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Reliance Qwik Mart

Reliance had made it clear its ambitious retail foray into categories across food and grocery, consumer durables, jewellery, clothing and textiles would include formats like convience stores, petrol bunk stores, speciality stores, supermarkets, hypermarkets.

Now Reliance has started its operations for the Petrol Bunk Convience Stores under the brand name of Qwik Mart. The Qwik Mart is modelled under any other existing Petrol Station Convience store model mainly targeting household food and beverages for the take-away as well as non food items like music, books and its own cafe. There are 3 Qwik Marts setup in bombay and the plan includes to roll out another 150 across the country.

Killer in your own Backyard

Whilst comments make by Ajay Dua, may be more reasons to stir up a controversy, it might be also time to face a reality. With many large Indian corporate houses like the Reliance, Tatas, Piramals, Rahejas, etc either in some format of retailing or new ones like Reliance's proposed entry into retailing with anything between Rs. 30,000 to 50,000 crores of investments in this sector, it definitely will shake up the entire industry not just from the retail point of view but rather the entire chain right from the manufacturers or the source of the products. The market may be jittery but its not just retailers who are shaken up, but also the manufacturers and distributors and vendors who are wondering how to deal with the mammoth who is much larger than the them. Globally companies like Wal-Mart and other large retailers have shaken up the industry even right at USA with stringent rules and quality measures. Indian companies can start seeing retailers finally flexing thier muscle in a distant future.

End of all this with companies with deep pockets like Reliance coming in will definitely displace existing retailers of which size does not matter. Over a period of time Mom and Pop stores will definitely be displaced and existing retail chains will either prune up or be end up as a case study matieral in some university. There has been recent research on how organized retail has caused 1000s of stores to dissapear even in a market like U.K. and this reasearch is a study covering the last couple of years alone.

"Going To Be Killed Anyway..."

What does one do when Ajay Dua, the Secretary of Department of Industrial Policy and Promotion, makes a comment like "...what difference does it make if you are going to be killed whether by domestic retailers of outside?" Comments made at a recent conference on Shifting Paradigm in Retail Management.

There is no denial from the present organized industry that FDI in retailing will bring about rapid changes and a better shopping experience and service for all whilst also improving the backend functions right from the sourcing to stock-piling at the counter. But when you hear comments like these you should be aware that the government is a step closer to opening up the last door to FDI in retailing.

Although the UPA government appears to be insensitive to the mom and pop stores whilst making comments like "going to be killed anyway"....the Left is not giving an easy hand with planned protests in the likely event of FDI further being opened up in retailing.

Left and BJP to Vote Against FDI in Retail India

The BJP along with the CPI is all set to storm the coming sessions opposing the recent decision taken by the government in opening up of the Retail Sector by allowing 51% FDI in single brand retailing. Apart from the issue of opening up the retail sector, the CPI is more frustrated with the process in which it was left without any consultation on the decision.

Christian Dior Opens in Delhi, India

Luxury Brand Christian Dior has finally set shop in Delhi, India. Other Luxury brands already in the market are Chanel, Cartier, Fendi, Louis Vuitton and Bulgari. Christian Dior like its peers has entered through the Franchisee route although FDI has been opened up to 51% in single brand retailing in india, for a month now. Plans are to open a second outlet at Mumbai in a year.

Woolworth's Property Director To Visit India

Along with the visit of John Howard, the Prime Minister of Australia to India, the possible delegation of high profile is to include the Property Director of Woolworth's. This would be to take things forward of the Woolworth's deal with the Tata Group and possibly more investments in the Retail Sector from Australia.

Retail India: Tata's To Open Woolworths Dick Smith Outlets

Tata Group might be opening up Dick Smith Electronics, a chain of consumer durable retail outlets. Dick Smith is part of the Australian Woolworths group.  Dick Smith will be sourcing the products with leading vendors like Samsung, LG, and Philips and the same would be retailed through these outlets managed by TATA. The first of its planned 5 stores  is likely to be spread across 6000 sq.m  in Mumbai by April 2006.

Retail India: Wal-Mart Steps Up for Indian Operations

Taking a step closer in entering the Indian Retail Arena, Wal-Mart, has applied to the government to set-up an office at Bangalore, which will be dedicated to market research and business development in setting up of its Indian Operations. Interestingly this application was made much ahead of the recent policy changes of the Indian Government. This application was tendered in late 2005.

Wal-Mart already has an Indian Operations for its Global Sourcing with about 80 team members and a annual purchase of US$ 600 million.

Once this has been sanctioned, its only matter of few policy changes for wal-mart to roll out a few stores.

Retail India: Retail Manpower Crunch and Attirtion

With the retail sector booming, the initial HR need was to get the shop-floor filled with the right people. Obviously therewas not enough supply for the exponential growth in this sector with malls and shopping centre's sprouting everywhere.

But in the recent times, the job attrition has stated to take place at the top. There have many changes taken place at all the big retail chains right from RPG FoodWorld, Shoppers Stop, Pantaloon Retail, and Piramyd Retail recently. Irrespective of the reasons, there definitely is a shortage of the right people across levels and to make things worse, the word is Reliance is scouting for its own team with the top brass packages at US$ 1 million. That is something that is not very common across industries in India, let alone in the retail sector.

Retail India: Piramyd Retail's Krish Iyer to Quit

Pyramyd Retail India's Krish Iyer is also slated to have put in his papers and is working on a notice period for sometime now.

Source: DNA