Archive | August, 2012

Shop small

8 Aug

Shop Small..

Presentation used in this speech:

https://show.zoho.com/viewdoc?id=x6A88mk0x676x6700kx6700nGaB021Vkh05kx7868Ex6700kx67025B08774Vo

Mr, Toastmaster, fellow members and guest,

About a month ago.. Early morning, My wife was serving hot tea and she looked very happy..I have asked what’s spl.. She showed a new paper article which said Indian government cleared a bill which allows 100% foreign investment in multi brand retail sector. The underline is ,it  allows WalMart ,Tesco and other mutinational shop to open retail shop in India.  Yes..Already  in India, we have a WalMart but only in wholesale  not in Retail. She was fed up with buying in small shop and  badly wanted WallMart in India. So WalMart is going to come to India in few years.. Is it good or bad for India?  First, Is Walmart really good for America? So many questions came up.

In July 2, 1962 — exactly 50 years ago today — Sam Walton opened the very first Walmart store in Rogers, Ark.  He  may not know that time that he  was laying foundation of a very successful institution that would reshape not just the retail industry but the United states of  America .

Walmart is the world third largest private employer — only the U.S. Department of Defense and China’s People’s Liberation Army employ more people than Walmart. Its 2.1 million–plus workers .

There are another 95 countries with populations smaller than the wallmart’s  workforce.

Each week, more than 140 million Americans shop at Walmart,a figure that far surpasses the audience of the 2012 Super Bowl or the voter turnout of the 2008 presidential election.

Walmart’s revenue — $443 billion for the latest fiscal year — is comparable to that of some of the world’s largest oil companies, it blows away its nearest retail competitors. Target’s latest fiscal year revenue was just shy of $70 billion

The average U.S. family now spends more than $4000 a year at Wal-Mart.

if Walmart were a country, it would be the 25th largest economy in the world.

Wal-Mart imported from China  $27 billion which is 10% US import from China.

For WalMart , Customer and Shareholders are king and they are doing everything for them.

Being supplier with Walmart is very difficult and it constantly negotiate with price.As one of the supplier mentioned, being supplier is two way sward.

WalMart proved that outsourcing to China was not only possible, but highly profitable, and many other retailers were compelled to do likewise in order to compete.

Due to wallmart pressure, suppliers were forced to move their manufacture in other countries..and currently virtually all the products are manufactured in other countries like Chinia, Inida, Mexico,  pakistan. Virtuall so many jobs moved out..

Let me tell my experince with WalMart.. I love shopping in Walmart and really saves money due to that.. I usually buy groceries in WalMart but Vegitables in Frys or Elrancho which seems to be cheaper for me.. But my wife told me that we can buy  anything in WalMart with  same price others offiers..  i couldn’t beleive, .. but that is true.. You can get the any Ad. which shows the price and u can get the same price.. We went WalMart and my wife decided the price for each fruit and vigeitbale by showing ad..Defently it is big loss for Walmart but it also kill the competitors .

Due to this , WalMart will force the Formers to reduce the price.. and Formers expect more subsidery from Government.. So all the burdern goes to Government.. Already US government pays $100 billion dollar subsidy to farmers..

Retailing in India is one of the pillars of its economy and accounts for about 15 per cent of its GDP.

After Agriculture it is the largest sector, which employs the largest number of people in India. The Indian retail market is estimated to be US $450 billion

It is estimated that India’s retail organised industry, employs directly about 40 million Indians..Being self employed, most of the engaged in trade with their families , so the livelihood of some 120 million pople depend on this sector which 1/8 of India’s population.

It  is estimated that, the average Walmart store will displace 11,200 people and replace them with 285 people.

WallMart and other big retailer will first buy goods from producers in bulk and sell it at less margin and hence routing out small traders from trades. When small traders are out then they will monopolise the trade and charge high price for goods and commodities. Independent stores will close, leading to massive job losses.We have seen this in the case of the soft drinks industry in India.

My uncle owned a small soft drinks industry , there were 1000 of small soft drink before Pepse and Coke came in.. When Pepsi started, they literally gave the cool drinks for free and wiped out all the small players. My uncle was banckrupted and now working as a daily wages in small company. Now we have only 2 brands Pese and Coke.

At Wal-Mart, the customer is king, everyone else be damned: competitors, employees, and the domestic manufacturing base.

Everything Wal-Mart does—particularly its low prices—. And every day, millions of peoples ratify Wal-Mart’s strategy by shopping there. WalMart doesn’t  kill economies,  it is we, the consumers do…Be it in Inida or USA, so to keep competition alive, to keep econmy growth ,  support small business.

When you buy in small shop, you are not helping a CEO to buy third vacation home , but you are helping litter girl to join dance class and mom put food on the table , a dad pay mortage and little boy pay the tution fees.

Your small purchase can make big different. So pledge to buy in small shop.

 

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