Sam’s Club intending to enter India

India
June 29, 2007 9:18pm CST
Walmart’s warehouse division, Sam’s Club, named after its founder Sam Walton is planning to setup its members-only warehouse club in India, reports Financial Express. The club accounts for 12% of Wal-Mart’s sales and have stores mainly in Northern and Southern America. The goods can be purchased only by members who are mostly small shop owners and retailers. The goods are sold in bulk and offers jewellery, electronics, food, clothes health and beauty items, office goods, insurance and travel services. This B2B model may be a good bet for Wal-Mart as 100% FDI is allowed in this sector and could also complement the Bharti-Walmart deal. Future Group has also setup a venture on similar lines called KB’s Wholesale Markets (named after owner Kishore Biyani). Pantaloon’s model has a better business proposition as it is opening these clubs mostly in rural areas and small towns, as in these areas it is infeasible to cater to the population as population is very scattered. Instead, the small shopkeepers and big families could buy directly from these huge facilities at low mark-ups.
1 response
ahamon69
@ahamon69 (30)
• United States
14 Jul 07
we have lot of household members in USA shopping at Sams. Perhaps they can lure business men with low prices but the average Hindustani home? no! Here's why: I do see lots of NRI's at Sams club but what will they buy back in India? my first thought is the Rice? Sam's carries this "royal rice" which is nowhere as good as Tilda or even the cheap rice you find in any authentic grocer. What vegetables will they sell? methi? bindi? you cannot get that here. If Sams will succeed in India, they have to have different product line, don't you think? Here the back is dominated by a huge beef center. That will not work! If women dress traditional they won't like the clothes, the only thing I can see them selling is maybe lots of asoefetida and jeans, and material for women who still sew. (walmart has but not sam's).