At last, Multi-brand Retail in India ?


It was much before the year 2010, we started exploring the opportunities of introducing Multi-brand Retail in Indian domestic markets to augment supply chain modernization, control & remove inventory wastage, bring in better and competitive end-user prices in retail sector. But that’s about it ! Nothing much has happened after that, with coalition politics always being a limiting factor. ( Refer my earlier post on this)

Pranab Mukherjee’s nomination by Congress for ‘Presidential Elections’ ( to be held in July 2012) has in a way strengthened the position of Congress party and probably, if Pranab gets elected, there could be much relief from the deadlock of Govt. Policy Paralysis. With presence of a Congress mindset in Indian Presidency, the political climate could be favorable for reforms. Then, Dr Manmohan Singh can hopefully bring in the second wave of major financial reforms nationwide, with the Congress-ruled States ( Assam, Haryana, Maharashtra and Delhi) immediately taking up Multi-brand Retail and vocally supporting the policy initiated by the Central Government. Samajwadi Party ( Mulayam Singh Yadav) can extend tacit support to Congress in Uttar Pradesh and few other Non-Congress ruled States like Punjab and Odisha can be rolled in by political maneuvering.

Today, our country’s retail market size stands at US $ 528 billion and is expected to double to US $ 1248 billion in the next eight years or so. If Multi-brand Retail is introduced successfully, it will develop newer markets, effective and modernized supply chain management, reduced inventory wastage ( particularly in Vegetables’ distribution) and competitive end-user prices with multiple buying options for the Indian consumer. Expansion of Retail sector will spur the growth of industrial production within India and will not become a ‘dumping ground’ for cheaper Chinese products in Electronics as feared by many who are against Multi-brand Retail. With preventive economic policies, these fears can be rooted out as baseless and unfair market conditions be averted.

Boston Consulting Group (BCG) Study/survey indicates India’s US $ 1 trillion overall consumption market is set to more than treble to US $ 3.6 trillion by the year 2020. Enticed by such numbers, global retailers are making their way into India in droves to sell their wares to a burgeoning Indian Middle class consumers. With more markets created, overall growth of other sectors like Information technology & software, automation & telecom, manpower training services, more FMCG products will rush in. Let’s go Ahead !!


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