Sunday, August 5, 2007

Organized Retail - Impact on Kirana and trade

India is called a nation of shop keepers and organized retail which has just made an entry has a very small share estimated between 2-4% of total retail in the country. The entry of major retailers in the country has raised passions among the politicians, policy makers and smaller retailers that the presence of bigger organized retailers would lead to the elimination of the smaller shop keepers leading to a large scale problem of unemployment and maybe even social problems. There have been many opinions and debates going on in orkut communities, newspapers ……on the pros and cons of entry of organized retail in the country. The government had asked in February for study to be done on the impact that organized retail on the neighborhood mom-n-pop (or kirana) stores, and the latest news is that they are unhappy with the interim findings and have asked for a larger base for retail study. Added to his is the protest raised by the Kerala Distributors Association with major FMCG companies on bypassing them and selling their products directly to the large retail stores. The concern expressed is that if the companies start supplying directly to major retailers with a price difference then it would eventually lead to the death of the small and medium traders in the business. The national body of distributors - the Federation of All India Distributors Association has expressed their support to the Kerala Distributors protest and is planning for a nation wide stir.

The issue which the entry of organized retail ( at a real big scale) is raising is, will the small mom-n-pop (or Kirana) store disappear from the landscape of Indian retail and would be dominated by Wal-Mart- Bharti's , Reliance and Bigbazzars? If this were to happen, which I feel is highly unlikely, it would have wide-spread implications for the Indian society as a whole. I say it wouldn’t happen because I have immense faith in the entrepreneurial spirit of the small entrepreneurs in the country; they will find ways and means of surviving the onslaught of the Wal-Mart’s and Reliance and would find themselves profitable niches to operate in. Yes, but the structure of the retail in the country would change for sure as the proportion of organized retail increases it would lead to reduction in the number of smaller shops. And these small mom-n-pop stores wouldn’t mind a helping hand from the government which would have to play a more proactive role in working out schemes and be ready to face the fall out of the impact of organized retail in smaller retailer.

Do share your opinion on the issue......

6 comments:

Vishnu Garg said...

India is called a nation of shop keepers and organized retail which has just made an entry has a very small share estimated between 2-4% of total retail in the country. The entry of major retailers in the country has raised passions among the politicians, policy makers and smaller retailers that the presence of bigger organized retailers would lead to the elimination of the smaller shop keepers leading to a large scale problem of unemployment and maybe even social problems. There have been many opinions and debates going on in orkut communities, newspapers ……on the pros and cons of entry of organized retail in the country. The government had asked in February for study to be done on the impact that organized retail on the neighborhood mom-n-pop (or kirana) stores, and the latest news is that they are unhappy with the interim findings and have asked for a larger base for retail study. Added to his is the protest raised by the Kerala Distributors Association with major FMCG companies on bypassing them and selling their products directly to the large retail stores. The concern expressed is that if the companies start supplying directly to major retailers with a price difference then it would eventually lead to the death of the small and medium traders in the business. The national body of distributors - the Federation of All India Distributors Association has expressed their support to the Kerala Distributors protest and is planning for a nation wide stir.

The issue which the entry of organized retail ( at a real big scale) is raising is, will the small mom-n-pop (or Kirana) store disappear from the landscape of Indian retail and would be dominated by Wal-Mart- Bharti's , Reliance and Bigbazzars? If this were to happen, which I feel is highly unlikely, it would have wide-spread implications for the Indian society as a whole. I say it wouldn’t happen because I have immense faith in the entrepreneurial spirit of the small entrepreneurs in the country; they will find ways and means of surviving the onslaught of the Wal-Mart’s and Reliance and would find themselves profitable niches to operate in. Yes, but the structure of the retail in the country would change for sure as the proportion of organized retail increases it would lead to reduction in the number of smaller shops. And these small mom-n-pop stores wouldn’t mind a helping hand from the government which would have to play a more proactive role in working out schemes and be ready to face the fall out of the impact of organized retail in smaller retailer.

