This threat appears more hype than fact. With the advent of so many cars & two wheelers on Indian roads, did the autorickshaws and city buses vanish?
With so many airlines sprouting up, are we still able to get train reservations without hassles?
The Indian population explosion will always help level things out.
In my opinion, the traditional retail trade would instead do well to improve quality of service, hygiene standards and a highly professionsl approact to customers.
If the professional standards are available next door, who would go to these organized retailers?
It is wrong to say that modern retail will kil traditional trade. It will affect the bigger shops in tradititonal trade. The smaller / convenient shops will be unaffceted. Also most of the bigger traditional shops are cheats
1. Their turnovers run into several lakhs or even crores. But they don't pay any taxes or pay very minimal tax. They don't accept credit / debit cards because they want to hide their true turnover. They give slips of paper instead proper bills.
2. All this talk of employment loss is humbug. Show me one traditional shop that pays decent salary to its employees, gives them decent working times or conditions. They don't even pay minimum wages or employ child labour.
3. Most of them encroach on public space like footpaths. Or they are tenants paying a pittance to the landlord and harassing him.
Only people benfitting are the shop proprietors. These shopkeepers live a very comfortable and luxurious lives.
If these shops die because of modern retail, soceity should welcome that. They should be happy that disease is being cured.
My sincere request to all consumers who purchase from traditional trade
1. Please insist on a proper bill for your purchases
2. Make your payment in credit card / debit card. This will force them account the turnover.
I have heard that Bharti and Reliance will also have chain of cold storages. As we know, a huge quantity of peridhable fruits and vegetables go rotten during transportation and handling. With the cold storage chains coming up, the damage would reduce and increase the availability. The govt. and small vendors have done nothing over the years to solve this problem. I support the big retailers in their efforts. Ultimately, the consumer is king. He will buy from where he gets cheap and good quality. It could be the big retailers or the small street vendor. India is a huge market.
well, i am not too much a fan of subhiksha either. Some of their stores are ill-equipped, have low discounts and have less choice (this last one is important). I feel better shopping for groceries at a large kirana which is likely to have a lot of choice (which would automatically control prices).
1.Great stroy of booming retailing is illusion actually.Is market growing,or trade is just shifting from small shops to big chains?Then what is growing?Nothing. 2.Retailing will generate jobs.How? May be the jobs will shift from small stores again to big stores.But people working in small stores won't be employed by big chains talking of harvard and IIM MBAs who are really not needed in this line.So shifting of jobs or even causing unemployment is big possibility. 3.'Private labels will cut prices'.It is bull.The big stores will definitely reduce procurement and transportation cost but will pocket it with huge margins after they squeeze out small shops.They will squeeze both manufacturers and farmers and then consumers.They are not entering retailing for charity.It is cash business and once they set foot it is a cash cow.Keep milching both suppliers and consumers.See Nestle and McDonalds. Indians are profiteers basically with little respect for law and society.Every one knows.They have already fixed huge salaries for CEOs in name of liberalisation.Which price has fallen here orUk or in Japan after liberalisation?None. 4.The retail space is very costly and these guys have jacked up property prices astronomically.This has effected residential property also and common man will be hardly left with any money to buy anything including their stuff 5.There is hardly any value or skill in selling toothpaste and sugar.This is already managed well by P&G and HLL type companies.
I don't think Reliance or any big retailer is buying directly from the farmer. Can someone specify if that is the case. Is Reliance going to each and every farmer and buying from their door?? They are probably buying from a bigger middle-man than the small middle-men who operate out of the mandis right now and again dominated even at village level by one community. Yes farmers stand to gain in the short run where they don't have to sell to the small trader but to a bigger one who will offer better rate till the small middlemen are wiped out. After that again the rule of the game would be to squeeze the best rate out of farmers.
Also for the consumer, more than service it's the presentation that's attractive. You get to shop in AC and with lot of choice under one roof. You get to choose and pick up yourself what you want and don't want. Your children, wife, parents and grand parents get to also accompany you while you choose these things. SO it's the shopper experience rather than "service" per se.
Mr. Sunil Jain.... You seem to have used a lot of statistics for your study here.... Now a days we play with so many numbers that we really tend to get confused.... There are two ways to lookin at things... Quantatively and Qualitatively...
Look at the kind of service that we get when we enter Malls like Big Bazaar, Reliance Fresh.. Do you think we will be able to get the same witrh a Mom and Pop stall....
And Companies have Short term and Long term Plans ... Though they have not been able to reach targets in Short term... They will have long term plans... Companies no doubt play for the best but they are ready for the worst...
Thats the way RELIANCE plays the game... And with the deep pockets that they have... They would be ready to take the looses for years... Before Break-even...
RE:This is Crap!!
by teachers guild on Oct 14, 2007 04:03 PM Permalink
Reliance like companies only manipualte markets be it palstics or shares or retailing .Dont kid yourself brother.nestele and McDonalds have cacthment areas and contract farming already?who has benefitted except hyuge profits for Netsle and MCDonalds.i can count n numer of companies.These are MNCs and do better business.indians are profiteers and largely irresponsible.Important to nail them.Almost all listed company top executives has jacked yup salaries from rs 2 lac to level of 10 lacs to 27 crores.Can ia sk what happned in last 5n years that such salry raise was required?What about consumers and shareholders,the common man.This liberalisation and globalisatioon ios nothing but new avatar of capitalist conspiracy to lotm societies.Beware!since 1991 can you tell which item has gone down or who's price has been rising below 2-3% rate?Not a single except electronics.the reason are technology revolution and not businessmen's efficiency or charity.
RE:This is Crap!!
by Satya Narayan on Oct 10, 2007 12:08 PM Permalink
With huge money at their disposal RELIANCE should set up manufacturing units for import substitues, rather than spoiling the livelyhood of small vegetable venders.If laks of self employed small vegetable venders loose their livelyhood, will not the crime rate will increase?
Whatever Reliance does, it has economy of scale and it is not easy to match Reliance Scale. Even Walmart will find it tough.
I feel Reliance can make small KIOSKS but Reliance should go for MEGA STORES in such states which have no problem with Reliance as well as Electricity.
Gujarat is one such state, Punjab / Haryana are another supportive states ( Only issue is electricity) >> Here Reliance should have MODULAR Designs to help it scale up operations as and when Power situation favours.
AP has given support and Relaince should examine it.
RE:Whatever Reliance does, it has economy of scale.
by Shiva on Oct 09, 2007 10:17 AM Permalink
Mega stores will fail purely because of the real estate price.
They cant sell vegetables. If they do they will become vegetables of course rotten.
RE:Whatever Reliance does, it has economy of scale.
by Agnesraja George on Oct 09, 2007 12:07 PM Permalink
In any developed country the retailers are one of the key factor on real estate pricing. If the builder builds and no body buys what they will do with the property. You can see so many malls in Gugoan which are empty without shops and customers. Only organised big retailers can improve this. When retailing becomes organised you will get fresher vegitables. Do you know about 30% of vegitables produced in India are wasted due to poor storage. Only big retailers can invest on better storage.
