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J Design is not mere drawings, it needs to engage, involve, evoke any individual exposed to its environment. The advantage of working with us is we understand business strategy, thereby we are user driven and in turn we evolve the business strategy into engaging experiential zones. STUDIO.J - vision to reality Market experience across time zones, gives us the advantage of having gained in-depth market insight. Success of every project dwells on the ability to decipher market insight and potential. At STUDIO.J we base our designs on the above mentioned two critical factors. Understanding and relating to the consumer becomes easy and achievable. Strategic design needs are worked out specifically to meet the requisite business needs. Brand environments are created to generate emotional and economic returns. The drawing board needs to convert the impact of investment into tangible realities. A gasp! A sigh! Or A wow factor! STUDIO.J’s vision will always be to give an edge to the reality on ground and create experiential designs that shall hold anybody’s attention and breathe, even if it is for a few seconds! About the Founder Jenny Andrewss, comes from a Mechanical Engineering background and has a specialization in Creative Painting, giving a vibrant blend of Engineering, Design and Art. Having hands on experience for a decade in Architecture, Interior Design, Retail Space Design, Corporate Interior Design, POP Design Jenny has come a long enriching path in understanding the needs of Strategic Value of Design, Innovation and Design practices. She has created and developed more than 15 concepts in Space Design and Visual Merchandising (Indigo Nation, Samsonite Witco, E-Zone, Furniture and Electronics Bazaar of the Future Group, Cottage Industries Emporium, Levis, Lee, Lee kidsetc to name a few). She has also designed concepts across verticals like Fashion Apparels, Accessories, Youth, Consumer Durables, Leather goods and Jewellery. Her key to success is her zeal to continuous learning and an in depth understanding of different cultures and design ideologies which has equipped her effective management of clients, consultants, suppliers, vendors, project managers, internal and external stake holders. The Women's Entrepreneur program at IIMB, has given her the wings to transform from a Designer to an Entrepreneur .She believes that her passion, expertise, enthusiasm and loads of positive energy will make her new venture "STUDIO.J" a place to reckon with in the growing Design industry. We provide end to end business solutions. Having drawn up the designs, it becomes imperative to see the design taking life in its requisite form, as it had been thought about during design conception. Execution becomes crucial. STUDIO.J specializes in carrying out large scale executions of approved space and experiential designs. Possible as we have our own skill set of people and a full fledged workshop for the benefit of our esteemed customers. Retail Design Today's consumer is an enlightened and knowledgeable . Indeed the world has become a global village, Inputs from the developed countries has engulfed not only the consumer's mind but also ones heart. Today, each one of us prefer a well designed shirt, a shoe, a bag, a book and we would love to pick them up at good looking stores which has great ambience and service. Retail has undergone a substantial transformation as far as socio-psychological parameters are concerned. What used to be utility oriented today needs an emotional connect, what was known as a reliable store today needs to be a brand destination. STUDIO.J's experience of the past
decade enables us to create these transformations, while retaining the core values of any business house intact. Design is a science in itself.. Retail Design today comprises of Lighting Design, Store Design, Fixture Design,Visual Merchandising & Visual Communication. STUDIO.J processes the entire project phase by phase for the brand to create retail designs that spell magic visually and functionally. Visual Merchandising is the art of displaying merchandise in a manner that is appealing to the eyes of the customer. It sets the context of the merchandise in an aesthetically pleasing fashion, presenting them in a way that would convert the window shoppers into prospects and ultimately buyers of the product. Visual Merchandising breathes in a new life into the products. STUDIO.J Passion for window design and creativity takes the brands to a higher aspiration value in the consumer's mind space. A perfect design process and the ability to create ideas that are different are a necessity to function in a Visual Merchandising space for the Retail sector. A in-depth understanding of the happenings in fashion world is needed so as to keep up-to-date with the dynamics of the market constantly. Hospital Space Design Healthcare systems when they evoke an emotional empathy- the ambience gets transformed into a positive zone. STUDIO.J combines the rare specialty of bringing design sensibilities to create an ambience of subtle cheerfulness in a very clinical atmosphere. Color , graphic and textures integrate to make the patient feel comfortable and at peace. The entire zone is designed to speak of responsible, accountable and empathetic hospital personnel. Design dwelves deep to create therapeutic ambience "a perfect blend of visual appeal to initiate a speedy recovery of patients". Corporate Interior design Does the fragrance of success travel far and wide ? Does the happiness of people at work look infectious? Does the work place look enigmatic? Well, when a whole bunch of unrelated individuals group together with various skill sets to overcome common hurdles and create their own goals and achieve the impossible, the taste of success does travel far and wide thereby infusing happiness at workplace becomes highly infectious. Certain factors go into the making of such a team success, ambience, work place comfort, the subtle expression of the organizational philosophy and goals, all across and the need to achieve the same. This magic is created by experiential designers at STUDIO.J Residential Interior Design To convert a house into home does take lot of attention to detail from the home maker. But when her dreams are put into the right weaves and colors , the right lights and curios, the exactness of the designer furniture , the comfort of the kitchen and yet gives an identity which speaks volumes about her personality, a home maker has a smile so genuine that it melts the hearts of one and all at STUDIO.J STUDIO.J intends to understand individual passion before it starts designing residential for the discerned few. Design Ethics at STUDIO.J We like to create original designs, we like to create genuine smiles and we like to create sustainable approaches for execution of our designs. We follow this as a core ethic at STUDIO.J
Bangalore 12. 4D Four D. Retail design is a very specialized discipline due to the heavy demands placed on retail space. space and energy solutions which we put to use in the studios and in the projects as far as it is possible. ergonomics. Usage . Behind New Horizon School. To make an appointment. In the case of a retail chain. 3484. HAL 2nd Stage. Bangalore 9. Bangalore Retail design is a creative and commercial discipline that combines several different areas of expertise together in the design and construction of retail space. RD&M. Bangalore 10. Restore. Bangalore 2. Bangalore 13. especially when they form part of a retail chain. often employing large display windows that allow shoppers to see into the space and the product inside. Idiom.Trying to be eco conscious has been our effort right from the inception. Ramms. Insght. The storefront must act as a billboard for the store. a bookstore requires many large shelving units to accommodate small products that can be arranged categorically while a clothing store requires more open space to fully display product. Bangalore 7. Retail spaces. Bangalore 15. we utilize 'green design' as application whereever possible. Queztel. We are at: No. Rockfish. recycling methods. 5. the spaces must be designed in a way that promotes an enjoyable and hassle-free shopping experience for the consumer. Bangalore 14. however it also incorporates elements of interior decoration. Ray & Keshavan Bangalore 11. 14th Main. Neil Foley. Ixmod. Retail design is primarily a specialized practice of architecture and interior design. Indiranagar. Design Core. Bangalore. please call us on: Mobile: +91 9686113406 Office:080 42185485 Competitors 1.. Bangalore – 560008. Bangalore 8... graphic design. The space must be specially-tailored to the kind of product being sold in that space. Bangalore 6. Compositech. must also be designed to draw people into the space to shop. Bangalore 3. Studio Adig. Because the primary purpose of retail space is to stock and sell product to consumers. and advertising. Bangalore 4. for example. We have a check list of things like non-toxic ecological products. Mumbai. the individual spaces must be unified in their design. Tessaract. industrial design.
