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Created by : Akhilesh Majumdar, Logistics Manager, Tesco  | 06 11 2009 13:04:36 +0000
Industry : Retail Chain/LogisticsFunctional Area : India(Markets)
Activity:  3585 views;  last activity : 01 23 2012 07:32:37 +0000

Walmart being America's largest discount store operate in various part of the world, successful in most countries they operate, walmart is planning to establish a wholesale operation in India by the end of this year and planning to extend to retail down the line. As we know retail is a booming industry in India, but can Walmart replicate the same success in India as well.
India consist of an enormous mix of classes and income groups, is India ready for this Giant store?

 
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I personally feel Walmart -Bharti combination will succed, due to good management team they have in place.

Craig Wimsatt - Chief operating officer

Arvind Mediratta is the head of business

Also , reason for feeling more excited stems from a belief—partly based on reason and partly on an imagination that may be running wild—that the combination of Bharti and Wal-Mart will make a bigger impact than any other combination of Bharti and an international retailer, or Wal-Mart and another Indian partner (or Wal-Mart on its own) would have made. In my view, this particular combination is incredibly potent and has the capability of providing a very strong challenge to the other extraordinary incumbent: Reliance Retail, Big Bazaar, etc... Reliance, as only a few if any would choose to disagree, is one of the most successful and probably the most-determined-too-succeed business enterprise in India. The extraordinary vision and entrepreneurship of its promoters and the leadership team are superbly matched with an exceptional capability to implement the most audacious of plans in an unparalleled time and cost-effective manner. However, Wal-Mart remains the most successful retail business in the world. At $300 billion plus in revenue, it dwarfs not only other retail businesses anywhere in the world but also almost all other industrial enterprises too. It is no wonder that collectively, the Walton family is the richest family in the world, well ahead of Bill Gates and others. Envious competitors and armchair critics may take some comfort in its much-publicised retreats from select markets outside the US but it cannot take anything away from its very well-honed retail business operation/management skills that have allowed it to remain in pole position in the most competitive of all major retail markets in the world—the US—for over two decades. Likewise, Sunil Mittal and his family have demonstrated that they are entrepreneurs par excellence and brilliant managers of new-age businesses. Further, Sunil Mittal's success has to be seen in the background that he and his family have already built a multi-billion dollar business from scratch while facing almost all the challenges that India has to offer any start-up.


By Mihir Jhaveri, PMP, CSCM, Senior Manager/Pre Sales & Solution Lead/SCM/Strategy, Bristlecone India  06 11 2009 15:42:57 +0000
 
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Its like Indian politics people thought to vote congress and congress would positively impact their lives with jobs, transparency, honesty, secularism and the list goes long here....But what they achieved is food inflation, high fuel prices and big big Scams, Now people feel Walmart will change the fate of retail in India with low prices, best customer services, jobs and again the list goes long....... Mr. Sudhakar wait and watch game is the best response for the Indians as they have no options left. we are basically searching out for a godfather or messiah who can change Indian scenario, WHO UNDERSTANDS THE INDIAN MARKET BETTER THAN US?
By Gurleen Kaur, CMD, GKM IT & Engineering  06 20 2011 16:44:19 +0000
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Why not? See, Walmart is a global company. It is not only doing business in First world, but also in the Third world countries. And is very successful at that. And India is a developing market, with the middle and upper middle class on a platter to cater to. So Why not expect exceeding results from them?
By AMISH , Writer - Administrator  | 01 23 2012 07:32:36 +0000
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Ofcourse Wallmart will be a success in India because they very well know the tricks and traits of their business. Also when the retail sector is highly booming in India, theri success is for sure. They have done all kind of benchmarkings and analytics before announcing their launch in India. Let us wait and see the rest. Regards, Shruth & Smith Foundation (NGO), Banshankari, Bangalore. http://www.shruthandsmithfoundation.org
By Shruth & Smith Group, Owner, Shruth & Smith Foundation  | 01 23 2012 05:01:09 +0000
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low price Strategy compare with other retailer
By Ragha Van, Executive, TVS LOGISTICS SERVICE LTD  | 12 11 2011 09:35:07 +0000
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surely they are going to succeed in India, its main strength is distribution channel( cross docking), Low price every day, and promotion strategy are excellent, so India retail need to upgrade to face competition with walmart. ricky http://www.nichesuite.com/
By ricky P, SMM exeutive,  | 12 05 2011 07:37:50 +0000
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surely they are going to succeed in India, its main strength is distribution channel( cross docking), Low price every day, and promotion strategy are excellent, so India retail need to upgrade to face competition with walmart.
By ricky P, SMM exeutive,  | 12 05 2011 07:37:04 +0000
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There is a possibility for success but it all just depends on the area and politics involved. Sometimes when companies from one country go into another country things might not go as well as planned. But there is a possibility for success.

