“In a speech in New Delhi Tuesday, Mr. Duke [chief executive of Wal-Mart Stores Inc.] argued that permitting foreign ownership of retail stores like Wal-Mart in India would reduce prices, create jobs and modernize the country’s agricultural market and supply chain.” Many companies have expressed interest in opening international operations in India, but haven’t received that with the full support of the government of India, the CEO of Wal-Mart being the most recent representative. So far, the government only allows foreign companies to enter the market “through franchise agreements or as wholesalers or distributors, and usually only as part of joint ventures.” This does not allow for the ideal marketing and control brands want to portray at times.
India is a large market with an estimated potential value of $400 billion. However, I don’t believe it’s the market companies want to spend most of their energy breaking through. The culture is very strong there and mom-and-pop shops reign supreme. For companies to really want to expand in India, they would need to tailor their operations, stores, and selling practices to mimic closely the practices already in place by other native businesses. In the U.S., trends are much easier to introduce and find a following. In India, that is not the case. Trends popular elsewhere will need to be treated like grassroots political campaigns, expecting little but giving a lot until change is made.
By Leya Abebe
Article found at:
No comments:
Post a Comment