and have had many prior uses. stairways. It is also important to acknowledge that a retail space must combine both permanent and non permanent features. Geometric Plan: uses the racks and the retail floor fixtures to create a geometric floor plan and circulation movement. The success of their designs are not measured by design critics but rather the records of the store which compare amount of foot traffic against the overall productivity. It also leads the consumer to the back of the store. In this plan there is an emphasis on the structure of the space including the walls. In this plan there is a path that is unobstructed by shop fixtures. atmospheric qualities (light and sound) and materiality. There are six basic store layouts and circulation plans that all provide a different experience: Straight plan: this plan divides transitional areas from one part of the store to the other by using walls to display merchandise. as well as having storage areas that line the wall. This design can be used for a variety of stores ranging from pharmacies to apparel. structural features like columns. as the clothes will be easily accessible. The floor plan creates the circulation which then directly controls the direction of the traffic flow based on the studied psychology of consumer movement pattern within a retail space. This is best suited footwear and jewellery retail stores. Diagonal Plan: uses perimeter design which cause angular traffic flow. The cashier is in a central location and easily accessible. Curved Plan: aims to create an intimate environment that is inviting. ceiling height. Retail designers have an acute awareness that the store and their designs are the background to the merchandise and are only there to represent and create the best possible environment in which to reflect the merchandise to the target consumer group. It is at this stage that logistics must be determined. This is well suited for appeal stores. a series of standardisations in the techniques and design qualities has been determined. windows and emergency exists all must be factored into the final design. These standardisations range from alterations to the perspective of the structure of the space. By exploring these standardisations in retail design the consumer will be given a thematic experience that entices them to purchase the merchandise. guiding them to important displays and in the end to the cashier. Design elements Since the evolution of retail design and its impact on productivity have become clear. circulation systems. Although this is a more expensive layout it is more suited to smaller spaces like salons and boutiques.Role A retail designer must create a thematic experience for the consumer.g. Circulation is important because it ensures that the consumer moves through the store from front to back. that allow it to change as the needs of the consumer and merchandise change (e. entrances. In retail one hundred percent of the space must be utilised and have a purpose. This plan is most suited for self service retail. corners and ceiling this is achieved by making the structure curved and is enhance by circular floor fixtures. per season). By lowering parts of the ceiling certain areas can create defined retail spaces. The structure of retail space creates the constraints of the overall design. this smoothly guides the consumer through to the back of the store. often the spaces already exist. by using spatial cues to entertain as well as entice the consumer to purchase goods and interact with the space. This is well suited for apparel department stores. Pathway Plan: is most suitable for large stores that are single level. . Varied Plan: in this plan attention is drawn to special focus areas.
The branding should reflect what the merchandise is and what the target market would be drawn to. the music played within the store should reflect what your target market would be drawn to. while creating vectors that direct the consumer to key merchandise selling areas. also consumers also prefer to examine the quality of merchandise in natural light. stimulate and dramatise the store. Colour is also important to consider it must not over power or clash against the merchandise but rather create a complementary background for the merchandise. Perspective . this lighting should be flattering for the merchandise and consumer. the choices made must not only be aesthetically pleasing and persuasive but also functional with a minimal need for maintenance. feminine and romanticised. The lighting should be layered and of a variety intensities and fixtures. this would also be developed through the merchandise that is being marketed. Retail spaces are high traffic area and are thus exposed to a lot of wear this means that possible finishes of the materials should be durable. these lights should be direct but no to bright and harsh. a floor that is firm and somewhat buoyant will be more comfortable for that consumer to walk on and thus this will allow them to take longer when exploring the store. materials and visual branding. Lighting can have a dramatic impact on the space it needs to be functional. This lighting should wash the structural features. but also complement the merchandise. Ambiance can then be developed within the atmosphere through sound and audio. Materiality (architecture) is another key selling tool. the atmosphere and thematics of the space must be created through lighting. where in a technology department the music would be more upbeat and more masculine. In a lingerie store the music should be soft. The next layer will complement and bring focus onto the merchandise. If no natural light exists a sky light can be used to introduce it in to the retail space. proper placement of sales signs that will draw consumer in and show exactly where the cashier is located. These design elements will cohesively have the greatest impact on the consumer and thus the level of productivity that could be achieved. Visual branding of the store will ensure a memorable experience for the consumer to take with them once they leave the store ensuring that they will want to return. The interior branding should allow the consumer to easily self direct themselves through the store. The key factor is consistency exterior branding and signage should continue into the interior. By switching materials throughout the store zones/ areas can be defined. Firstly examine the natural light and what impact it has in the space. they should attract. To ensure consistency the font should be consistent with the font size altering. To minimise the possibility of eye strain the ratio of luminance should decrease between merchandise selling areas. The warmth of a material will make the space more inviting. sound. The final layer is to install functional lighting this includes clear exist signs. Poor lighting can cause eye straining and an uncomfortable experience for the consumer. Natural light adds interest and clarity to the space. as well as emphasising key point throughout the store.Once the overall structure and circulation of the space has been determined. The next layer is emphasising the selling areas. As merchandise will change seasonally the interior colours should not be trend based but rather have timeless appeal like neutral based colours. for example by making the path one material and contrast it against another for the selling areas this help to guide the consumer through the store. The lighting of the ceiling and roof is next thing to consider.
