ROHIT SAINI

12118067

India is now the last major frontier for globalizedretail

In the twenty years since the economic liberalizationof 1991, India’s middle class has greatly expanded

India has been slow to open its retail sector to foreigninvestment

In 2006, the government eased retail policy for the firsttime allowing up to 51 per centFDI through thesinglebrand retail route

NOW supermarket chain stores such as Wal-Mart (United States), Carrefour(France), Marks & Spencer and Tesco (United Kingdom), and Shoprite(South Africa) may finally be allowed to set up shop in India.

Vertical issues specific to product groups eg. Food standards, nutrition & safetyHorizontal issues related to greater competition : large vs small retailing Consequence of economic growth , rise in gdp , and standards of livingPolitical implication for vote bank and their contestants

Better compliance to standards eg. Food standards and their compliance

Better nutrition, safety and labeling forconsumers

It could reduce corruption in food control system

FarmersConsumers MSMEsSmall retailers and wholesalers

Provides alternative buyers to agri. Mandiunder APMC regulationsIntroduce contract farming to farmers Possibility of quality agr input and sound technical adviseReduce exploitation of farmers at mandis

Opportunity for scaling operations as large retailers have economies of scale

Long run supply contracts for private labels owned by large retailers

Can circumvent distribution channels to sell direct to retailers

Case in point: auto ancillary producers have scaled operations due to auto fdi

Greater competition at retail will bring down retail markups and profits

Traditional retailers will have to work harder and innovate to maintain sales in face of completion

No immediate threat to their existence but impact will show over medium and long term

No visible impact in spite of fdi in cash and carry wholesale by metro , walmart

They will continue to serve traditional retailers but margines to come down due to downward price pressure

Will slowly lose market share over medium and long term gradual change

Downward pressure on retail prices will provide consumer savings

Below mrp will become the norm Greater quality, choice for consumersAvailability of low priced products for bottom of the

pyramid with large scale sourcing

Improve food quality & protect Indian consumers from risk food borne illnesses due to microbial pathogens, bio toxins chemical or other contaminants in food

Encourage hodistic approach from farm to table to reduce for borne hazards for consumers

Adopt modern principles of risk analysis based on batter scientific knowledge of food borne illnesses and preventive measures for food safety and quality

Bring the best practices in value chain to Indian consumer

Food standards should include components that will enhance the level of nutrition and human safety from the health point of view

Truth in communication on food labels and in food advertising

Improving the level of public safety from human risks from the food related illnesses to reach global standards

Better implementation of food standards Improved consumer awareness about quality safety,

nutrition and standards for a healthy lifestyle

Enhancing competition between large & small retailersImproved product quality and lower lower retail pricesGreater degree of consumer protection

Growth in Economy Job Opportunities Benefits to FarmersBenefits to consumersLack of InfrastructureCheaper Production facilities

Availability of new technologyLong term cash liquidityConducive for the country’s economic

growthFDI opens up a new avenue for Franchising