What does Bharati Wal-Mart alliance really means for India and Indians?

We have come across an interesting blog post written by Sandesh on the likely impact of Bharati’s alliance with Wal-Mart on India and Indians.

We are glad to reproduce below the relevant excerpts:

1. World class stores with good customer service
2. Everyday Low Prices (hopefully)
3. Quality assortment of merchandise ( Not that Walmart has the best quality in US but they must be good for current Indian retail standards)
4. More jobs
5. More related jobs across the supply chain — Really an understatement. Imagine all the producers and their suppliers and so on.


4 responses to “What does Bharati Wal-Mart alliance really means for India and Indians?

  1. this will be good as long as they dont implement the Walmart job related policies which are under a lot of ciriticism here in the US. also the quality of the goods at walmart are not really very gr8 even by indian retail standards…93% of the products in a walmart store have a “Made in China” tag. But yes,low prices and more jobs definitely , and hopefully better retailing standards too!!

  2. Dear friends,

    Great comments on top by X & y. They must have seen & visited Wal-Mart retail Outlets & know about merchandise there. I have never travelled beyond Dombivali & Virar.
    However as per World Bank report India has Per capita GNP is $720 & that of USA is $43000+
    Us economy is 60 times stronger than that of India & so the purchasing power.
    India is a poor (Developing) country of rich people & the business is to earn from poor & b3e less poor. India does not have rich people. The disposable income of majority (99%) of Indians is low(?).
    There is going to be oversupply of Malls 7 eventually large format stores. Hence many of them will be attempting to target same poor pockets, which are empty.
    Real infrastructure for this retail expansion to succeed is empowering people with purchasing power.
    16 lakh rich families having annual income above 45.00 lakh will not shop in India. They will shop abroad.
    So the available lot is poor people & less poor people who are under the burden of EMI’s for long years.
    Reliance, Tata , Birla, Wal-Mart (Bharti), Raheja, Pantaloon & many more are jumping into large format retail .
    Projections are fantastic. Plans are fine on paper.
    Many investors are not retailers. They are real estate developers & interested in collecting rent & more rent. They are in the business of selling space again & again. Many large format retailers also sublet the space (who is anchor tenant) & “SPACE” is a major retail commodity for them.
    Subletting should be stopped in the interest of success of large format retailing. Some regulatory body should be formed to formulate rent &/or lease structure & CAM charges rules.
    Else we all will witness great retail disaster.

  3. It is not correct to compare per capita income of Indians with Amercans without accounting for purchasing power parity of commodities and consumer goods. China, Bangladesh and to some extent India would not have become major suppliers to most developed countries if therte was no major difference between prices.

  4. Dear Friends

    I did write some of my thoughts at a macro level on my blog recently. Thought you may like to see that as well.

    Your comments are most welcome.

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