Seeing in retrospect, the year gone by, 2012, was very
significant to retailing in India. FDI opened in multi-brand retailing amidst a
great deal of furore from various quarters. In a turn of dramatic events, the
decision to allow FDI in multi-brand retailing was voted into reality by a
clear winning majority in the Parliament. Though notified clearly that states
would take a call on allowing companies with FDI to operate in their
territories, it is expected that soon many states may relent, giving way for the
entry of multinational retailers.
As we are aware, agitations went off across the country by a
section of the scared Small and Medium retailers. Whether FDI is allowed or not
in a state, big domestic retailers are set to open their doors in the cities
and key towns of India. I was addressing a group of Small and Medium retailers
at a national level Food Forum in Mumbai and I was amazed to see their own
realization that their key strengths could sustain them under any competitive
circumstances. Support for Small and Medium retailers in order to motivate them
and help them realize their potential was the only thing felt as required
immediately. So the RETAIL INDIA TRANSFORMATION EMPOWERMENT Foundation (RITE
Foundation) is being established now in India with a clear mandate to train, help
upgrade or even rehabilitate Small and Medium retailers across the country
besides advocating their issues and concerns wherever and whenever required.
During the middle of the year, Aditya Birla Nuvo bought a
controlling stake of Future Group’s Pantaloon Retail de-merging
the format business from Pantaloon Retail India Limited and that has gone into
the annals of the history of modern retailing in India. Rapid expansion of
Future Group over the past few years with investments in a diverse portfolio of
companies resulted in mounting losses and the group had to consolidate its
operations exiting from a few non-core businesses of the group. As the group
quickly bounced back on track, the lesson learnt points to the fact that one
should stay focused on growing one’s core businesses leveraging one’s strengths
and not be rapidly experimenting in unrelated sectors, however bright their
prospects of growth could be.
Last fortnight as I was walking down the busy shopping lane of
Hiranandani Gardens in Powai, I came a cross a shop premise, which used to
house a popular bookstore and it was being renovated aggressively. Curiosity got
the better of me and I asked the security guard outside the premises what new
shop was going to open. He informed me that it's none other than the new
sensation of Starbucks coffee shop! The entry of Starbucks in India a couple of
months ago with the opening of its first store in the Horniman Circle in South
Mumbai made waves in the Indian consumer and shopping circles! The welcome sign
that it sports in six languages – Marathi, Hindi, Gujarati, Tamil, French and
English, points vividly to the company’s expansion plans in the near future.
As Christmas celebrations began, the Church At Powai (CAP)
organized a Christmas Carnival in the open grounds in Raheja Vihar, Mumbai and
in the precincts of Norita in Hiranandani Gardens, Mumbai. Carols rent the air
in full throttle and the food stalls and entertainment counters were busy ringing
in business. A member of CAP that I am,
I walked into the Rajeja Vihar carnival to listen to the carols but managed to
land myself at the cash counter that was selling coupons in various
denominations which customers could exchange for products and services. Someone
recognized my retailing experience and asked me to do the cashiering there. I
was continuously busy for a good three-hour stretch in the evening without a
break, when even a couple of big retail professionals among a few CEOs of
companies walked into the carnival too! There was every reason at the fag end
of the year for me to believe that the New Year has all the promises for brighter
retailing in India!
Wish you all a Very Happy and Prosperous New Year 2013 and
May God Almighty bless you abundantly!
- Dr. Gibson G. Vedamani
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