IT’S a nagging, almost decade-old doubt that has kept foreign direct investment (FDI) in retail at bay: will the entry of Big Retail hurt the six million kirana stores?
IT’S a nagging, almost decade-old doubt that has kept foreign direct investment (FDI) in retail at bay: will the entry of Big Retail hurt the six million kirana stores?
‘Branding’ alone hardly ever makes a business successful. It is businesses, including their culture and ethos, that make brands successful. And as soon as the business drops the ball on innovation, service, quality or price, or forgets its cultural roots, the brand quickly loses its lustre.
Organised retail accounts for less than 10% of India’s retail market estimated at close to $400 million. The Boston Consulting Group estimates the size of organised retail market at $28 billion and expects it to grow nine times to $260 billion in 10 years.
One reason retailing has become ground zero for the new protectionism is that China’s $70 billion-a-year market for large grocery stores is still up for grabs. The industry, expected to double in size by 2015, is far more fragmented and regional than that in Europe or the U.S… Wal-Mart, with 353 stores, has an 11.2 percent share, second only to the 12 percent held by France’s Auchan.
Wal-Mart India, said it can help reduce prices by improving supply chain and infrastructure to cut waste. About 40 percent of fruit and vegetables in the country rot before they are sold because of a lack of cold-storage facilities and poor transport infrastructure, according to government estimates.
It’s definitely a correction for retailers as well as restaurants, a direct result of consumers not having as much to spend on the extras. The strategy has to be to reduce your costs to offset less traffic. Usually that means less rent, shrinking retail and restaurants…
Google Wallet; schemes led by the credit card giants such as Visa; and separate programs by PayPal and others. Now the retailers, too, want a say, and about 25 stores, including Walmart and Target, have formed a consortium to develop their own m-payment system.
The chain’s 2011 online sales amounted to less than 2 percent of its $264 billion in U.S. revenue…Wal-Mart is trying to improve links between its store inventory, website, and mobile phone apps so that more customers can order online and pick up their purchases at stores, which half of Web customers do already.
By SHELLY BANJO No SUV-driving American shopper would be surprised to find 20 lb. sacks of dog chow at a Wal-Mart supercenter. But at an urban minimart that is trying to attract bag-toting pedestrians? Not so much. Wal-Mart is struggling to expand with small stores as it seeks to penetrate big cities and jumpstart its U.S. […] ↓ Read the rest of this entry…
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