Lucknow - the changing face

My home place- Lucknow, is not out of the race that has ubiquitously started all over the world, in the developing countries – a race to be at par with the global scenario. This is none but a very prominent effect of globalization, a policy which India adopted almost two decades back, opening its curtains to the world. By adopting this policy not only India made itself accessible to the world, but also opened for itself new horizons where it could soar high.

I originally am from a remoter town of Uttar Pradesh (U.P.), called Rampur. Not only have I seen changes in the more affluent cities of my state like Lucknow, but smaller towns also are setting up a pace to be at par with their higher counterparts. From this small town Rampur, I moved to Lucknow in the later half of 1992. Since then I have seen the metamorphosis of this lovely town known for its delectable way of speaking and unpronounced mannerism. Lucknow has been land of Nawab’s, who were known for their grandiloquent lifestyle. They had a queer sense of dressing themselves, and impeccable penchant for the best of Mughlai cuisine. This is what marks Lucknow till now, but the style has changed.

When I started my life at Lucknow, it was called ‘Babuo ka Shahar’ or the city of Government employees. It was called so because of it being the capital of U.P. and all the government offices being situated here. Most of the people found here used to be middle class people, who worked 9 to 5 and spent rest of the time with their families and enjoyed their easy going lives. This place was also devoid of any kind of industries, unlike the nearby city of Kanpur. So here people only had their modest salaries pronounced by the government, which was certainly not enough to live a lavish life. There was no demand hence there was no supply too. There were only two major markets – Hazratganj and Aminabad, where one could go and buy stuff. Hazratganj was a market preferred by the so called ‘elite’, which were none but same babus whose long span in the job had made them more well-to-do. Here also there was none a word like branded stuff. The so called good shops only were shops that had been running for ages and who used to cater the Nawabs, this legacy only made them a choice of the ‘elite’. This was also a place where one could go and just roam about, the slang for which was ‘Gunjing’. One could also tingle their taste buds with spicy chaat and golgappas, which the chatwaala used to serve himself.

The second major market Aminabad was one with shops of all standards. Here along with the better-off people, the commoners also had their share. Along with the pucca shops there were temporary roadside shops also which were flocked by burkha clad ladies, bargaining over prices. The specialty of Aminabad apart from the market was Prakash’s Falooda Kulfi and Tunde ka Kabab-Parantha – vestiges of the ever comestible Mughlai cuisine.

Lucknow is also known as the ‘City of Parks’, owing to the numerous gardens and parks present in the city, initially built by the Nawabs to elate their nobility. These parks used to be the heart of the city during summer evenings and winter afternoons. People used to come here with their kids, who were much more overwhelmed to be at theses place adorned with swings and various rides. The outsides of these parks were cluttered with vendors selling balloons, toys, edibles etc. The sight of people pulling their children away denying their demands was common.

Today the scene is very different. Now Lucknow is a different place, very different. This place inhabited by government officials started its ride once it was felt by the MNC’s. Since then the modest city hasn’t got time to look back. It has started moving very fast. With the intrusion of multi-nationals the previously okay salaries seemed to be nothing. Now people working in these companies though Lucknowites by heart had set up a head of a more global human. With the increasing levels of disposable income, things which were luxury in the past and territories of the elite seemed be vulnerable now. Demand for better products increased in the city, calling for words like branded products, which was the new territory of the still better off people. Now instead of traditional shops people found it more pleasing visiting showrooms and making purchases. The next step towards getting even modern was the starting of Malls and Multiplexes. The first malls to be built up were Wave and Sahara Ganj. The branded and showroom fever had now moved to the chronic Mall fever. With more and more multi nationals dropping in people have more money to spend and infrastructure companies more malls to build up. At this point Lucknow has five malls ready and working and few in the pipe.

All this though may glorify the city in some realms but it is losing upon its base, which is very torturing to ponder over. Gunjing is still the favorite pastime of the youth here but the destination now instead of the conventional Hazratganj is Sahara Ganj – the Mall. People here still like to savor Golgappas, but today it’s not served by hand, you have to help yourself. People now don’t stand on the roadside to have tea; there are better options like Barista and Café Coffee Day. Nike and Reebok seem to impress people more than their modest counterparts.