Do share your opinion on the issue......

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Vipin said...
This comment has been removed by the author.
Vipin said...

India is called a nation of shop keepers and organized retail which has just made an entry has a very small share estimated between 2-4% of total retail in the country. The entry of major retailers in the country has raised passions among the politicians, policy makers and smaller retailers that the presence of bigger organized retailers would lead to the elimination of the smaller shop keepers leading to a large scale problem of unemployment and maybe even social problems. There have been many opinions and debates going on in orkut communities, newspapers ……on the pros and cons of entry of organized retail in the country. The government had asked in February for study to be done on the impact that organized retail on the neighborhood mom-n-pop (or kirana) stores, and the latest news is that they are unhappy with the interim findings and have asked for a larger base for retail study. Added to his is the protest raised by the Kerala Distributors Association with major FMCG companies on bypassing them and selling their products directly to the large retail stores. The concern expressed is that if the companies start supplying directly to major retailers with a price difference then it would eventually lead to the death of the small and medium traders in the business. The national body of distributors - the Federation of All India Distributors Association has expressed their support to the Kerala Distributors protest and is planning for a nation wide stir.

The issue which the entry of organized retail ( at a real big scale) is raising is, will the small mom-n-pop (or Kirana) store disappear from the landscape of Indian retail and would be dominated by Wal-Mart- Bharti's , Reliance and Bigbazzars? If this were to happen, which I feel is highly unlikely, it would have wide-spread implications for the Indian society as a whole. I say it wouldn’t happen because I have immense faith in the entrepreneurial spirit of the small entrepreneurs in the country; they will find ways and means of surviving the onslaught of the Wal-Mart’s and Reliance and would find themselves profitable niches to operate in. Yes, but the structure of the retail in the country would change for sure as the proportion of organized retail increases it would lead to reduction in the number of smaller shops. And these small mom-n-pop stores wouldn’t mind a helping hand from the government which would have to play a more proactive role in working out schemes and be ready to face the fall out of the impact of organized retail in smaller retailer.

Do share your opinion on the issue......

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TSR said...

India is called a nation of shop keepers and organized retail which has just made an entry has a very small share estimated between 2-4% of total retail in the country. The entry of major retailers in the country has raised passions among the politicians, policy makers and smaller retailers that the presence of bigger organized retailers would lead to the elimination of the smaller shop keepers leading to a large scale problem of unemployment and maybe even social problems. There have been many opinions and debates going on in orkut communities, newspapers ……on the pros and cons of entry of organized retail in the country. The government had asked in February for study to be done on the impact that organized retail on the neighborhood mom-n-pop (or kirana) stores, and the latest news is that they are unhappy with the interim findings and have asked for a larger base for retail study. Added to his is the protest raised by the Kerala Distributors Association with major FMCG companies on bypassing them and selling their products directly to the large retail stores. The concern expressed is that if the companies start supplying directly to major retailers with a price difference then it would eventually lead to the death of the small and medium traders in the business. The national body of distributors - the Federation of All India Distributors Association has expressed their support to the Kerala Distributors protest and is planning for a nation wide stir.

The issue which the entry of organized retail ( at a real big scale) is raising is, will the small mom-n-pop (or Kirana) store disappear from the landscape of Indian retail and would be dominated by Wal-Mart- Bharti's , Reliance and Bigbazzars? If this were to happen, which I feel is highly unlikely, it would have wide-spread implications for the Indian society as a whole. I say it wouldn’t happen because I have immense faith in the entrepreneurial spirit of the small entrepreneurs in the country; they will find ways and means of surviving the onslaught of the Wal-Mart’s and Reliance and would find themselves profitable niches to operate in. Yes, but the structure of the retail in the country would change for sure as the proportion of organized retail increases it would lead to reduction in the number of smaller shops. And these small mom-n-pop stores wouldn’t mind a helping hand from the government which would have to play a more proactive role in working out schemes and be ready to face the fall out of the impact of organized retail in smaller retailer.

Do share your opinion on the issue......

