Preview on entry of Walmart in India and its impact

Wondering what's making news in the current context today? Any guesses? Well its none other than the most happening news Walmart-A FMCG leader board to enter Indian market and impact of it on various fields. Lets ponder upon the various key factors and impact it can have on our Indian market. Like any other entrant capturing the most happening markets in International trade viz Indian minds as well as Indian market would never be an easy going for anyone making the base here for the very first time. Walmart have also realized it off lately when from the year 2012, they are in constant touch with a huge Indian delegation representing Indian home, finance minister, representatives from various parties, farmer and fmcg representatives, media etc which is far from yet being called or finalised a deal. However what Walmart has definitely done is to keep the think tank of the Indian government rolling all these years and like any other decision taken by Indian Government, it seems like they are going to succumb again to the attractive deals and offers posted in front of them by the Walmart Inc group.

Let us now ponder the positive-negative impacts of Walmart Inc group entering into erstwhile Indian Market already dominated with lot other foreign companies. Also let us have a general check in that whether there would be any impact from the government succumbing under pressure from the points thrown by Walmart Inc.

Pros of Walmart's Inc. Entree in Indian Market:What can be expected of them?

• Elimination of middlemen and other groups: Well the biggest or the best perspective that can arise out of this collaboration is that it eliminates the middlemen or the acting agencies which connects any product from the wholesaler,manufacturer, farmers, or other companies to retailers, direct buyers, consumers etc, thereby paving way for a safe and secretive trade.
• 100% Cost effective,competitive, affordable, flexi deal world class products: Well Indian markets have just not seen a nominal growth, but a phenomenal growth with many many foreign players viz companies entering and exiting without any reason. The most common amongst reason quoted for the negative growth is because of the sub-standard goods and high price strategy for these cheap goods. Though our country India is dominated by highly cheap labour, however we are always known for our market skills. That's the reason why all leading foreign companies including Walmart establishing base in India have understood that best way to capture Indian market is to provide best competitive and cost effective, yet which is very affordable world class products instead of cheap yet costly products.
• Widespread and better choice of highly affordable products:To get a base entry they would slash their prices and would provide better facilities as well as wider reach of all kinds of products best suited for Indian Market which also will be direct from manufacturers to consumers thus making it cost effective too! However the catch is till what duration or time would they go with these deals.
• Lesser competition means more profit sharing and better one off deals: With Walmart Inc's entry in Indian market, it would minimise the competition from other related groups as it would directly eliminate all middlemen, brokers etc thereby providing one off deals and best offers to consumers and which fits everybody's pocket. But well the catch is how long will they sustain with these tactic.

These are few best advantage/pros one can expect of Walmart's entry into Indian Market. Well if its so easy going and so advantageous for Indian consumers, marketers and everyone else, why is the storm/tide against the natural entry??? Any wild guesses. Well it seems all our readers have truly donned the work of a detective. Yes, the answer lies in the cheap and the bad tactics played by these entrants like Walmart Inc. So its right and most apt time to open up our chapter regard the disadvantages/cons of Walmart Inc or any other foreign player. This is why there is a lot debate and  even protest going on and on which is making the government to think hard for the very first time in the history of allowing a foreign player like WAL to dominate our market.

Disadvantages/cons associated with Walmart Inc entering Indian market: Also the centre line of debate is because of the following facts:

1. Fear of Monopolistic Behaviour/Attitude:As observed by the Indian Trade organization and large forum of famous Economists, Farmer, Trading groups etc who are currently protesting against the foreign players like Walmart Inc entering Indian market is because they fear of a Monopoly behaviour as observed in most of the FDI or foreign players entering in Asian/Indian Markets. These behaviour is created over a period of time and wherein these companies completely acquire/capture Indian Market share and can fix their own rates on different commodities etc.
2. Unaccountability towards profit sharing:As per the observations charted by various forums and communicative groups, Walmart Inc and other foreign companies do comply cheap tactics of profit sharing wherein they agree to lower profit margin at earlier stages, but later on after dominating any market makes their own profit margins to be sustain and get on leader board of the market. Thus they alone acquire high profitability which leads in future or later stages issues like Inflation (price hike of essential commodities), hoarding and mass inheritance of the commodities, unavailability of commodities etc.
3. Worst fear of rich becoming richer & poor becoming poorer:The worst and the centre point of all debate or issue is that with the entry of Walmart and other foreign companies, the rich people would still bank on buying commodities at much higher rate in near future from the same players who promised much competitive and flexi deals in beginning. However the major impact of this would be dealt on by the middle,lower middle and poor class of people who would definitely get rolled under the crisis. 
4. Extremity faced by major groups and impact on buying behaviour: The farmers, small merchants, shop holders etc would also feel the extremity of the monopolistic attitude of the foreign groups and would get buckled under the pressure.  Especially the farmers would be worst hit as they might have to even sell their precious land, earnings etc in hoard of expansion of these companies. It will also have an impact on general buying habit of we Indians as we believe in buying from small merchandise shops and not in a bulk manner. However it will inhabit a bulk buying behaviour amongst us as this will close down the smaller marketeers.
5. Unavailability of commodities/Steep hike in prices on all commodities etc: The foreign companies like Walmart would acquire all rights from leading brands across the globe and would fix its own pricing strategy which would be a win-win situation for most groups at an early stage. However later on, they would acquire complete right and may stack more commodities, price them at higher cost than market price and later even hoard it and make them unavailable. For Ex: Its not unknown to most of us what happened with the Life Saving drugs and medicines formulated by foreign companies which though in very popular demand are seldom available or even have been phased out by the foreign pharma players and worst part is that they do not have their substitutes.
6. Issues like Land grabbing, de-forestation and reduction in landscape etc: These are also the major issues caused due to provisioning of land for business purpose to such foreign companies/investors/players. How can we all forgot the impact company like Coco-Cola-The Beverage leader had in Pathanthitta Village in Kerala in year 2010-11 when it first entered Indian roots?. Farmers and even lot of average middle class people lost their lands to the expansion of this beverage leader. It also happened when Sony acquired rights to establish its maiden venture in Shanghou China- A beautiful province filled with dairy farm owners, farmers etc. This has now caused a wide range of issues right from soil,mineral erosion, adulteration,depletion of water resources,de-forestation, reduction in good landscape etc.  

So my avid readers, bloggers and general en-mass of people across the globe especially those in India. Is this what we have thought about our country or in fact any other country? So I as a respectable citizen of my country urge everyone to express their voice against Government and the current FDI movement which brings such players like Walmart and other groups to countries only to ruin our effective and prosperous lives.
At same time I'm not urging that FDI or collaboration with foreign companies should be severed completely. But I'm just voicing my expression against the general strategies implied on us by these companies at a longer run. So if they as well as the Indian or for that matter any other countries Government have a stringent laws, measures for the FDI or foreign companies, we all should welcome it and there would be no protest/opposition as such.

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