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# The Global Intelligence Files

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## Re: Wal-Mart takes retail tips from P&G India

Released on 2012-09-19 09:00 GMT

Email-ID | 103469
Date | 2008-04-10 14:57:58
From | animeshroul@gmail.com
To | bhalla@stratfor.com

Hi Reva,
Apology for this delayed response to this mail of yours...accidentally it
went to my spam folder. I saw it last night while deleting....
You are right, FDI Watch is looking for funds and resources to
operate...It failed to mobilise farmers/Small shop owners and all those
usual suspects. The Director Dharmendra Kumar sent out a mail today
showing other things...except WM Bharti...No mention of WM -Bharti. will
forward that mail to you...
But One never be complacent as these groups suddenly get funds from
European groups or Political outfits (Left parties here) to surprise
anytime...
Animesh
On Tue, Apr 8, 2008 at 7:08 PM, Reva Bhalla <bhalla@stratfor.com> wrote:
from the sounds of this, it doesn't seem like FDI watch is as organized
as it used to be. if i were the heads of these organizations, I would be
all over this event.
can we try to get more info on the status of the anti-corporate retail
movement? have then been unsuccessful in winning the support of India's
farmer community? are they running short of funding? are they
experiencing any organizational disruptions? they don't seem very
strong anymore..this will be important to dig into
----------------------------------------------------------------------
From: Animesh [mailto:animeshroul@gmail.com]
Sent: Tuesday, April 08, 2008 8:30 AM
To: Reva Bhalla
Subject: Re: Wal-Mart takes retail tips from P&G India
Hi Reva
I got some mixed response from people involved in these anti FDI/retail
activities. Also talked to journalists in PTi and IANS...They have
little info on this. What they told me that in Halla Boll rally in Delhi
in February it was decided to oppose WM and Bharti stores in mid April
in Delhi. As far as my knowledge till now, in Ludhiana and Chandigarh,
these people only can conduct street rally and can't put a stop to the
opening.
Bharti people have reportedly deployed private security guards for
this...(with support of local police and they have their henchmen to
prevent any untoward incidents in both the places.
My contacts are on the look out for any news from the ground...And
myself too. will let you know if i come across anything. Onething sure
that they will (anti retail people ) will hold rally in Delhi either on
April 16 or 17....Detils are yet to come ...
A
On Tue, Apr 8, 2008 at 6:32 PM, Reva Bhalla <bhalla@stratfor.com> wrote:
do you have any info on any planned demonstrations against the opening
of the Bharti stores?
----------------------------------------------------------------------
From: Animesh [mailto:animeshroul@gmail.com]
Sent: Tuesday, April 08, 2008 1:49 AM
To: Reva Bhalla
Subject: Wal-Mart takes retail tips from P&G India
Wal-Mart takes retail tips from P&G India
8 Apr, 2008, 0337 hrs IST,Rajiv Banerjee, TNN
http://economictimes.indiatimes.com/Wal-Mart_takes_retail_tips_from_PG_India/rssarticleshow/2934007.cms
MUMBAI: Wal-Mart, the $340-billion retail giant, is looking to its
long-time partner Procter & Gamble to learn the tricks of the Indian
market, as it tries to get a foothold here.
Globally, the relationship between the two goes well beyond a
vendor-retailer relationship and P&G has offered to share its
understanding of the Indian market to help Wal-Mart in building
efficiencies in supply chain and merchandising for its cash-and-carry
business.
Senior officials at P&G told ET that its India unit has shipped its
first consignment of personal-care products to Bharti-Wal Mart, a
joint venture for the cash-and-carry and logistics initiatives.
While the joint venture will focus on B2B business, the Bharti group
plans to launch small-format retail stores shortly. The officials said
P&G India is helping Wal-Mart understand the nuances of doing business
in India. Wal-Mart's India exposure has been so far restricted to
sourcing from the country for its global operations.
"Our managers are offering insights of the Indian market on supply
chain and merchandising. This co-operation is taking the long-standing
relationship that we have with Wal-Mart globally," said a P&G
official. When contacted, a Wal-Mart spokesperson said they have
strong working relationships globally with several large companies,
including P&G.
s
"As part of these relationships, we work closely together to
understand market trends, including merchandising and consumer
insights. In India, we are collaborating with large companies to
comprehend market trends for our cash-and-carry business," the
spokesperson said.
The Wal-Mart official said the first cash-and-carry store is expected
to open by 2009. "It is too early for us to comment on the details of
our cash-and-carry format," said the official.
Sources close to Bharti-Wal Mart said the collaboration between P&G
and Wal-Mart comes as the US retailer wants to ride P&G's experience
in retail trade in India. They said even before Bharti-Wal-Mart
announced the joint venture, a P&G research team was helping Wal-Mart
understand the Indian market better in terms of consumer behaviour and
buying patterns.
"Studies like psychographic differentiation were undertaken by P&G for
Wal-Mart in India. Aspects like why consumers shop at 'kirana' stores
were studied and forwarded to Wal-Mart," said an official, adding that
although the collaboration is for the joint venture, P&G's inputs will
help Bharti's small-format retail initiative, too. According to
Wal-Mart, P&G has done good work in India, although it lags behind
rival Unilever in the country.
"The trust also stems from Wal-Mart's close working relationship with
P&G at the global level," said an official. World-wide, P&G works
closely with retailers like Wal-Mart and Tesco. Right from SKUs
(stock-keeping units) to product design, packaging and distribution,
P&G is collaborating with retailers with insights in point-of-sales
data for supply chain, merchandising and category performances inside
the stores.
"Even for trade, Wal-Mart is a new player in the market. So P&G's
relationship and understanding of retail has been absorbed by
Wal-Mart," said a company official.
Though modern trade constitutes just about 5% of the estimated $350-
billion retail market in India, vendor-retailer relationship is
evolving from a pure margin play. So, collaboration is taking place in
terms of category management and dedicated trade marketing teams to
handle large accounts.