Sunday, May 06, 2007

Wal-Mart to focus on low prices for India operations

Low prices are Wal-Mart’s USP across the world and the company will be offering similarly low prices for its operations in India as it does in other parts of the world. The company's equal partnership joint venture with Bharti Enterprises is likely to have 25% lower prices than other wholesalers. Although the agreement is yet to be formalized between the two companies, the first store is to open by mid-2008, which will eventually be expanded to stores in 75 cities over the next 5-7 years.

Raj Jain, president of emerging markets for Wal-Mart, states that the company will offer low prices by reducing costs by managing supply chain efficiencies and localizing operations. The company will source close to 50% of products from local sources and 40% being sourced from under 100 kms away.

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