I just want to add compare to UK or US our population, consumption of product is very different, Kirana Store can't be closed down because the person who is taking credit, he can't think about to go to Mall / Hypermarkerts...even the people who are living at the standard of maid,Driver,Gardner.....
you will see more of Rural upliftment and a large segemnt entering the purchase capcity bag soon thus we can see more Hypermarkets in both urban and A class towns and B class towns and slowly penetrating to district levels we all pay for quality affordablity is a dual part for and FMCG buying. It is the awarness of good safe and valued product where product consiousness is a vital area.
we all know that Indian retail sector is booming but i thought despite of this consumers are more concentrating in environmental and health issues thats why most of the retail sectors who deals in apparel and textile are concentrating on eco frindly clothing like organic cotton products and this concept is performing well in all countries Ex. Europian Union, US etc. but Indian consumers is still going for economical.
Well I agree with what has been said. But we need to now balance the shift of power. If in years down the line retailers become more powerful and that they start dictating and deciding the margins of manufacturers, manufacturers will be left with no other option but to continue business with them just to make themselves visible. There was an incident in Maharashtra few months back. One biscuit company was offering 15% discount to a supermarket while the distributor of the state was getting 10%. Thus the price of buiscuit for the same customer was different. The distributor stopped lifting any merchandise and within 7 days the company had to give 15% to the distributor too. So we can expect such price wars across channels which will ultimately be beneficial to customers.
i am amit gundawar currently employed with co-op, supermarket in u.k as assistant manager. I am planning, wash my hands in bahati ganga of retail boom in india. My core competencies are retail training and development. I would request the author to write us regarding some oppurtunities in retail training in india at present. thanks a lot.
I live in UK, which is full of small & big superstores. Here TESCO dominates market. It can get permission to setup store in any locality across the country. Supermarkets wiped out all high street shops. Most hit are manufacturers and suppliers. They squeezed badly on price. Since 5-6 supermarket companies control whole country and they buy in volume, they do it on their terms. They decide how much margin they want to leave to supplier. Suppliers are forced to sell their goods with supermarkets brand. So suppliers cannot build their own brand at all. They cannot capitalise on the quality they provided over years. small manufacturers and suppliers face more problem in this matter. Once small stores and brands are killed, there is no advertising left. Down the line after couple of years, there will be no advertising revenue from consumer brands in mass media (TV etc). Which affects revenue of these media companies. This forces them to adopt subscription only revenue. There will be no free TV channel.
Right now it looks rosy picture and threat cannot be seen easily, but if necessary control is not used; it will create unrealistic monopoly in the country.
Real challenge for the retail sector lies in Food sector. What will Andrew Levermore do to get vegetables barcoded is also irrlevant. Making sure continuous and quality supply of fresh food from the rural areas going to be the challenge. Sustaining quality and quantity; and making sure the producers have working capital/internediaries haev working capital to finance the chain (farm to store) is to be addressed and tackled. Lets see how may retail ventures can sustain and support such supplies!
