C
Shivakumar
Chennai:
It
is a small shop in the corner of a street in Nerkundram but it has all the
items like that of supermarket to cater to the needs of residents.
Wiping
his sweat from his forehead on a humid day just after the Bharat Bandh, Bhaskar
proudly says, “Our shop has everything
you want. We even have door delivery,” he smilingly.
But
ask him about the foreign direct investment, the face of the 10th
class-drop-out turns grim. “I don’t know what FDI means,” he says then adds,
“But from what I gather, If these foreign companies come they will eat away our
business.”
He
is among the lakhs of small traders or retailers who are unaware of Union
government’s move to allow FDI in multi-brand retail. “I joined protest because
the association asked us to join it. They say the move by the government to
bring in FDI is harmful to our business, so we have launched the stir,” he
says.
Vellayan,
leader of Tamil Nadu Vanigar Sanigangalin Peravai agrees that most of the
traders are unaware of the issue. “Once
the foreign players are allowed the consumers will shift to bigger stores and
small stores will soon vanish,” he reasons. He also said these multinational
stores would control the market and prices affecting the very existence of
these small stores who live on meagre profits.
But
another shop-keeper argues, “We have been in the business for ages and know the
pulse of the market. When the supermarket chains came, everybody said we would
be finished. But we survived and surprisingly, many of the supermarket chains had
to close because they could not survive,” he says.
A
study by Federation of Indian Chambers of Commerce and India and
PriceWaterCopperhouse says that kirana stores have existed since ages and they
will continue to be at the beck and call of many households. Their presence in
the midst of a residential area is a big advantage,” the study says.
Interestingly,
to start a kirana shop, one doesn’t require millions. “It just requires your
presence of mind, the location of the shop and the feel of the market pulse,”
says Senthil, whose shop in Virugambakkam is doing a roaring business.
“If
you lose the confidence of the customer, then it is very hard to gain it
again,” the 10th class dropout says.
Factfile:
Indian retail sector accounts for over 20 pc of country’s GDP and contributes
8pc to total employment
The
current estimated value of Indian retail sector is about $500 bn and is pegged
to reach $1.3 trillion by 2020.
The
penetration l;evel of modern retail (currently 5pc) will increase six fold from
the current $27bn to $220 bn in 2020.
The
Indian retail sector is expected to grow at compounded annual growth rate of
15-20 per cent
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