Wal-Mart in India Feb 11, 2010 Tags: India, Retail, Wal-Mart ‘In most countries, supermarket chains

create and manage well-oiled supply chains to offer consumers lower prices and dampen inflationary trends. Inflation in India is touching decade-highs. But then it’s a fallacy that in India it is always about low price’. Companies like Tata, Birla and Reliance have all attempted to enter foodand-grocery retailing in India with mixed success. Will Wal-Mart’s supply chain work in India?

Contents

Introduction – Wal-Mart’s first store in India Joint venture with Bharti Enterprises About Wal-Mart Wal-Mart – Background Note Wal-Mart – Timeline Wal-Mart – Quick Facts The world’s largest retailer isn’t new to India India’s first special skills training centre Exhibit – Wal-Mart’s business model in India Mera Kirana programme Exhibit – Foreign hypermarket chains in India Wal-Mart Internationally Exhibit – Wal-Mart and Expansion into International Markets Wal-Mart’s imperfect success record in a foreign country Cost-Leadership Strategy- Wal-Mart’s core philosophy – EDLP (every day low prices) Will Wal-Mart succeed in expanding outside the U.S.?

"India is not a homogeneous market.Best Practices and lessons from the International Markets Wal-Mart India – Plans and Challenges Wal-Mart’s Strategy and Supply Chain tuning for India Physical and Regulatory Challenges The Indian Consumer Bringing private label suppliers to India Will the kirana store go out of business? Advantages of a small Indian shopkeeper – The Kirana store Exhibit: Wal-Mart – Store Formats Exhibit: Wal-Mart – International operating formats Questions for Discussion Sample Page/Content "India is a price sensitive market and therefore we will be devising our strategy for her very carefully…Retailing is like a game of three dimensional chess where we operate as a local." -Raj Jain. President and CEO. In each market that we operate.S. The easiest thing is to roll out stores. 1. so depending on the needs of the market we shall change our format and adapt. vice-president of Corporate Affairs at Bharti Wal-Mart. we look to be local. but the most difficult is to sustain and feed them." -Arti Singh. President of Wal-Mart India in May 2009. is no different. …Wal-Mart is in no hurry to unfurl the Wal-Mart flag nationally. Wal-Mart International. We treat each market as unique and India. in this respect. so ours is not a cookie-cutter approach from the U." – John B Menzer. "Wal-Mart operates with multiple private brands around the world. regional and global player. Introduction – Wal-Mart’s first store in India .

high-quality. Bharti-Wal-Mart plans to launch seven Best Price Modern Wholesale Cash-And-Carry stores across India. Farmers are advised at every stage of cultivation by field agronomists. Smaller stores also offered more variety and affordable options with sustainable quality at a negotiable price (reduced margins). seasonal vegetables.S. Wal-Mart Inc. These stores will be 100. The survey found that goods were less expensive (as much as 25%) in local kirana stores as compared to big shopping malls. Wal-Mart has a 50:50 joint venture with Bharti Enterprises in the wholesale cash-and-carry segment. The world’s biggest retailer had been silently working on its strategy for India for around two years. Sourcing from India: Wal-Mart has a large sourcing business in India. Amritsar. Farmers learn about nursery management. Wal-Mart’s Direct Farm Program in India is a partnership with 110 small and marginal farmers near Ludhiana in Punjab where it encourages cultivation of safe. In 2010. In the first few weeks itself. The first store air-conditioned and built over 50. In May 2009. Direct Farm Program: Multinational retail giant. Wal-Mart’s first outlet was set to launch in the city of Amritsar. Bharti-WalMart (Best Price .In December 2006. 35% of India’s retail sales could be from chain stores . Training centers: Inheriting a model from its U. believed that by the year 2015. The retail major sources goods worth $125 million a year from Punjab. Preference for Kirana/local retailers: According to a survey by ASSOCHAM in early 2010 in which it interviewed 5000 shoppers in various cities in India. Wal-Mart was ready to open its first store in India.000 sq. the company had managed to sign on close to 35. Did this mean Indian consumers could not benefit from Wal-Mart’s everyday low prices? Case Updates/Snippets 50:50 joint venture: In India. as well as harvest and post-harvest practices. This was a radical increase from the prevailing 2%. Punjab in North India.000 sq ft in size and each store will involve an investment of $6-7 million. transplanting. nutrient management. ft. Wal-Mart is planning to increase sourcing from India to strengthen its global business. The reason for Wal-Mart’s entry in India was clear – The Indian middle class . Mom-and-pop stores and traditional distribution networks dominated the $375 billion Indian retail market. the debut outlet was not to carry the familiar Wal-Mart brand. However. kirana stores (mom and pop stores) and local retailers were the preferred destination for shoppers as compared to shopping malls. was on the outskirts of the city. Wal-Mart India in 2010: In 2010. The store employed 200 locals and was likely create 500 indirect jobs. parent.000 members.

