The New Age Consumer's and Small Retailer's Perspective in India on Foreign Direct Investment in Multi-Brand Retail in India - A Subtle Marketing Message?

Abstract

1 May 2013 was no ordinary Labour Day. It was the day the Supreme Court of India came out with a historic judgment. The judgment was in the context of the Central Government in India allowing 51% Foreign Direct Investment in multi brand retail in India on 7 December 2012. The Supreme Court clearly stated that “the consumer is king and if that is the philosophy behind the policy then what is wrong”. This stance has to be viewed from the perspective of vigorous opposition to the policy from various lobbies and also the left and right of the political spectrum. This paper looks at Consumer Psychology and Behaviour from the perspective of the New Age Customer and also the small retailer. After all consumers and small retailers (kirana stores) are the two major stakeholders as far as this government policy is concerned. However their concerns do show some measure of convergence. In my conclusion I have stated that Indian consumers may actually welcome more choice in the marketplace and local retailers could also carve out their own niche and exist along with Foreign Retailers. The likes of Wal-Mart (United States), Carrefour (France), Mark and Spencer (UK), TESCO (UK), Shoprite (South Africa) may be no match for the unique strengths of the local Kirana Store.