What the Aye-sayers say
* FDI in retail will create millions of jobs at the front-end in retail stores and in the back-end supply chain and logistics, as well in manufacturing services.
* Farmers will get remunerative prices for their produce. Currently, mandi operators and middlemen are squeezing the farmer.
* Consumers will get low prices as large retailers pass on cost savings from efficiences. They will also get better quality of goods and services, as well as no questions asked replace/return/exchange policies.
* Small and medium enterprises can expand business as large retailers will procure from them for Indian and global markets.
* The highly-fragmented retail sector will finally see some order and discipline, and therefore efficiency.
What the Nay-sayers say
* Walmart and other retailers kill local mom-n-pop stores with predatory pricing.
* Big retailers squeeze suppliers, including farmers, over price and delay payments. Walmart is often accused of using strong-arm tactics. In India, three years ago, one tormented supplier in fact put up a sign outside his firm, “Tresspassers and Reliance management will be prosecuted”.
* Foreign retailers cause job losses in the back-end as they seek efficiency and seek control over suppliers’ costs.
* Big retailers do not care too much for labour laws and are not employee-friendly.
* Once they eliminate middlemen and obtain a captive base of suppliers and customers, big retailers begin to dictate terms to both suppliers and customers.
Retail analytics
* $450 bn: Size of Indian retail market
* $422 bn: Walmart’s global revenue in 2011
* 15 mn: Number of Indian small retailers
* 40 mn: Number of people employed in retail sector
* 8%: Fraction of Indian market that organized retail accounts for
* 14% of Indian GDP comes from retail
Who wants in?
Brands
Abercrombie and Fitch
H&M
Desigual
Tully’s Coffee
Burberry perfumes and accessories
Sprungli Swiss Confectionery
GAP
Old Navy
Banana Republic
FitFlop footwear
IKEA
Supermarkets
Metro, Germany
Aeon, Japan
Lawson, Japan
Carrefour, France
Auchan, France
Target, US
Walmart, US
Morrisons, UK
Sainsbury’s, UK
Tesco, UK
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