WalmartLabs in Bangalore : In addition to its R&D centre in the Silicon Valley. Canada and many countries throughout the world. Wal-Mart has different types super stores.walmartstores. (Update: The Indian Govt. the Government did not allow foreign investment in multi-brand retail.com) . India (expected to be set up by Dec 2011) with about 100 developers to work on technologies and solutions for WalMart’s global e-commerce business. The first Sam club membership warehouse opened in 1983. the French international chain. It allows 51% FDI in single-brand retail and 100% in wholesale venture. The Wal-Mart is world first retail store in the world. Carrefour in India – Carrefour Wholesale Cash & Carry: In December 2010. WalMart plans to set up another facility in Bangalore. In the year.Mart retail store was established in the year 1962 by Sam Walton Wal-Mart also has doing international operation in United Kingdom. Mumbai and Kolkata). In 1970. (www. By early 2011. cooperatives and self-help groups. The company caters to business customers (hotels. Hyderabad.Modern Wholesale) intends to set up its own training centers to train less-privileged youth to work in retail stores. METRO Cash & Carry in India: In 2003. METRO Cash & Carry entered the Indian market in the self-service wholesale category. offices and small retailers) and sources a large part of its products locally from local suppliers. FDI in retail in India: In India. super markets. Related cases/articles: Wal-Mart in Japan Tesco takes on US Wal-mart Introduction: Wal. 2009 the sale of Wal-Mart employs is $401 billion. Mexico. Wal.000 SKUs in food and non-food to local businesses. has changed its policy towards multi-brand retail in Nov 2011) In 2007.Mart is the world’s largest corporation and it is one among the biggest private employer of America. it had six wholesale distribution centers in four major cities (Bangalore. The store with an area of 5200 square meters offers about 10. launched its first cash & carry store in India (in the capital in New Delhi). restaurants and local mom and pop stores. Walmart Stores and Bharti Enterprises entered into a joint venture and began cash & carry stores under the brand Best Price Modern Wholesale. Carrefour. and Wal-Mart discount stores. a Wal-Mart has listed in New York stock exchange.

But in return the consumers may benefit a lot from this.Mart in order to capture the Indian market is trying to introduce low price strategy on their products which inturn affect the other local businesses. Reliance etc. • • Wal-Mart Entry Into India And Its Effect On Indian Retail Environment is world first retail store in the world. Creates excess competition Due to the entry of Wal –Mart into the Indian market the competition may increase between local retailing businesses like Pantaloon. Premium • Wal Marts Entry Into India .com) Effects of the Wal-Mart Entry: Negative effect on the Indian small scale industry Since.. Local traders later also should implement this pricing strategy which may affect their profit margin. Local traders: Local traders from the major of the cities were opposed the entry of retail giant Wal-Mart especially in Delhi because it will affect the local traders or business man and also for small retail shop. we can see a tough competition between these business units in future ... Premium . the entry of Wal.Mart into Indian market creates a lot of negative effect on the Indian small scale industry. Low price products Wal.Effects of the Wal-Mart Entry: Negative effect on the Indian small scale industry Since many of the small scale department stores in India are the major contributors to the Indian economy. This may lead to loose the business to many of the middle and small scale people. (www. there is one that consistently stands out.walmartstores. They have the issue of domestic traders will be totally neglected.Distribution Policy Wal-Marts Entry into India Distribution Policy Dersou C When one thinks of the worlds largest retailer.. This is.

