02-10-2006, 10:51 PM
Its not about any other retail chain - its about Walmart. Walmart is affecting how other retail chains in the US do business. It has worked out an amazing supply chain and perhaps streamlined the entire retail cycle. About a year ago when Walmart announced its getting into groceries the other grocery chains were shivering and perhaps led to the strike in southern california. (PS : atleast at this moment it has not led to others going out of business.)
But then again Walmart will have to adopt a slightly different approach then it does in the US. For instance it cant launch the HUUGE stores as it does in the US. It will have to effectively build the warehouses and get the supply chains going ones that will feed this behemoth.
A little anecdote I heard from somewhere. When you approach the 99c store HO you have to go with a product which can be delivered on the US shores at 55 cts per unit. And the order you get is in 10s of containers or something. I forget the exact number of containers you have to promise and prove you can deliver. This volume is beyond what most people can promise. The chinese somehow have figured it out. This capability wil have to be built in India.
But then again Walmart will have to adopt a slightly different approach then it does in the US. For instance it cant launch the HUUGE stores as it does in the US. It will have to effectively build the warehouses and get the supply chains going ones that will feed this behemoth.
A little anecdote I heard from somewhere. When you approach the 99c store HO you have to go with a product which can be delivered on the US shores at 55 cts per unit. And the order you get is in 10s of containers or something. I forget the exact number of containers you have to promise and prove you can deliver. This volume is beyond what most people can promise. The chinese somehow have figured it out. This capability wil have to be built in India.