A McKinsey study claims retail productivity in India is very low compared to international peer measures. [79], The Hindu, another widely circulated newspaper in India, claimed the opposition's call for a nationwide shutdown on 1 December 2011, in protest of retail reform received a mixed response. Thirdly, the format of these retail chains should also be regulated as is done in Malaysian case. Furthermore, because of unorganised retail, in a nation where malnutrition remains a serious problem, food wastage is rife. Hawkers typically operate in public places such as streets, squares, public parks or gardens or near the entrances of high traffic venues such as zoos, music and entertainment venues, but may also call on homes for door-to-door selling. Inbuilt inefficiencies and wastage in distribution and storage account for why, according to some estimates, as much as 40% of food production doesn't reach consumers. This kind of market is very ancient, and countless such markets are still in operation around the world. Retailers can opt for a format as each provides different retail mix to its customers based on their customer demographics, lifestyle and purchase behaviour. On 20 September 2012, the Government of India formally notified the FDI reforms for single and multi brand retail, thereby making it effective under Indian law. [7] A category killer is a specialist store that dominates a given category. Variety stores offer extremely low-cost goods, with a vast array of selection. He claimed that IKEA's decision reflects India's requirements that single-brand retailers such as IKEA source 30 percent of their goods from local small and medium-sized companies. Some claim one of the primary restraint inhibiting better participation was that India required single brand retailers to limit their ownership in Indian outlets to 51%. At its most basic level, a retail format is a simple marketplace, that is; a location where goods and services are exchanged. [21] The 60%+ margins for middlemen and traditional retail shops have limited growth and prevented innovation in Indian retail industry. Fourthly, it is important to ensure that no single retailer monopolizes the procurement operations in an area, district or state in order to protect the local suppliers. They should not be in the form of neighborhood convenience store and there should be minimum and maximum limit of the size of these stores. A Marketplace is defined as venue for the retail sales of all products, packed and unpacked where the sale is to end users. Grocery stores, including supermarkets and hypermarkets, along with convenience stores carry a mix of food products and consumable household items such as detergents, cleansers, personal hygiene products. Introduction of Goods & service tax GST in the year 01/07/2017 is pressing the need for technology enablement for these small businesses. Walmart employs 1.4 million people in United States alone. A Wall Street Journal article reports that in Uttar Pradesh, Uma Bharti, a senior leader of the opposition Bharatiya Janata Party (BJP), threatened to "set fire to the first Wal-Mart store whenever it opens;" with her colleague Sushma Swaraj busy tweeting up a storm of misinformation about how Wal-Mart allegedly ruined the U.S. I fail to understand why political parties are taking an anti-farmer stand and worried about half a million brokers and small shopkeepers". The term, 'boutique', in retail and services, appears to be taking on a broader meaning with popular references to retail goods and retail services such as boutique hotels, boutique beers (i.e. Chief Ministers of many states have not made a personal statement in opposition or support of India needing retail reforms. It may be referred to Middle-Eastern market places while a 'penny bazaar' refers to a retail outlet that specialises in inexpensive or discounted merchandise. India doesn't need foreign retailers, since homegrown companies and traditional markets have been able to do the job. Retailing in India is one of the pillars of its economy and accounts for about 10 percent of its GDP. Property developers are creating retail real estate at an aggressive pace and by 2010, 300 malls are estimated to be operational in the country. [9] Chain stores aim to benefit from volume buying discounts (economies of scale) and achieve cost savings through economies of scope (e.g. Contrary to eyewitness reports, one Trader union's secretary general claimed traders across the country participated wholeheartedly in the strike. Farmers and producers had to go through middlemen monopolies. The shopkeeper can price the food staple and household products arbitrarily, and two consumers may pay different prices for the same product on the same day but never will those price be above the maximum retail price. Organised retail is also expected to initiate infrastructure development creating millions of rural and urban jobs for India's growing population. [39] 1.8 million households in India have an annual income of over ₹4.5 million (US$63,090.00). Despite the fact that Salman Khurshid, India's law minister, claiming that many opposition parties, including the Bharatiya Janata Party, had privately encouraged the government to push through the retail reform, the intense criticism now targets Congress-led coalition government, and its decision to push through one of the biggest economic reforms in years for India. They claim:[61]. [94], Existing Indian retail firms such as Spencer's, Foodworld Supermarkets Ltd, Nilgiri's and ShopRite support retail reform and consider international competition as a blessing in disguise. [33] A 25% market share, given the expected growth of Indian retail industry through 2021, is estimated to be over $250 billion a year: a revenue equal to the 2009 revenue share from Japan for the world's 250 largest retailers.,[34][35]. They have not become monopolies. Andhra Pradesh, Assam, Delhi,[94] Haryana, Kashmir, Maharashtra, Manipur, Uttarakhand, Daman & Diu and Dadra and Nagar Haveli, will allow foreign retailers.[15].

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