Age of Walmartisation
2004.12.11 0:47

Age of Walmartisation
Now that the age of walmartisation has come. It affects not only our society superficially but profoundly. Then how? I tell you here.
Walmart already has some domestic supermarkets. They are just middle class sized and their affiliation has not affected so much so far. From what it has owned, Walmart has been trying to merger the biggest supermarket called Daiei-I think this name is totaly unfamiliar to American people, so I italisized. Daiei was completely financially collapsed few years ago, but owing to its size, widely thought that its bankruptcy will affect all over Japan's society, only for this reason, this company's bankruptcy has been put off till now.
But now the time has come. The situation around this company has already reached in the point of no return. We all now face a situation, which is make or break. Walmart showed its strong interest in supporting this company financially just few months ago. In short it wants M&A of this company. According to newspapers, there are four groups that are interested in reconstructing this company. The list is here.
Ripplewood-US capital
Walmart&Goldmansacks-US capital
Aeon - domestic supermarket
Itoyokado -domestic supermarket
Among four groups, actually US group and domestic group are competing. The breaking point is that it is not only American group who support American company to acquire Daiei but domestic company too. I mean Sumitomo financial group supported Walmart&Goldmansacks group.
Historically we Japanese all has been facing difficulty and attack from the foreign capitals by and large.
At this moment we are not sure who's going to be the reconstructor of this bankrupt company. But everybody knows in the number of premises and in its size of business, Walmart surpasses by far more than domestic competitors. Ripplewood is an investment company. It is very much likely for Ripplewood to sell this supermarket after Ripplewood purchase first. To Walmart of course.
If Walmart acquired Daiei, we are not totaly sure what would have become of our nation's financial map. I think very drastic change will have been waiting to come.
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Consumerization(Score:2)
by Marxist Hacker 42 (638312) * <seebert@seeberfamily.org> on 2004.12.11 2:33 (#11052865) (http://www.informationr.us/ Last Journal: 2005.09.24 5:50)
Wal*Mart's end result (see previous message in your journal) is this: They think that first world nations should all be consumers and service industry people- no manufacturers at all. They are worshipers of David Ricardo, a contemporary economist to Adam Smith, who said that comparitive advantage means that goods should be produced in the cheapest possible country.The end result of the walmartization of Japan is the same as in the United States- a culture full of consumers with no producers. Debt will build up, as money is sucked out of the economy by WalMart and only a minimal service industry is given back. Eventually, that debt will collapse- it's only a matter of time here, and there's no real way to avoid the scenario.--Instead of teaching our children the wrong example of genocide, go down in dignity and teach that we are stupid.
Re:Consumerization(Score:1)
by mercedo (822671) on 2004.12.11 23:08 (#11059729) (http://mercedo.blogspot.com/ Last Journal: 2005.09.24 14:16)
You noticed? I'm not well versed in economics. In other words I am not good at it.
They think that first world nations should all be consumers and service industry people- no manufacturers at all.
Obviously very interesting idea. Before I believe in so, I have to confirm myself.
They are worshipers of David Ricardo, a contemporary economist to Adam Smith, who said that comparitive advantage means that goods should be produced in the cheapest possible country.
As I suggested above, I only know their name. It's worth while bearing it in my mind that.
a culture full of consumers with no producers. Debt will build up, as money is sucked out of the economy by WalMart and only a minimal service industry is given back.
This future anticipation is cold-blooded.
Eventually, that debt will collapse- it's only a matter of time here, and there's no real way to avoid the scenario.
Worst scenario. Given that all what you suggest might turn out to be true, it's our task to find a way out. It's our task-including you and me.--Ancient Greek Philosophers -18c Enlightenment Thinkers -Slashdotters [ Parent ]
Our Task(Score:2)
by Marxist Hacker 42 (638312) * <seebert@seeberfamily.org> on 2004.12.12 12:36 (#11064067) (http://www.informationr.us/ Last Journal: 2005.09.24 5:50)
I hope to find a way out. I don't see one without a civil war or a major change in the basic axioms that have governed corporations for the last 160 years.--Instead of teaching our children the wrong example of genocide, go down in dignity and teach that we are stupid. [ Parent ]
Re:Our Task(Score:1)
by mercedo (822671) on 2004.12.14 18:19 (#11079860) (http://mercedo.blogspot.com/ Last Journal: 2005.09.24 14:16)
I just want you to bear it in your mind that the most important point Karl Marx couldn't see was he was unable to make allowances for the revolutional development of high technology, the advent of the age of post industrial society. That's why Marxism has already died away. We have to think of making the most of this corporationism instead of trying to have the slighest idea of changing the direction of this trend. That's our task.--Ancient Greek Philosophers -18c Enlightenment Thinkers -Slashdotters [ Parent ]
Re:Our Task(Score:2)
by Marxist Hacker 42 (638312) * <seebert@seeberfamily.org> on 2004.12.15 2:45 (#11082840) (http://www.informationr.us/ Last Journal: 2005.09.24 5:50)
See my latest JE on Technocrat.net- on the communism of Thomas Jefferson. Corporatism is so corrupt that it has no possibility of doing anything other than going the way of Marxism- it will take advantage of high technology, but that advantage will be limited to the few rather than the many- that way leads to slavery, and eventual rebellion and civil war.--Instead of teaching our children the wrong example of genocide, go down in dignity and teach that we are stupid. [ Parent ]
Re:Our Task(Score:1)
by mercedo (822671) on 2004.12.15 22:40 (#11091583) (http://mercedo.blogspot.com/ Last Journal: 2005.09.24 14:16)
Let's arrange the matter.
