Und3rgr0und J4tt1
Prime VIP
Wal-Mart, one of the biggest retail chains of America debuts its presence in Punjab by opening a deep discount formula store in Amritsar. The Wal-Mart store targets $350 billion industry made up of small merchants.
Under Indian rules governing foreign retailers, Wal-Mart and its joint venture partner, Bharti Enterprises Ltd., can’t sell directly to consumers but instead will operate a cash-and-carry business selling 10,000 products to licensed store owners.
The new retail stores may not affect the consumers directly but will definately hurt the wholesales if the attractive prices offered by Wal-Mart are attractive enough for small retail merchants.
Wal-Mart did made an entry despite the protests and vocal oppositions to the big stores in past. The WSJ cites the slowing economy, but I wonder to what extent choosing Amritsar, as opposed to metro Mumbai or Delhi, indicates Wal-Mart’s desire to build a presence in transitional, recessionary regional economies.
The coming months will clear how the stores operates, will they also go the paths of the other stores or will Wal-Mart maintain it true function and operations as its other stores in America.
Under Indian rules governing foreign retailers, Wal-Mart and its joint venture partner, Bharti Enterprises Ltd., can’t sell directly to consumers but instead will operate a cash-and-carry business selling 10,000 products to licensed store owners.
The new retail stores may not affect the consumers directly but will definately hurt the wholesales if the attractive prices offered by Wal-Mart are attractive enough for small retail merchants.
Wal-Mart did made an entry despite the protests and vocal oppositions to the big stores in past. The WSJ cites the slowing economy, but I wonder to what extent choosing Amritsar, as opposed to metro Mumbai or Delhi, indicates Wal-Mart’s desire to build a presence in transitional, recessionary regional economies.
The coming months will clear how the stores operates, will they also go the paths of the other stores or will Wal-Mart maintain it true function and operations as its other stores in America.
