Is Walmart a threat to Indian retail market?
Well, there had been lots of buzz about Walmart's discussion with Bharti bosses this week. Infact BBC quotes: A spokesman for India FDI Watch, which tries to limit the growth of foreign retailers in India, says Wal-Mart's entry threatens large numbers of jobs.
Is that really so? Can anyone justify? Perhaps the number of small business owners might go down but definitely not the jobs. Infact, Walmart's proven system would help create more jobs and add a good competition thereby benefitting the end-users.
A loser's talk: "If Wal-Mart comes, they will sell goods at wholesale prices which will be cheaper and I will have no customers. I simply can't compete with these big supermarkets ... what will happen to me and my family? I'm worried we'll end up on the streets."
My point: If you think you can't really retain your "niche" loyal customers, why would you not consider working for someone who can run a better business. Is that really bad? In most cases, salaries at big companies are greater than profits made out of small businesses. After all, that is why most small business owners ensure that their kids get the best job out there.
By "beating" the competition, you're making an end-user lose the value. To conclude, try to partner with someone who can offer best value to an end-user or SIMPLY STAY AWAY
2 comments:
I agree with you. In India, politicians esp. communists are creating this environment. Look at NY city where both small and big retailers are servicing the population. Its a open & fair market. Why cannot we create such a market in India too?
Your theory is not correct buddy...have you ever lived in the US?? I have been here for three years and go to walmart every week, and know what kind of a monopoly it can create..even the indian 'supermarkets' coming up have made a big dent in the earnings of local dealers..which i observed when i was in india 2 months ago...do you think walmart will employ all the uneducated vegetable vendors...who are really the ones going to be affected by this...what they will do is employ 12th pass students, teach them english, and make them feel happy by calling them 'executives'..which is still good because atleast some people are getting jobs...but i am talking about small vendors...think of a vendor who is somehow able to make 20000 a month thru his 'kirana' shop..do you think walmart is gonna pay 20000 to him and to every other vendor like him....and even if it pays, do you think he will be happy working as a person without his identity, without his 'own' business..working under a ruthless boss...and what will his son do..if he could not educate his son, he can still give him his shop..but he is working himself and cannot educate his son, it spells doom...think about it....walmart and other big supershops have caused a lop sidedness in the US markets...there is virtually not a single small store here for any commodity goods..you have to go to one of the big players to buy everything..walmart will employ 600 people..but destroy 6000 vendors because all the crowd will go to them to buy..we indians like think it is cool and try to ape the west blindly anyway...call me a conservative..i will accept...but i'd like to read your reply...
P.S: No offence meant..just an exchange of ideas...and about the anonymous above...no one goes to shop at walmart coz there are almost none or only some stores in the east and west coast areas of the US :)
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