In some parts of the world. with limited selection. Demographic . and other fabrics.g. like electric power. sometimes it is done as a recreational activity. Normally retailers sell less fashion-oriented brands.The final element to a well-executed retail space is the staging of the perspective(visual) of the consumer. Shopping streets may be for pedestrians only.these offer extremely low-cost goods. Shopping generally refers to the act of buying products. A retailer of such store carries variety of categories and has broad assortment at average price. apparel. Shops may be on residential streets. They offer considerable customer service. Retailing includes subordinated services. furniture.clothing. often bear a resemblance to a collection of specialty stores. electronics. The traditional market square is a city square where traders set up stalls and buyers browse the merchandise. A retailer purchases goods or products in large quantities from manufacturers or directly through a wholesaler. and countless such markets are still in operation around the whole world. not buying) and browsing and does not always result in a purchase. warehouse clubs charge a membership fee. It is the role of the retail design to have total control of the perspective and view that the consumer will have in retail space. such as delivery. Soft goods or consumables . high-end retailers focusing on wealthy individuals).. a type of electronic commerce used for business-to-consumer (B2C) transactions and mail order. Discount stores . This kind of market is very old. Retail is the sale of goods and services from individuals or businesses to the end-user. sporting goods. but this market is increasingly being taken over by large retail chains. Retail is usually classified by type of products as follows: Food products Hard goods or durable goods ("hardline retailers") . Variety stores . but they compete mainly on price offers extensive assortment of merchandise at affordable and cut-rate prices.warehouses that offer low-cost. . Goods that are consumed after one use or have a limited period (typically under three years) in which you may use them.very large stores offering a huge assortment of "soft" and "hard goods. shopping streets with few or no houses or in a shopping mall. Warehouse stores . such as a public utility.appliances. Goods that do not quickly wear out and provide utility over time. Sometimes this is done to obtain necessities such as food and clothing. There are the following types of retailers by marketing strategy: Department stores . From the exterior of retail store the consumer should have a clear unobstructed view into the interior of the store. Online retailing. are forms of non-shop retailing. The term "retailer" is also applied where a service provider services the needs of a large number of individuals.retailers that aim at one particular segment (e. See 2011 Top 250 Global Retailers Types of retail outlets A marketplace is a location where goods and services are exchanged. the retail business is still dominated by small family-run stores. Retailers are part of an integrated system call the supply-chain. and then sells smaller quantities to the consumer for a profit. etc. often high-quantity goods piled on pallets or steel shelves.tend to offer a wide array of products and services. Sometimes a shopping street has a partial or full roof to protect customers from precipitation. Recreational shopping often involves window shopping (just looking. Retailing can be done in either fixed locations or online.
. The stores accept credit cards and are usually open 24/7. Other types of retail store include: Automated Retail stores are self service. Some stores take a no frills approach. For few categories. However it is important for the customer to be wary about defective products and non secure credit card transaction. Malls: has a range of retail shops at a single outlet. the products are displayed at the centre of the store and sales person will be available to address customer queries and give suggestions when required. Specialty stores: A typical speciality store gives attention to a particular category and provides high level of service to the customers. Supermarkets: is a self service store consisting mainly of grocery and limited products on non food items. This store is ideal for emergency and immediate purchases. general merchandise. Here the retailers use drop shipping technique. The range of products are very selective and few in numbers. Example: Amazon. The square feet area of the store depends on the store holder. Other retail format stores are forced to reduce the prices if a category specialist retail store is present in the vicinity. Retailers can opt for a format as each provides different retail mix to its customers based on their customer demographics.000 and 40. They provide limited amount of merchandise at more than average prices with a speedy checkout.a rural store that supplies the main needs for the local community.a store which sells most goods needed. Category killers or Category Specialist: By supplying wide assortment in a single category for lower prices a retailer can "kill" that category for other retailers.000 square feet (3. For example if a customer visits a Reebok or Gap store then they find just Reebok and Gap products in the respective stores. They accept the payment for the product but the customer receives the product directly from the manufacturer or a wholesaler. These stores are seen in local community often are family-run businesses. However. They may adopt a Hi-Lo or an EDLP strategy for pricing. such as electronics. Example: SPAR supermarket. stocking everyday or roadside items. A good format will lend a hand to display products well and entice the target customers to spawn sales. This format is ideal for customers who do not want to travel to retail stores and are interested in home shopping. A pet store that specializes in selling dog food would be regarded as a specialty store. The operating cost is comparatively less than other retail formats. Pennyful and eBay. General store . food and entertainment under a roof. Convenience stores: is essentially found in residential areas.a small store often with extended hours. lifestyle and purchase behaviour. Big-box stores encompass larger department.Mom-And-Pop : is a retail outlet that is owned and operated by individuals. while others are "mid-range" or "high end". The supermarkets can be anywhere between 20. Examples include ZoomShops and Redbox. robotic kiosks located in airports. depending on what income level they target. Vending Machines: This is an automated piece of equipment wherein customers can drop in the money in machine and acquire the products. They endow with products. discount. Convenience store . E-tailers: The customer can shop and order through internet and the merchandise are dropped at the customer's doorstep. and warehouse stores. General store . malls and grocery stores. Hypermarkets: provides variety and huge volumes of exclusive merchandise at low margins. typically in a rural area.700 m2). branded stores also come under this format.
This type of retail is common for small expensive items (e. Another form is the pawnshop. in which goods are sold that were used as collateral for loans. the person gives the shop owner a percentage of the sale price. Another example would be the practice of discounting for youths. students. Alternatively. when prices are not clearly displayed. for immediate service (especially for pizza delivery). In Western countries.[which?] Delivery. The advantage of selling an item this way is that the established shop gives the item exposure to more potential buyers. which are where a person can place an item in a store and if it sells. where the salesperson sometimes travels with the goods for sale. Direct marketing. a customer may have to pay more if the seller determines that he or she is willing and/or able to. there can be price discrimination. television advertisement or a local restaurant menu.g.g. Unfavorable taxation structures. where the sale price is dependent upon who the customer is. newspaper. retail prices are often called psychological prices or odd prices. either from a catalog. where goods may be handled and examined prior to purchase Second-hand retail Some shops sell second-hand goods. In the case of a nonprofit shop. Ordering by telephone is now common. For example. the public donates goods to the shop to be sold. common stock) purchased. Self-service. Transfer mechanism There are several ways in which consumers can receive goods from a retailer: Counter service. especially as imposed by local governments and against "big-box" chain retailers. including telemarketing and television shopping channels. or senior citizens. In give-away shops goods can be taken for free. where goods are out of reach of buyers and must be obtained from the seller. where goods are shipped directly to consumer's homes or workplaces. Restrictions on foreign investment in retailers. started gaining significant market share in developed countries in the 2000s. Door-to-door sales. This involves adding a markup amount (or percentage) to the retailer's cost.. It was common before the 1900s in the United States and is more common in certain countries like India. especially those designed to penalize or keep out "big box" retailers (see "Regulatory" above). . Mail order from a printed catalog was invented in 1744 and was common in the late 19th and early 20th centuries. Another common technique is suggested retail pricing. Challenges To achieve and maintain a foothold in an existing market.Retail pricing The pricing technique used by most retailers is cost-plus pricing. a prospective retail establishment must overcome the following hurdles: Regulatory barriers including Restrictions on real estate purchases. This simply involves charging the amount suggested by the manufacturer and usually printed on the product by the manufacturer. There are also "consignment" shops. jewelry) and controlled items like medicine and liquor.. Often prices are fixed and displayed on signs or labels. are also used to generate telephone orders. in terms of both absolute amount of financing provided and percentage share of voting stock (e.
