Walmart’s India Gamble: Ready To Sell Only Make In India Products If Allowed To Open Stores!
Walmart, which is world’s largest retailer, is playing the game skillfully in India.
Combining the buzz of Make in India program, and the news that FDI rules for multi-brand retail may be relaxed, Walmart has thrown in a tempting bait, which can actually work.
Walmart is ready to sell only Make in India products if they are allowed to open stores in India. Will Govt. of India take notice now?
Make in India & Walmart: The Deadly Combination?
In an interview, Krish Iyer, who is the chief executive of Walmart India, said: “We are okay with selling only ‘Make in India’ products because even in our cash-and-carry stores, imported items make up for only 5% of our total products..”
Walmart also reminded us all that 95% of products sold by Walmart in India are locally sourced, hence, they are already a major partner in Govt. of India’s ‘Make in India’ mission.
Right now, Walmart operates 21 stores under their ‘Best Price’ brand, which are branded wholesale chain launched in India. Initially launched as an alliance with Bharti Enterprises, Walmart ended their association in 2013, when they bought 50% stake in the venture from Bharti.
Walmart’s Latest Push For Offline, Online Retail In India
As per industry watchers, Walmart has resumed their dialogue with Indian Govt., asking them to allow opening of retail stores and online platform for selling goods.
This recent push has been initiated due to two main reasons:
- Amazon, world’s biggest online retailer and a fierce competitor of Walmart in the US, has approached Indian Govt. with a $515 million business plan to sell food products online and via online stores.
- Recently, Govt. of India relaxed FDI rules for retail, when they said that sale of beauty and lifestyle products from abroad may be allowed inside food retail outlets and hypermarkets. And, last year, Govt. had allowed 100% subsidiaries of global companies to sell locally procured food items via physical outlets.
On one hand Amazon’s proposal has encouraged Walmart to renew their push for offline and online retail, and on the other hand, speculations about easy FDI rule may help Walmart’s efforts.
The promise of selling only ‘Make in India’ products by World’s largest retailers may finally convince Govt. to allow them to open retail stores, as it shall be one big endorsement of Indian products: If Walmart can sell Make in India products, then logically speaking, everyone should.
As per another set of reports, it was revealed that Walmart may also acquire one local Indian retail outlet, in case their proposal is accepted by Indian Govt.
We will keep you updated as we receive more information in this regard.