Journalist Gary Weiss has a new article in Forbes about Wal-mart's proposed venture into India.
Sorry, but I've never been a big fan of Wal-Mart's business practices. I love the stores--they're the first place I go when I run out of glue and kitty litter--and I even owned the stock some years ago. But Wal-Mart's aggressive attitude toward suppliers and its impact on small business give me an uneasy feeling in the pit of my stomach.
It's a bit how I feel when I see a Rottweiler sniff a kitten. Is it going to lick the kitty, or turn it into lunch?
Wal-Mart's (nyse: WMT - news - people ) plans to invade India give me just that kind of lump-in-the-gut feeling.
I'm not a fan of Wal-mart, though not in the same league as the leftie chest-thumpers.
My question is not can India survive Wal-mart, but can Wal-mart survive India?
Wal-mart is very good at what it does, but by nature of its mass, it is hidebound and rigid, and not especially good at adapting to conditions and situations that are off its planogram.
Wal-mart's entrance into Canada was checkered by gaffs and blunders caused by their master plan hitting the iceberg of the reality of a different retail market and a different culture. The most colorful were the english language-only Grand Opening flyers circulated in french speaking Quebec. It took time and millions of dollars to turn the boat around and get Wal-mart in synch with Canadian consumers.
India is a very different place from the US or Canada. Wal-mart's corporate myopia may not recognize that initially.
Don't expect Wal-mart to be able to barge into India without hemmoraging a lot of cash. I think that in the long term, they will be able to adapt, but they will learn some painfully expensive lessons before they gain anything like market dominance.
Monday, March 26, 2007
Wal-mart going into India? Who should we feel sorry for?
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Wal-mart has not emerged unscathed from one or two other forays into the world beyond the U.S. It would not be surprising if this journey into India cost them significant capital, both financial and social. It will also cost Indian small business people dearly, at least in the short term. However, India has survived many worse provocations and will no doubt survive Wal-mart, too. As someone who tilts to the left, and resolutely does not shop at Wal-mart, I am cheering for the Indians.
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