Wal-Mart: Can It Succeed In India

Abstract

Indian retailers in organized and unorganized sector have geared themselves to face global competition. The organized retailers have focused on mall space acquisition, store expansion and diversification into various formats in addition to above and below the line promotional activities. The unorganized sector has focused on value added services. Small retailers in India have inherent advantages. They are located next to the consumers making it convenient for top-up purchases. They know the consumers well, some even by name. Fixed costs for small retailers is very low, thereby reducing their breakeven point to as low as 46% of sales. They have also focused on re-organizing their stores and stocking a variety of products.