Wal-Mart Stores Inc. (NYSE:WMT) chairman S. Robson Walton last week made clear his interest in expanding the company's India footprint. Walton met with India Prime Minister Manmohan Singh in New Delhi to lobby for more access to the India market.
Wal-Mart in May began operating
a joint venture in the country with partner Bharti Enterprises, which at the time operated 25 grocery stores in India. That doesn't mean the U.S. retail giant's logo and low prices have been on display. Instead, Wal-Mart is operating as a wholesale retailer, providing back-end support to its local partner.
It's not perhaps the splashy approach one might expect from a dominant discount retailer that rapidly expanded across America. But the slow, steady approach mirrors
the strategy Wal-Mart has employed in China, where building relationships with potential partners and local officials, and getting to know Chinese markets and tastes have taken precedence over opening stores.
Walton's visit to India signals Wal-Mart believes it has a sound understanding of local markets and is ready to escalate its investment. Right now, foreign investors are not permitted to operate multi-brand retail stores. As this
Business Week article notes, Wal-Mart may be out to change that. It will be no easy task. Building its presence slowly and sending senior executives to meet with India's elected officials, however, have at least made a dialogue possible. -
Suzanne Stevens
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