Reliance Fresh stores opened up and agitated the country.UP Govt succeeded to shut it.There is a protest happening in Mumbai.people from all ovder India are gathering.No need to mention that politicians are accompanying them.
I was thinking how much these politicians r thinking about common man.How much common man will be affected with these stores.
People argue that these stores will affect farmers and local Kiryana waalas. I disagree farmers will be any way benefitted.Middle man will go away .they can sell their products directly.I will say they can make a deal with these guys and can be aswsured that their production will not go waste.They can grow their crops according to the demand of these guys. I also heard that Reliance provided a few farmers with the best quality seeds to grow some veg. So how can these poor farmers loose something.Poor farmers are becoming target of politics.
Now lets talk about shops next to our houses.Our Uncles's to whom we are seeing right from child hood.We used to buy our candy's.Some times they used to give it to us for free.Now we r taking about suddenly replacing these uncles with biiiiiiiig players.Will These big store be really able to overtake.It is definetely possible but not at once.it is a slow process.These uncles's shops share a bondage with families.Their main business happen on credit.I think this is the biggest advantage they provide.Just think about salaried class people in small towns.They generally spend their entire salary before 10th of every month.For rest of the days they are dependent on these uncles.
No matter how cheap these big stores sell they cant give these kind of services.So it means there is no direct hit on these shops, surely it has some.But we cant ignore the benefits these big stores provide.Imagine you are getting all the stuff from veg to groccery to cosmetics under one shop.Since the middle man will e out so the products wil be cheaper.Ultimately consumer is benefitted.We are benfitted.Now what will happen to our uncles.But dont you think these big stores cant stablize in small towns wothout local support.So why not to go along with them.Take their franchises.In palce of going against and fighting with the big fish join them.
Some body said our small shops give employment to many uneducated people.Yes they do .Tell me one thing how much do they really pay to these guys for cleaning and weighing.Some peanuts.Now if stores come up won't they be in need of local guys to handle store ,in backend and front end job.What will they be looking in guys for these positions.Some primary level education.Wont it be a good motivation for getting educated.I know in towns generally matric pass people go and run the small shops just because they dont have any thing else to do.Some who cant invest work under Uncles .Isnt it beter for them to be a part a big palyers.
People are just looking at the small picture.or may be our Honourable leaders are misleading them.This is the same situation which was there before industrialisation,computerisation,globalisation.We all know it was for good for all those people who embraced it.People who dint left behind.
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3 comments:
Nice points, however the money part is irrelevent now a days because the same can be achieved with credit cards.
The big retail giants will definitely change the way retail market functions as of now. I feel there are certains things about these small shops which distinguish them from the bigger retailers. One is the personal touch which u covered then secondly the marketing of non packaged goods. The big retailers play mainly in packaged items. They might be cheaper and have lot more variety when it comes to packaged items but they are way to expensive when it comes to items like Rice, wheat etc. So if one has to get monthly ration i think most households(not bachelors) will prefer the small streetside shops if good options exist. This situation will be exaclty vice versa for certain other commodities. Similarly if I have to buy only a shampoo i would prefer not to stand in a queue in a big retails shop rather buy it from the shop next door.
SO both of them can co-exist in the new emerging eco system but definitely the competition for them has increased many fold which is in a way good cause its finally survival of the fittest.
You are improving with each post. Good!
Short sighted and biased post. The analysis is also self experiential in nature rather than based on the facts. The only thing which I agree is “The big retail giants will definitely change the way retail market functions as of now”
The bottom lines are
• In a price sensitive and unregulated credit market like India, how many of the small retailer will be able to take on the aggressive pricing, volume discounts and value added services of big players.
•In a country where more than 80 % of retail is small scale, more than 50 % of work force unskilled and where such shop contribute more than 20 % of the GDP The entry of retail giants will surely have a huge impact. What that impact is only time will tell, but on the face of it doesn’t looks pretty.
•For the experiential learner ( like the chap above ) , look around dude ….in k’mangala and BTM a a lot of small scale shop are closing . It is just a matter of time where chains ( such as Big bazaar, food world) start the competition and start value added services like the direct to home delivery and more than 50% of market is cleaned up . You can use the PCO market after the entry of mobile operators as reference for better understanding.
•Last but not the least, these are IMHO, any other debate is most welcome.
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