Posted on Thursday, September 27, 2012 - 02:21 pm:

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Indiarocks:

Did we fail to introduce the manufacturing potential of India to the world by being late in opening FDI for retail, and let China occupy that slot?

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Wal-Mart has been sourcing from India for around 10 years. How significant is India in terms of a sourcing base for Wal-Mart?

Jain: We have been sourcing from India for several years now. India is traditionally good at gems, jewelry, cotton, textiles, home products, etc. Our belief is that India has a much bigger potential than we are currently tapping. Once FDI opens and we get to know our supply base in India well, we can probably quadruple our sourcing from India because once we open more stores, we will get to know a lot more suppliers, we will develop them to international standards and then we can introduce those suppliers to our global sourcing

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Posted on Thursday, September 27, 2012 - 02:20 pm:

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Getafix:

Franchising in fast food business is viable kani mom and pop stores lo franchising - adi in desam is very tough.. 7-11 vadu franchising chesi only franchise costs tesukunta anna kuda nobody will come fwd.. leka 7-11 vaade store ki inventory and logistics chusukunta anukunna - loss ye because of unbranded products getting the first oppurtunity of sale over 7-11 inventory.

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Posted on Thursday, September 27, 2012 - 02:10 pm:

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Filmbuff:

I will not be too surprised to see a 7-11 or some chain open up operations in India. They can play the aggregator and tie up with existing stores across towns. They just provide the branding, infrastructure, goods and the existing owner can become the franchisee.

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Posted on Thursday, September 27, 2012 - 02:01 pm:

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Filmbuff:

Interesting, i did not know that. You will see this happen in droves. It is not like that the corner stores have a great brand name, they are just identified by their owner. The owner will be more than happy to give up some of these rights, and get some good branding, marketing support, cleaner supply chain etc.

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Posted on Thursday, September 27, 2012 - 01:55 pm:

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Indiarocks:

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Posted on Thursday, September 27, 2012 - 01:54 pm:

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Filmbuff:

I think their first competition is going to be with the big Indian retail guys like Big Bazaars, More, Reliance Fresh, etc. In fact you will see many of the guys try to preempt the competition by tying up with international giants like a target, tesco. Anyway most of the Indian chains are bleeding and are eager to seek out partners. I think the value proposition of these chains is quite different from the corner stores. They offer greater SKUs, better prices, nicer shopping environment, entertainment options etc etc. But unlike the west, here driving out to reach these areas, even if they are just a 1-2 kms away is a pain in India. I would rather go to my corner store every day, even though their prices are higher. I might go to these larger stores once a fortnight or month. So the corner store will still have a great time and distance proposition which is tough to match. In the days of rising fuel prices, sometimes proximity is cheaper than low prices.

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Filmbuff:

There will be another level of competition next that will in the area of corner stores. I will not be too surprised to see a 7-11 or some chain open up operations in India. They can play the aggregator and tie up with existing stores across towns. They just provide the branding, infrastructure, goods and the existing owner can become the franchisee. I think this space will see more interesting action than the big stores.

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Posted on Thursday, September 27, 2012 - 01:50 pm:

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Filmbuff:

I think their first competition is going to be with the big Indian retail guys like Big Bazaars, More, Reliance Fresh, etc. In fact you will see many of the guys try to preempt the competition by tying up with international giants like a target, tesco. Anyway most of the Indian chains are bleeding and are eager to seek out partners. I think the value proposition of these chains is quite different from the corner stores. They offer greater SKUs, better prices, nicer shopping environment, entertainment options etc etc. But unlike the west, here driving out to reach these areas, even if they are just a 1-2 kms away is a pain in India. I would rather go to my corner store every day, even though their prices are higher. I might go to these larger stores once a fortnight or month. So the corner store will still have a great time and distance proposition which is tough to match. In the days of rising fuel prices, sometimes proximity is cheaper than low prices.

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Filmbuff:

There will be another level of competition next that will in the area of corner stores. I will not be too surprised to see a 7-11 or some chain open up operations in India. They can play the aggregator and tie up with existing stores across towns. They just provide the branding, infrastructure, goods and the existing owner can become the franchisee. I think this space will see more interesting action than the big stores.

