Foreign Direct Investment in Retailing Foreign direct investment (FDI) in retailing still remains a widely debated and a heated issue on India’s economic and political scene. The government stance of protecting local retailers and prohibiting 100 percent foreign direct investment in retailing continued in 2005, restraining international retailers’ entry. However, there was gradual economic reform, […]
The Distribution Challenge The large geographical area of India and its relatively weak infrastructure are the most important constraints on distribution. India is a land locked country for internal distribution. High proportion of retail business takes place in the ‘unorganized’ sector and in rural areas that may be many miles from paved roads – which
Internet Retailing The benefits of internet retailing are unanimously accepted and acknowledged by most manufacturers, retailers and consumers alike. From manufacturers and retailers’ perspective, internet retailing offers benefits in the form of cost-effectiveness, profitability and easy accessibility and can be utilized across diverse products and services in grocery as well as non-grocery items. Internet retailing
Private Label Private labels are getting retailer attention due to profitability promise. Emulating international counterparts, where private label are increasingly gaining significance, most department stores, supermarket chains, hypermarket chains and discounters in India are promoting private label products. The fundamental reason for this is the much higher margin and profitability on such products, compared with
Food Safety and Pricing Issues To ensure a strong presence in global markets, India needs to meet international standards in food safety. The increase in world food trade and the advent of the Sanitary and Phytosanitary (SPS) Agreement under the World Trade Organization (WTO) have also raised interest in food safety requirements. The Government has
Technology Implementation and Shortage of Talented Professionals An agile and adaptive supply chain is the key for success in retail. Logistical issues, constant changes in consumer preferences and patterns, crowded marketplaces, efficient customer responsiveness and swiftly evolving retail formats are the hallmarks of today’s retail environment in India and pose a huge challenge for driving
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Shopping Malls The emergence of a mall culture and development of malls should come across as a positive development .With all the major retailers planning to double the number of stores and the retail space that they will need in the next three years, availability of real estate space will be a key enabler for
Organized Retailing in Urban India India’s upbeat economy presents enormous opportunity. The mood in Indian retailing is bursting with optimism, with the hope that the government will introduce favorable legislative relaxation in real estate and partial FDI reforms in retailing. This will encourage retailing to remain in investment mode. Domestic retailers are likely to exploit