Stumble Upon ToolbarStumble Upon Toolbar
TSR said...

India is called a nation of shop keepers and organized retail which has just made an entry has a very small share estimated between 2-4% of total retail in the country. The entry of major retailers in the country has raised passions among the politicians, policy makers and smaller retailers that the presence of bigger organized retailers would lead to the elimination of the smaller shop keepers leading to a large scale problem of unemployment and maybe even social problems. There have been many opinions and debates going on in orkut communities, newspapers ……on the pros and cons of entry of organized retail in the country. The government had asked in February for study to be done on the impact that organized retail on the neighborhood mom-n-pop (or kirana) stores, and the latest news is that they are unhappy with the interim findings and have asked for a larger base for retail study. Added to his is the protest raised by the Kerala Distributors Association with major FMCG companies on bypassing them and selling their products directly to the large retail stores. The concern expressed is that if the companies start supplying directly to major retailers with a price difference then it would eventually lead to the death of the small and medium traders in the business. The national body of distributors - the Federation of All India Distributors Association has expressed their support to the Kerala Distributors protest and is planning for a nation wide stir.

The issue which the entry of organized retail ( at a real big scale) is raising is, will the small mom-n-pop (or Kirana) store disappear from the landscape of Indian retail and would be dominated by Wal-Mart- Bharti's , Reliance and Bigbazzars? If this were to happen, which I feel is highly unlikely, it would have wide-spread implications for the Indian society as a whole. I say it wouldn’t happen because I have immense faith in the entrepreneurial spirit of the small entrepreneurs in the country; they will find ways and means of surviving the onslaught of the Wal-Mart’s and Reliance and would find themselves profitable niches to operate in. Yes, but the structure of the retail in the country would change for sure as the proportion of organized retail increases it would lead to reduction in the number of smaller shops. And these small mom-n-pop stores wouldn’t mind a helping hand from the government which would have to play a more proactive role in working out schemes and be ready to face the fall out of the impact of organized retail in smaller retailer.

Do share your opinion on the issue......

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Term Papers said...

India is called a nation of shop keepers and organized retail which has just made an entry has a very small share estimated between 2-4% of total retail in the country. The entry of major retailers in the country has raised passions among the politicians, policy makers and smaller retailers that the presence of bigger organized retailers would lead to the elimination of the smaller shop keepers leading to a large scale problem of unemployment and maybe even social problems. There have been many opinions and debates going on in orkut communities, newspapers ……on the pros and cons of entry of organized retail in the country. The government had asked in February for study to be done on the impact that organized retail on the neighborhood mom-n-pop (or kirana) stores, and the latest news is that they are unhappy with the interim findings and have asked for a larger base for retail study. Added to his is the protest raised by the Kerala Distributors Association with major FMCG companies on bypassing them and selling their products directly to the large retail stores. The concern expressed is that if the companies start supplying directly to major retailers with a price difference then it would eventually lead to the death of the small and medium traders in the business. The national body of distributors - the Federation of All India Distributors Association has expressed their support to the Kerala Distributors protest and is planning for a nation wide stir.

The issue which the entry of organized retail ( at a real big scale) is raising is, will the small mom-n-pop (or Kirana) store disappear from the landscape of Indian retail and would be dominated by Wal-Mart- Bharti's , Reliance and Bigbazzars? If this were to happen, which I feel is highly unlikely, it would have wide-spread implications for the Indian society as a whole. I say it wouldn’t happen because I have immense faith in the entrepreneurial spirit of the small entrepreneurs in the country; they will find ways and means of surviving the onslaught of the Wal-Mart’s and Reliance and would find themselves profitable niches to operate in. Yes, but the structure of the retail in the country would change for sure as the proportion of organized retail increases it would lead to reduction in the number of smaller shops. And these small mom-n-pop stores wouldn’t mind a helping hand from the government which would have to play a more proactive role in working out schemes and be ready to face the fall out of the impact of organized retail in smaller retailer.

Do share your opinion on the issue......

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