Wal-Mart, the $345 billion retail giant, who has joined hands with Bharti for its India foray, is likely to replicate its global ?cash and carry? model in India.
?Wal-Mart might be using the ?cash and carry? format which they have been using everywhere,? says John William, senior partner, JC Williams Group, USA, who had consulted Wal-Mart and has been studying it since 1994. ?They might bring people with expertise in various fields from different locations to India to develop areas like IT, logistics, stores and construction, but primarily take up local people for other requirements,? he further added.
Wal-Mart, which is the largest retail store in North America and the second largest in Britain, is known for its low cost and quality products. A distribution centre site is selected by Wal-Mart and then developed.
Initial stores are built at a distance equivalent to one day of driving from the distribution centre . Subsequent stores are then in-filled back into the region until the distribution centre serves 150-200 stores. According to Williams, though retail plans for Wal-Mart in India are not yet public, they might start up with urban centres.
The marketing strategy for Wal-Mart has been basically to understand the culture and adapt to the needs of the people. Wal-Mart will focus on both the traditional media and the new media of the Internet, blogs, WOM (word of mouth) and others. It will also look at creating a total Wal-Mart store experience and offer a wide variety of products.
Around 90% of Americans live within 15 miles of a Wal-Mart store. John Torella, senior partner, JC Williams Group says, ?Initially, there won?t be a problem for the local shopkeepers because they work on the strategy of convenience.?
Speaking on how Indian retailers can thrive, Williams said, ?Indian retailers can carry brands different from what Wal-Mart would be carrying and work on services, IT, maintain customer database and ensure good store environment.?