So much is being talked, discussed and written about entry of giant global retailers into India where most of the population is used to the "pop & mom" stores around the corner of their house for their daily necessities. Of course this also happens to be a hot political issue with some parties arguing the case against allowing FDI in retail sector because of their fear about its consequences on the survival of about 8 million trading units spread across the country which form a sizable vote bank. Those vigorously pushing the case of the foreign retailers are accused of unabashed crony capitalism under the pressure of the "Big Daddy" the American government which is eyeing the vast Indian market with great hope. Emergence of on-line business as a formidable competitor to large super markets and malls for supplying many items of daily needs is raising the inevitable question whether these attractive, glittering, air-conditioned and one stop buying centers will be able to sustain themselves for long. Here is an interesting critique on this perplexing issue.
"There are very few retailers that have that kind of lifespan. There aren't too many that have been around for a hundred [years]. But even if they still exist they may be quite different. For example, you see now retailers trying very much to integrate their physical store with their Internet store. So maybe the physical store becomes mostly a showroom — you don't actually go there to buy things and walk out with them. You go there to look at things and then you order them online and then they're delivered to your house. Or maybe you order them online and you go to the store to pick them up, but the store may not be filled with quite so much merchandise. There are quite a few possibilities and I think it's really foolhardy to guess what this is going to look like frankly in 10 years, much less 50."
Take the case of India where urban land is very expensive and hard to get for setting up such huge business complexes. Will the masses patronize such places when transporting infrastructure is so primitive it may take any where from 2-3 hours to make a shopping expedition to these shopping enters? Even the affluent population with their chauffeur driven vehicles will hesitate before making a trip to these places where parking facilities are grossly inadequate. Here comes the role of on-line marketeers who can book orders from families and deliver them to their house. It is amazing that an internet company like Amazon.com has thousands of consumer items to offer and buyers get their requirements within a matter of 24-48 hours! In Bangalore an on-line company like "Big Basket" supplies fresh fruits and vegetables of high quality within Bangalore area in a matter of few hours without any risk of spoilage. Probably the surmise in the above report that in a few years time people will venture out only to physically see for themselves their choice and it will be the on-line companies who will deliver the goods ordered, a win-win situation for both the seller and the buyer!
V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com
"There are very few retailers that have that kind of lifespan. There aren't too many that have been around for a hundred [years]. But even if they still exist they may be quite different. For example, you see now retailers trying very much to integrate their physical store with their Internet store. So maybe the physical store becomes mostly a showroom — you don't actually go there to buy things and walk out with them. You go there to look at things and then you order them online and then they're delivered to your house. Or maybe you order them online and you go to the store to pick them up, but the store may not be filled with quite so much merchandise. There are quite a few possibilities and I think it's really foolhardy to guess what this is going to look like frankly in 10 years, much less 50."
Take the case of India where urban land is very expensive and hard to get for setting up such huge business complexes. Will the masses patronize such places when transporting infrastructure is so primitive it may take any where from 2-3 hours to make a shopping expedition to these shopping enters? Even the affluent population with their chauffeur driven vehicles will hesitate before making a trip to these places where parking facilities are grossly inadequate. Here comes the role of on-line marketeers who can book orders from families and deliver them to their house. It is amazing that an internet company like Amazon.com has thousands of consumer items to offer and buyers get their requirements within a matter of 24-48 hours! In Bangalore an on-line company like "Big Basket" supplies fresh fruits and vegetables of high quality within Bangalore area in a matter of few hours without any risk of spoilage. Probably the surmise in the above report that in a few years time people will venture out only to physically see for themselves their choice and it will be the on-line companies who will deliver the goods ordered, a win-win situation for both the seller and the buyer!
V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com
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