Wal-Mart in India

¶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 food -and-grocery retailing in India with mixed success. Will Wal-Mart·s supply chain work in India?

Contents

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27.

Introduction ² Wal-Mart·s first store in India Joint venture with Bharti Enterprises About Wal-Mart Wal-Mart ² Background Note Wal-Mart ² Timeline Wal-Mart ² Quick Facts The world·s largest retailer isn·t new to India India·s first special skills training centre Exhibit ² Wal-Mart·s business model in India Mera Kirana programme Exhibit ² Foreign hypermarket chains in India Wal-Mart Internationally Exhibit ² 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 ² EDLP (every day low prices) Will Wal-Mart succeed in expanding outside the U.S.? Best Practices and lessons from the International Markets Wal-Mart India ² 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 ² The Kirana store Exhibit: Wal-Mart ² Store Formats Exhibit: Wal-Mart ² 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. the company had managed to sign on close to 35. Wal-Mart International. Did this mean Indian consumers could not benefit from Wal-Mart·s everyday low prices? Download PDF file to read more. parent. Bharti-Wal-Mart plans to launch seven Best Price Modern Wholesale Cash-And-Carry stores across India. seasonal vegetables. However. we look to be local. «Wal-Mart is in no hurry to unfurl the Wal-Mart flag nationally. so ours is not a cookie-cutter approach from the U. 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.S." -Arti Singh. President and CEO. Wal-Mart·s first outlet was set to launch in the city of Amritsar.S. was on the outskirts of the city. The first store air-conditioned and built over 50.000 members. Case Updates/Snippets y y 50:50 joint venture: In India. in this respect. believed that by the year 2015. Farmers learn about nursery management. nutrient management. "India is not a homogeneous market. y Wal-Mart India in 2010: In 2010. Wal-Mart was ready to open its first store in India. y Sourcing from India: Wal-Mart has a large sourcing business in India. The store employed 200 locals and was likely create 500 indirect jobs. These stores will be 100. Mom-and-pop stores and traditional distribution networks dominated the $375 billion Indian retail market. Punjab in North India. regional and global player. is no different. y Training centers: Inheriting a model from its U. but the most difficult is to sustain and feed them. 35% of India·s retail sales could be from chain stores . Farmers are advised at every stage of cultivation by field agronomists. Bharti-WalMart (Best Price Modern Wholesale) intends to set up its own training centers to train less-privileged youth to work in retail stores.000 sq. Wal-Mart is planning to increase sourcing from India to strengthen its global business. high-quality. The retail major sources goods worth $125 million a year from Punjab. so depending on the needs of the market we shall change our format and adapt. Amritsar. In May 2009.000 sq ft in size and each store will involve an investment of $6-7 million. In 2010. In the first few weeks itself. The reason for Wal-Mart·s entry in India was clear ² The Indian middle class . kirana stores (mom and pop stores) and local retailers were the preferred destination for shoppers as compared to shopping malls. y 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 Inc." ² John B Menzer. transplanting. as well as harvest and postharvest practices. The world·s biggest retailer had been silently working on its strategy for India for around two years. This was a radical increase from the prevailing 2%. "Wal-Mart operates with multiple private brands around the world. The survey found that goods were less expensive (as much as 25%) in local kirana stores as compared to big shopping malls. In each market that we operate. We treat each market as unique and India. President of Wal-Mart India in May 2009. . ft. 1. The easiest thing is to roll out stores. Introduction ² Wal-Mart·s first store in India In December 2006. Smaller stores also offered more variety and affordable options with sustainable quality at a negotiable price (reduced margins). the debut outlet was not to carry the familiar Wal-Mart brand. vice-president of Corporate Affairs at Bharti Wal-Mart. Direct Farm Program: Multinational retail giant." -Raj Jain. Wal-Mart has a 50:50 joint venture with Bharti Enterprises in the wholesale cash-and-carry segment.

The store with an area of 5200 square meters offers about 10. the Government presently does not allow foreign investment in multi-brand retail. it had six wholesale distribution centers in four major cities (Bangalore. y METRO Cash & Carry in India: In 2003. The company caters to business customers (hotels.000 SKUs in food and non-food to local businesses. restaurants and local mom and pop stores. METRO Cash & Carry entered the Indian market in the self-service wholesale category. Mumbai and Kolkata). launched its first cash & carry store in India (in the capital in New Delhi).y FDI in retail in India: In India. co-operatives and self-help groups. Carrefour. In 2007. y Carrefour in India ² Carrefour Wholesale Cash & Carry: In December 2010. It allows 51% FDI in singlebrand retail and 100% in wholesale venture. . Hyderabad. Walmart Stores and Bharti Enterprises entered into a joint venture and began cash & carry stores under the brand Best Price Modern Wholesale. the French international chain. offices and small retailers) and sources a large part of its products locally from local suppliers. By early 2011.

Sign up to vote on this title
UsefulNot useful