Why shouldnt Wal-Mart come to India?

(In response to the Anti-Wal Mart communities and blogs)

With Wal-Mart Stores, Inc. having been a force in the U.S. for well over two decades now, the company has earned a reputation for driving small family-owned businesses off the map. Its relentless drive to offer consumers the very lowest prices has altered the retail landscape dramatically, for better or worse. And now it wants to take the savings to India. Critics are saying that country, burgeoning middle-class and all, is not ready for the Wal-Mart experience. Unfortunately, I have to respond "welcome to the new global marketplace -- our turn."India is fighting Wal-Mart's announced plans to begin operations there in 2007. For many, the so-called "Wal-Mart Effect" is more than just a matter of losing shops in historic downtowns. With its huge population and growing middle class, India must be an attractive market to Wal-Mart. But will Wal-Mart's brand of Mom & Pop-killing retail fly in a country with nearly 40 million small shop owners? Not necessarily. Wal-Mart is pulling out of markets in South Korea and Germany. Still, no doubt the small business class in India is finding it harder to sleep at night. On the first appearance, the fragmented Indian retail sector looks like it may not offer serious challenge to the global giants. But the truth is far from it. Indian retailers are a resilient lot and will offer intense competition - against which the global giants will find it tough. It will be more like an army of ants bringing down an elephant.

To understand this consider the case of Metro - the German retail giant in India. Metro entered India in 2003 with a superstore format. Metro wanted to sell to other small shop owners/retailers on a cash-and-carry basis. Initially Metro was able to give a significant price discount when compared to other retailers - but soon that advantage disappeared. Local retailers are now able to beat Metro on price on most items.


And why shouldn't Wal-Mart try to open in India? Is it any different from the numerous Indian immigrants who own half the hotels(Potels) and convenienience stores in USA?
Lets stop this protectionism. If India has to become a Leader in this age, it has to accept Gloablism. It has to open up its sectors to competition.
C'mon,--- we're not babies anymore.

Also Read:
http://theoryofinfinity.blogspot.com/2006/12/top-reasons-why-wal-mart-founder-sam.html