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Originally posted by puttoo



FYI .... Walmart has been in China since the late 90's ..... and you still see mom /pop stores in China .....

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Walmart USA is also one of the largest importers of goods from China. It is in the interest of the Chinese to keep their number one customer happy.

Walmart in India will further decimate the not-so-steller manufacturing sector by importing from abroad, besides eating into mom and pop stores market share.

To add insult to the injury, they will fill their stores in India with Chinese made goods.

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Originally posted by elmer fudd

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Originally posted by puttoo



FYI .... Walmart has been in China since the late 90's ..... and you still see mom /pop stores in China .....

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Walmart USA is also one of the largest importers of goods from China. It is in the interest of the Chinese to keep their number one customer happy.

Walmart in India will further decimate the not-so-steller manufacturing sector, besides eating into mom and pop stores market share.

To add insult to the injury, they will fill their stores in India with Chinese made goods.

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Business is not done to keep people happy ... it has to sustain.

Just like Walmart has not dented the mom and pop stores in China, the same will be the case in India.

The reason Walamrt imports from China is that labour is cheap in China incomparison to the west .... is that the case with India. Tomrrow if it is cheaper to get something from Timbuktu, Walmart will import from there.

What is happening in auto sector ... when it was opened similar fear was generated ..... oh we will have to buy cars made in the west. So what is happening now, not only are most of the players setting shop in India but they are exporting from India.

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Originally posted by puttoo

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Originally posted by elmer fudd

Quote:

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Originally posted by puttoo



FYI .... Walmart has been in China since the late 90's ..... and you still see mom /pop stores in China .....

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Walmart USA is also one of the largest importers of goods from China. It is in the interest of the Chinese to keep their number one customer happy.

Walmart in India will further decimate the not-so-steller manufacturing sector, besides eating into mom and pop stores market share.

To add insult to the injury, they will fill their stores in India with Chinese made goods.

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Business is not done to keep people happy ... it has to sustain.

Just like Walmart has not dented the mom and pop stores in China, the same will be the case in India.

The reason Walamrt imports from China is that labour is cheap in China incomparison to the west .... is that the case with India. Tomrrow if it is cheaper to get something from Timbuktu, Walmart will import from there.

What is happening in auto sector ... when it was opened similar fear was generated ..... oh we will have to buy cars made in the west. So what is happening now, not only are most of the players setting shop in India but they are exporting from India.

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I am not against big box stores per se. Big box stores will not completely eliminate mom-and-pop stores but they will yield exceptional power and influence over producers and consumers.

Govt should have checks and balances in this segment of economy if the big box stores are to be allowed. Knowing Indian political establishment, that is not going to happen or expected to be enforced.

They(Walmart types) may even provide some guarantees initially to stock their stores with Indian made goods, but that would only be a ploy to get their foot through the door.

Once they settle down, they will flex their muscles like most MNC's do and get things done their way.

India tread very carefully in auto sector. Took baby steps first with international collaboration and then eventually allowed others to enter the market which was staggered over many years.

Made sure Indian companies and the automobile manufacturing infrastructure grew in tandem. Even so, auto industry is not a leading export segment of Indian economy.

Comparing China's trade relationship with west(esp USA) on similar lines to China's relationship to India, is not even like comparing apples to oranges, rather it is like comparing a pineapple to a horse's a$$. Two very different economic relationships.

When it comes to international trade, India thrives on cost advantage, much like China does and is in fact her rival. US, and west by extension, is on the other side of the equation.

And instead of rectifying the situation to India's advantage by improving manufacturing infrastructure(very much doable), the surrender monkeys in Delhi are giving away large chunk of market to China and tobe efficiently channeled through stores like Walmart.

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Originally posted by elmer fudd


When it comes to international trade, India thrives on cost advantage, much like China and in fact is her rival. US is on the other side of the equation.

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My point exactly .... importing from China into India is not the same thing as importing from China into USA. India has the same labour costs as China.