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quote:

Last week some 100 grocery shopkeepers gathered in the capital, not to demonstrate against FDI in retail, but in the hope of being selected as franchisees for Kishore Biyani's neighbourhood store format KB's Fair Price.

So what gets the average kiranawallah excited about joining the country's top retailer when opposition leaders in the streets saying the government's decision to allow foreign investment in multi-brand retail sounds the death knell for corner shops?

"We don't have to run around for different purchases. The margins offered by Future Group will be much better compared to existing wholesalers we are dealing with," says Arun Singhal, who runs a kirana store at Khanpur in South Delhi and has now signed for a KB's Fair Price franchise for the same location.

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Posted on Thursday, September 27, 2012 - 01:50 pm:

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Filmbuff:

I think their first competition is going to be with the big Indian retail guys like Big Bazaars, More, Reliance Fresh, etc. In fact you will see many of the guys try to preempt the competition by tying up with international giants like a target, tesco. Anyway most of the Indian chains are bleeding and are eager to seek out partners. I think the value proposition of these chains is quite different from the corner stores. They offer greater SKUs, better prices, nicer shopping environment, entertainment options etc etc. But unlike the west, here driving out to reach these areas, even if they are just a 1-2 kms away is a pain in India. I would rather go to my corner store every day, even though their prices are higher. I might go to these larger stores once a fortnight or month. So the corner store will still have a great time and distance proposition which is tough to match. In the days of rising fuel prices, sometimes proximity is cheaper than low prices.

There will be another level of competition next that will in the area of corner stores. I will not be too surprised to see a 7-11 or some chain open up operations in India. They can play the aggregator and tie up with existing stores across towns. They just provide the branding, infrastructure, goods and the existing owner can become the franchisee. I think this space will see more interesting action than the big stores.

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Posted on Thursday, September 27, 2012 - 01:46 pm:

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Tilak:

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Posted on Thursday, September 27, 2012 - 01:43 pm:

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Indiarocks:

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Posted on Thursday, September 27, 2012 - 01:35 pm:

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Jawmetri:

poor sampling. I have seen in various websites online, majority is in favor of the reforms. I dont trust that poll.

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Posted on Thursday, September 27, 2012 - 01:24 pm:

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Filmbuff:

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Posted on Thursday, September 27, 2012 - 01:17 pm:

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Filmbuff:

No i don't think i am in the "top" 15%. We are some 15% scattered throughout the populace. Lower class lo untaru, middle lo untaru naa lanti opinions unna vallu. If we were a uniform 15% block, that would have been attractive enough to the parties. Because of our dissipated nature, it is tough to target us apart from good governance.

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Posted on Thursday, September 27, 2012 - 01:16 pm:

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Tilak:

but no body can stop NaMo ..

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Posted on Thursday, September 27, 2012 - 01:13 pm:

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Tilak:

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Posted on Thursday, September 27, 2012 - 01:04 pm:

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Filmbuff:

You can't run government by opinion polls or sms votes. Having referendums on each and every topic would reduce governing to a standstill.

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Posted on Thursday, September 27, 2012 - 01:02 pm:

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Filmbuff:

You can't run government by opinion polls or sms votes. Having referendums on each and every topic would reduce governing to a standstill. Fareed Zakaria wrote about the deep mess that California is in because of this in his book Future of Freedom. Democracy ki kooda konni limits untayi.

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Posted on Thursday, September 27, 2012 - 12:59 pm:

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Chakkera_keli:

urban india ki "india is shining" ane concept baaga ekkindi....

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Posted on Thursday, September 27, 2012 - 12:53 pm:

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Tilak:

appudenaa ..

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Posted on Thursday, September 27, 2012 - 12:49 pm:

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Kkd:

FDI is supposed to benefit farmers kadha...ante survery should have been taken in rural areas not urban......

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Chakkera_keli:

urban india ki burra ledu ani prove aindi....

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Posted on Thursday, September 27, 2012 - 12:46 pm:

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Tilak:

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