The world’s biggest retailer Walmart Stores Inc, has finally come up with the concept of only selling the Indian manufactured products as per the needs of the consumers which will increase the widen the expansion of Indian market plus result in the growth of Indian delicacy and its culture ,would consider opening physical outlets and selling products online if New Delhi allowed overseas supermarkets that directly sold Made-in-India products to consumers.
“We are okay with selling only ‘Make in India’ products because even in our cash-and carry stores, imported items make up for only 5% of our total products,” Krish Iyer, chief executive of Walmart India said in a report.
This actual reason behind the sudden evolution in the venture is that importing goods from outside and selling doesn’t makes a sense as this gradually increase the revenues and freight charges and after including all taxes its cost very high though the retailers doesn’t find good marginal profits and customers too are very disappointed with the high prices and though Walmart India is already a partner in the government’s Make-in-India initiative, which seeks to establish the South Asian nation as a manufacturing hub. Reported last month that India plans to unshackle the grocery retailing industry for foreign companies as long as they sold goods sourced and produced locally.
Bankers are mapping the retail industry, and making presentations to Walmart, said the industry executives preparing the deck for acquisitions of local entities when the government allows Foreign Direct Investment (FDI) in multi-brand retail. Iyer declined on the likelihood of an acquisition, but spokesman aware of the development told that the US behemoth would like to acquire a company locally, although compliance remains a hindrance.
Currently 21of its best price wholesale branded chain in the country is operated by the walmart. After the alliance ended in October 2013 50% of share from bharti enterprises in the cash is bought by the retailing giant and carried forward the joint venture.
Harminder Sahni, founder of retail consultancy firm Wazir Advisors said that “Globally, Amazon is nimble footed and led by founder Jeff Bezos himself, while Walmart is weighed down by bureaucracy that delays decisions. But things may change now as Walmart has started to catch up in some areas,”
Acc. to a research it has founded that it’s becoming imperative for Walmart to move on with its strategy on selling directly to Indian consumers after Amazon’s investment of $515 million in a venture which sells foods online and through physical stores, becoming the first global retail in February applied to the government.
Last year, India allowed 100% subsidiaries of global companies to sell food products through brick-and-mortar stores and the Web as long as the products were locally produced.
The BJP government, that has otherwise opposed foreign supermarkets into India, said the policy change was aimed at creating jobs, helping farmers, and reducing India’s notorious food wastage that is blamed on the country’s antiquated supply chain.
New Delhi had hoped that global chains such as Walmart or Tesco would welcome the food only retailing: However, overseas retailers were lukewarm to the proposal, suggesting that only low-margin food items do not make such businesses viable. Walmart had asked the government to let it sell some non-food grocery items to make the proposal workable.