That is why it will not be cheaper for Walmart to "Ship" goods from China to India then to have it sourced from India.

Right now retail is not organised sector ...... but once big box stores come they will require goods in a large volume. Once there is a demand local players will move in to cater to that demand.

Same story .... when pepsi stared selling potato chips all hell broke loose. It was going to kill the local namkeen walla mom and pop stores. Today Haldirams and Bikaneri etc are not only selling locally but are global brands.

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Originally posted by puttoo

Quote:

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Originally posted by elmer fudd


When it comes to international trade, India thrives on cost advantage, much like China and in fact is her rival. US is on the other side of the equation.

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My point exactly .... importing from China into India is not the same thing as importing from China into USA. India has the same labour costs as China.

That is why it will not be cheaper for Walmart to "Ship" goods from China to India then to have it sourced from India.

Right now retail is not organised sector ...... but once big box stores come they will require goods in a large volume. Once there is a demand local players will move in to cater to that demand.

Same story .... when pepsi stared selling potato chips all hell broke loose. It was going to kill the local namkeen walla mom and pop stores. Today Haldirams and Bikaneri etc are not only selling locally but are global brands.

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Indian manufacturing is already getting killed by the Chinese. Imagine what it(China) can do with powerful retailers on its side.

There is no organised financial sector to help small time players. There is no physical infrastructure support to accommodate the needs of mom-and-pop stores.

No program or support to modernize their supply chain needs. No effort at quality control and at safe guarding customer rights so as to improve the health of the entire sector.

A country has to get its house in order before it takes on others. Individuals or private groups cannot self-organise with so many barriers in their way. Haldirams, Bikaneri and a few other success stories are at best tokenisms.

The only way then for average small time player would be to question the legitimacy of govt laws. As somebody said, in India, govt responds only to bribes or threats of using force.

The Monteks, the Chidambarams and the Manmohans of the early nineties advised local Indian corporations to sell off their manufacturing units to MNC's as it was their weak area and were asked to focus on trading as they(Indians) were strong in this area. Today, we have these same people peddling current version of the same old advise.

Same story with Indian manufacturing sector. They are tied to ball and chain with all sorts of regulations and corrupt bureaucratic practices, but expected to fend off foreign competition with their hands tied to the back.

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Originally posted by elmer fudd

The Monteks, the Chidambarams and the Manmohans of the early nineties advised local Indian corporations to sell off their manufacturing units to MNC's as it was their weak area and were asked to focus on trading as they were strong in this area. Today, we have these same people peddling current version of the same old advise..

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This is just cheap shot at politics ...... just like in 90's when congress was following libralization .... BJP was talking swadeshi. And when they came to power themselves, they followed the same policies od congress...FDI and all.

Mark my words ..... opening of retail sector to foreign players is in the interest of the country. Even if Modi G is to become PM tomorrow, the first thing he will do will be to open the retail sector. Everyone know this but with the country in election mode, no one wants to take the risk and that is the story of growth in India.

Rest we can debate as much as we want .......

Quote:

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Originally posted by puttoo

Quote:

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Originally posted by elmer fudd

The Monteks, the Chidambarams and the Manmohans of the early nineties advised local Indian corporations to sell off their manufacturing units to MNC's as it was their weak area and were asked to focus on trading as they were strong in this area. Today, we have these same people peddling current version of the same old advise..

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This is just cheap shot at politics ...... just like in 90's when congress was following libralization .... BJP was talking swadeshi. And when they came to power themselves, they followed the same policies od congress...FDI and all.

Mark my words ..... opening of retail sector to foreign players is in the interest of the country. Even if Modi G is to become PM tomorrow, the first thing he will do will be to open the retail sector. Everyone know this but with the country in election mode, no one wants to take the risk and that is the story of growth in India.

Rest we can debate as much as we want .......

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It would be silly to reduce this argument to Congress or BJP. They are all sold on the idea if the money poured in their hands is the right amount. Btw, Modi is on the forefront. He has already allowed(or is in the process of allowing) Walmart in Gujarat.