While I’ve been travelling, something big has hit the news. Bruce Nussbaum has already blogged about Walmart choosing to partner with local partner Bharti Enterprises to enter India; and hopes that this partnership would better assist Walmart with their transition into this complex retail market. They’re doing exceeding well apparently in China, the other big Asian market, can they adapt to the bazaar?
The Indian media, OTOH, seems to be having a field day with the news – The Times of India discusses the impact of this venture on the entire retail landscape, here’s an intriguing snippet,
And as with any global giant, Wal-Mart is also not without its share of criticism. From underpaying workers, squeezing suppliers to monopolistic practices and wiping out neighbourhood mom-and-pop stores, it has been accused of all these, in its endeavour to sell at the lowest price. So what does Wal-Mart’s entry mean for Indian competitors and the consumer ? Very little, for the moment.
With organised retail still accounting for 3% and growing at above 30% per annum, there is more than enough room for everyone to grow.
So instead of competing, everybody is focusing on the Wal-Mart effect or the employment opportunities and consumption boost such large investments create.
while political parties raise the spectre of whether their mode of entry is even legal based on India’s current FDI regulations.
This is a wild card right now, imho, but I’ll have more to add on this once I’m in Delhi and talking to more people. This is a story that will continue…