Now, the game begins …
Now, the game begins.
Indian government has approved 51% FDI (foreign direct investment) in multi-brand retailing. In plain english, it means that retailers like Walmart and Tesco can enter India and create the next big revolution in Indian retail space.
I strongly believe that local players along with big retailers will take Indian retailing especially in the online space to a whole new level. The key is to form a unique partnership with the local players in India and create an environment which removes inefficiencies in our current system.
For example, 40% of food gets rotten even before it reaches the end consumer. 40% - that’s a HUGE number!! Improvement in supply chain will alone bring the prices down for the consumers. Who doesn’t want lower prices especially when inflation is so high in India??
More details on Economic Times:
India threw open its $450 billion retail market to global supermarket giants on Thursday, approving its biggest reform in years that may boost sorely needed investment in Asia’s third-largest economy.
The world’s largest retail group, Wal-Mart Stores Inc , and its rivals see India’s retail sector as one of the last frontier markets, where a burgeoning middle-class still shops at local, family-owned merchants.
Allowing foreign retailers to take stakes of up to 51 percent in supermarkets would attract much-needed capital from abroad and ultimately help unclog supply bottlenecks that have kept inflation stubbornly close to a double-digit clip.
