Wal-mart in India
Wal-mart is known for having a little bit of everything. They are super centers with parking lots that need to have a good real estate location because of their size, the space they need, and how they want all of their products on a display case. Wal-mart would obviously want to be closer to the city, to the most populous locations, close to where people live so that they can have easy access to the store. However, this may not necessarily be an easy location for them to find.
Most likely Wal-mart will find a lot by the urban areas and consumers might lose interest in traveling from afar to go and shop. If customers travel by train, they will have to carry their purchases and groceries in a big. As a result, many people might decide to buy fewer products. Those who travel by car might not want to drive so far to go to Wal-mart because it has been recorded that Indian consumer do not travel more than 6 to 7 kilometers to go shopping for their necessities (Wharton).
Wal-marts from all over the world have had various law suits charged against them for their employment practices. They do not necessarily give satisfactory benefits and they underpay many of their employees, even those who work overtime. Wal-mart has been judged and criticized for their ethnic, gender, and race discrimination while going through the hiring and screening procedure (Bose). On the other hand, one of the immediate and obvious benefits that Wal-mart can provide for the community is their demands for workers.
Many civilians can work at Wal-mart and their employment rate will decrease, just like Wal-mart has provided work for thousands of people in America and all over the world. A typical urban household earns roughly a $3000 income annually and the consuming class has indeed more than doubled for the past decade (Bhatnagar). Roughly 65% of the young consumer base is increasing annually and Wal-mart may benefit from this since the tendency for consumers to spend rather than to be saving has been increasing over the past years (Balaji).
Personally, I do not think that Wal-mart will be as successful in India as they have been in many other countries. The culture is different and this requires a lot of adaptation and modifications to find certain products that are perfectly fit for the consumers and the buyers. Also, like mentioned above, the majority of population does not drive cars as a mode of transportation and they most likely will not travel more than 6 km to go shopping for their necessities. This causes a major issue for Wal-mart because they may lose a lot of customers because of this.
In general, I do not believe that having a Wal-mart in India is worth the risk.
Bennett, Jessica. For Sale: Toads and Eels. NBC Newsweek: Business. 17 Oct, 2006. <http://www. msnbc. msn. com/id/15310297/site/newsweek/>. Bhatnagar, Parija. Wal-Mart’s hot on India. CNN Money. 6 June, 2005. <http://money. cnn. com/2005/06/06/news/fortune500/walmart_india/index. htm>. Bose, Prasenjit. Protests Greet Wal-Mart In India. People’s Democracy. 4 Mar, 2007. < http://pd. cpim. org/2007/0304/03112007_walmart. htm>.