Indian central government denied foreign direct investment (FDI) in multi-brand retail. Customer service Customer service is the "sum of acts and elements that allow consumers to receive what they need or desire from your retail establishment. Carrefour and Tesco. India is one of the fastest growing retail market in the world. and these were present only in large urban centers.3% of Indian population). In November 2011." It is important for a sales associate to greet the customer and make himself available to help the customer find whatever he needs. convenience stores or any retail outlets. India's retailing industry is essentially owner manned small shops. which is capitalized upon by smaller retailers. forbidding foreign groups from any ownership in supermarkets. Corporations and independent store owners alike are always trying to get the edge on their competitors. High competitiveness among existing market participants and resulting low profit margins. caused in part by Lack of educational infrastructure enabling prospective market entrants to respond to the above challenges. Retailing in India Retailing in India is one of the pillars of its economy and accounts for 14 to 15 percent of its GDP. India's retail and logistics industry employs about 40 million Indians (3. often including management. Retailers can also use facing techniques to create the look of a perfectly stocked store. generating foot traffic. The nation's largest retailers spend millions every year on in-store marketing programs that correspond to seasonal and promotional changes. even when it is not. as well single . A destination store is one that customers will initiate a trip specifically to visit. Even single-brand retail was limited to 51% ownership and a bureaucratic process.Absence of developed supply chain and integrated IT management. and Lack of properly educated and/or trained work force. caused in part by Constant advances in product design resulting in constant threat of product obsolescence and price declines for existing inventory. When a customer enters the store. These market reforms paved the way for retail innovation and competition with multi-brand retailers such as Walmart. it is important that the sales associate does everything in his power to make the customer feel welcomed. Giving the customer full. The Indian retail market is estimated to be US$ 450 billion and one of the top five retail markets in the world by economic value. so will a retail landscape. India's central government announced retail reforms for both multi-brand stores and single-brand stores. larger format convenience stores and supermarkets accounted for about 4 percent of the industry. Sales techniques Behind the scenes at retail. As products change. In 2010. These stores are often used to "anchor" a shopping mall or plaza. and make sure he leave the store satisfied. there is another factor at work. sometimes over a large area. One way to do this is to hire a merchandising solutions company to design custom store displays that will attract more customers in a certain demographic. undivided attention and helping him find what he is looking for will contribute to the customer's satisfaction. with 1. important.2 billion people. Until 2011.
and Apple. on the other hand. Organised retailing was absent in most rural and small towns of India in 2010.3% of Indian population). India has about 11 shop outlets for every 1000 people. corporate-backed hypermarkets and retail chains. etc. brings it out and offers it for sale to the shopper. that is. Shoppers typically stand outside the retail shop. The product typically has no price label in these small retail shops. Indian government placed the retail reforms on hold till it reaches a consensus. refers to the traditional formats of low-cost retailing. The . Access to the shelf or product storage area is limited. Price is sometimes negotiated between the shopper and shopkeeper. the local mom and pop store. in India. owner manned general stores. India's retail and logistics industry. but imposed the requirement that the single brand retailer source 30 percent of its goods from India. under pressure from the opposition. The shopkeeper prices the food staple and household products arbitrarily. convenience stores. for example. those who are registered for sales tax. Supermarkets and similar organized retail accounted for just 4% of the market. refers to trading activities undertaken by licensed retailers. USA and Japan from opening stores and creating associated jobs in India. Nike. In December 2011. The shoppers do not have time to examine the product label. The unorganized retail shops source their products from a chain of middlemen who mark up the product as it moves from farmer or producer to the consumer. These include the publicly traded supermarkets. do not have the scale to procure or transport products at high volume wholesale level. and also the privately owned large retail businesses. organized and unorganized in combination. IKEA announced in January that it is putting on hold its plan to open stores in India because of the 30 percent requirement. hand cart and pavement vendors. employs about 40 million Indians (3. Background Most Indian shopping takes place in open markets or millions of small. have limited to no quality control or fakeversus-authentic product screening technology and have no training on safe and hygienic storage. Fitch believes that the 30 percent requirement is likely to significantly delay if not prevent most single brand majors from Europe. India approved reforms for single-brand stores welcoming anyone in the world to innovate in Indian retail market with 100% ownership. Over 14 million outlets operate in the country and only 4% of them being larger than 500 sq ft (46 m2) in size. packaging or logistics. Local terms Organised retailing. Vast majority of the unorganized retail shops in India employ family members. and two consumers may pay different prices for the same product on the same day. paan/beedi shops. The announcement sparked intense activism. and do not have a choice to make an informed decision between competitive products. etc. Unorganised retailing. both in opposition and in support of the reforms. the shopkeeper goes to the container or shelf or to the back of the store.brand majors such as IKEA. and can not pick or examine a product from the shelf. Often the shopkeeper may substitute the product. In January 2012. income tax. The typical Indian retail shops are very small. although some products do have a manufactured suggested retail price (MSRP) pre-printed on the packaging. ask for what they want. Once the shopper requests the food staple or household product they are looking for. Indian government continues the hold on retail reforms for multi-brand stores. claiming that it is similar or equivalent to the product the consumer is asking for. independent grocery and retail shops.
on average. Through the 1990s. without an assured way to move and sell it. puts the economic viability of expensive cold storage in doubt. intermediaries and middlemen in India have dominated the value chain. Indian retail attracted about $1. In the absence of organized retail competition and with a ban on foreign direct investment in multi-brand retailers. norms are flouted and pricing lacks transparency. The logistics and infrastructure was very poor. with losses exceeding 30 percent. this is a very small number. Experts claim that cold storage infrastructure will become economically viable only when there is strong and contractually binding demand from organized retail. The 60%+ margins for middlemen and traditional retail shops have limited growth and prevented innovation in Indian retail industry. consumers in select Indian cities have gradually begun to experience the quality. and its spoilage of food harvest is amongst the highest in the world. because of very limited integrated cold-chain and other infrastructure. Numerous economists repeatedly recommended to . and automatic permission was granted in 2006. Some retails faced complying with over thirty regulations such as "signboard licences" and "antihoarding measures" before they could open doors. For a country of 1. of which 57 were approved and implemented. as against 2/3rd by farmers in nations with a higher share of organized retail. Growth Growth over 1997-2010 India in 1997 allowed foreign direct investment (FDI) in cash and carry wholesale. including some related to retail.unorganized retail shops typically offer no after-sales support or service. it required government approval. Small Indian farmers realize only 1/3rd of the total price paid by the final Indian consumer. having a total capacity of 23. every year. choice. Between 2000 to 2010. and grossly inadequate during peak harvest seasons.6 million metric tons. Until the 1990s.8 billion in foreign direct investment. Between 2000 to 2010. Finally. The risk of cold storing perishable food. regulations prevented innovation and entrepreneurship in Indian retailing. and even within states in some cases. Indian retail has experienced limited growth. foreign direct investments are unlikely to begin in cold storage and farm logistics infrastructure. India has only 5386 stand-alone cold storages. Indian laws already allow foreign direct investment in cold-chain infrastructure to the extent of 100 percent. India introduced widespread free market reforms.2 billion people. There are taxes for moving goods to states. Farmers and producers had to go through middlemen monopolies.5% of total investment flow into India. most transactions at unorganized retail shops are done with cash. The remaining infrastructure capacity is less than 1% of the annual farm output of India. The approval requirement was relaxed. Single brand retailing attracted 94 proposals between 2006 and 2010. However. India has had years of debate and discussions on the risks and prudence of allowing innovation and competition within its retail industry. with all sales being final. There has been no interest in foreign direct investment in cold storage infrastructure build out. China in contrast allows 100% ownership by foreign companies in both single brand and multi-brand retail presence. Due to a number of intermediaries involved in the traditional Indian retail chain. convenience and benefits of organized retail industry. from states. This leads to about 30% losses in certain perishable agricultural output in India. 80 percent of this storage is used only for potatoes. 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%. representing a very small 1. Then. Until 2010.
