FDI In Multi-brand Retail Research Articles

The Perception of the Unorganized Retailers about FDI in Multi Brand Retail

The Perception of the Unorganized Retailers about FDI in Multi Brand Retail

The Size and Pattern of FDI in Multi Brand Retail in India

The Size and Pattern of FDI in Multi Brand Retail in India

FDI in Retail Sector in India: A Global Perspective

The objective of this paper is to review the debate on FDI in retailing and argue that it could be a potent source of both equity and growth for the agricultural sector in India. The research provides supporting evidence to the argument with the case study of PepsiCo that is engaged in both production and distribution in India .The study suggests that the MNCs could be a potent source of technology and knowhow to the Indian farmers. MNCs such as PepsiCo actively collaborate with Indian farmers to promote sustainable farming and efficiency in agriculture. We believe that the government of India should not prohibit FDI in multi-brand retail as it could contribute to growth and development of the country and will not be a threat to indigenous ‘kirana’ shops.

Antecedents to local store loyalty: influence of culture, cosmopolitanism and price

Purpose – Cosmopolitanism is on the rise in India and traditionally shoppers have been known to patronize local stores. There is a need therefore to see the effect of cosmopolitanism and culture in context of loyalty towards local stores. Grocery items constitute major portion of purchase from local stores, therefore, pricing was also considered as a variable affecting store loyalty. The paper aims to discuss this issue. Design/methodology/approach – The paper used conclusive approach using a structured questionnaire for survey. The sample consisted of 710 respondents. There was almost an equal representation of both genders and also of metropolitan and non-metropolitan consumers. Findings – Culture and price affected local store loyalty directly. Cosmopolitanism was not found to have direct effect on loyalty. Within cultural dimensions, masculinity emerged as the most dominating trait. Minor modifications in cultural scale and major modifications in local store loyalty and cosmopolitanism are also suggested. Research limitations/implications – The study focuses only on three factors: price, culture, and cosmopolitanism. It does not examine influence of variables like personal values, lifestyle, and personality on local store loyalty behaviour. The research did not examine relationship between nature and type of product purchase decisions and its impact on store choice. Practical implications – Local stores need not be unduly worried with the incoming of organized players. The organized players should try to be cheaper and learn some tactics of local stores like customization, etc. There is a case for allowing FDI in multi-brand retail. Originality/value – Cosmopolitanism not affecting the local store loyalty directly is the original contribution of the paper. The finding casts doubts on the growth strategy of organized retailers who are opening new stores with the thinking that cosmopolitan consumer will shop from them instead of local retailers.

FDI in Multi-brand Retail in India: Tread the Path Cautiously

FDI in Multi-brand Retail in India: Tread the Path Cautiously

Impact of FDI in Retail on Indian Agriculture

Foreign direct investment in retail business has been steadily growing in India, however organised retailing in the Indian agriculture sector is still at a nascent stage. This paper attempts to find out possible impacts of such FDI in agricultural retail marketing. The Government’s decision to allow FDI in multi-brand retail has been criticised by many groups. However, the Government has defended this policy decision by claiming that introduction of FDI would benefit the farmers in a number of different ways, notably by eliminating the exploitative middlemen and giving better prices to farmers. It has also been claimed that entry of retail giants will greatly improve the agricultural marketing infrastructure and wastage problems will be solved. However several concerns have been raised regarding this policy. It has been argued that these retail giants will form a monopolistic regime which will adversely affect the interest of the farmers in the long run. It is also believed that entry of retail giants in agricultural marketing will result in the displacement of small farmers, asset- poor small farmers will be unable to meet the quality demands set by the retail giants and will be eventually driven out of the market. This paper attempts to analyse the pros and cons of this policy decision and to find out the reasons behind the deplorable conditions of Indian farmers and determine whether allowing FDI in multi-brand will help solve the situation.

A typology of Indian hypermarket shoppers based on shopping motivation

Purpose – Hypermarket is the most successful amongst organised retail formats in India. The purpose of this paper is to identify segments of hypermarket shoppers based on shopping motivation. The study profiles the identified segments on demographic characteristics and shopping outcomes, and compares the shopping motivation of hypermarket consumers with that of traditional store shoppers. Design/methodology/approach – The study involved a survey of 201 actual shoppers in a hypermarket and that of 117 actual shoppers in 20 traditional stores. Principal components analysis of the motives for shopping at hypermarket and traditional store identified the respective dimensions of shopping motivation. Cluster analysis of the factor scores obtained on shopping motivation at hypermarket revealed the typology of hypermarket shoppers. Chi-square test and MANOVA were used to profile the identified segments of hypermarket shoppers on demographic characteristics and shopping outcomes respectively. Findings – Results revealed different dimensions of motivation to shop at the hypermarket and traditional store and four types of hypermarket shoppers were identified: utilitarians, maximisers, browsers and enthusiasts. The utilitarians are motivated by functional benefits such as the price and variety of products; the maximisers seek functional as well as recreational benefits; the browsers are high on social motivation; and the enthusiasts are high on all dimensions of shopping motivation. These segments showed overall significant differences on demographic characteristics and shopping outcomes. Practical implications – The proposal for allowing FDI in multi-brand retail in India, a rapidly emerging market for global retail players, is at an advanced stage of policy making. Many national and multi-national retailers are in the process of expansion in India. This study adds to their understanding of Indian consumers. Based on the identified typology, the study suggests different strategies to target different segments of hypermarket shoppers. Originality/value – The study contributes to the growing field of cross-cultural research on shopping motivation by highlighting the typology of Indian hypermarket shoppers.

