This Wikipedia page lists the following as the so called “hurdles” of Indian Retailing infrastructure.
In 2008, the supermarkets and organised retail chains accounted for 4 percent of the total Retail share of India, before the inception of Wal-Mart the leader in Retail market leader in the World with 8,500 stores in 15 countries, with 55 different names and about 500+ billion company.
Slowly and steadily the un-organised sector is losing its grip. The growth rate of organised retailing was 35% last year, and that of its counter-part being a meager 6%.
Dried up Local Markets
With the rise in Tier-II and Tier-III cities in India, a steady rise has been reflected in the growth and establishment of markets. The average Indian consumer now prefers the Marts due to the accessibility and heavy discounts levied. A relief for the commoner in an economy with rising prices. The steady draft from un-organised to organised retailing is making a disastrous change at best.
Like any huge corporation, Chain-Retailers are plundering the might of small business holdings and establishment. A report on Wal-mart’s threat to economy beautifully pictures this dillema. Anit-trust lawsuits are on the rise, and in the open. In such a view, Bharati group has turned into an alliance with it in BestPrice Modern Wholesale.
“Every Indian desires for a Bike even if he can’t afford the fuel”
In this context ,I am left to think, why don’t we ever learn from other’s mistake? With such a dreaded history, the Wal-Mart’s fame will now be following by Reliance Fresh,D-Mart’s,Big-Bazaar’s etc. They suck up the local business by selling goods at a substantially low price, and then increase the prices after the lot is the only one to monopolize.
Everyday news, states the rise in groceries as it is, due to the criminal economic system of our country. Today’s news stated a rise of 58% of prices in groceries in Maharashtra. This was somehow sustained by people due to the current available competition, from local retailers. When the monopoly rises, people will have no chance but comply to the heavy prices of the marts. The inception of Wal-Mart wasn’t welcomed by protests but excitement by the common Indian. We are blind-folded by the Awe, these Establishments promise. Later even before we try to understand what lies behind the picture we are left helpless. Although the current Retail laws limit the involvement of Foreign settlements in this Retail Economy, it wont be long in this country with major US influence to avert this, this was a clear picture painted by Obama’s last India visit.
So now the question arises, do we want low prices for a small time, and then high prices forever, or the current ways that go on? Well there may be arguments that the current system isn’t fine as well, but that’s nothing compared to its counter-part.
Even as we see for ourselves[Consumers], the thought should prevail about the crores that will be losing their Jobs and Life [Independent Retailers]. The aftermath can be as that seen in countries where Wal-Mart exists[US,Brazil,etc]. The effects are far reaching that affect the whole the economy at large.
So what should be done? Spread the word. Let everyone understand such and many more things in our life…
Join together to fight against such Corporations that threat our existence…