litigation or governance matters. labor and capital ... showed that consumer benefits from Wal-Marts entry into the economy are "substantial.. SEC filings. Premium • What Will Be The Effect Of Wal Mart's Entry On The Indian Retailing Environment SALES AND DISTRIBUTION MANAGEMENT WHAT WILL BE THE EFFECT OF WAL MART'S ENTRY ON THE INDIAN RETAILING ENVIRONMENT? MBA 14 C. Premium • Wal-Mart's Effect On Retail Industry Hausman and Ephraim Leibtag..are not fully and effectively employed. Premium • Effects Of Wal-Mart And Big Box In India unsuccessful.... Effects of the Wal-Mart Entry: Negative effect on the Indian small scale industry : Since many of the small scale department stores in India. Premium • Effects On Indian Economy Due To International Economy Economy The Indian economy is underdeveloped in the sense that her reserves of resources. Premium • Promising Land!!! Studying Entry Modes Of Foreign Apparel Brands In Indian Retail Industry like to present the strategic market entry plan for foreign apparel brands in India. While Wal-Mart viewed India's $180 billion retail market as a potential opportunity for global expansion.• Walmart Entry In India in the world.. both in terms of food expenditure and in terms of. Premium • Walmart financial results. That is land.. Wal-Mart Entry Into India And Its Effect On Indian Retail Environment {draw:rect} Introduction... . Report structure is as follows-Introduction of Indian retail market and scopes... the retailer's challenges before its entry..

Premium • Wal-Mart In a New World. with an estimated 20. India... After 40 years of the steady development. Wal-Mart is a retail phenomena that has grown from a backwoods discount store into a company that has been ranked.. And Sourcing Case 3: China. . Premium • China.. Premium • An Investigation Into Pricing Strategies Of Wal-Mart In China Walton in 1962. Wal-Mart's network architecture is the base for their retail Link. Economic Forces: One. Wal-Mart is the largest grocery retailer in the United States. And Wal-Mart: Issues Of Price. even when the stores actually have negative effects on both outcomes. Premium • Wal Mart And Its It Alignment is RFID.... having opened almost 7900 stores globally in 16... and Wal-Mart: Issues of Price. Our identification strategy is driven. Wal-Mart has become the world's biggest chain of retailer.. and the Indian Railways....Premium • The Effects Of Wal-Mart On Local Labor Markets earnings rising in apparent response to Wal-Marts entry. End result. India. and Sourcing Introduction: WalMart was the largest retailer in the United States and the largest. the information is transformed and consolidated into a common environment. trailing the British National Health Service. employer. Quality. Quality. Premium • Wal-Mart ability to offer consumers every day low prices.. Premium • Strategic Analysis Of Wal-Mart affect of societal forces and to see what trends are like to affect the retail industry in which the Wal-Mart is operating in a brief manner.

Premium • Wal-Mart Case Study world. External Environment * The U..Premium • Wal Mart Global Strategy research into the local culture. the following tools can be effective analysis Wal-Mart external environment. retail market is becoming very saturated. .. Forces.. 3. Premium • Wal Mart According to the case study. but with Wal-Marts constant need for expansion in recent years.1 Five forces (Porter) The structure of an indus.. Wal-Mart International doubled its total retail unit count over the past few years.. Task Environment 1. and now operates...S. B. so Wal-Mart needs to compete globally to sustain. they have been able to market themselves effectively.. Premium • Wal-Mart Strategic Analysis at members only prices for both businesses and personal use.

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