As of 2008. India had prevented innovation and organized competition in its consumer retail industry. Several studies claim that the lack of infrastructure and competitive retail industry is a key cause of India's persistently high inflation. Kearney estimates India's organized retail had a 31% share in clothing and apparel.T. In 2011. A 2007 report noted that an increasing number of people in India are turning to the services sector for employment due to the relative low compensation offered by the traditional agriculture and manufacturing sectors. One report estimates the 2011 Indian retail market as generating sales of about $470 billion a year. The Retail Business in India is currently at the point of inflection. Furthermore. The organized retail market is growing at 35 percent annually while growth of unorganized retail sector is pegged at 6 percent. Others believe the growth of Indian retail industry will take time. while . The enormous growth of the retail industry has created a huge demand for real estate.. Such reforms Professor Bhagwati argued will accelerate economic growth and make a sustainable difference in the life of India's poorest. Well over 30% of food staples and perishable goods produced in India spoils because poor infrastructure and small retail outlets prevent hygienic storage and movement of the goods from the farmer to the consumer.. then urged the Indian parliament to extend economic reforms by freeing up of the retail sector. some claim will enable rapid growth in retail sector of Indian economy. chain stores with centralized operations and shops in malls. maintaining its position as the most attractive market for retail investment. The Economist forecasts that Indian retail will nearly double in economic value. The opening of retail industry to free market competition. Growth after 2011 Before 2011. in a nation where malnutrition remains a serious problem. A 25% market share. 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.96 billion. and introducing labor market reforms. Kearney’s annual Global Retail Development Index (GRDI) for the third consecutive year. 300 malls are estimated to be operational in the country. For example..the Government of India that legal restrictions on organized retail must be removed. The projected increase alone is equivalent to the current retail market size of France. Professor of Economics and Law at the Columbia University analysed the relationship between growth and poverty reduction. The Indian economy has registered a growth of 8% for 2007. in an invited address to the Indian parliament in December 2010. Organised retail is expected to garner about 16-18 percent of the total retail market (US $ 65-75 billion) in the next 5 years. it is valued at about US$ 395. further liberalisation of trade in all sectors.9%. rapid change with investments to the tune of US $ 25 billion were being planned by several Indian and multinational companies in the next 5 years.. India has topped the A. given the expected growth of Indian retail industry through 2021. and the retail industry in India must be opened to competition. of which a miniscule $27 billion comes from organized retail such as supermarkets. Property developers are creating retail real estate at an aggressive pace and by 2010. food accounted for 70% of Indian retail. It is a huge industry in terms of size and according to India Brand Equity Foundation (IBEF). The predictions for 2008 is 7. with organized retail possibly needing a decade to grow to a 25% share. Jagdish Bhagwati. food waste is rife. A. because of unorganized retail. but was under-represented by organized retail. expanding by about $400 billion by 2020.T.
aLL. Challenges include: Geographically dispersed population. Depot. India has highest number of outlets per person (7 per thousand) Indian retail space per capita at 2 sq ft (0. Tanishq outlets. handloom apparel. Spykar Lifestyle and Royal Classic Polo are busy chalking out foreign expansion plans through the distribution route and standalone stores as well. Reliance Trends. small ticket sizes. Spykar. The other three groups are focusing either on perishables and groceries. Home furnishings. Reliance Retail-Formats: Reliance MART. particularly in developed markets. Reliance Jewellery. While most have identified a gap in countries in West Asia and Africa. or both. which is now moving towards becoming a casualwear lifestyle brand. there are significant challenges as well given that over 90% of trade is conducted through independent local stores. Reliance SUPER. 1.the home supplies retail was growing between 20% to 30% per year.775). Indian market has high complexities in terms of a wide geographic spread and distinct consumer preferences varying by each region necessitating a need for localization even within the geographic zones. Music World. Inorbit Mall Nilgiri’s-Formats: Nilgiris’ supermarket chain . Croma. It plans to open three stores in London by 2008-end.8 million households in India have an annual income of over 45 lakh (US$89.: Textiles. Beverly Hills Polo Club The Tata Group-Formats: Westside. Landmark. Fabindia: Textiles. Major Indian Retailers Indian apparel retailers are increasing their brand presence overseas. REI AGRO LTD Retail: 6TEN and 6TEN kirana stores Future Groups-Formats: Big Bazaar.19 m2)/ person is lowest in the world Indian retail density of 6 percent is highest in the world. Reliance Digital. Neck Ties & More. limitations of mass media and existence of counterfeit goods. Colourplus. Reliance FRESH. Central. Pantaloons. iStore Reliance ADAG Retail-Format: Reliance World K Raheja Corp Group-Formats: Shoppers Stop. E-Zone etc. little use of IT systems. jewellery RP-Sanjiv Goenka Group Retail-Formats: Spencer’s Hyper. Reliance Living. Madura Garments. Park Avenue. some majors are also looking at the US and Europe. Food Bazaar. Brand Factory. Fashion Station. or a range of products. Park Avenue Woman. Au Bon Pain (Internaional bakery cafeteria). Hyper City. Reliance Footprint. The Raymond Shop. While India presents a large market opportunity given the number and increasing purchasing power of consumers. Shirts & More etc. Star India Bazaar. These data correspond to retail prospects prior to November announcement of the retail reform. Crossword. Titan Industries with World of Titans showrooms. complex distribution network. and Bharti Enterprises Ltd. The Indian Retail Market This section requires expansion. Arvind Brands. the Aditya Birla Group. The Mahindra Group is the fourth largest Indian business group to enter the business of retail after Reliance Industries Ltd. Spencer's Daily. Steeljunction. has launched its store in Melbourne recently. Another denim wear brand. Reliance Autozone. Parx. Raymond Ltd. The low-intensity entry of the diversified Mahindra Group into retail is unique because it plans to focus on lifestyle products.
