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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