Suggestions towards better lives of People

Population is power. India has worlds second largest population and still a developing country. I believe most of the energy went unexplored because of illitracy, conservative politicians, lack of exposure, dominance by few, etc, etc. I like to point out several suggestions to improve living standards of people through my blog. I hope to contribute a drop in the ocean in future. Visitors please feel free to comment your opinions that will be helpful.

Organized Retail - Contract production

sbprasadrao | 02 May, 2009 19:56

 
Recent 5 years has been big changes in retail market. The success of big retails like walmart, tesco, kmart, etc have push lot of interest in Indian markets. Many cash rich big gaints from reliance, bharti, even politicians, etc have ventured into these markets. There have been starts and flops. Some of the challenges are expensive real estate, lack of background logistics experience, repulsion from common public, immature grass level suppliers, expensive electricity, operation on thin margins, etc. My outlook of oraganized retail is much like those of military canteens, where products are at subsidized rates and are at far off distances.  In few weeks i visited almost every big retail store for checking out, they are no way near, shopper had very less choice for a product, product types are limited, shops placed in odd locations, working people not courteous enough, well let me stop here.
 

what does organized retail by gaints bring
Employment numbers - they are the biggest employers compared with any sector, Also they produce number of temporary shops. Almost every industry is benefitted from this.
They bring the costs down, provides more choice, lots of tax income to govt, etc
They bring certainity for producers or suppliers or even public. From the front side we may see only shopper but the number of people employed for background operations is much greater than we see for the front end.
Ex: how about contract farming, a farmer is certain of his income for his produce, lots of manufacturing business become stabilize and also there will be competition among them. 
It unhides lot of entepreneurs
There will be lot of remote areas that will be benefitted from this model will be lot cheaper and successful in semi urban areas.


why we dont want organized retail
Many small shopping centers, like osman gunj, monda market, gujrat market, meat market etc get killed. 
Mom and pop shops in localities become killed. I dont buy this argument because big organized retail are not practical in every locality because of several challenges. Certainly in foriegn countries these chains have killed mom and pop shops but Indian business model is different.
  

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