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Old 6th June 2005, 20:27   #1
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Default WALMART in India

I have heard people praising walmart for providing single stop purchase at cheaper prices. One of my friend, regular visitor to US, told me that you name any item and you will find it in walmart. That's AMAZING. Iam eagerly waiting to see Walmart in action soon.

Also Iam not sure why some of the political parties are against walmart making their presence in India
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Old 6th June 2005, 20:58   #2
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there is METRO in bangalore already. WALMART are in discussions with the politicos fro a long time but then we never know.
my firm is in constant touch with them.
....in fact starbucks have been here for 3 years already!!!
...pretty soon HARD ROCK CAFE is opening in DELHI and BANGALORE
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Old 6th June 2005, 21:10   #3
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Yeah and soon Circuit City and Best Buy.
I think Bangalore needs these stores very much

cheers
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Old 6th June 2005, 22:34   #4
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theres a lot of controversy over walmart in U.S, in the sense, everything at walmart is chinese. the americans dont like that.. but the prices at walmart are also low, so.... its popular...lol
i found best buy kindda expensive... i'd rather want the bazee.com, the indian version of ebay to get bigger.......
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Old 6th June 2005, 22:56   #5
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HARD ROCK CAFE is opening in mumbai in september ...check out the coming soon section of this page 2005...http://www.hardrock.com/locations/cafes/default.asp
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Old 6th June 2005, 23:32   #6
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surprise,
I will try to summarize the Walmart story. Walmart is a 100 ton gorilla in front of small mom and pop stores(chickens). They have gotten this wealth mostly by importing cheaper stuff from China. They have state of the art supply chain management system, they even have their own trucks and drivers.

Beware!! they will do the exact same thing to India. It will appear great to the consumer. In the long run they may be a severe blow to Indian economy. They may create limited number of jobs, like a thousand and throw away millions of mom and pop stores, and smaller industries. Remember, the analysis of the impact on macro economy is very complex. Walmart has been successful in destroying local businesses, and local economies in the US, and that should be observed closely. The very fact that there are ads on TV all the time about their community involvement should be seen with suspicion.

Look at France, they have opposed every single major retailer. They have so many family owned businesses flourishing and they are being protected by the local govts by keeping out the gorillas. In all of the french rivera you hardly see any huge retailer. And it is one of the wealthiest economies of the world. I mean the people are rich, not just one rich corporation.
-Prasadee

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Old 7th June 2005, 00:18   #7
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Quote:
Originally Posted by prasadee
Look at France, they have opposed every single major retailer. They have so many family owned businesses flourishing and they are being protected by the local govts by keeping out the gorillas.
Hate to disagree, but I think the two major european hypermarket chains Carrefour and Geant are both French.

Again, Walmart has made a strategic decision to source more stuff from India after the unofficial (and official) barriers on Chinese goods were announced a couple of months ago. The bad news is that these goods will be sourced from the same chinese suppliers, who will presumably set up shop in India and start labelling the same stuff "Made in India"

I believe Carrefour will be entering India soon, which is sad because our own home grown retailers are just about coming of age. I'd much rather seem them establish themselves before the government throws open the doors to the firangs. See what happened with the Auto industry (where Telco is the lone warrior against the foreign manufacturers) or the Telecom industry (where the Indians did all the hard work and sweated it out through years of licensing, only for the firangs to be allowed to buy upto 74% of the companies just when our guys were beginning to make some money)
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Old 7th June 2005, 01:05   #8
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steeroid,

My statements are made after some comparison with retailing in India, US and Europe. There are definitely big retailers in europe. You can point me to Metro who are already in India. I may have spent a total of a year in Europe (over a span of 10 years), and my opinion was that there was no major presence of restaurant chains, and retailers in the smaller towns and villages of Europe, and Europe is full of such places. Their population density compares to that of India.

The point is ......... corporate dominance is not as rampant as there is local opposition. And if the politicians in India oppose because of their own selfish reasons, they may be going some good. You cannot throw open the doors without well thought out economic policies, and developmental goals.

You are right about the auto industry. especially the two wheeler industry, they blew away years of dominance in a whiff. Kinetic wants to collaborate with cheap asian companies, instead of investing in R&D while they were hoarding profits all these years. Very short sighted, very pathetic. We can crib all we want about the govt. but our businessmen lack the will, confidence & courage to take on competition on their own. Bajaj with their decades of dominance, and profit hoarding still needs Kawasaki to give them their technology. The day Kawasaki enters India, they are dead. (Repeat story of Honda and Kinetic.) Same with Hero Honda, it is only a matter of time before they die. I see no evidence of their backup plan.
-Prasadee

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Old 7th June 2005, 03:41   #9
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Wall Mart is regarded as a cheapo store here. Last year Wal-Mart tried to set up its new shop in nearby San Marcos area and people came on the streets to protest it, finally Wall mart dropped the plan!

