Let me start with a quote
"Indians are not like Americans, Indians are not like Europeans & Indians are not like Africans. Indians are unique people, with keen analytical mind & resource conservation attitude."
And it will be fundamentally wrong to predict a disaster, just by over viewing the outcomes at these places.
Before going into the subject, I would love to put across a set of questions, which will be related to our understanding on things impacting our[or the Indian Majority] livelihood.
"A system should create solutions, explore possibility which would benefits the masses. Not a just Minority."
1. Do we know how many transactions happens before an agriculture produce or any other goods reaches a consumer.
2. Do we understand, In a price sensitive Indian market. To keep the prices low & Competitive, quality had been compromised most of the times. [Extreme riches, Pls excuse this may not be an article for you]
3. Do we have any clue upon, How Rate tag "INR. 1XXX/-" is given to any product ?
4. Do we understand there is difference in number of goods available & number of goods available to us in our region ?
5. Are we observing keenly, market is getting divided into two. Sub - standard, defective, "low" priced rejected goods & Good quality, less available "High" priced goods.
Okay, I am proposing 1000 people theory for simple understanding.
2% people or 2.1 Crore people are employed by government. And in India not less than 3.2 - 3.5 Crore spouse/children/Father will be dependent on them. Which makes them our first 60/1000.
45 - 50 % people are involved in agriculture. That is around 45 -50 crore Indians. Which will be our 400/1000.
18 - 20 % people are dependent on manufacturing activities. That is around 180/1000.
Around 4 % people are involved in trading - political related activities.
28 % people are dependent on service related jobs. Which is around 34 Crore people. Excluding govt servants, It should take our tally to 300/1000.
Note : 28% Indians are below poverty line, or roughly 300 poor ones for every thousands. Which will be majorly over ridding in Agriculture & Manufacturing job dependents.
So lets sum up : 60 + 400 + 180 + 320 + 40 = 980/1000. Remaining 20 people are misc uncared, unheard, un seen[noticed], sadly renounced by the majority.
[Students, Aged, Home makers, unemployed are included in above figures indirectly]
By now, we should have got a clear idea. All our emotions showing a poor old women with few vegetables is just to garner sympathy. We don't get into detail, otherwise we can clearly see less than 40 people out of 1000 people, control over 70% - 80 % money in domestic circulation.
So why should we involve one more trader here. That too a trader from America, who has spoiled local shops livelihood.?
My observations would be, "If Wal - Mart has to succeed in India, he has to sweat out, do things out of the way & offer results that are really inviting."
My charges against Indian Traders
# Always kept farmers/manufacturers uncertain & capitalized on that.
# Always ensured demand for good products, by low supply & capitalized on that.
# Never involved/invested or educated farmers/goods producers for improving the quality. [Refer Murugappa Parry - Sugar Farmers relationship].
# Never interested in sharing the resources or making goods producers rich, there by indirectly keeping Indian Producers globally uncompetitive. As they lacked resources & infra to execute things.
# State Politicians - Religious leaders - Traders formed an alliance, Kept masses at desperate state.
So Wal - Mart, If at all had to succeed in India. Will have to first work/associate/invest with Manufacturers for better quality produce. They have to create a sense of security among producers & in return earn "So called Indian Un breakable trust".
They have to create better infra structure to ensure goods reach faster to destination & ensure goods are not perishing due to improper transportation/ Storage.
They should help create "New Indian Brands" by investing in Indian Talents.
Conclusion [Finally].
Answer to questions proposed earlier.
1. In a typical urban city, nearly 4 - 5 transaction happens before product reaches consumer. In a semi urban city, it is 3 transactions.
By introduction of Wal Mart, it will become one or two transactions.
From Bihar to Delhi [For a farm produce]
[Farmer [B] - Local collection agent [B] -Central Collection trader [B] - Central Dealer [D] - Distribution Agent [D] - Local Vendor [D] - Consumer]
By Wal Mart
[Farmer - Wal Mart - Consumer/Local Vendor - Consumer]
* Local vendor should in fact benefit by this. Remember only 25 - 30% of what you pay reaches producers[Most of the time] who holds majority stake & time invested in creating produces.
2. Often product quality is compromised. Even discounts/ low price sales are mere mockery capitalizing on people's innocence & desire.
3. Though it varies from goods to goods, often there would be unjustified market price controlled by traders.
4. Varieties in particular product and variety of product are often not made available to masses.
5. I have observed it, what about you ?
At the end money will be saved for majority of people. Which they might end up in getting unwanted things, or invest towards productivity. They might even spend towards living life, and reaching dreams that were beyond their imaginations.
We should give Wal - Mart[FDI] a chance in a hope, masses will raise as a whole.
Sorry for this big status. Happy Sunday. Do help me improve this analysis.
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