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Reliance Retail Vs Bharti Wal-mart: An exciting test match to watch !

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Yes, it is not a one day match, it is going to be a long and hard fought Test match. One that Indian consumers are going to watch closely with excitement.
The Indian retail sector is on the cusp of a change, a very big change. This change is going to affect thousands of Kirana store owners, small and big traders and Indian consumers alike.

Shopping scenario in India

Wal-Mart has made a back door entry into India, after trying to enter India on their own. The Indian government’s policies have ensured that they needed a tie-up Indian partner – Bharti Enterprises – to take on World’s second largest consumer market that is growing at breakneck speed.

Bharti Logo

Bharti Wal-Mart has announced recently their wholesale cash-and-carry and back-end supply chain management operations in India. Through the new venture, the company would serve neighborhood kirana stores, fruit and Walmart Logovegetable resellers, restaurants and caterers and other business owners, besides catering to the needs of other retailers including Bharti Retail, which would soon be opening its stores in India.

Reliance Industries logoClose to their heels, Reliance Retail has announced their plan of entering the same business segment with plans of supplying to kirana stores and institutional buyers. The business-to-business initiative from Reliance Retail will see it supplying to other retailers and even small neighbourhood stores.

Both these enterprises know the importance of gaining the foothold into huge Indian Market. They will do anything, use any tactics to ensure the bigger market share.

The biggest strength of Reliance is its understanding of Indian people and the name itself. On the other hand, Bharti Wal-Mart has huge experience (due to Wal-Mart) in retail business worldwide, may be more than double the closest second player globally.

Whatever said and done, it is going to be a big boon for Indian consumers. The retail sector is getting more organized with such big names getting into picture. This will surely have positive affect on prices FMCG and other goods.

I am closely following this test match to see who wins the trophy. Winning the high stakes trophy means getting a foothold in the $300 billion Indian market that is dominated by an estimated 12 million mom-and-pop shops, roadside vendors, and outdoor markets.

So who are you going to bet your money on ?

  1. ketan says

    Indian retail market is complex and difficult to understand for outsiders like Walmart. and Walmarts german experience is welknown. indians doesn’t like canned foods. on other hand environment will play major role…and what about buying on credit which local kirana stores offers to people!!! its not easy for any Mart to jump into such a large volume retail business…farmers may initially benefits from Walmart or any contract buyers..but, then!!! e.body knows what fruits they have enjoyed in other countries..Walmart is known for price hike after demolishing local business..
    ketan

  2. Ravi says

    ya…..this is boom time for retail industry…..and i think this is the only way to recover all the disputes between the customer and the industry. But the main challenge for us to maintain the prices and the requirement. Is anyone think about the people who live their life below the poverty line? What will happen with them? There are any plan for them through this retail industry…..i understand this is a gud step taken by these companies and govt. but take some steps for decreasing poverty in India…..anyways all the best for Indian retail market…cheers

  3. Varun says

    Considering that farmers will be the biggest beneficiaries may be a bit optimistic. The big retailers like Wal-Mart have known to exercize their bargaining power in dealing with suppliers. With their sheer might and volume of operations, they may end up creating bonded labour. This is not a pessimistic view of the situation and I am certainly in favour of internationalization of retail. But at the same time, Govt. should take adequate measures to ensure that farmers are not exploited.

  4. prabhat bhooshan says

    hi i wanna get some information about the reliance fresh beacuse iwant to join u

  5. ravi says

    its a worth to watch test match like this. ultimately consumer will be one who will be in advantage zone.

  6. neeraj says

    surely there is boon for the consumers and farmers but what about lacs of middleman,they will be affected badly goverment should look upon them……

  7. jaya says

    well thats all fine farmers indeed are the most benefited among all in these entry but then i’m really not sure what will be the plight of the middlemen n the others who filled the gap between consumer and producer earlier.
    how will they find an optional source to earn their living??i think we need to look from their point of view also.

  8. Gaurav Ananda says

    Farmers and the consumer will be the King in this battle between the Kirana Shops and the retail revolution kicked off by Reliance and soon by Bharati Wall Mart..It will spark off an era of consumer satisfaction and farmer’s happiness..with regard to the test match..i think there is enough space for both to do equally well in this HUGE nation India with its large consumption potential…

  9. Shabbir Husain says

    A test match surely worth watching. What a huge project to undertake for any enterprise! The sheer size of the project (market/money/supply-chain hurdles) can be overwhelming, even for the firm with same money power as Reliance or Bharti/Wal-Mart.

    It would be a good show seeing these big firms competing against each other and how and by how much the consumers benefit.

  10. trakin says

    Full2njoy,
    Well said…I agree with you that farmers will be the happiest lot of all. They will now get their dues. Yes, there are other players too, but the size and financial backing required is where these 2 are strongest. ..

  11. Full2njoy says

    I believe the real winners will be the farmers. Finally, after years of indifference from the govt and exploitation by the middlemen, the farmers will get their due. Better crop patterns, better credit, scientific farming techniques and all will lead to a growth in the farmer’s fortunes. Or maybe even lead to the 2nd green revolution.

    Think, Reliance will steal the first march (early mover advantage). Bharti-Wal mart will catch up for sure. But you cant discount Birla, Pantaloons, Munjals, Pepsi, Subhiksha, Vishal Retail and a host of other smaller players. I have a strong suspicion that the kirana shops will put up a grand fight.

    Anyway, India is a far too complex market for any one company to take full control. But am sure it will be fun to see how the retail story will pan out.

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