Comments for Why Big Retail is in a Mess at http://www.dare.co.in , comment 1 to 4 out of 4 comments http://www.dare.co.in Thu, 11 Mar 2010 22:23:31 +0100 FeedCreator 1.7.3 http://www.dare.co.in/strategy/marketing-branding/why-big-retail-is-in-a-mess.htm#comment-1948 Hi, For Branded Items the retail-chain stores may be giving discounts but not in the case of in-house brands / unpopular brands. For example, I was purchasing in Spencers/Reliance Fresh/Heritage stores, but for items like sugar, oils, some not-so-popular company items are priced more than my round-the-corner super store. It is really foolish to go for these super stores thinking that we get discounts. Once I saw a reliance fresh guy throwing out two/three sack full of vegetables as all of them got perished out and was a stock being received. This clearly tells the freshness of the vegetables/fruits being sold. and their understanding of the products/preservation requirements. - Vasudev Tue, 03 Nov 2009 07:19:35 +0100 http://www.dare.co.in/strategy/marketing-branding/why-big-retail-is-in-a-mess.htm#comment-1928 Yet another tribute to the wisdom of the India's Aam Aadmi. - yadav chandna Sun, 01 Nov 2009 05:33:33 +0100 http://www.dare.co.in/strategy/marketing-branding/why-big-retail-is-in-a-mess.htm#comment-1924 Efficient distribution which includes retailing is an essential requirement fur upping the productivity bar. Nothing can eventually survive unless the concerned new activity results in a corresponding rise in the productivity of the economy What the world is yet to understand the fine difference between a market opportunity and an economic opportunity. It is the lack of understanding of this basic concept that had plunged the world in to the abyss requiring so much of taxpayers money to pull the economies out of trouble. What most consultants, business associations, bankers, and venture capitalists have been focusing on in the retail sector is the market opportunity it offers. Consumers do want better retail services. That certainly presents a huge market opportunity. But the ultimate question that begs an answer is whether the big retail is able to provide these better services at a lower cost. Can the market opportunity be translated in to an economically viable opportunity. I do not see that happening yet. There are two parameters that do not at all permit any favourable forecast for retailers. 1) The land cost and the resultant commercial space cost. Both remain artificially high, thanks to the massive imperfections in the real estate market. The real estate market is being so unscrupulously manipulated by all and sundry making marginally more efficient services to cash in on any market opportunity. 2) Logistic quality and costs make cost efficient retail services almost impossible. There is no assured power supply. There is no cold chain infrastructure. Transportation remains a huge bottleneck. Most retailers are attempting adopt models that have worked in good quality logistics and low commercial space cost environments. Unless the government removes the imperfections in the real estate market and undertakes a crash program to improve logistics, the retail dream is only going to bleed. - M A J Jeyaseelan Sat, 31 Oct 2009 15:33:30 +0100 http://www.dare.co.in/strategy/marketing-branding/why-big-retail-is-in-a-mess.htm#comment-1922 Very well written, but should have been timed earlier. I spoke about this in 2007, and found very few takers. A link to that presentation written in Dec 2007 titled "Myths in Food retailing" is available at http://www.collabrant.in/content/Overseas Management Partners in India.htm - Mahadevan Sundarraj Sat, 31 Oct 2009 01:12:42 +0100