The ppt will cover Indian Economic situation till 2017 and How Wal-Mart enter into Indian Retail Sector with the help of Bharti Telecom.Solution of case is provided.

1. Wal-Mart In India
Group Members:
Abdul Wahab Paracha
Hareem
Maria
Sarim

2. Introduction OF The Case
 Case study is from the year 2006.
 Wal-Mart in partnership with Bharti.
 Here we will discus the challenges that could be faced by Wal-mart while penetrating
Into Indian retail Industry.
 Wal–mart is a Hyper-mart .
 Case is divided into:
1 Cash and Carry 4 Consumer Behavior
2 Rites of Passage 5 Party Spoilers
3 Coping with Oversupply

3. Why to collaborate with bharti?
 FDI was not permitted till 2006.
 Facing resistance from Indian retailers.
 Bharti will take care of running and owning the stores.
 Wal-mart will take care of the supply chain related operation.
 Store will be co-branded.
 The terms of the deal were not disclosed at the time.
 As per media reports investment on venture was supposed to be $100 million
initially and will rise to $450 million in the coming years.

4. India a Broader Prospective
YEAR In $ (GDP) FACTS
2015 2095.40 billion represents 3.38 percent of the
world economy. Highest GDP
1960 37.68 Billion Lowest GDP
YEAR INR ( Consumer Spending) FACTS
2016 16256.19 Billion highest
2004 4469.88 billion lowest
YEAR INR ( Disposible Income) FACTS
2015 138192890 Million highest
1950 91540.00 Million lowest

5. Indian Retail industry and SEC classes
 Divided into organized and un organized sectors:
1 Organized includes Hypermarkets, Retail chains, supermarket and Retail outlets etc.
2 Unorganized includes Local Kirana shops, general T stores, street vendors etc
The Number of Supermarkets expected to increased by 8,500 in 2016 from 500 in 2006.
 By 2020, retail market in India Is projected to reach USD1.3 Trillion from USD672 billion
in 2016.
 Cumulative FDI inflow in retail for September 2016 stood at USD909.12 million
 Exchange rate:
 1$ = 66.65 INR
 Indian urban part is divided into SEC-A till SEC-E.

6. Annex A
Socio –Economic
Class (A-E)
%age population Profiles
A 2 .7% Purchase high
value goods.
B 15.2% These people
been to collage
but have not got
graduated.
C 24.1 %+27.1% Skilled workers
D 17.8% Unskilled
workers
E 13.1% Show less
interest in high
value consumer
goods
Socio –
Economic
Class( house
hold)
Profiles
1 Single income
household
2 Two or more
income
household
3 Own house
4 Separate
kitchen
household

7. Potential in Indian Retail

8. Potential in Indian Retail

9. Potential in Indian Retail

10. Drivers of Organized Retails

11. Cash and Carry ( concept)
 In india tesco, carrefour, shoprite is already entered in the market with a cash and
carry in which they supplies to retailers, restaurants, and business houses and
walmart is entering in indian market.
 k
 The annual revenue of indian retail industry this year is $320 billion.(2006)
 And the global sales of walmart is $315.6 billion and that was the entire sales of
India retail industry (2006)

12. Cash and Carry
 India consumer class with rising disposable income at 400 million.
 The rising income and increased consumerism urban areas along with uprising in
rural consumption will increase the growth around 7% to 8 %.
 All the above points shows the potential for cash and carry.
 The main problem is that the concept of that big warehouse store that the bigger
store have the high price and the smaller shops have lower prices but in abroad its
totally opposite, thats why the positioning will be the issue for them because the
perception which indian market consumer have is different from the others.

13. Consumer behavior
Wal-Mart Business Model:
1 Everyday low prices for consumer.
2 Squeezing cost out of the system.
3 Customer service with friendly people who greet you
 This model might not be appropriate for India because:
1 In India bigger the place for shopping higher the price of goods perceived by
Indian consumers.

14. Consumer behavior
 They should avoid discrimination (Ethnic and gender )as a part of employment
practice.
 Location based issues:
1 In case of having stores on the outskirts of urban center then people who travel by
train might not be able to purchase in bulk. Consumer will buy less.
2 They need place close to where their potential customer lives.
3 people don’t like to travel 6-7 km.
To overcome this issues do offer E-retailing.

15. Consumer behavior

16. Consumer behavior (why should they travel when they can buy
it from karyana stores)
 Collaborate with karyana stores to fill the gap. karyana store offers more or less
similar thing.
 Take care of the religious affiliation, As Consumer preference changes from religion
to religion.(eg in gujrat alcohal is ban and hindu don’t eat meat).
 Do give promotional offers to attract consumers.

17. Rights of the Passage
 Biyani ( Big bazaar) says he works differently. “We are not like Wal-Mart; we believe
in a situation of win, win and win,” he says. “The supplier should win, we should win
and the customer should win. In Wal-Mart’s strategy, and maybe that of other
international retailers, the company wins and the customer wins. Somebody has to
lose for those two to win.”
 One advantage Wal-mart can have is bharti’s presence in the market and their in-
depth knowledge of consumer behavior.
 Biyani and other retailers were against the opening of walmart in india because
Competitions from both unorganized and organized sector have effect on
probability. Higher the competition lowers the profits.

18. Party Spoiler (supply chain)
 Infrastructure issues lies India
 By keeping the karyana stores included to minimize the challenges in logistics
infrastructure.

19. Copying with oversupply
 Wal-Mart, has more than 10,000 stores in every U.S state and 27 countries.
 Wal-Mart combined with Bharti Enterprises and established about 20 wholesale
stores throughout India by the name best price modern wholesale.
 Do take in account that India is planning to build more malls in future.
 So build a mall after analyzing proper demand for mall in particular area and city.