FDI in Multi Brand Retail and Employment Generation in India

In the present economic scenario, especially after global economic crisis, the condition of India’s balance of payment and trade deficit is very severe. Investment has made the need of hour to bridge this gap. An attempt has been made in this paper, to discuss the need of opening up the route of FDI in multi brand retail sector. The main purpose of this study is to analyse the role of FDI in employment generation in Indian retail sector. Here we assumed that FDI as an independent variable whereas employment as dependent variable. By using time series data from 2001-02 to 2009-10 and applying ordinary least square (OLS) method we find that FDI have negative impact on employment generation in retail sector in India.

FDI in Multi-Brand Retailing – A Survey

Retailing is the interface between the producer and the individual consumer buying for personal consumption. As such, retailing is the last link that connects the individual consumer with the manufacturing and distribution chain. This paper examines consumers’ attitudes and perceptions towards FDI in multi-brand retailing in India. For measuring the response of consumers’ towards FDI in multi-brand retailing in India, we have prepared a structured questionnaire based on 32 statements on a one to five scale basis. We have conducted a survey of 160 respondents across a variety of consumers and recorded their response towards the incoming of FDI in Multi – brand retail. A number of statistical techniques namely, Factor analysis, Likert scale, Cross tab analysis, Chi square test and SEM has been used to analyze the responses obtained and to arrive at meaningful conclusions. We find that our data is reliable with a Cronbach’s Alpha of 0.865. The overall results signifies that a majority of the population believes that FDI in multi-brand retailing in India will bring numerous benefits for consumers, farmers and help in generating employment opportunities. At the same time consumers’ perceive several threats of multi brand retailing including loss of business of small vendors. Therefore, it has been found that people are apprehensive about whether the overall economy would be benefited after the coming of FDI in multi-brand retail in India.

FDI in Multi-brand Retailing in India: Comparative study with China

Retailing is the interface between the producer and the individual consumer buying for personal consumption. As such, retailing is the last link that connects the individual consumer with the manufacturing and distribution chain. Indian retail industry is one of the sunrise sectors with huge growth potential. However, in spite of the recent developments in retailing and its immense contribution to the economy, retailing continues to be the least evolved industries and the growth of organised retailing in India has been much slower as compared to rest of the world. This paper captures the existing retail scenario in India with regard to organized and un-organized retail and presents the limitations of the current set-up along with the experiences of domestic players. The paper discusses about opening up of the multibrand retail sector to foreign direct investment by the government. The rationale for retail reforms and challenges to be addressed by the retail sector are discussed. FDI in Retail is like an allopathic medicine It would deliver quick results & would not work as hit & trial like Homeopath. Government must go for Policy Mix to avoid its side effects. It will require various changes in internal policies also. The whole process must be made socially & economically useful.It will be better to follow the Chinese model of caution and hurrying slowly. China took over 12years to liberalise its FDI regime and in stages with reversals as well. The Chinese retail environment is 20years ahead of us. Looking at their market today can give us a rough idea of how FDI in multi brand retail in India might pan out in the medium term and long term period.

FDI in Multi-brand Retail: An Analysis of the Impact on Different Stakeholders and Possible Options for Indian Retailers

Modern formats of retailing have evolved as a new frontier in services sector in last few years and offering various value propositions to shoppers. With increasing share of organized retailing in India, the retailers have been experimenting in designing profitable business models, sustaining service quality & delivery levels. The massive consumer base in India has attracted many established foreign retailers to consider India as a retail destination. Moreover, with the cabinet's nod to FDI in multibrand retailers in India, the competition from foreign retailers is going to increase multifold. With increased competition the dimensions of retail service quality haveto go thorough changes and more and more innovations are being required to sustain and grow. However, established foreign retailers may establish superior backend supply chain that may benefit the farmers and help keep the inflation low. But it may create new challenges for domestic organized retailers. The paper suggests different strategies for the upcoming Indian retailers to prepare them tocompete in the changing competitive retail scenario and build new value propositions for shoppers.

No Easy Day for FDI in Multi-Brand Retail

No Easy Day for FDI in Multi-Brand Retail

Impact of Multi Brand Foreign Direct Investment in Retail Sector in India

India has been placed at first position in the category of countries with the best opportunity for investment in the Retail Sector by a survey of A.T. Kearney’s 2005 on Global Retail Development. The increasing disposable incomes among the Indian middle class and increasing young population have been cited as the main reasons for such attractive optimism. This positive opinion of the experts has also encouraged the intense lobbying by certain sections for opening Foreign Direct Investment in this sector. Foreign investors are also very enthusiastic to invest in India’s Retail Sector.At present India does not allow FDI in multi-brand retail but permits up to 51 percent in single brand retail and 100 percent in cash and carry wholesale trading. There is a ban on FDI in big multi-brand retail stores but there is no restriction on companies accessing the foreign equity market through the American and Global Depository Receipts. The Government of India opened up FDI in ‘Single Brand Retailing’ in the year 2006. This was done with a primary motive of giving a boost to organized retailing in India.However, there’s another equally strong lobby that has been opposing this idea tooth and nail. They claim that it will mop away the corner shops in every locality and chuck inhabitants out of the jobs and bring unthinkable melancholy. The Government cap over FDI in retail, like in many other sectors, has been essentially a personification of the dilemma that confronts policy makers about whether opening up FDI in retail would be a boon or bane for the sector and for the stakeholders involved in it.This Research Paper makes a modest attempt of developing an insight as to what are the trends in the Indian Retail Industry and to the benefits and drawbacks of FDI in this sector. It has also focused on whether this policy will be beneficial for the Indian Economy as a whole or not.

FDI in Multi Brand Retail In India: A Critical Analysis

FDI in Multi Brand Retail In India: A Critical Analysis