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39 Conn. L. Rev. 1785 (2006-2007)
Wal-Mart with Indian Characteristics

handle is hein.journals/conlr39 and id is 1795 raw text is: CONNECTICUT LAW REVIEW VOLUME 39 MAY 2007 NUMBER 4 Article Wal-Mart with Indian Characteristics V. SRIDHAR & VIJAY PRASHAD This Article analyses the likely impact, in the context of the recent boom in organized retailing in India, of what is referred to as the process of Wal-Martization. It situates Indian retailing in the backdrop of the widening economic divide in Indian society. The growing inequalities in income and consumption are reflected in the manner in which retailing activity takes place in India. This duality is best epitomised by the small number of outlets catering to the rich, even as the overwhelming section of the population access their, needs from a large number of small outlets operating on wafer-thin margins. Wal-Martization, a process of consolidation by which large retailers capture control of the supply chain, poses serious livelihood questions in the Indian context. Many of these small retailers are likely to be driven under, following the dismantling of the existing supply chains. The ongoing controversy over Wal-Mart's entry in India reflects these concerns. Wal-Mart has been forced to enter India piggyback on an Indian partner in order to escape further controversy, what may be termed a Trojan horse strategy. While big-box retailing may indeed offer cheaper prices to consumers, the net economy- wide ramifications of Wal-Martization are likely to be heavily negative, implying fewer jobs, lower wages and worse terms of employment for workers in the retailing sector. 1785

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