walmart launch in india
TRANSCRIPT
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LAUNCHING PAN INDIA
Presented by,Abbas Sabuwala (02)Ashwini Mishra (11)Ivel Mathias (20)Neha Joshi (29)Richa (38)Suraj Shaha (47)Vernon Pereira (56)
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Till Sep 2014 –
Total no of outlets – 11,119
Walmart in US – 4322
Number of Models - 71
Global sales - $ 466 billion
Increase in sales value (in 2014) – 10.2 %
(Globally)
Associates – 2.2 Millions
Presence in number of countries – 27
E-commerce in – 10 countries
WORLD WIDE PRESENCE
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Walmart in India
20 Best Price Modern Wholesale
stores in 8 states
Offers more than 5,000 items
Conformance to ethics, social value,
quality, food safety and packaging
Awarded best cash and carry format
in India
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Safety and Quality standard- Care
- Customer Service
- Courage
- Continuous Improvement
Social Responsibility- Women Empowerment
Environmental Responsibilities- Food wastage reduction
- Plastic bag reduction
Corporate Responsibility• Talent management for women• Mera Kirana• Benefits to Small and Medium
Enterprise
UNIQUE PROPOSITION
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Product
Agricultural
Manufactured
ImportBest Price
Stores
•Range of products•Competitors•Local brands•Contract Farming
B 2 B
Happy Retailers
•Locations•Supplier relations•Legalities•HR Management•E-commerce Happy
Customers•Retailer relations•Supplier relations•Legalities•E-commerce•Reliance •Types of stores
B 2 C
SWOT Analysis of Walmart
PROJECT OVERVIEW
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Rivalry:Star- Bazaar
D-martBig- Bazaar
Shoppers StopChroma
New entrants:100% FDI
Customers:1))B-2-B:Backward Integration
Substitutes:Online/ E-retailing
Suppliers:1)Forward Integration2)Farmers refusing to sell
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FOREIGN DIRECT INVESTMENT (FDI)
Single-Brand FDI
• Up to 100 percent FDI is permissible in single-brand retail
Multi-Brand FDI
• Up to 51 percent FDI is permissible in multi-brand retail
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PHASE 1 PLAN• 2014-2016• 20 new locations- B2B• 8 new states•Targeting Golden Quadrilateral • Good infrastructure , high population cities•30 new retail stores with Reliance fresh
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PHASE 2 PLAN
• 2016-2018• 15 new locations- B2B• 16 states covered• Extension to existing stores• Moderate population density• Stronger ties with suppliers• Rising demands• 40 more retail stores
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PHASE 3 PLAN
• 2018-2020• 15 new locations- B2B• 18 states covered • Wider reach with local products and SCM • Moderately populated cities• further more retail stores• Focus on distribution channels and reduction in cost
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E-commerce, which will cater to both B2B and B2C
segments.
Advantages and Disadvantages we inherit.
Walmart customised eliminating disadvantages.
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Shorter processing life cycle Cost Effective
24x7 Services availability
Inventory Management Communication improvement
Advertising / Marketing
Inherited Advantages
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Inherent Disadvantages
Lack of touch or
feel of products
Delivering perishable
items
Target market sighting
user friendly issues
Access to transport constraint
areas
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How we improvise
Auto pre-login form create an e-commerce account of the individual
send an installation link to his smart phone / email
Facebook and Google accounts sync
Why? save the customer’s time by registering their
details
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How we improvise
The easy mode feature – dual modes
advanced intensive mode (default) and easy mode
user-friendly for all ages
detailed features, helping to purchase a product
Example: recommended products, filter popularity.
basic essential features with large icons
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How we improvise
Dynamic order system
only those products capable of delivery will be listed
filtered as per signed in users default address
ensure products quality safeguarded on delivery
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HOW
WHAT
Empowerment – Indian Farmers and milkman
Controlled food quality and price
Better supply and price
Professional food technologist and agricultural
specialist per district1
• Strengthen our logistic facilities
• Demographic study for crop and logistic.
• lift the committed material from the farmer
• Need to give him other social incentives also
CONTRACT FARMING
WHY
HOW
WHAT
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Numbers of farmers are huge and hence large logistic
Soil pattern of the country is vary after every 100 kms
Strong oppose from the supply chain which we are eliminating
Poor infrastructure of Country
DIFFICULTIES IN CONTRACT FARMING
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Product
Agricultural
Manufactured
ImportBest Price
Stores
•Range of products•Competitors•Local brands•Contract Farming
B 2 B
Happy Retailers
•Locations•Supplier relations•Legalities•HR Management•E-commerce Happy
Customers•Retailer relations•Supplier relations•Legalities•E-commerce•Reliance •Types of stores
B 2 C
SWOT Analysis of Walmart
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CHALLENGES IN SCM INDIAPoor infrastructure
Lack of existing organized supply chains
Cold storage technology is under-developed
Lack of regulation and standards for material quality and handling
Red-tapism and nepotism along with rampant corruption
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SOLUTION TO SCM CHALLENGES
Dividing India into 5 Zones
Developing new channels using 3rd party logistics
Setting parameters for quality and efficiency
Distribution of goods globally
Using leverage of Global SCM Experience in I.T and H.R
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Information availability and
visibility
Single point of contact for data
Decisions based on total information
Collaboration with partners
IT in LOGISTICS
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IT FOR WALMART
Bar coding
Electronic Data Interchange (EDI)
Fully automated warehouses
Inventory management
Enterprise Resource Planning (ERP)
RFID
Cross Docking