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July 4, 2007

Effect of Corporate entering to Retailer ( Veg-supermarket ) Business

This commodity has the power to Change the Governments, History shows Four years ruling party ( BJP ) was defeated in Delhi because of its rise in price ,this is none other than Vegetable prices especially Onion.

From last there weeks wherever you see, in Televisions, in family parties, Govt Offices & even in breaks at MNCs everybody talks about Rise in Vegetable prices. The house run mother says I cannot run the house with the present vegetable costs as if the Price goes this way. she says even if we buy vegetables of Rs 100 /- , it is not enough for 3-4 days, for the same cost it is suppose to come for 9-10 days earlier.

Every time, whenever there is a rise in prices , govt will have the cabinet meeting & they say we will control the price by Supplying Directly in the markets & even they say we get them from neighbouring state & sell it with loss to government.
Recently there was a talk with Hon. AP CM about the Vegetable costs, he told it was because of Heavy rains in the Country & the crop did not get into hands as it is suppose to come 2 weeks before. & he was mentioned that after the Enter of Corporates like Reliance, @Fresh, Spencer the prices has come down over the market rate.

Now we will see does the entry of Corporates into retail & vegetables really helps the Consumer & Farmer ? Does they maintain the same relation ship with Farmer forever ? What about the quality? what are the effects on small shops ?

For the First question up to some extent I can say, yes. It is useful for the Big families & Job holders who does not have the patient to spend for longer times in the market, here people buys for 1 month retailer goods , Vegetables they take for 1 week without bargaining with sellers, Upper class family feels it goes calmly & they like this concept.

For the Farmers as of now it is helping them, instead of taking the vegetable to the market & sell at the Broker decided price, sometime they cannot expectt that much lower rates , with corporate they can save the transport charges as Corporate comes to farmer place & buy there itself. But we need to see how long the Farmer decided price goes. there is always a fear of Privatization, if Corporate decides the rates it will be dangerous. Former should always be double careful, he should not bow in front of him.

Quality wise, Fresh stock will always fresh, with My experience I have seen the Stock
( Vegetable ) they keep till they sold out. with BIO storage techniques they looks as fresh , but it is not as nutritious as they are. Regular customer will take them as he is used to the shop.

How the small retailer feels about it ? it is already showed in Gujarat ( A group of small shop owners attacked the Reliance Outlets & there was a big riot against them ). they fell it is big threat to them. There are lacs of people surviving on the small shops. Now they cannot. As the sales comedown, small shops are getting shelved. It will make instability in people & they need a alternate profession to survive.

The GOVT always have to have a look on Corporate about how it deals with Farmer , it should not allow a Monarchism ( Who decides everything ) to them. & need to look a alternate for small shop owners.

Benefits : Benefits to farmers, easy BUY, Calm atmosphere.
Looses : May take the control on farmers & Effect on small scale retailers & their survival etc

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