WAL-MART Has A Promising Future In The Wholesale Market In India.

< p > India's economy is facing risks. So far, the problem of retail giant WAL-MART in this market is also reflected.

But to some extent, the company's latest initiatives in the India market have shown a promising field.

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Less than two years ago, "a href=" //www.sjfzxm.com "WAL-MART < /a", the world's largest retailer sold by sales, became the favorite outlet for India politicians. At that time, the government decided to shut out overseas retailers so as to protect local couples shops.

Even after last year's overseas retailers were allowed to re-enter the market, the India government implemented protectionist restrictive measures in commodity procurement.

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"P", so WAL-MART restricted itself to form a joint venture with India Battie group (Bharti) to run its wholesale store, probably hoping to expand its business to the retail market.

However, restrictions on procurement have now become a hindrance to WAL-MART's expansion plan.

So far, WAL-MART has not run a retail store on the a href= "//www.sjfzxm.com/news/index_s.asp" > India market < /a >.

On Wednesday, WAL-MART said it would buy out the shares of Battie group, thereby owning 100% of the wholesale business.

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The experience of P WAL-MART undoubtedly highlights the setbacks faced by the retail sector in India, but the company may have been rewarded for its wholesale business.

The outlook of India's retail sector is never good, and it is not just because of political factors.

Abhishek Ranganathan, an analyst at Phillip Capital, an investment company, points out that in big cities in India, supermarket operators have to pay 25% of gross profits to pay rent, which is twice the international level.

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< p > the reason for such a high rent is that the land use law of the India government restricts the supply of rentable shops, and the property rights regulations make the market less mobile.

Wholesalers are in a better position than the retail industry.

Arvind Singhal, an analyst at Technopak Advisors, a consultancy, points out that they can avoid paying higher property costs, because wholesalers' warehouses are always located on the outer edge of big cities.

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< p > besides, the influence of bureaucratic habits is not so serious.

Moreover, overseas companies can hold 100% wholesale business and there are no restrictions on the purchase of goods.

More importantly, wholesalers sell goods to the couple shops protected by the India government, while the latter attract most consumers.

Singhal said that in the fragmented retail sector of India, about 15 million small "a href=" //www.sjfzxm.com/news/index_c.asp "shop" /a "accounted for 92% of total sales.

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