FDI in Retail Shops in India

Well the news was out last evening that the Government is likely to open up FDI in Retail Shops in India. There was a marked clarification in the same by restricting FDI in Grocery Retailing and Retailers. To what has been gathered so far, Global Retailers like Wal-Mart and Tesco etc, are yet not eligible through the latest initiative. The Government proposes to allow companies such as Tommy Hillfiger, Gucci, etc who are already in India through the Franchise route. Since they come through the Franchise option, why not let them in directly through FDI in Retailing. There are still lot of clarifications to be made and its yet another proposal. The Goverment needs to gets its act clear as over the last 12 years they have allowed many big retailers and brands into retailing like Diary Farm, Marks & Spencers, Metro being the latest and all the other luxury brands etc through Franchisee, Joint Ventures, Distribution clause alone. As it can be seen the Governments is trying its level best to open up Retailing in India but is still pressurised and is trying different options for entry. End of the day the Goverment has slowly allowed the big guns to enter. India is already one of the key locations for global sourcing for large retailers like Wal-Mart, Ikea, M&S, Metro and many more. Tesco has already shifted its back-office through a recent BPO venture and has setup a large facility. How long will it take for any of these companies to learn and understand the market? And how long will it take for these companies to start scouting for prospective people and companies to work along with as soon as the Government opens up FDI in Retailing. Not too long.

Either ways before I end this short note, if you are wondering if I'm for or against FDI in Retailing, let me state again, I'm all in for FDI in Retailing. Yes it will change the fabric of the entire nation. There are much larger issues than wondering if the small mom and pop stores would continue to exist. How many of them realize and think about how every small town that Wal-Mart enters in USA has changed forever and life is never the same. The whole life gets commercialised. Anyways the story never ends.

Well the news was out last evening that the Government is likely to open up FDI in Retail Shops in India. There was a marked clarification in the same by restricting FDI in Grocery Retailing and Retailers. To what has been gathered so far, Global Retailers like Wal-Mart and Tesco etc, are yet not eligible through the latest initiative. The Government proposes to allow companies such as Tommy Hillfiger, Gucci, etc who are already in India through the Franchise route. Since they come through the Franchise option, why not let them in directly through FDI in Retailing. There are still lot of clarifications to be made and its yet another proposal. The Goverment needs to gets its act clear as over the last 12 years they have allowed many big retailers and brands into retailing like Diary Farm, Marks & Spencers, Metro being the latest and all the other luxury brands etc through Franchisee, Joint Ventures, Distribution clause alone. As it can be seen the Governments is trying its level best to open up Retailing in India but is still pressurised and is trying different options for entry. End of the day the Goverment has slowly allowed the big guns to enter. India is already one of the key locations for global sourcing for large retailers like Wal-Mart, Ikea, M&S, Metro and many more. Tesco has already shifted its back-office through a recent BPO venture and has setup a large facility. How long will it take for any of these companies to learn and understand the market? And how long will it take for these companies to start scouting for prospective people and companies to work along with as soon as the Government opens up FDI in Retailing. Not too long.

Either ways before I end this short note, if you are wondering if I'm for or against FDI in Retailing, let me state again, I'm all in for FDI in Retailing. Yes it will change the fabric of the entire nation. There are much larger issues than wondering if the small mom and pop stores would continue to exist. How many of them realize and think about how every small town that Wal-Mart enters in USA has changed forever and life is never the same. The whole life gets commercialised. Anyways the story never ends.