Jean Jacques Rousseau (1712-1778) wrote 'Discourse on the origin of inequality of humans' (1753)in which he pointed out the existence of inequality particularly characteristicically raised in 18c pre-industrialised society.
Thomas Jefferson (1743-1826) wrote 'Declaration of Independence' (1776) Third President 1801-1809 was naturally deeply influenced by European Enlightenment Thinkers, came to be the first to realise their thought in the New continent. French Revolution (1789) followed.
Karl Marx(1818-1883) was a completely different figure who regarded as a founder of 'scientific socialism' wrote 'Das Kapital' in 1867.
So naturally Thomas Jefferson had known the existence of inequality and its problem deeply and it is true a kind of corporatism had appeared in a foundation days of America. But major unprecedented discharge of America's inconsistency was occurred in 1861-1865, the Civil War. After America experienced this, it emerged as a Superpower in modern terminology.
Corporatism has nothing to do with Marxism and American-type multi-national corporationism. Historically particularly in have-not countries such as Italy, Germany and Japan, this phenomenon could be seen. America is too wealthy to form this particular social type.--Ancient Greek Philosophers -18c Enlightenment Thinkers -Slashdotters [ Parent ]
Re:Our Task(Score:2)
by Marxist Hacker 42 (638312) * <seebert@seeberfamily.org> on 2004.12.16 3:24 (#11094610) (http://www.informationr.us/ Last Journal: 2005.09.24 5:50)
America is too wealthy to form this particular social type. America isn't nearly as wealthy as most people think. In fact, thanks to a really wierd quirk in the current multinational corporatism- the trade deficit- America really has very few corporations left owned by Americans. If it wasn't for Saudi, German, French, and Chinese money proping up our stock market, the last recession would have been a depression. The end result of Walmartization has been the selling off of control of American Corporations in return for low-value, low-price goods.--Instead of teaching our children the wrong example of genocide, go down in dignity and teach that we are stupid. [ Parent ]
PBS Frontline(Score:2)
by Degrees (220395) <degrees&comcast,net> on 2004.12.11 9:10 (#11056996) (http://home.comcast.net/~gerisch Last Journal: 2005.09.24 11:46)
There is a TV show here in the USA called Frontline, that does documentaries. They send out different journalists with a TV crew, and a few months later, they come back with a story. A couple weeks ago, they had a show named "Is WalMart Good For America?"
There two sides to everything.
The good side of WalMart is that they generally have lower prices than their competitors. This means, as a consumer, my dollars last a little longer, when I shop at WalMart. For example, my wife buys DVDs there, because they have them $2 less (saving 10%).
The Frontline show pointed out that WalMarts' low prices come at the cost of jobs here in the USA.
RubberMaid was a brand of plastic goods that was once named as one of the top 10 best companies in the USA. WalMart demanded that RubberMaid lower their prices - lower than RubberMaid could afford. RubberMaid said "no".
WalMart said "Your goods will no longer be carried in our stores." WalMart got a Chinese company to make plastic goods, and promptly started selling those goods far cheaper than RubberMaid. These goods were so inexpensive that it hurt RubberMaid in non- WalMart stores like K-Mart and Target.
Ten years later, RubberMaid was doing so poorly, they had to sell the company to a competitor, Newell. Newell auctioned off the factory, fired all the workers, and had a plant built in China.
The Frontline documentary then showed how the same thing happened to Thompson (owner of the RCA brand) and its factory in Ohio that made glass TV and CRT tubes.
WalMart has changed the market, by telling manufacturers what to produce, at what price.
It used to be that manufacturers created product, and then sold the retailer on the idea of selling the product. If Macy's didn't like the product, maybe Sears would. If Sears didn't like it, maybe K-Mart would... and so on. The manufacturer had a suggested retail price. The manufacturer would figure out what price would fit best in the market, and engineer the product to fit that price range. This way, the manufacturer made some profit, and the retailer made some profit.
WalMart changed that by telling manufacturers: you will produce a DVD player for $27. Previously, if a retailer had told a manufacturer that, the manufacturer would have laughed. Today, they comply, even if it means firing all the USA workers. Otherwise, WalMart will get someone else to build it.
One thing WalMart does well is data mining. They precisely put shelves where you run into goods. They precisely put signs where the lowest prices are seen by everyone. They carefully watch their computer data coming from the cash registers to find out what works, and what doesn't - and then they exploit that knowledge fully.
In short, they will become the fiercest competitor in the market.
Long ago - twenty years - the USA had many small shops run by private individuals, primarily for clothing and hardware. WalMart has put them all out of business (almost - probably 95% are gone). So if you have small businesses, that compete in the same market that WalMart invades, they will be fighting prices so low they will not be able to compete.
I don't know if that helps you figure out what WalMart's involvement in the grocery chain will look like. I hope it does.--The difficulty of Libertarianism: not 'I must be free' but 'That other jerk must be free, as well'.
Re:PBS Frontline(Score:1)
by mercedo (822671) on 2004.12.11 22:19 (#11059573) (http://mercedo.blogspot.com/ Last Journal: 2005.09.24 14:16)
I think current situation the WalMart company is trying to enter the Japan's closed market is a bold try US giant company ever made. Obviously it's useless for us to try to prevent foreign investment's coming into Japan's economy, but how to go with them how to get together in harmony with them are by far important.
Their try must be just the initiation of the big bang( total liberation of people, material, money). In some way or other we have to prepare for the rainy day anyway...