Is FDI really going to change the fabric of our Indian Retail?
If it is indeed true that 70% of India lives outside of cities, why are we so concerned in letting open a few monster stores in cities?
Cut down to the cities. Being a city girl myself, I would talk about only these here.
Given the fact that most of our populace depends on public transport, and these mega stores owing to their sheer size needing to be located on the outskirts of the city, how many of the complete BPL + SEC C +SEC B + SEC A diaspora do you think would end up going to these stores regularly ?
BPL and quite a chunk on the lower SEC C populace have smaller wallets and practically very poor storage space at home and buy stuff on a daily - weekly basis. This would translate to really smaller packaging or sachets. None of the HyperMarts carry this kind of merchandise.
Owing to their smaller bills and frequency of purchases this section tends to buy from as near home as possible. This means 95% of such buying would happen from kirana stores even if it means there's a Carrefour right around the corner.
Most of out community retail or unorganised retail operates on two key words - convenience and loyalty.
These kirana stores whether its a "Bhauji ki dukan" or a "Pandian Kadai" each have their own catchment (read residents of a few streets around the shop).
Main reason being their
1. Willingness to entertain credit sales (Khata / kanakku/ account book ) which would be settled every month after the customer gets his monthly salary
2. Selling items in very small sizes - imagine selling 'thengai chillu' or 'thengai bathai' instead of a whole coconut. Would any WalMart sell you Rs 5 oil sachets? Hey, and where would we go for buying our shampoos and conditioners in sachets, and the fair visage for Rs 10?
3. Carry specific quirky items in their stock even if it is just for a handful of households
4. Loyalty due to personal touch - the shopkeeper would remind you of buying something even if you have forgotten. Selvam my mom's vegetable vendor calls her up to remind " Maami naalikki amavasai vazhakkai vangama poiteenga paiyana anupparen!" . After this would my mom ever go anywhere else to buy veggies ? No! Never.
Is FDI really going to change the fabric of our Indian Retail?
Well, for the majority of the vaadikkai makkal - they are going to be least bit affected by this, let alone change their habits for some few firangi backed megaliths.
If it is indeed true that 70% of India lives outside of cities, why are we so concerned in letting open a few monster stores in cities?
Cut down to the cities. Being a city girl myself, I would talk about only these here.
Given the fact that most of our populace depends on public transport, and these mega stores owing to their sheer size needing to be located on the outskirts of the city, how many of the complete BPL + SEC C +SEC B + SEC A diaspora do you think would end up going to these stores regularly ?
BPL and quite a chunk on the lower SEC C populace have smaller wallets and practically very poor storage space at home and buy stuff on a daily - weekly basis. This would translate to really smaller packaging or sachets. None of the HyperMarts carry this kind of merchandise.
Owing to their smaller bills and frequency of purchases this section tends to buy from as near home as possible. This means 95% of such buying would happen from kirana stores even if it means there's a Carrefour right around the corner.
Most of out community retail or unorganised retail operates on two key words - convenience and loyalty.
These kirana stores whether its a "Bhauji ki dukan" or a "Pandian Kadai" each have their own catchment (read residents of a few streets around the shop).
Main reason being their
1. Willingness to entertain credit sales (Khata / kanakku/ account book ) which would be settled every month after the customer gets his monthly salary
2. Selling items in very small sizes - imagine selling 'thengai chillu' or 'thengai bathai' instead of a whole coconut. Would any WalMart sell you Rs 5 oil sachets? Hey, and where would we go for buying our shampoos and conditioners in sachets, and the fair visage for Rs 10?
3. Carry specific quirky items in their stock even if it is just for a handful of households
4. Loyalty due to personal touch - the shopkeeper would remind you of buying something even if you have forgotten. Selvam my mom's vegetable vendor calls her up to remind " Maami naalikki amavasai vazhakkai vangama poiteenga paiyana anupparen!" . After this would my mom ever go anywhere else to buy veggies ? No! Never.
Is FDI really going to change the fabric of our Indian Retail?
Well, for the majority of the vaadikkai makkal - they are going to be least bit affected by this, let alone change their habits for some few firangi backed megaliths.