Hazratganj is still there with all its glory, what it has lost is its alacrity which used to form its part due to the younger generation hanging out here, now dispersed to the malls which seem to them as the epitomes of modernity and globalized India. Aminabad still hustles with all the people but it’s less resounding. Falooda Kulfi, what is that. Today we know only Kwality Walls and Baskin’ Robbins. The world famous Kabab-Parantha of Tunde has not lost its taste, people have lost their taste in it. A Chicken Mc. Grill appears to be more appeasing. Now no body would wait by a shop to have a Thandaii, Chip-chocolate shake can be more refreshing.

The city of parks still has all of them but in a degraded form. Nobody visits them now. How are the revenues going to be generated for the upkeep of these once prides of the city. Leave aside elders, children today are not interested to visit them. They now are a permanent home to gamblers and smackis. Children find themselves more comfortable in Mc Donalds getting clicked next to Ronald. The age old Imambaras, or the religious apexes of the city since the Nawabs, now stand alone just for some enthusiastic tourists and ailing archeologists.

This I believe is not the story of my city alone. In a traditionally profound country as of ours, globalization is taking more than giving us. I do not simply mean that it is bad for our country; on the contrary it is essential for our growth. If we are not at pace with the world we will be laggards. But just think, can we lose upon the our great past, our culture, our ways and manners which were brewed upon for centuries for the sake of this globalized world which is just seventeen year young to a country like India. Globalization means knowing others across the globe but not forgetting what we are. Globalization if kept up to the limit of transactions is more and enough; let us not let it touch our ways.


-fahad jameel

WAL-MART - in India

Wal – Mart

Everyday Low Prices and Everyday low Cost – That’s exactly what every consumer needs, and Indian consumer is no exception. This opportunity will be provided by the joint venture of Bharti Enterprises, a leading Indian cell phone operator, and Wal- Mart the world's No. 1 retailer, when it opens hundreds of Wal-Mart-branded superstores across India over the next five years, starting in 2007.
Across the globe, Wal-Mart is trying to establish a large scale retail network with an integrated supply chain that gives it huge clout with suppliers and the high degree of efficiency that results in low price for its customer. The role of Wal-Mart in this joint venture is to focus on back end supply chain management, giving Bharati access to proprietary know how in logistics and retail chain management for which Wal–Mart is known worldwide and hence, this combination of retailing’s 800 pound gorilla Wal-Mart with Bharti group is feared, admired and closely watched.
Certain trends that we have identified that could have a bearing on Wal-Mart operations in India are as follows:

1. Increase in the Double income families:
With the advent of rising disposable income, consumers desire to purchase a variety of products has increased. Wal-Mart being a retail giant will form close association with large number of suppliers, and provide wide range of products, thereby adequately fulfilling the rising needs.

2. Change in the consumer behavior:
Across the globe, the customer expectation is rising with every passing day, shopping is no longer a need fulfilling activity. Customers want a “Shopping Experience” which they previously ignored. People now a days, do Shopping for entertainment, and to get away from their busy lifestyle. Imagine a bunch of friends, wanting to do some essential purchases during weekends. They will definitely opt for a place that has front desk staff, which is helpful and a place where there is vibrancy and cheerful faces around. For this they will be ready to pay something extra for an overall experience to get away from the routine not break the head with a general store owner trying to bargain for a commodity priced a bit higher, which u will readily and happily pay in a retail outlet.

3. Increase in Nuclear Families:
Today, most families comprises of parents and two children. No longer are grandparents, brothers, maternal uncles etc. included as a part of a family. With the increase in the number of families, more purchases will be made. Wal-Mart can be highly benefited by this trend.

4. One shop stop:

Wal-Mart being a retail giant will have excellent ambience, good parking space, and global food and entertainment outlets within its premise.
In this fast paced world, time is precious. The offer of A-Z products under one roof will reduce time for shopping considerably. Working women will be tremendously helped by it. They need not hop around the market and spend hours for buying a product. Thus, apart from getting a variety of products under one roof, customers will enjoy the added value.

5. Desire to be treated unique/special:
Customer Service encompasses two major components: Visual Merchandizing and availability of the products at the right time. Wal-Mart’s (handling the back end operation) excellent value chain set up would ensure a constant availability of products all the time. Technologies like RFID (Radio Frequency Identification) for managing replenished stocks and inventory level, and the handheld billing machines will play a major role in increasing customer delight and satisfaction. Also, shopping at Wal-Mart will be a status enhancer.