I doubt whether Wal-Mart is any good for India because here also Wal-Mart will sell cheap Chinese goods. We don’t want any such 'Chinese cheap goods super store' here. Already Chinese goods are cheap like anything and when coupled with Wal-Mart pricing, it will kill our economy in the long term.

We must insist that they sell only goods ‘Made in India’ , otherwise, allowing Wal-Mart means helping both US and Chinese economy, nothing else.

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Old 7th June 2005, 09:49   #10
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One can control the FDI in retail. And that is what the govt. is currently doing, restriciting it to 49%.

Should Walmart be allowed? It is easy to get intimidated by such MNCs, cower down and beg the govt. not to allow such firms from entering the country. But the end loser is us customers. We run to stores when there is a sale, grab that amazing offer and head home thinking we struck gold. A Walmart would probably give us all that and much more.

Many retail chains will die and unsavoury death, there will be consolidation, mergers, buyouts et all. But it is bound to happen. In a market that lives more on statistics, rather than a sure-shot business model (in some cases, not all), everyone will not survive in the race. Communists will cry out loud and say, "see its happening because of Walmart and Metro." They'll never bother to notice the inept and inefficient management, the inability to generate funds to expand, the failure to understand the business etc. Charles Darwin was mighty intelligent when he said his famous quote. Hell, 125 years later it still holds true.

Saturation of metro markets is already happening, so retail chains are moving to B and C class towns as well as moffusil joints. Walmart would take sometime till it enters those markets. And if one thought that Walmart would just cut-paste their American model and apply it here, we might just be proven wrong. Chances are, the no. of indirect jobs created by Walmart will be much higher than one would like to believe.

It'd be sensible to wait and watch. That some Indian retail chains are going to die is certain, even without Walmart's presence.

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Old 7th June 2005, 10:09   #11
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Instead of walmart.. I'd rather prefer Fry's and Kragen (
http://www.partsamerica.com/Default.aspx) to open shop in India.. electronics and automative parts are really a hard bargain in India.. we have big bazaar in India to counter wal*mart

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Old 7th June 2005, 11:27   #12
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Quote:
Originally Posted by prasadee
surprise,
I will try to summarize the Walmart story. Walmart is a 100 ton gorilla in front of small mom and pop stores(chickens). They have gotten this wealth mostly by importing cheaper stuff from China. They have state of the art supply chain management system, they even have their own trucks and drivers.

Beware!! they will do the exact same thing to India. It will appear great to the consumer. In the long run they may be a severe blow to Indian economy. They may create limited number of jobs, like a thousand and throw away millions of mom and pop stores, and smaller industries. Remember, the analysis of the impact on macro economy is very complex. Walmart has been successful in destroying local businesses, and local economies in the US, and that should be observed closely. The very fact that there are ads on TV all the time about their community involvement should be seen with suspicion.

Look at France, they have opposed every single major retailer. They have so many family owned businesses flourishing and they are being protected by the local govts by keeping out the gorillas. In all of the french rivera you hardly see any huge retailer. And it is one of the wealthiest economies of the world. I mean the people are rich, not just one rich corporation.
-Prasadee
Very true..but then again, i find Wall Mart, Costco, etc...very convienent for buying stuff . No haggling, no fuss, fixed prices...roll to the check out line, and u are done.
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Old 7th June 2005, 11:41   #13
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Yes the shopping experience in these super-chains Walmart, Costco or ASDA (in the UK which is owned by WM) is really hassle free and good.....Its good for the economy to have the smaller shops selling local made stuff but when you have an option like the big stores I doubt you would go to those shops on a crowded street to buy stuff......everything under a roof is what we really want and if its in a nice cool place with lotsa parking.....great!

The Walmart CEO was here recently in India wasnt he....and I he made it clear then do not want a JV with a local company so they might wait for the FDI laws to change.
Maybe an Indian company should take the lead and setup such joints (someone said Metro but is it only in B'lore? )
Shoppers Stop is doing well but its not a cheap get anything retail though...
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Old 7th June 2005, 11:47   #14
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My aunt in US is a Walmart franchisee....she said that once you go to that place it os so absorbing that there is the slightest possibility of you coming out of there. It is like the Forum Mall in here, once you get in there,there are so many great things that you don't feel like leaving that place.
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Old 7th June 2005, 11:56   #15
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Quote:
Originally Posted by Sid Schumacher
My aunt in US is a Walmart franchisee....she said that once you go to that place it os so absorbing that there is the slightest possibility of you coming out of there. It is like the Forum Mall in here, once you get in there,there are so many great things that you don't feel like leaving that place.
yep..it is very absorbing..but for guys that have been born, brought up, and lived in america their whole lives, it sorta becomes a routine after a while. But when u are in india..its like something amazing, lol. What i'd like for is Best Buy, Circuit City, etc..to come to india. One stop shopping for all of your electronics (home, office, car, etc) under one roof. We'll see what happens..i'll be in india for the majority of the next 4 and a half years..so i'll be witnessing the changes with all of y'all
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