12-24-2005, 01:20 PM
thr reason the mom and pop stores havent been killed is cos the other companies have only 5-6 outlets.
i mean since their chain is so small, their price is higher the pop and mom shop.
if walmart comes and prices their stuff at higher than the cornershops, then their clientle will be restricted to only the upper middle class and above - so the corner shops can continue.
the bad news starts only when walmart becomes the cheaper alternative - which is what i think they will become.
but then i dont see why the ahmedabad chain cant have 25 outlets in each big city - and thus become cheaper than the corner shops.
remember the cornershops dont pay taxes while the chain does.
its in india's interest to have a retail-chain industry. india's is the biggest market in the world and totally untapped.
catch is that it should be indian, the chain(s).
maybe he bigges of indian industry should pitch in. or maybe the govt should make it conducive for the home grown chains to expand.
but the present situation cant continue - sooner or later something will give.
either we will somehow have a big retail chain or 2 -
or walmarts will come.
and once they come the only alternative left for us will be to turn the disadvantag into an adv by using walmart as a conduit for foreign markets.
the other thing (best of both worlds) the govt can do is deny walmart a level playing field totally - so that they remain priced in such a way that only the rich indians can afford it.
which will mean the indian chains can target the general middle class whilst the foreign brands will be a premium thingie. like in the automobile sector.
but walmart will still buy cheap stuff in india and sell in usa.
so - best of both worlds.
what do you think??
i mean since their chain is so small, their price is higher the pop and mom shop.
if walmart comes and prices their stuff at higher than the cornershops, then their clientle will be restricted to only the upper middle class and above - so the corner shops can continue.
the bad news starts only when walmart becomes the cheaper alternative - which is what i think they will become.
but then i dont see why the ahmedabad chain cant have 25 outlets in each big city - and thus become cheaper than the corner shops.
remember the cornershops dont pay taxes while the chain does.
its in india's interest to have a retail-chain industry. india's is the biggest market in the world and totally untapped.
catch is that it should be indian, the chain(s).
maybe he bigges of indian industry should pitch in. or maybe the govt should make it conducive for the home grown chains to expand.
but the present situation cant continue - sooner or later something will give.
either we will somehow have a big retail chain or 2 -
or walmarts will come.
and once they come the only alternative left for us will be to turn the disadvantag into an adv by using walmart as a conduit for foreign markets.
the other thing (best of both worlds) the govt can do is deny walmart a level playing field totally - so that they remain priced in such a way that only the rich indians can afford it.
which will mean the indian chains can target the general middle class whilst the foreign brands will be a premium thingie. like in the automobile sector.
but walmart will still buy cheap stuff in india and sell in usa.
so - best of both worlds.
what do you think??