6. Fascination for Global Branded Products:
Indians have always been attracted towards international products. They sense foreign goods as one that possess excellent quality. Wal-Mart can provide these brands at a much competitive price on account of the strong contacts with the suppliers around the world and excellent value chain activities which will give them a competitive advantage. Also, the influence of western culture is increasing by the day. This will lure more and more people to make certain purchases which they previously would not.

7. Health consciousness:
People are getting concerned about their health. They want to consume foods that are eco-friendly. Wal-Mart can make use of this trend and provide fresh organic fruits and vegetables to the consumers. Think of a person who lives away from the local market place. He would always desire to get fresh food which is not always feasible. But if fresh food is available in the nearby Wal-Mart stores and at a reasonable price the health conscious need can be fulfilled.

Environmental Factors

MARKET

The retailing market is one of the fastest growing markets in India. Currently the contribution of organized retail to the total retail market is just around 3%. There is a high potential in the retailing market which is totally untapped. There is not only high current demand but the sector is also expecting a big leap in the future. So in such an environment Wal-Mart will need to get a grasp of the market through the knowledge of Bharti. They will have to constantly track down the changes in the market and change their strategies according to the current market scenarios.

THE CONSUMER

Indian society is known for shaping its own benefits, values and norms that largely define its peoples taste, preferences and their expectations about the service offered by a company. This factor will affect Wal-Mart, which is a foreign player in retail industry, when it enters the Indian market. The taste and preferences of people are constantly changing. So the market here for any new firm is very slippery, including the very high timers like Wal-Mart. Very consummate knowledge can only help Wal-Mart pass through this tough test, in which the help of Bharti is very consequential.


The other major factor about the Indian consumer is the high diversity in all the fields. Whether it is religion or it is language India has a very high variety. This is also a factor which Wal-Mart will have to take into consideration. It cannot run the same strategy all over India and in all the sections of the society. The strategy that will work in North India may not work in South India; the schemes that would influence one fragment of the society may not do so to the other segments. Wal-Mart will have to concentrate on its strategies in different areas of the society to hold the market properly.


INDUSTRY AND COMPETETION

Information about the industry and the existing and potential competitors is very important for any new firm launching into a new sector. Though the retailing sector of India is very promising a tough competition can simply ruin all the efforts by Wal-Mart. So Wal-Mart will need to concentrate on all the aspects of retailing in which it can be run down by its competitors. Major competitor ‘Reliance Retail’ is now concentrating on enhancing its Supply Chain to give Wal-Mart a good competition on its low price strategy. The other aspect of retailing is the service part in which firms like RPG and Reliance can give Wal-Mart tough time on the block.

GOVERNMENT POLICIES

One of the main reasons for Wal-Mart creating a conglomerate with Bharti is the Government regulation that bans FDI in the retail sector. Any foreign firm cannot directly invest into the retail sector in India; it can operate only through a franchisee, so Wal-Mart cannot have a direct entry into the booming sector of organized retail in India. The way Wal-Mart has chosen is to invest in the supply chain at the back end of the whole operation. The government allows a foreign investment of up to 51% in the wholesale business, so this is the only way through which Wal-Mart can invest.


SUPPLIER RELATED FACTORS

Suppliers form another part of the proximate environment of any firm. They have their own bargaining power in the industry, through which they can influence the cost of inputs for the firm. Since Wal-Mart is firm totally concentrated on providing the lowest prices, its interactions with the producers and the suppliers would be quite critical to the firms’ success in the future. This is one area which will have to be taken care of very precisely to ensure the implementation of the strategy which has made Wal-Mart the biggest retailer of the world.

Thus looking at the trends and the environmental factors that can affect Wal-Mart‘s entry into the Indian market it is obvious that it is not going to be a cake walk .But looking at its past performance and emergence in countries like China, along with its incredible satellite based value chain activities which have always given it a strong competitive advantage it is possible for Wal-Mart to succeed. However this would not be possible without the local expertise of Bharti. Thus together this joint venture will certainly be a force to reckon with. Also it will change the face of the Indian retail market and the way the ever changing Indian consumer shops.

-fahad jameel