Category Archives: Wal Mart
Organized Retail will NOT be as successful and profitable in India as is projected by Everybody
Now that is a very bold(someone will say stupid) prediction to make when everyone sees 100s of malls seemingly springing up every corner of town and full of thousands of shopping hungry people .
I have not come across any article on net which even remotely says that Organized Retail in India will NOT really be that successful as it is generally predicted to be. In fact after FDI in multibrand retail has been increased to 51% not one article came in any prominent newspaper which said that the Walmarts , Tescos of the world may not succeed in India . Everyone just automatically does following conclusion from some facts –
- India Growing country ( 7-8% + GDP growth)
- Has young population and a huge middle class who are earning a lot
- Organizedretail is just about 5%
- Directly implying that when Organized Retail becomes at least 15% there will be so many players who will make tons of money .
But I doubt anybody really has thought that may be India’s Organized retail will at least for coming 2 decades will NOT have a penetration level as it is made out to be . Even if penetration level does go up considerably still it will NOT be profitable enough for the players/investors in the market .
Business Consultants if they read this post are not going to like my thoughts at all. But I am writing this mainly warning to the prospective foreign retailers who plan to be entering India in coming months and years in the hope of growing profitably based on ONE SIDED ppts/docs given by the so called retail experts/consultants from India. I hope I am proven wrong in coming decade or two.