Retailing - Corporate Verses Small Shops / Stree Vendors

Bystander · Telugu Teja Joined: 13 Oct 2004 Posts: 440

There has been boom in corporate retailing and people in cities seem to enjoy it. Now they can go to store which are well organized and provide choice often at bargain prices.
No more haggling with small shops and street vendors for house wifes. This is really a good change for better life style for city dwellers.
Who are then effected? Who were the small timers and street vendors? Mostly rural poor who migrate to urban areas trying to make some living out of street vending and putting up on road side. These people who are already on margins of society find it more difficult to even survive. They are not often educateed or smart enough to get employed by the super markets. So, they will soon perish. What can they do? Can some NGO's offer training for these rural poor to get jobs in super markets? I am not sure if this is even the right question. But the point is the people who would get effected by corporate entry into retailing, what are the options for them. Can the Govt / non govt orgs do some thinking on this?
Your thought? Thanks

ved · Telugu Veera Joined: 26 Feb 2006 Posts: 2046

The best conclusions that we can draw is from the success of Macdonald in India. I recently read the case paper created by professor Kishore Dash of Thunderbird school of global mgt who provided some consultancy to Macdonald. What draws my attention is the section where Kishore highlights the partnership that Macdonald cultivated with the farmers. Macdonald did 5 years of research figuring out the menu and adopted totally an indigenous one. Macdonald needed an efficient supply chain for continuous supply of fresh vegetables and other farm products. If a I remember right, Macdonald also has policy to procure all the farm products within a radius of 100 kms for quick transportation. The net effect is a win-win situation for both farmers and Macdonald. Macdonald so far opened franchises only in Delhi and Mumbai areas with only 50-100 chains. This gives a glimpse of what retailing is going to do, providing a huge market base for agriculture products which rural economy never witnessed before. There will be some wins and some losses, but retail industry filling the space of product distribution is the ultimate gain farmers can look forward to.

statesman · Posted: Fri May 11, 2007 9:11 am Post subject:

one way these retail chain majors helping farmers in purchasing the farm goods in particular the fast pershable ones and arranging market for it. now a days i find reliance is cheaper in selling fruits/vegatables when in comparision to our local traders in hyderbad. let wallmart/ Mc donald also add to already tough competetive market so that middle class commoner is not squeezed by local brokers by creating artificial shortage. Thanx Indian middle class commoner is a off course made king by these MNCs with great choice.
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kumars · Telugu Kavi Joined: 14 Dec 2005 Posts: 828

Are you sure that relaince stores is purchasing GOODS directly from producers ??

by the way, how are the prices in reliance retails stores compared to conventional markets.
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