[neeha]

Hi,
This is Neeha. I am interested in the developing Retail sector of India and on this site I found that lot's of u guys have similar interest. So let's discuss something here; about the sector or about the day to day challenges faced by the people working in this field. As 4 me my interest in Retail developed when I read the Autobiography of Sam Walton:founder of WAL MART. I am too inspired by him and have decided to enter the sector as my career. So let's start the discussion with WAL MART. So the topic is: Should our Government allow FDI in Retail and allow these biggies to enter India????
I know we will have great jobs then with our diplomas in RETAIL MANAGEMENT.But is this good for our country as a whole.
NEEHA

[deepu]

Originally Posted by neeha

Hi,
But is this good for our country as a whole.
NEEHA

what do you mean by GOOD ? more jobs ? booming economy ? more percapita income ? more equal distribution of the GDP pi ?

[neeha]

Hi Deepu,
More jobs?? So for thousand of jobs provided by the retail biggies if the FDI is allowed then 10 million kirana shops will be closed!!!! So just compare the employment and unemployment ratio if FDI is allowed in Retail sector.

[qwertyuiop]

..agreed to a certin extent kirana stores will be closed...but calling fdi in retail the doomsday fr kirana stores is a lil too dramatic...i think the entry of big players will bring in a lot of choice for the consumer...and i also think that come what may..if i have to go buy pencils and pens for a paper tomorrow i will not run arnd town looking fr a wal mart but will be more than happy to go to the nearest kirana...more on this later...good thread...
ciao

[vinit456]

Originally Posted by neeha

Hi Deepu,
More jobs?? So for thousand of jobs provided by the retail biggies if the FDI is allowed then 10 million kirana shops will be closed!!!! So just compare the employment and unemployment ratio if FDI is allowed in Retail sector.

The argument for FDI in any sector is not only about jobs. The argument for invesment in the retail sector for for that in any sector is also about efficiency and bringing in better proccess to area which have been so far neglected.

Also found an interesting piece on the net

http://www.blonnet.com/2005/11/09/st...0900931000.htm

VA

[bizskool]

Apart from generating immediate jobs organized retail will have ripple effect on supply chain and procurement as all these retailers will procure products worth billions of dollars(Walmart procures 1.5bn US$ worth from India every year). with supply chain getting in these co.s will establish coldstorages, processing plants etc. plus they will buy/stock white goods, textiles etc. affecting mfg sector also
also end customers like us will get better prices and better quality. if we see all these benefits i guess govt shd allow FDI in retail immediately.

[neeha]

Well guys,
I am not against allowing FDI in retail. But its like our retail sector is worth $180bn and only 3% of it is organized. So its better if we give our domestic players like Pantaloons, Shoppers Stop etc. a chance to develop and capture more part of the sector so that they can have a better chance to compete.
Our total retail sector is worth $180bn where as the sales of WAL MART this year is $315.654bn. So do you think we are in position to compete with them.
As BIZSCOOL pointed out that Walmart procures 1.5bn US$ worth from India every year. So sir for investment of few billion dollars we will be opening a sector of 180 bn US$ and which is estimated to reach 300bn US$ by 2010.
As far as competition goes the domestic competition is also high. We have Reliance coming in with investment of 25000 crore. Then we have Pantaloons, Shoppers Stop, Tata with there Trent group (Westside), Godrej ,few local players like Subhiska in south and lot’s more.
Neeha

[vinit456]

There's another name that we usually forget in the list of Retail ventures and that's Bharti, venturing into Dairy and Food processing area and also has a foreign partner(Cant remeber the name).


Benefits of retail.

1. Better Procurement
2. Efficiency in the Supply of goods--better prices
3. Competition - Domestic players have to compete- again better prices
4. Exports- The most Impt. one.

Walmart is half our country's GDP(if u take GDP as $770 billion) and that's just one co.

The point about our retail sector (worth $180 bn) and Walmart's Sales is invalid

Reason-
1.The price of an avg. item in the U.S. cause of PPP would generally be higher than what it is here.
2. Even if the volume of trade is higher or avg spending per household as a %age of spending is higher the anomally of the high sales figure would still arise cause again of the PPP argument.


Economies have to move/change and a transition is inevitible. The argument of Kirana shops closing down and local players bearing the brunt the most atleast to me, today, would be misplaced.

The same arguments had been used when FDI was allowed in Telecom or for that matter automobiles, that the Phoren players would snatch a large part of the market with their and it would be the begining of the End for domestic players.

Are the local/domestic players @ the losing end? Its clear that all have benefitted.

The argument for FDI(in any sector) is not restricted to it being a source of funds/invesment but also about bringing in better process, enhancing efficiency and the obvious benefits of Compt.

China is a fine example of how having FDI in the retail sector has boosted their economy in terms of exports because of the huge procurement from the Biggies like Walmart.

Also areas untouched such as food processing and its related areas would get neccessary impetus.

Also another view(personal) and I have no means of validating it but since Reliance has entered the retail Foray.... Dont think the govt would allow FDI. Atleast anything that's not gonna hamper Reliance's retail venture.

Cheers,
VA

[neeha]

Hi Everyone
Government will obviously allow FDI in retail within 3 to 5 years.This is to remind you that on this thread you can post anything related to Retail. Those doing MBA do tell us what study material your institute is offering in the retail. Those who are employed in this sector can discuss the day to day problems faced on the ground. May be we could find some solution. If nothing else then tell us about your interest in the sector and your future plans for the sector.
Neeha.

[the game player]

i think some kirana stores are absoloutely necessary and will survive the onslot of the malls as when it comes to metros...malls cant get in too deep....and they gotta b really special for ppl to venture out to buy the same 'ol everyday stuff from there...due to the distances,traffic, fuel prices...