Posted on Tuesday, July 17, 2012 - 01:55 am:

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Indiarocks:

Tilak kurradu chadavakunda links istadu anataniki inkoka example.

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Posted on Monday, July 16, 2012 - 09:25 pm:

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Tilak:

http://www.firstpost.com/business/should-india-fear-wal-mart -the-bully-of-bentonville-378330.html

the Indian govt should exactly explain why they favor FDI in retail ..

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quote:

As Rajiv Lal, a professor at the Harvard Business School told me in an interview I did for the Daily News and Analysis(DNA), �There is not even a single emerging market that I know where a foreign entrant is the number one retailer. In Brazil it is Pão de Açúcar, in China you have the local Beijing Bailian. In most markets, even when there are foreign entrants, the dominant retailer in the organised sector is still the local retailer.�

And there are several reasons for the same. The local retailers are very price competitive. �If Wal-Mart is operating in Brazil there is nothing that Wal-Mart can do in Brazil that the local Brazilian guy cannot do. If you want to procure supplies from China, you can procure supplies from China as much as Wal-Mart can procure supplies,� said Lal.

Also the local guys understand the market better. This is because they have a better understanding of the customers. �On top of that they have local merchants that they know they can source from and Wal-Mart may not,� said Lal.

The other big fear about the likes of Wal-Mart being allowed into India is that it will destroy the business of the local kirana store. This is a highly specious argument at best because it is not easy to compete with kirana stores. As Lal explained, �Just because you are a big guy with a lot of money, it doesn�t mean that you can compete. Kirana stores have a lot of benefits that established retailers don�t have. First of all location. What rents do they pay versus what established companies have to pay? Employees, same story. On the consumer side they can deliver services� if somebody calls them and asks, can you deliver six eggs? The guy runs and delivers six eggs. That�s not something that the big established firms can provide.�

A Wal-Mart in the US is typically established outside the city where rents are low. But such a strategy may not work in India. �It�s not easy to open a 1,50,000 square feet store in India. That kind of space is not available. They can�t open these stores 50 miles away from where the population lives. People in India don�t have the conveyance to go and buy bulk goods, bring it and store it. They don�t have the conveyance and they don�t have the big houses. So it doesn�t work,� explained Lal.

The kirana stores also provide goods on interest-free credit to their customers something that no big retailer can afford to do. Also, as the economy grows, the chances are that the kirana stores will grow faster than big retailers. �So think about it in five years, where will organised retailing be as a market share? Maybe it�s less than 1 percent now, and maybe it will become 3-5 percent of total retailing. It will not be more than that. In five years organised retail grows from one percent to five percent, the economy would have grown by another 50 percent. If they grow from one to five percent and the economy grows by 50 percent, virtually it means that the number of kirana stores and mom and pop stores are actually growing. They are not reducing by any means,� said Lal.

Allowing foreign investment in the retail sector is also expected to bring down food inflation. As Satish Y Deodhar writes in Day to Day Economics, �Allowing private players � including multi-brand retailers who bring in foreign direct investment � to deal in retail and wholesale markets will reduce trader margins. An empirical study on domestic and imported apples sold in India shows that there are a number of middlemen in the farm-to-finger supply chain: out of the final rupee spent by a consumer on apples, about 50 percent goes for trader margins�More competition through private players will reduce the margins for the middlemen and lower the prices for consumers.�

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Posted on Monday, July 16, 2012 - 09:00 pm:

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Tilak:

dont u worry ..

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Posted on Monday, July 16, 2012 - 09:30 am:

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Tilak:

ee posts soose anukunta .. obum kurrod naaki visa ivvaled ..

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Posted on Monday, July 16, 2012 - 09:27 am:

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~chirutha~:

Enti US ninchi Chennai ki export ayyavaa..

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Posted on Monday, July 16, 2012 - 09:24 am:

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Tilak:

nenu US lo unnappudu kuda ive type of posts vesaanu

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Posted on Monday, July 16, 2012 - 09:22 am:

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Thelegend:

enduku cheyyaru? prati Ind political party comment chestharu US or other country gurinchi.

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Posted on Monday, July 16, 2012 - 09:17 am:

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Tilak:

vice versa eppudanna chusava bhayya?

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Posted on Monday, July 16, 2012 - 09:11 am:

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Vjawarrior:

deenemma...India ki USA vesedi maha aithe 2 billion usd/yr via outsourcing istundi....adi kooda blood petti pani chesthe istundi.....
India is giving fuxxing 20billion usd/year order to uSA in form defence spending....Pichnaako gaadu...first stop getting everything made in china....main street lo vaallaki software raadu....labor job cheyadam vachu...avi attikelli china lo esi denki...malli India meeda veella edupa...India is already giving huge money to USA...
Mana political kukkal manchiga unte...India wud have been Number 1 by now...
Add to it the menace being done by monsanto, coike etc to India...
INDIA is the Best

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Posted on Monday, July 16, 2012 - 09:09 am:

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Thelegend:

idem argument? IND/China policy gurinchi US comment cheyochhu and vice versa.

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Posted on Monday, July 16, 2012 - 09:08 am:

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Maverick:

i see more anti axmerxian and pro indian posts..evadina india economy slow avutundi anna kooda vacchestunnav..india can take care of itself..u better mind about ur own business type attitude kanipistondi nee posts lo..sorry if i am wrong

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Posted on Monday, July 16, 2012 - 08:59 am:

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Ipc302:

election time so Obama ilanti comedy statements rendu isuruthadu voters kosam...seroius ga teesokandi

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Posted on Monday, July 16, 2012 - 08:57 am:

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Tilak:

madhya lo Obum ki enduku India policy ela unte?

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Posted on Monday, July 16, 2012 - 08:51 am:

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Maverick:

tilak tammudu india vellaka nuvvu chala maripoyav..

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Posted on Monday, July 16, 2012 - 12:21 am:

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Qdoba:

business chesukuntaru..

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Qdoba:

mom & pop stores lepeshi indulo permanent job chesukuntaru.

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Posted on Sunday, July 15, 2012 - 07:58 pm:

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Tilak:

FDI investment allow sesthe walmart kurrol India lo eti sestaar dora?

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Posted on Sunday, July 15, 2012 - 01:32 pm:

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Abcdefghij:

they are developing companies outside US

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Posted on Sunday, July 15, 2012 - 01:29 pm:

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Tilak:

things will change positively .. dont u worry ..

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Tilak:

Thats only half the truth. Where are the savings going? will complete the point.

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Posted on Sunday, July 15, 2012 - 01:20 pm:

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Abcdefghij:

Outsourcing saves billions for corporations but it is loss for US people as they lost the jobs inturn US lost the tax money bottomline adi.

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Abcdefghij:

at the same time investments to india is slowing down which inturn is less jobs which inturn is slowing economy...

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Posted on Sunday, July 15, 2012 - 01:18 pm:

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Tilak:

Outsourcing valla konni billions of dollars save chesayi American firms .. US cant bake the cake and eat it as well!

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Tilak:

How is US economy looking?

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Posted on Sunday, July 15, 2012 - 01:12 pm:

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Abcdefghij:

when we took outsourcing benefits and US lost their jobs for that then they will press for opening up more sectors for investments so they can capture the market and keep their firms in green...

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Abcdefghij:

but india is slowing down drastically. looks like tough timeahead in 2 more years or so...

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Posted on Sunday, July 15, 2012 - 01:03 pm:

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Qdoba:

BJP power lo ki vasthe back to 1947 guarantee....FDI investments ki intha lolli endo...

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