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Walmart India will focus on growing its two private labels — Member’s Mark and Right Buy — in the coming years, said a senior company official.
Rajneesh Kumar, Senior Vice-President and Head - Corporate Affairs and Public Policy, who was in Chennai recently for an event, told BusinessLine that the company is looking to expand its private labels, where there is a growing demand.
Member’s Mark caters to the premium segment with major buyers being hotels, restaurants and caterers (HoReCa) and the offices and institutions segment. Right Buy offers value products at an affordable price. “Currently, the penetration of the labels is 6-7 per cent. But it is growing,” he said
While there are many products that cater to the super premium segment, there is gap in the mid-market segment, Kumar said.
This is where the company feels there is potential for growth.
Local sourcingWalmart India identifies the gap and works with local manufacturers and suppliers to manufacture private labels. “We source all products locally. This way, we can ensure that the products are not just of high quality, but are also available at competitive prices,” he added.
“We keep experimenting with new products in the 21 Best Price (wholesale) stores in the country, such as new cooking oils or new varieties of fruits.”
Eco-friendly productsIn addition to growing the private labels, the firm is also working with suppliers to create environment-friendly products.
“Globally, we are working with many companies to bring products such as waterless shampoo,” Kumar said. Stating that it might be a little too soon for such a shift in India, he said the firm is working with suppliers to use eco-friendly packaging materials, and farmers to adapt sustainable farming.
Walmart India operates 21 cash-and-carry stores across nine States.
There are plans to open 50 more in the next few years with an investment of $10-12 million each in Punjab, Maharashtra, Uttar Pradesh, Andhra Pradesh and Telangana.
The company is currently conducting a nation-wide market study for its phase II expansion.
“India is a priority market for Walmart. But the focus will be on strengthening the current market before expanding.”
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