For example. Grand India Bazaar. The world’s fifth largest retailer by sales.in) Entry of MNCs A spice market The world's largest retailer by sales. is slated to open in north India by the end of 2008. is planning to set up two business entities in the country one for its cash-and-carry business and the other a master franchisee which will lend its banner. Lifestyle International-Lifestyle. Jainsons.next.most of which is unorganized.Marks & Spencer: Clothing. Viveks Safe Deposit Lockers PGC Retail -T-Mart India . Max. which will sell groceries. the world’s second largest retailer by sales.in) Vivek Limited Retail Formats: Viveks. The first of the stores. Respect India. account for about 6% of Indian labor work force currently . see also for more Detail Pick/Müller ""</ref> Carrefour. while India's labor productivity in non-food retailing is about 8% compared to Poland's 25%. India's labor productivity in food retailing is about 5% compared to Brazil's 14%. (Expected to be 500 by the end of Aug-2012)(www.. Costco Wholesale Corp (Costco) known for its warehouse club model is also interested in coming to India and waiting for the right opportunity. Total retail employment in India. Viveks Service Centre.etc. Switcher. consumer appliances and fruits and vegetables to retailers and small businesses. Pyramid Retail-Formats: Pyramid Megastore..nmart.Formats: Fabmall supermarket chain and Fabcity hypermarket chain Vishal Retail Group-Formats: Vishal Mega Mart BPCL-Formats: In & Out German Metro Cash & Carry Shoprite Holdings-Formats: Shoprite Hyper Paritala stores bazar: honey shine stores Aditya Birla Group . This about a third of levels in . Wal-Mart Stores Inc and Sunil Mittal's Bharti Enterprises have entered into a joint venture agreement and they are planning to open 10 to 15 cash-andcarry facilities over seven years. Home Centre. both organized and unorganized.co. Fun City and International Franchise brand stores. Challenges A McKinsey study claims retail productivity in India is very low compared to international peer measures.Cotton garment outlets Nmart Retails with 153 operating Stores till now and total 219 Stores in India and 1 to open in Dubai Shortly. Tesco Plc. plans to set up shop in India with a wholesale cash-and-carry business and will help Indian conglomerate Tata group to grow its hypermarket business.co. lifestyle products. etc."More" Outlets Kapas. technical services and know how to an Indian company for direct-to-consumer retail. TruMart Next retail India Ltd (Consumer Electronics)(www. the labor productivity in Indian retail was just 6% of the labor productivity in United States in 2010. Trinethra. Subhiksha-Formats: Subhiksha supermarket pharmacy and telecom discount chain.
Taxation. In other words. single brand retailers. In November 2011. in the most radical pro-liberalisation reform passed by an Indian cabinet in years. Indian central government denied foreign direct investment (FDI) in multi-brand Indian retail. and about half of levels in other emerging economies. forbidding foreign groups from any ownership in supermarkets. announced on 24 November 2011 the following: India will allow foreign groups to own up to 51 per cent in "multi-brand retailers".United States and Europe. Lack of trained work force. and cumbersome local laws. retailing in India needs to cross the following hurdles: Automatic approval is not allowed for foreign investment in retail. The states of India have the prerogative to accept it and implement it. transportation. the Indian government announced relaxation of some rules and the opening of retail market to competition. The government of Manmohan Singh. up from the previous cap of 51 percent. . including cold chains. Training and development of labor and management for higher retail productivity is expected to be a challenge. the opening of retail competition will be within India's federal structure of government. or they can decide to not implement it if they so choose. packing. which favours small retail businesses. the policy is an enabling legal framework for India. multi-brand retailers must have a minimum investment of US$100 million with at least half of the amount invested in back end infrastructure. refrigeration. A complete expansion of retail sector to levels and productivity similar to other emerging economies and developed economies such as the United States would create over 50 million jobs in India. Regulations restricting real estate purchases. can own 100 percent of their Indian stores. Actual implementation of policy will be within the parameters of state laws and regulations. To become a truly flourishing industry. both multi-brand and single brand stores in India will have to source nearly a third of their goods from small and medium-sized Indian suppliers. as supermarkets are known in India. convenience stores or any retail outlets. prime minister. to sell multiple products from different brands directly to Indian consumers. Lack of Retailing Courses and study options Intrinsic complexity of retailing – rapid price changes. India retail reforms Until 2011. out of some 7935 towns and cities in India. constant threat of product obsolescence and low margins. all multi-brand and single brand stores in India must confine their operations to 53-odd cities with a population over one million. Absence of developed supply chain and integrated IT management. such as Apple and Ikea. Low skill level for retailing management. It is expected that these stores will now have full access to over 200 million urban consumers in India. sorting and processing to considerably reduce the post harvest losses and bring remunerative prices to farmers.
" Chandrajit Banerjee. It has the potential to transform not only the retailing landscape but also the nation's ailing infrastructure. cold storage and more efficient logistics. A Wall Street Journal article claims that fresh investments in Indian organized retail will generate 10 million new jobs between 2012–2014.. Analysts said allowing in big foreign retailers would provide an impetus for them to set up modern supply chains. "The biggest beneficiary would be the small farmers who will be able to improve their productivity by selling directly to large organised players. analysts claim. Ashok Ganguly and other economic policy leaders of India. director-general. Traders add huge mark-ups to farm prices. By putting retail reforms on hold. They called upon Indians to come out and strongly support progressive measures and reforms with the same spirit and gusto with which we take the liberties to criticize policies or issues we do not appreciate. and about five to six million of them in logistics alone. pushing up retail prices significantly. Several newspapers claimed on 6 December 2011 that India parliament is expected to shelve retail reforms while the ruling Congress party seeks consensus from the opposition and the . who see large foreign chains as a threat. Deepak Parekh. packaging technology. claimed that India’s government may put the FDI retail reforms on hold until it reaches consensus within the ruling coalition. the Chief Minister of the Indian state of West Bengal. It is expected to help tame stubbornly high inflation but is likely to be vehemently opposed by millions of small retailers. Indian retail reforms on hold According to Bloomberg. India Today claimed that the resistance to Indian retail reforms is primarily because it has been badly sold. So they will now have the worst of both worlds. president of the Centre for Policy Research. on 4 December 2011. They urged farmers. Hitherto India's food supplies have been controlled by tens of millions of middlemen (less than 5% of Indian population). claimed any U-turn or postponement of retail reforms will cause an immense loss of face to the Congress-led central government of Manmohan Singh. The need to control food price inflation—averaging double-digit rises over several years—prompted the government to open the sector. called placing investment and innovation in retail on hold for the sake of vested interests as unfair and detrimental to vast majority in India. Confederation of Indian Industry. Reuters reports that this risked a possible dilution of the policy rather than a change of heart. The mom-and-pop farmers of India support these reforms. The consumers of India want the reforms. India Today claims the policy is good for the small Indian farmer and the Indian consumer. the government will additionally alienate much larger segment of India's population supporting FDI. Mamata Banerjee. even though the retail market is being opened to just 53 cities out of about 8000 towns and cities in India. The government has already annoyed those who oppose change and innovation in retail. who is against the policy and whose Trinamool Congress brings 19 votes to the ruling Congress party-led coalition. "I think foreign chains can also bring in humongous logistical benefits and capital." Mr Banerjee said. even though it can help fix the exploitation of Indian farmers by the decades-old "arhtiya" and "mandi" monopoly system. consumers and the common people to raise their voice against this false drama of apprehension against investment and modernising trade in organised retailing. claims Mehta. while offering little by way of technical support to help farmers boost their productivity. Pratap Mehta.The opening of retail industry to global competition is expected to spur a retail rush to India. on 3 December 2011... with refrigerated vans. told Reuters.
