Wal-Mart is entering Indian retail market in partnership with Bharti Enterprise. I see a major change in the retail industry in India, not that it was not changing anyways!! Big-Bazaar, Tru-Mart etc have been fighting to change the scenario. They have been trying to allure the customer from mom 'n' pop stores, but have been finding it tough except in some categories.
Given wal-mart's expertise in supply chain, it might do wonders in the market.
How will it affect the Indian markets:
- As always happens in competition, consumer will be the biggest winner in the show. Quality stuff at competitive prices at all times (if the store open 24x7).
- Producers might have to give in some of their profits, but in long run might be happy to do business with wal-mart (situation in US is different as it does not have a small shop culture, so producers are forced to concede to the whims of wal-mart, but I don't see similar thing happening in India.)
- Best part might be fighting the food article's adulteration. As I hope wal-mart will look for better quality.
- Small shop owners will be forced to improve their quality of product and service but should not lose much in the competition.
- In the end, wal-mart wont be going deep in small towns, so small shop owners in those cities need not worry.