Wal-Mart's Entry in India
BusinessWeek Article on Wal-Mart's entry in India
With reference to the article posted above, here are some of my opinions.
I still remember graduating out of one of the top business schools in India in 2001 and Bharti was one of the last choices to start your career with. Although it was a major player in the mobile communication market, it was still seen with an awry eye. Now with the tie-up with Wal-Mart, I feel that Sunil Mittal is doing all the right things to diversify and bring value to the large Indian population. He is undoubtedly the fore bearer of the mobile revolution in India followed by Reliance. It would be good to see the Walmartization of Indian cities. There would be a huge impact on the traditional mom-pop stores. I am sure there would also be a drift between the shop keepers and retail chains followed by lobbying and political pressure. However, in the midst of all this, India is rising and now there is no looking back. Kudos to Sunil Bharti Mittal !!
Also, while a lot of Indians have become globe trotters and have seen the affect of Wal-Mart on the US society, they are also expecting similar goods and services in their home country. In all India is a huge market and the premature entry of lot of CPG companies in the early and mid 90's led to a considerable burn out. This is the right time to exploit the great Indian middle class which is growing at a frantic pace. Also, Indians should have the right of choice to buy world class products. Although, I agree that not all that Wal-Mart sells is gold. However, the standardization of Indian retail market will push consumers to plan appropriately and lead to an increased consumption which is always good for the economy. On the other hand, it could be a blessing in disguise for the not so popular Indian manufacturing industry. With Wal-Mart, new sourcing opportunities would be created and local sourcing would create more jobs and increased quality. If India has to beat China in FDI and growth numbers, manufacturing has to be boosted. IMO, the entry of Wal-Mart sooner or later will push towards this end goal.
With reference to the article posted above, here are some of my opinions.
I still remember graduating out of one of the top business schools in India in 2001 and Bharti was one of the last choices to start your career with. Although it was a major player in the mobile communication market, it was still seen with an awry eye. Now with the tie-up with Wal-Mart, I feel that Sunil Mittal is doing all the right things to diversify and bring value to the large Indian population. He is undoubtedly the fore bearer of the mobile revolution in India followed by Reliance. It would be good to see the Walmartization of Indian cities. There would be a huge impact on the traditional mom-pop stores. I am sure there would also be a drift between the shop keepers and retail chains followed by lobbying and political pressure. However, in the midst of all this, India is rising and now there is no looking back. Kudos to Sunil Bharti Mittal !!
Also, while a lot of Indians have become globe trotters and have seen the affect of Wal-Mart on the US society, they are also expecting similar goods and services in their home country. In all India is a huge market and the premature entry of lot of CPG companies in the early and mid 90's led to a considerable burn out. This is the right time to exploit the great Indian middle class which is growing at a frantic pace. Also, Indians should have the right of choice to buy world class products. Although, I agree that not all that Wal-Mart sells is gold. However, the standardization of Indian retail market will push consumers to plan appropriately and lead to an increased consumption which is always good for the economy. On the other hand, it could be a blessing in disguise for the not so popular Indian manufacturing industry. With Wal-Mart, new sourcing opportunities would be created and local sourcing would create more jobs and increased quality. If India has to beat China in FDI and growth numbers, manufacturing has to be boosted. IMO, the entry of Wal-Mart sooner or later will push towards this end goal.
posted by AG & HDG at 5:38 PM
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