 The reform seeks to attract investments in production and marketing. and enhance competitiveness of Indian enterprises through access to global designs. plans to focus expansion instead in China and Russia." Single-brand retail reforms approved On January 11. with greater than 51% foreign ownership. get competition out of the way. Ikea announced that it plans to double what it sources from India already for its global product range. There will be sterile homogeneity and Indian cities will look like cities anywhere else. encourage increased sourcing of goods from India. Remember East India Company. India's Commerce and Industry Minister. Mikael Ohlsson. an embarrassing defeat for the Indian government. If allowed to expand in India as much as Walmart has expanded in the United States. India. to over $1 billion a year. Independent stores will close. to source at least 30% of the value of products from Indian small industries. We have seen this in the case of the soft drinks industry. suggesting it is weak and ineffective in implementing its ideas. few thousand jobs may be created but millions will be lost. chief executive of IKEA. 2012. within three years. Suspension of retail reforms on 7 December 2011 would be.Congress party's own coalition partners. Anand Sharma. Walmart employs very few people in the United States. the reports claimed. then raise prices. profits will go to foreigners. leading to massive job losses. where such restrictions do not exist. In this announcement. produce loss in these retail formats is very high for perishables Critics of the Indian retail reforms announcement are making one or more of the following points:. improve the availability of goods for the consumer. India requires single-brand retailer. Social impact and controversy with retail reforms The November 2011 retail reforms in India have sparked intense activism. announced IKEA is postponing its plan to open stores in India. . village and cottage industries. "The decision to allow foreign direct investment in retail is suspended till consensus is reached with all stakeholders. 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. after a meeting of all political parties on 7 December 2011 said. This was an obstacle to IKEA's investment in India. It entered India as a trader and then took over politically. The government hasn't built consensus. both in opposition and in support of the reforms. Walmart will lower prices to dump goods. technologies and management practices. since homegrown companies and traditional markets may be able to do the job. Work will be done by Indians. and that it will take IKEA some time to source goods and develop reliable supply chains inside India. IKEA in the near term. artisans and craftsmen. become a monopoly. Pepsi and Coke came in and wiped out all the domestic brands. India doesn't need foreign retailers. Controversy over Indian retail reforms A horticultural produce retail market in Kolkata. India approved increased competition and innovation in single-brand retail.
Walmart employs 1. Walmart has a 6. China experienced the creation of 26 million new jobs within 9 years. for example. India needs trillions of dollar to build its infrastructure. With United States population of about 300 million.4 million people in United States alone. Carrefour. More competition is lacking because of limited demand. can bring this knowledge. Competition between Walmart-like retailers has kept food prices in check. They claim: Organized retail will need workers. Adjusted for this market share.5% market share of the total United States retail. the expected jobs in future Indian organized retail would total over 85 million. since it came into Indian wholesale retail market. expects to source and export some $1 billion worth of goods from India every year. and have plenty of domestic brands. Coop are some of over 350 global retail companies with annual sales over $1 billion.finds that in China. Indian government is already operating on budget deficits. The Pepsi and Coke example is meaningless in the context of Indian beverage market. compared to India's double digit inflation. cold storage centers. housing and schools for its growing population. Coca Cola and Pepsi have plenty of competition. Global integration can potentially open export markets for Indian farmers and producers. coffee and tea market in India are big markets. European brands like Nestle.one of the world's largest audit companies . Tesco.6 million Indian citizens. that outsells combined soft drink sales of the Pepsi and Coca Cola. Soft drinks represent less than 5% of Indian beverage market. Anti-trust laws and state regulations. The current consumer price inflation in Europe and the United States is less than 2%. Organized retail too will have numerous brands and strong competition. as well as Pepsi and Coca Cola.Supporters claim none of these objections has merit. . Additionally. Instead of job losses. hospitals. Global retail leaders. job creation and growth at the rate India needs. electronic cash registers and other retail supporting organizations. the employment in both retail and wholesale trade increased from 4% in 1992 to about 7% in 2001. Metro. Target. such as those in Indian legal code. Bottled water. Beyond capital. milk. millions of additional jobs will be created during the building of and the maintenance of retail stores. if Walmart-like retail companies were to expand in India as much as their presence in the United States. Canada credits their very low inflation rates to Walmarteffect. The next most important market in India is bottled water. contrary to some concerns in China. and India's population of about 1200 million. Price inflation in these countries has been 5 to 10 times lower than price inflation in India. Walmart. and the staffing level in Indian stores kept at the same level as in the United States stores. It is simply not possible for Indian investors or Indian government to fund this expansion. have prevented food monopolies from forming anywhere in the world. the number of traditional small retailers also grew by 30% over 5 years. Indian economy is small. retail reforms are likely to be massive boost to Indian job availability. with limited surplus capital. KPMG . Indian consumer has limited interest in soft drinks. some of which are partly owned by people of Indian origin. These retail companies have operated for over 30 years in numerous countries. Walmart alone would employ 5. In these markets. post retail reforms. software industry. roads. They have not become monopolies. In absolute terms. post China opening its retail to foreign and domestic innovation and competition. Indian retail industry needs knowledge and global integration. Walmart. post China announcing FDI retail reforms. tea and coffee and these account for 90% of Indian beverage market. In addition. Global investment capital through FDI is necessary. Indian consumer prefers milk-based.
