Cultural Impact of FDI in Retail

Does any of the parents today aspire their kids to start a kiraana store? Most would answer with a NO!!

Leave alone kiraana, they do not want their to take up any kind of business!! When i was working on an idea for quick service food chain (in simple words: selling food on cart), i faced stiff resistance from my dad, it was an idea that won me 2 business plan competitions. He rather, then allowed me to pursue setting up a software firm. Reason: they feel it is a dignified profession!! 

In India, these professions, Grocery / Provisional Store or to that matter any shop, is considered as income source for those who cannot secure a job! Even parents already in these professions want their educated kids to look out for a "White Collar" Job.

Are these professions risky? No, they will run as long as we use soap/ toothpaste or till we stop eating! 
Do they require heavy investments? No! A kiraana store can be setup with a max of 50k in hand.
Are the revenues less? A typical pani-puri cart guy earns about 12-15k per month (I speak about profits only). and a two shutter kiraana store earns minimum of about 30-40k pm, same is with a evening 3-4 hour bhajji (evening snack) seller. 

The thought that stuck in my mind when the debate on FDI in retail is on is about its cultural impact. These mon 'n pop stores are not an aspiration of today's india, young india wants to shop in malls, setup branded stores, want to sell groceries online... what not!

Is it good, bad or ugly? I do not know!! Reforms back then in 90's changed a lot, it brought in industrial growth in India, created new jobs, depleted natural resources, better educational infrastructure, commercialized education, increased brain drain, increased luxury in living as well as pollution, better healthcare systems and more no of diseases, Easy communications but distanced relationships. 

It brought us the most sought after IT HUB image to India, and brought in the new age software coolies'. 

So how is FDI in Retail going to effect us?
  • We will start seeing these A/C Shops & Glass building in towns and villages. Well shaved, neatly dressed people serving the customers.
  • Existing mom'n pop stores will wake up to competition and will have to deliver better products and services at most competitive prices. They will understand and work on customer service and customer  loyality. Customer will get better options.
  • Most of the retail giants will probably not trash out existing stores, but try to rope them into branded exclusive franchises', converting existing packed store to a spacious well designed shop.
  • Farmers may get better prices (depends on regulatory norms).
  • All the traders and mediators will be out of business as retails giants will setup their own direct procurement mechanisms.
  • It will create better infrastructure, but make us depended on foreign money, rupee will fall!! Prices will rise!
The most important cultural impact it would again create is it will convert the entrepreneurial shop owners, into a "white collared" salaried employees. It will allow the risk taking educated junk of people to allow setup their own shops, may be online or offline!! The stigma attached with setting up a store will go away.


Comments

  1. Anonymous12:50 pm

    Thank you for sharing.
    I was trying to make sense of news since two days, now it is kinda clear.

    ReplyDelete
  2. Ravi Balgi7:58 pm

    nice!
    we'll never have a 'baniya' running the shop again
    'baniya' is a satirical term for bodies who control and manipulate markets, prices
    and like a pure capitalist state, the best will survive, and consumers will win
    ps: prices will rise (compared to?)
    i feel prices offered to a consumer will be competitive, isnt it?

    ReplyDelete
  3. Paresh Masade10:56 am

    @ravi... after yesterdays discussion, i realize how shallow my thoughts were.

    ReplyDelete

Post a Comment

Popular posts from this blog

Aarzoo to badey hi, dil mey liye baitha tha...

Aarzoo to badey hi, dil mey liye baitha tha, Zindagi aap ke saath bitaane ki tamanna liye baitha tha, Jeewan ki is raah mey, aap ke saath ki guzarish thi. Jab yea pata bhi tha ki, hum, aapko quabool hi na the. Naa jane kyon har lamha yaad karta tha tumhey, Aap ke saath betaayi hui har pal nazar aati thi humey, laakh koshish ki, phir bhi bhula na paaya tumhe, Jab yea pata bhi tha ki, hum, aapko quabool hi na the. Shaq to koi nahi ki jigar me bhara, pyaar hi tha, Kisi ne kaaha, dil mey bhara pyaar chahare par dikh jaata hai, Nazar naa aaye to, kaat ke bhi dikha dete hum. Par kya kare aap ney, sar uthake humey dekha tak nahi. Pata tha ki, aap ko, hum quabool hi na the, Phir bhi aap se milne ki tamanna badi dil mey thi, Chahat thi bas milke baat karne ki, Kuch lamhe aap ke saath bitaane ki. Naa jaane phir kab mulaaquat hogi, Hogi bhi to, waqt bahut aage nikal chuki hogi. Tab naa mujhme kuch kahne ki himmat hogi Aur na tumhe kuch sunaney ki ijaazat. Zindagi ka ye kh
Read more

Emotional factors that spread AIDS

Image
I am revisiting my blog post on AIDS on this day Dec 1st. 2009 :) Two years ago on this day i wrote a post " Fight Against AIDS " as an attempt for spreading awareness. I sent it out as a mailer, and was most happy when 2 months later I received the same mailer forwarded by one of my friend. Here i am today to just with the thought of what actually causes AIDS... I did not get answers, but more questions came to mind... is it really the virus that causes AIDS? or is it our personality that spreads AIDS? If we look at evolution, The virus was just created for what it was meant to do... and it is doing its duty. Though there are several technical reasons on how the virus spreads and a campaign is on, for creating awareness, what i realized is, they are mostly the emotions and attitudes that cause the spread of HIV, and there is a need for awareness campaign on emotions and attitudes that spread it... I just listed a few I got to my mind, please comment on to add more.
Read more

Aawaara main naa ban paaya...

Aawaara main naa ban paaya... deewana tune ban'ne na diya... Bhul main naa paaya tujhe... Yaad tune karne naa diya... Pyaar tujhse naa karu, khud ko... rokh taa raha! Is ajeeb dil ko, humesha... kos' taa raha! Ijaazat to hai nahi, mann ko... tok taa raha! Parr tere hi khayaalo mey, main... doob taa raha! Tere binaa jiney ki tamanna naa thi.. Tere yaadon ko mitaane ki chahat na thi! Un beeete hue lamho ke saath jee taa raha... Tere judaai ki aadh me mai pee ta raha.. Jaam ne bhi, kabhi mera saath naa diya Tere chahat ney nasheko chadhne naa diya Zahar ne bhi ... is zindagi ko kabhi dhoka naa diya Saans ko kabhi tere bin rukhne naa diya.. Milne ki tamanna liye mai jeeta raha... Saraab mey hi mai tumhe dekh ta rahaa Tere khayaalo mey main... doob taa raha! Zindagi ka saath mai nibhaataa raha Aawaara main naa ban paaya... deewana tune ban'ne na diya... Bhul main naa paaya tujhe... Yaad tune karne naa diya...
Read more