The BOOM……
What is BOOM…. Blast? Right, ohh wait, I am not talking about the bomb boom…… nor anything about the Terrorism!!!! Have you referred the latest additions in Oxford Dictionary??? Check out for the ‘The Boom’. I suggest they must correct the meaning of this word,
The boom means RETAIL!!! Yes, the biggest intimidation in retail world in India. The latest booming environment in Indian economy is Retail. Couple of years back there were many discussions at every level about this sector. And the time as been arrived. Where ever you go, you see Retail Shoppe, anywere, everywere!! Many big business enterprises have entered in this sector, MORE, SUBHIKSHA, RELIANCE FRESH, any many others. Though they are BOON for massive households in the country, because they deliver everything to your door step with the minimum possible price. What more we need. They deliver the fresh and as cheaper then the sabji mandi. As you click into Google you get anything you need, as you step into these retail shops you get everything right from paste toothpaste, masale to sabji as well!!! The lifestyle is changing, the economy is changing. Still why worry about these boom then??

Let us discuss the other side of this zone. We all know the unsuccessful story of Reliance Fresh in Uttar-Pradesh. The U.P government asked them to shut their shutters!! Can you imagine the big giant in investment sector is failing and been pressurized from different states to shutdown their shops? Ambani, who become No.1 in any field they enter, then how does this mismanagement happening. How they are failing in capturing traditional agricultural market in states like U.P, Jharkhand, Orrisa etc. how does Reliance strategy of ‘farm to fork’ failed? Reliance decided to invest around 25000 crores within couple of years in its retail chain with including agricultural products, creating millions of direct and indirect job opportunity in the country! (Imagine how this will help in changing country’s economy and employment). When Reliance started its retail chain in country in November 2006 with an unprecedented scale, it was predicted that it will be the only one to lead in this unique sector, but soon there journey came to halt with many agitations by traders, shopkeepers and many NGOs in few states and they were forced to close their shop as well, and adding to it the broad thinkers like Marxist rulers in WBengal and the most literate states government (kerala) have prohibited its entry to their state!!
There were rally’s by Traders and shop keepers for ‘Quit Retail’ movement in different metros these days. Reliance thought it would be the Swadeshi champion and will threaten the foreign multinational like WAL*MART to settle in the country but no sooner they were fixing their roots in their swadesh, the anti-retail agitations lumped them with the foreign big boss-WAL*MART.
I thing Reliance must have not studied the lobbying power of the traders in the country. When these traders have interfere with the introduction of VAT in state like Uttar-Pradesh for years, then how will they neglect these retail stores which have affected many rural intermediates.( Intermediates are the people or the agents who supplies the product from farmers to the market). So does Reliance have failed to understand the rural sector?
They could have thought by managing politicians and bureaucrats would suffice in this field but, they fail to understand the political economy of direct farm supply chain!!
I remember few years back few big companies entered in agricultural products for the purpose of direct buying from farmers cutting the intermediates! I studied about the successful project by ITC in this sector called E-choupal, last year when I was working for my project on RURAL BRANDING of India. I studied about the kiosks called e-choupal started by ITC for buying food grains like soyabean, shrimp and coffees directly from the farmers which helped them to earn more compare to selling to the intermediates. When ITC enter directly into rural India, they first studied the basic needs of the farmers, though Reliance tried to do the same while buying products directly from farmers but how does ITC succeeded in gaining the farmers supports and also of the intermediates is by managing and satisfying the intermediates as well, they used several strategy like instead of directly dealing with farmers, they used the strategy that every kiosk of e-choupal will be handled and run by a local large farmer known as sanchalak. They trained these sanchalaks to run their kiosks on commission basis, with providing information to farmers about current market prices, weather, etc, which made these farmers much more helpful. Thus this helped the ITC to gain major influence and support of large farmers.
Secondly as far as I remember they also used one more very successful strategy, buying the grains like soyabean from mandis. Even making the kiosks in many rural parts they kept buying from mandis as well because their e-choupal project was affecting these mandis a lot like the Reliance did. And to gain some support from the biggest treats like intermediates, they also hired many intermediates called samyojaks. Their duty is to facilitate the transportation from farms to their hubs; they hired many mandi labours as well for the transportation. Thus, involving the large farmers, intermediates, labourers, with giving them income opportunities ITC was successful in reducing the tension of their opposition.
As compared to ‘Quit-retail’ movement, Reliance is facing these days, the ITC faced the agitations in Madhya-Pradesh as well, in around 2000-2001. But been successful in gaining the faiths of the farmers and instead of behaving like a big company they tried to satisfy their basic needs, they took the help of many rural development agencies and positioned e-choupal as not just an business but a public service too, by taking farmers feedbacks as well. Thus, starting its first step in 2000 ITC has around more then 6000 kiosks round the country….
Thus what would have gone wrong with the big giant like Reliance is that, with lack of knowledge about rural market and investing with a huge amount, rural people (farmers who initially always afraid of big companies) looked the retail chain with suspicious manner. Though their strategy of ‘farm to fork’ is profitable to the farmers but they failed to satisfy the intermediates and the traders with giving a big bang without gaining their confident… but these traders and NGO’s were not threatening to other retailers like MORE and SUBHIKSHA just because they might have not made a big bang like Reliance to show how big they are!!!!
Anyways I would like to conclude this topic without discussing further because this is the area which has lots of thoughts and suggests as well. I was following all the print media to know about the Retail Industry in India since months and just thought of sharing some of my knowledgeable think with you all. As far as the oppositions of Marxists is concerned, let me declared that the opinion about the Marxists and other state governments is made by my favorite editor of TOI Mr.Swaminathan,(editorial page) so if any issue regarding that particular point. Please do not mess with me, as I am not at all in power of messing with these political bodies!!!! I am also eagerly waiting for entrance of WAL*MART in India to see the perfect tamasha of the Retail sector properly!! :)
Thankyou.