China allowed FDI in its retail sector. delighting customers and caring about the communities it has stores in. industry . free and fair retail competition does indeed lead to sharply lower inflation than current levels. homogeneity and other factors to suit their cultural preferences. for example. Retail reforms discussions are not new. according to some estimates. in transit. Indian small shops employ workers without proper contracts. when opposition formed the central government. Comments from a wide cross-section of Indian society including farmers' associations. Yet. A well-regulated retail sector will help curtail some of these abuses. they had proposed retail reforms and suggested India consider FDI in retail. Cost-conscious organized retail companies will avoid waste and loss. Any profits will be subject to taxes. Walmart. another version of the discussion paper was circulated by the central government of India. style. it is unlikely foreign retailers will earn any profits in India for the first 5 to 10 years. an organized retailer named Whole Foods has rapidly grown to annual revenues of $9 billion by working closely with farmers. Finally. Taiwan. Global awareness and news media were not the same in 18th century as today. Many unorganized small shops depend on child labour. has successfully introduced "Direct Farm Project" at Haider Nagar near Malerkotla in Punjab. About 10 years ago. More recently. while increasing the income of small farmers. thereby reducing waste and bringing fresher produce to Indian consumers. It has over 57 million square feet of retail space owned by foreigners. Like China. where 110 farmers have been connected with Bharti Walmart for sourcing fresh vegetables directly. in large part because of huge investments they had to make initially. It has taken FDI-financed retailers in China between 5 to 10 years to post profits. they can place limits on number. Thus. states can always introduce regulations and India can change the law to ensure the benefits of retail reforms reach the poorest and weakest segments of Indian society. Many years ago. For example. Consider China today. diversity. Inbuilt inefficiencies and wastage in distribution and storage account for why. Fifty million children in India are malnourished. On July 6. Food often rots at farms. or in antiquated state-run warehouses. China adopted the retail reform policy India has announced. India too will benefit by integrating with the world. as much as 40% of food production doesn't reach consumers. market share. retail companies must earn profits with hard work and by creating value. The claims that there is no consensus is without merit. it is today. small farmers get better prices. in future. Organized retail has enabled a wide range of companies to start and flourish in other countries. and healthier food becomes available to more households. India wasn't a democracy then. and they have benefitted immensely by welcoming FDI in retail. Ultimately. nearly half of any profits will remain in India. China hasn't become a vassal of imperialists. It enjoys respect from all global powers. In 2010. rather than isolating itself. making food available to the weakest and poorest segment of Indian society. Other Asian countries like Malaysia. States have a right to say no to retail FDI within their jurisdiction. jobs created by organized retail pay well.Comparing 21st century to 18th century is inappropriate. making them work long hours. and such taxes will reduce Indian government budget deficit. With 51% FDI limit in multi-brand retailers. Thailand and Indonesia see foreign retailers as catalysts of new technology and price reduction. since its arrival in Indian wholesale retail market. States have the right to add restrictions to the retail policy announced before they implement them. 2011. employing millions of Chinese citizens. the Indian government circulated a discussion paper on FDI retail reforms. Conditions today are not same as in the 18th century. in the United States. retail reforms announced evolved after a process of intense consultations and consensus building intiative.
claiming ―Some people might support it. Chief Ministers of many states have not made a personal statement in opposition or support of India needing retail reforms. Those who oppose current retail reforms should help build consensus with ideas and proposals. One has to see what one’s capacity is. Uma Bharti. claimed people appeared divided over the bandh call and internal rivalry among trade associations led to a mixed response. claimed the opposition's call for a nation wide shutdown on 1 December 2011. The Hindu. had privately encouraged the government to push through the retail reform. Mamata Banerjee.S. consumer forums. Opposition parties claim supermarket chains are ill-advised. traders' associations. another widely circulated newspaper in India. A Wall Street Journal article reports that in Uttar Pradesh. economy. and its decision to push through one of the biggest economic reforms in years for India. Indian government has faced a political backlash against its decision to allow competition and 51% ownership of multi-brand organized retail in India. reduce inflation. Gujarat. a national newspaper of India. Uttar Pradesh. the consensus from various segments of Indian society was overwhelming in favor of retail reforms. ignoring the call for bandh. leaving many stores open day-long and others opening for business as usual in the second half of the day. the intense criticism now targets Congress-led coalition government. Both sides have made conflicting claims about the position of chief ministers from these states. academics. investors. threatened to "set fire to the first Wal-Mart store whenever it opens. By early August 2011. On 1 December 2011. The announced reforms are the result of this consensus process. Gadkari is the president of BJP. announced her opposition to retail reform. While many organizations responded. claiming that many opposition parties. Despite the fact that Salman Khurshid. the chief minister of West Bengal and the leader of the Trinamool Congress. but I do not support it. The opposition parties currently disrupting the Indian parliament on retail reforms have not offered even one idea or a single proposal on how India can eliminate food spoilage. The current opposition is not helping the consensus process. feed the poor.‖ Other states whose Chief Ministers have either personally announced opposition or announced reluctance to implement the retail reforms: Tamil Nadu. a network of stores owned and operated by Nitin Gadkari were open for business. the reach of the protest was mixed. improve the incomes of small farmers. Karnataka and Rajasthan are examples of these states. The reform outline was presented in India's Rajya Sabha in August 2011. You see America is America … and India is India. in protest of retail reform received a mixed . The Times of India. India’s law minister. if they have any. Bihar and Madhya Pradesh. improve food security.bodies. The opposition claims the entry of organized retailers would lead to their dominance that would decimate local retailers and force millions of people out of work. including the Bharatiya Janata Party. an India-wide "bandh" (close all business in protest) was called by political parties opposing the retail reform. economists were analyzed in depth before the matter was discussed by the Committee of Secretaries. Opposition to retail reforms Within a week of retail reform announcement. since consensus is not built by threats and disruption. Kerala. the key party currently organizing opposition to retail reform." with her colleague Sushma Swaraj busy tweeting up a storm of misinformation about how Wal-Mart allegedly ruined the U. unilateral and unwelcome. a senior leader of the opposition Bharatiya Janata Party (BJP). Even Purti Group.
Nearly 78 per cent of farmers said they will get better prices for their produce from multi-format stores. overwhelming majority of consumers and farmers in and around ten major cities across the country support the retail reforms. With the relaxation in international investments in Indian retail. They expect a flurry of joint ventures with global majors for expansion capital and opportunity to gain expertise in supply chain management. Over 90 per cent of consumers said FDI in retail will bring down prices and offer a wider choice of goods. The political parties opposing the retail reforms physically disrupted and forced India's parliament to adjourn again on Friday 2 December 2011. which operates over 60 stores. Nilgiri's and ShopRite support retail reform and consider international competition as a blessing in disguise. The Indian government refused to cave in. Haryana. ignoring the shutdown call. While a number of wholesale markets observed the shutdown.response. Foodworld Supermarkets Ltd. 2011 over the opposition to retail reforms. Contrary to eyewitness reports. Foodworld. Punjab and Assam the call evoked a partial response. but they may have to accept lower margins for greater volumes. Over 75 per cent of the traders claimed their marketing resources will continue to be needed to push sales through multiple channels. many ignored the call for the shutdown. Some states had strong support. plans to ramp up its presence to more than 200 locations. as they already procure the farm products directly from the growers without the involvement of middlemen or traders. and with retail of fresh vegetables and fruits accounting for 55 per cent of its business claims retail reform to be a win-win situation. Andhra Pradesh. Indian parliament has been dysfunctional for the entire week of November 28. in its attempt to convince through dialogue that retail reforms are necessary to protect the farmers and consumers. Bihar. wider availability and significant improvement in supply chain logistics. Spencer's Retail with 200 stores in India. Spencer’s claims that there is scope for it to expand its footprint in terms of store location as well as procuring farm products. Current supermarkets Existing Indian retail firms such as Spencer's. Delhi. one Trader union's secretary general claimed traders across the country participated wholeheartedly in the strike. while most did not. the newspaper claimed a majority of kirana stores and neighborhood small shops — for whom apparently the trade bandh had been called — remained open. India’s Foodworld expects its global relationship will only get stronger. Support for retail reforms In a pan-Indian survey conducted over the weekend of 3 December 2011. Even in states where opposition political parties are in power. It has already tied up with Hong Kong-based Dairy Farm International. . In Gujarat. Competition and investment in retail will provide more benefits to consumers through lower prices. Conflicting claims were made by the organizers of the nation wide shutdown.
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