The Wal-Mart company should have things strategically planned out and I'm sure that they do. A company going into a different area needs to learn about the new area that they want to venture off into. It could be a chance for cross-over appeal in India. 

~Business Consulting Services:

www.CEOBusinessManagement.com 


By Business Management Consultant, : I can provide you with Management Consulting & Counseling Services  | 10 24 2011 20:50:51 +0000
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Given their adaptability, Wal-Mart across the globe in all their ventures have been successful. Whether it is Europe, Central America, South America or Asia, Wal-Mart is a sgn of success. Therefore no reasons to believe they cannot succeed in India. Besides at the helm of Wal-MArt India is a logistic guru, which is the essential part of the retail industry. I am much sure that Walmart India will be a great success.
By AMISH , Writer - Administrator  | 06 21 2011 11:11:33 +0000
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yes i hope walmart can gain the mnarket. They are planning to enter south india that too in Andrapradesh where there is only one wholesale gaint METRO is located and with operations at two locations . hopefully bharti-walmart can give tough competition to metro.
By Vishnu Kumar, MBA/PGDM student, synergy school of business  | 06 21 2011 04:32:53 +0000
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i personally feel it is a wait and watch game.This is largely because Indian market scenario is totally different from other developed countries.
By sudhakar , BUSINESS CONSULTANT  | 06 20 2011 16:12:57 +0000
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They need to have Indian CEOs for different markets
By Sasikanth Ramakrishnan, SBU/Profit Center Head Redington India Ltd  | 06 20 2011 10:28:43 +0000
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It will definitely succeed in India, due to its great success in West


By pravin kokate, MBA/PGDM student, SAKEC  | 09 03 2010 17:47:26 +0000
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What I feel about this venture is that it would be a sensible start.

Walmart is known for its vendors that display within their premises. It has a format which is like an alphabetical order. B follows A and C follows A & B and so on. Also, I feel that they would make a concentrated effort on the mix that they showcase in their st9ores. It would be a mix of good solid Indian brands that Bharati would ensure as the Indian partner and Walmart with its expertise and tremendous Brand following would ensure good International brands mix.

All in all it would be a great place to visit and maybe even spend! Thanks for the referral Akhilesh.


By Makrand Bhave, AGM - Corporate Business, E18, part of Network 18 Group  | 06 13 2009 01:33:17 +0000
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its very difficult coz due to bying habits,food habits&multiple products range accross ranges&on the topdistributionsystem is multilayer mragins are going to squeze topmostreturn of customer ratio is very low
By vishvesh mehta, zonal business development manager  | 06 22 2011 13:41:40 +0000
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I really like the way Gurleen has said that "WHO UNDERSTANDS THE INDIAN MARKET BETTER THAN US", it can be a fact,  Walmart's entrance may give rise to unhealthy competition among the Indian retailers for survival due to Every Day Low Prices(EDLP). How they expand in India would also be of immense importance. In metros they can get lot of appreciation for ambience or customer service but India is not only about metros and big cities. Its also about tier-II tier-III and small cities where the consumer is not so educated and mature.


By Mohan Murari, Marketing Manager, Confidential  | 06 21 2011 11:20:03 +0000
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Walmart my not succed as they did in other country. I agreed that Mall culture is devloping in india day by day. But still indian customer is depeneble upon the BANIYA located near his residence who provide you home delivery. For all the gorcery milk, vegetable, soaps,etc. we depende upon the shop located near our residence. We can see the success of the existing mall available in india. They couldnt do well or as per the capasity of indian consumer market.
By Vrushank Bharatkumar Dave, Area Business Manager, Elder Pharmaceutical Ltd  | 06 20 2011 17:23:03 +0000
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As Carrefour understood it correctly, India consists of various "small countries" stitched together. Hence, it is not going to be easy for any global retailer to establish themselves in India.


By Arindam Ghosh, Corporate Finance  | 09 08 2009 14:37:43 +0000
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Indian market is price sensitive and it won't like to pay for the overheads. Which occured in estabilishing these stores and running the chain. if They can overpower this by saving achieved in distribution. They could be success and it requires approx 15 years more to inculcate the thinking to buy from the retail stores.


By Mukesh , Industrial Engineer, Centre for Research in Insustrial staff performance  | 06 12 2009 09:19:08 +0000
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Wal-Mart may faces many ownership as well as locational disadvantages while expanding in India. These significant challenges if not understood and suitably address will definitely lead to the failure of Walmart.


By Akhilesh Majumdar, Logistics Manager, Tesco  | 06 11 2009 13:04:36 +0000
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