With Wal-Mart being given the go ahead to enter the Indian retail market as a wholesaler, they've begun their search for suppliers with the Indian market itself.
Wal-Mart has partnered with Bharti Retail in the venture, and is already in talks with a number of domestic Indian textile firm for sourcing. Clothing and fabric are the major items being looked for at this time.
The entrance of Wal-Mart into the Indian market will benefit some companies while others aren't nearly as interested.
Similar to how Wal-Mart runs its U.S. retail business, they are employing the same strategy of low prices, which many Indian companies respond to, and others don't.
Those serving the higher end markets, at this time aren't interested in supplying their goods through Wal-Mart and Bharti, as it would put pressure on their margins, which they want to maintain at their current levels.
Other businesses understand Wal-Mart's strategy, and are more than willing to work with them and work with a low margin but high selling business.
Those businesses wanting to keep their margins higher shouldn't cause a problem for Wal-Mart, as there are so many domestic players in the country that they have their pick among many that are more than happy to supply them.
The wholesale operation is expected to start next year.
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