02-10-2006, 09:16 AM
<!--QuoteBegin-rajesh_g+Feb 10 2006, 06:19 AM-->QUOTE(rajesh_g @ Feb 10 2006, 06:19 AM)<!--QuoteEBegin-->
<!--QuoteBegin--><div class='quotetop'>QUOTE<!--QuoteEBegin-->Wal-Mart's experience in emerging markets is the crux of its battle plan. Bentonville has been down this path of limited investment in retail before. Not too long ago, it battled anti-FDI sentiment in Mexico. In S&P's view, Wal-Mart won that battle. It is now the biggest private employer in Mexico and operates more than 780 stores in that country. And even in communist China, Wal-Mart operates 56 joint-venture stores as of Jan. 31.<!--QuoteEnd--><!--QuoteEEnd-->
We need to research how Walmart fought the battle in Mexico and how it eventually got what it wanted and what effect it has had on the mom and pop stores..
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In Mexico the culture of hyper-markets already existed when Walmart went there. Plus Mexico is also a very diverse country like India. It also has different classes of people i.e. middle class (most have a car), rich class, and poor class.
Walmart was a hit mainly in the middle class, poor class any way could not afford anything, and rich didn't care. Pop and mom stores had a tough time in Mexico. With Mexican hypermarkets cleaned out whatever remained of pop & mom shops.
Plus, you have to understand being so close to USA and probably a big part of Mexican population working in USA , they are used to Hyper markets and Super markets. The consumer culture is just like any other western country.SOciologically the society was ready when Walmart struck.
Politically, Mexico was a democracy only in name. One political party ruled for over 80 years.....Yes..80 years and no change.
Most of the Presidents were easy game for multinationals. Mexico was also a very heavily dependent on imports as result the economy and currency collpased in 1994. Money speaks in Latin America and Mexico.
However with a per capita income of about $ 7000 , Mexicans have better purchasing power than India. You have to also consider that Walmart sells mostly cheap stuff,,,i.e. Chinese type. At $ 7000 mos tMexicans can hardly afford branded products , hence, the success of walmart. Being mainly a carnivore country cheap meat products were instant hit.
However, India cannot be compared with Mexican market. Indians are much more conservative and value conscious people. Indians are not that western consumer types. The purchasing power of Indians with per captal GDP of around $3000 is also much less.
I see limited success for Walmart in India unless they localise their shop format to suit Indian tastes i.e. a smaller hypermarket kind of format with more personal touch......more vernacular speaking salesman/woman.....and attractive discount schemes.
<!--QuoteBegin--><div class='quotetop'>QUOTE<!--QuoteEBegin-->Wal-Mart's experience in emerging markets is the crux of its battle plan. Bentonville has been down this path of limited investment in retail before. Not too long ago, it battled anti-FDI sentiment in Mexico. In S&P's view, Wal-Mart won that battle. It is now the biggest private employer in Mexico and operates more than 780 stores in that country. And even in communist China, Wal-Mart operates 56 joint-venture stores as of Jan. 31.<!--QuoteEnd--><!--QuoteEEnd-->
We need to research how Walmart fought the battle in Mexico and how it eventually got what it wanted and what effect it has had on the mom and pop stores..
[right][snapback]46546[/snapback][/right]
<!--QuoteEnd--></div><!--QuoteEEnd-->
In Mexico the culture of hyper-markets already existed when Walmart went there. Plus Mexico is also a very diverse country like India. It also has different classes of people i.e. middle class (most have a car), rich class, and poor class.
Walmart was a hit mainly in the middle class, poor class any way could not afford anything, and rich didn't care. Pop and mom stores had a tough time in Mexico. With Mexican hypermarkets cleaned out whatever remained of pop & mom shops.
Plus, you have to understand being so close to USA and probably a big part of Mexican population working in USA , they are used to Hyper markets and Super markets. The consumer culture is just like any other western country.SOciologically the society was ready when Walmart struck.
Politically, Mexico was a democracy only in name. One political party ruled for over 80 years.....Yes..80 years and no change.
Most of the Presidents were easy game for multinationals. Mexico was also a very heavily dependent on imports as result the economy and currency collpased in 1994. Money speaks in Latin America and Mexico.
However with a per capita income of about $ 7000 , Mexicans have better purchasing power than India. You have to also consider that Walmart sells mostly cheap stuff,,,i.e. Chinese type. At $ 7000 mos tMexicans can hardly afford branded products , hence, the success of walmart. Being mainly a carnivore country cheap meat products were instant hit.
However, India cannot be compared with Mexican market. Indians are much more conservative and value conscious people. Indians are not that western consumer types. The purchasing power of Indians with per captal GDP of around $3000 is also much less.
I see limited success for Walmart in India unless they localise their shop format to suit Indian tastes i.e. a smaller hypermarket kind of format with more personal touch......more vernacular speaking salesman/woman.....and attractive discount schemes.