops and what have you?) I think no, because
- Infrastructure in India favours the small and the nimble, not the large and the trying to be fast,
- People are lazy, most dont own cars, and would not be bothered to travel all the way to Walmart for month's groceries, unlike the business model here in US.
- The ma and pa stores have excellent relationship with customers, including home delivery and monthly credit systems.
2 comments:
Yes I Guess your Opinion may prove right to some extend in the developing areas or villages where people still require credit to buy their monthly groceries; but I guess chain like 'Walmart' will strike in the developed regions or big cities like banglore, bombay , .... where majority of populations are middle class people and hardly need credit and where small ma & pa retail shops are nearly becoming extinct. In these cities people are more concerned with quality these days as compared to price in which 'Walmart' has their expertise.
Moreover if logistics prove to be right then we can expect a home delivery service from these stores too, since even today, labor is not a problem in India; And I completely agree that it all depends on how fast Bharati moves!
Great comment, however I have one question
1. Why do you think Ma-Pa grocery shops are becoming extinct in big cities? I believe that many people still prefer to buy from the "Kirana Dukan" down the street, and get it home delivered. Even in Mumbai.
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