Until recently, Foreign Direct Investment (FDI) was not open to retail in India unless it was a single brand retail store (e.g. an Adidas store). However, under recent reforms by the government, multi-brand retailers such as Walmart and Costco can now set up shop in this huge, growing retail market.
There has been an outcry from the Indian public in various sectors to what has been see as a threat to employment and business by the locals.
For example, in the area of fruits and vegetables, the outcry has come from many angles where middlemen would get impacted due to allowing foreign direct investment.
The supply chain for fruits and vegetables is convoluted at best, but who knew?
The video below, produced by the Wall Street Journal shows how produce gets transported from farmers to your friendly neighborhood store.
It is eye-opening.
Perhaps Walmart can simplify this supply chain but it’s not going to be easy.
But hey, welcome to India, Walmart!