Quote :

"Global supermarket chains have been salivating at the prospect of setting up in India, but local shopping habits could make it a tricky business to crack even after major retail reforms announced last week."

Quote :

"The family-run shops and stalls in every market and on every street corner often stock a well-tailored range of goods which are delivered for free to loyal customers who say the set-up is more efficient than it looks. "I'm used to phoning for my deliveries of groceries every day," 45-year-old Sheila Sharma, a New Delhi mother of three, told AFP. "I don't think I want to change.""

Wish we could unite like this. India is stupid for letting the devil into their house.

11/27/2011 7:44:48 PM

oops:

http://news.yahoo.com/indias-shoppers-wary-supermarket-seduction-214351610.html

11/27/2011 7:46:59 PM

Who knew Indians were good shopkeepers?

11/27/2011 8:26:37 PM

I think it's still too early for family-run shops to declare victory. The example given simply talks about how a local chain tried and struggled to battle local markets. They haven't played with the big international players yet.

When the big guys come in, they will probably be able to provide enough of a price advantage to superior logistics chains to provide a competitive advantage. They also have the advantage in that they will be able to offer more name brand products and provide greater standardization and guarantee of quality (which in poorer countries is a big issue, particularly with problems of counterfeit products). Also, as wages rise in India, the delivery services they offer will be harder and harder to provide.

11/28/2011 2:46:35 AM

I have no doubt that the big guys will play unfair.

First -they'll use their financial power to set prices below their own costs.
Second - it'll ruin local farmers and businesses because of 'monopoly' tactics
Third - once the people gain dependence, the big chains will slowly raise their prices.

it's a no brainer

[Edited on November 28, 2011 at 3:47 AM. Reason : .]

11/28/2011 3:47:16 AM

There is a limit to how far the big chains can raise their prices, however...

11/28/2011 4:32:12 AM

Oh look, yet another thread for the noncompetitive to complain about the competitive.

11/28/2011 7:21:34 AM

Quote :

"I have no doubt that the big guys will play unfair."

Is this a joke thread?

11/28/2011 8:48:53 AM

just a non-GeniuS who bought into moronic protectionist arguments

11/28/2011 8:57:20 AM

Quote :

"Third - once the people gain dependence, the big chains will slowly raise their prices."

Yea, no one is ever dependent upon a retail store. If Walmart raises their prices then one of the many empty stores in the area will open back up and Walmart will lose all their customers.

11/28/2011 10:20:23 AM

Quote :

"First -they'll use their financial power to set prices below their own costs. Second - it'll ruin local farmers and businesses because of 'monopoly' tactics Third - once the people gain dependence, the big chains will slowly raise their prices."

Thats not "unfair". That's sound business practice. You don't become successful in retail by being anything less than brutally competitive.

11/28/2011 12:14:12 PM

The quoted block above is a common criticism of the free market. It's not a reality-based argument, however. If the "monopoly" "slowly raises prices", then competitors will slowly pop up and take away business.

Unless, of course, the monopoly has been working directly with the government to obtain regulatory capture and price all competition out of the market.

11/28/2011 12:29:06 PM

Whats not reality based about it? It's not an argument. Its common sense.

And why would you assume they would raise prices so high that they were no longer competitive?

11/28/2011 12:35:11 PM

I mean, do you see Wal-mart raising prices beyond inflation? Have they not run enough of the Mom and Pops out of business yet? When does this price creep begin?

11/28/2011 12:38:21 PM

Quote :

"And why would you assume they would raise prices so high that they were no longer competitive?"

If they aren't raising their prices above being competitive then what's the problem? You want to pay a premium to buy the exact same product at a different store? Go right ahead!

11/28/2011 12:43:18 PM

The whole point of super-low prices at the store opening is to get people to come in for the first time; to break people's habits and accustom them to a new routine. Once a customer base is established, prices are raised to whatever strikes the best balance between competition and profit. For Walmart, that balanced price is usually 25% or more below the absolute lowest price a local store can offer.

^I'm not making a point about there being a problem. I was making a point about GeniusBoy's list being standard business practice, not "playing unfair".

[Edited on November 28, 2011 at 12:45 PM. Reason : .]

11/28/2011 12:43:56 PM

While there will be a few Walmarts in existence, it will never be the force in India that it is in the rest of the world:

http://www.youtube.com/watch?v=k2W8aGgmn1A

11/28/2011 6:13:19 PM