21
Impact of FDI in Multi-Brand Retailing in India Pr esented By : Amit Dodwani (03) AMA PGPIBM2010-12 A Research Project on

FDI in MBR. Amit Dodwani

Embed Size (px)

Citation preview

8/4/2019 FDI in MBR. Amit Dodwani

http://slidepdf.com/reader/full/fdi-in-mbr-amit-dodwani 1/22

Impact of FDI inMulti-BrandRetailing in IndiaPresented By : Amit Dodwani (03)

AMA PGPIBM2010-12

A Research Project on

8/4/2019 FDI in MBR. Amit Dodwani

http://slidepdf.com/reader/full/fdi-in-mbr-amit-dodwani 2/22

Introduction

Current Scenario: FDI in Multi-Brand Retailing isnot allowed.

Passed by Commerce of Secretaries(COS)

Final policy formulation by Ministry of Commerce & Industry of India.

51% FDI allowed in Single Brand Retailing.

8/4/2019 FDI in MBR. Amit Dodwani

http://slidepdf.com/reader/full/fdi-in-mbr-amit-dodwani 3/22

Literature Review

Indian retail market consists of Rs 12,80,000Crore($ 320 billion).

Growing at a pace of 9% per annum

79% of share is with 1.3 crore small retailers inunorganised sector

Unorganised retail sector in India has grown atover 15% per annum

8/4/2019 FDI in MBR. Amit Dodwani

http://slidepdf.com/reader/full/fdi-in-mbr-amit-dodwani 4/22

Walmart

15 countries

Operates around8500supermarkets

Employing around20 lakh people.

It is in artnershi

8/4/2019 FDI in MBR. Amit Dodwani

http://slidepdf.com/reader/full/fdi-in-mbr-amit-dodwani 5/22

Proposed Criterias forFDI in MBRApplying China’s model by allowing FDI inphases. Hence, Proposed to initiate with 6metro cities.

Min. 2000 Sq. Ft. Area.

51% FDI will be allowed.

50% investment must be at backendinfrastructure.

8/4/2019 FDI in MBR. Amit Dodwani

http://slidepdf.com/reader/full/fdi-in-mbr-amit-dodwani 6/22

0

1

2

3

4

5

6

7

8

9

10

1. Where do you source your good

8/4/2019 FDI in MBR. Amit Dodwani

http://slidepdf.com/reader/full/fdi-in-mbr-amit-dodwani 7/220

2

4

6

8

10

12

Q 2. Whose prices are cheaper?

8/4/2019 FDI in MBR. Amit Dodwani

http://slidepdf.com/reader/full/fdi-in-mbr-amit-dodwani 8/22

0 2 4 6 8 10 12

Q 3. What is the % of price gap?

8/4/2019 FDI in MBR. Amit Dodwani

http://slidepdf.com/reader/full/fdi-in-mbr-amit-dodwani 9/22

ation of small scale retailer has becom

8/4/2019 FDI in MBR. Amit Dodwani

http://slidepdf.com/reader/full/fdi-in-mbr-amit-dodwani 10/22

Q 1. Do you feelsupermarkets affect

small shopkeepers?

8/4/2019 FDI in MBR. Amit Dodwani

http://slidepdf.com/reader/full/fdi-in-mbr-amit-dodwani 11/22

Q 2. How far the no.of footfalls has

reduced aftersupermarkets came

into existence?

8/4/2019 FDI in MBR. Amit Dodwani

http://slidepdf.com/reader/full/fdi-in-mbr-amit-dodwani 12/22

Q 3. How harshly hasit impacted on yourmark-up price?

8/4/2019 FDI in MBR. Amit Dodwani

http://slidepdf.com/reader/full/fdi-in-mbr-amit-dodwani 13/22

Q 4. How badly has it

affected your overallbusiness activity?

8/4/2019 FDI in MBR. Amit Dodwani

http://slidepdf.com/reader/full/fdi-in-mbr-amit-dodwani 14/22

Q 5. How will it affectyour business assupermarkets arebeing open up inmany small

8/4/2019 FDI in MBR. Amit Dodwani

http://slidepdf.com/reader/full/fdi-in-mbr-amit-dodwani 15/22

Q 6. What are youropinions on allowingforeign players insupermarkets?

8/4/2019 FDI in MBR. Amit Dodwani

http://slidepdf.com/reader/full/fdi-in-mbr-amit-dodwani 16/22

Key Findings

Volume Sales have decreased drastically.

Forced to give better service. (IncreasingCustomer Bargain Power)

Mark-up being reduced.

Mere sustenance is at stake

8/4/2019 FDI in MBR. Amit Dodwani

http://slidepdf.com/reader/full/fdi-in-mbr-amit-dodwani 17/22

Positive Impact

 To Consumers:

 To Farmers:

 To government:

 To Society:

 To small retailers:

8/4/2019 FDI in MBR. Amit Dodwani

http://slidepdf.com/reader/full/fdi-in-mbr-amit-dodwani 18/22

Negative Impact

 To small retailers:

 To Government:

 To the middlemen:

8/4/2019 FDI in MBR. Amit Dodwani

http://slidepdf.com/reader/full/fdi-in-mbr-amit-dodwani 19/22

Recommendations

 To Government:-

Norms need to be stringently followed as it is asensitive industry.

Separate official body to scrutinize.

 To ‘Pop n Mom’ Stores:-

 To maintain customer relationship strongly

Home service + Credit to known customers.

8/4/2019 FDI in MBR. Amit Dodwani

http://slidepdf.com/reader/full/fdi-in-mbr-amit-dodwani 20/22

ConclusionCurrent era is known for Internet penetrationand Information Technology era.

After allowing FDI, it would be Multi-BrandRetailing Era.

Win-Win situation for both.

Can’t escape from WTO, US and world pressure,

allowing FDI is inevitable in long run.

8/4/2019 FDI in MBR. Amit Dodwani

http://slidepdf.com/reader/full/fdi-in-mbr-amit-dodwani 21/22

Bibliography

http://dipp.nic.in/DiscussionPapers/RetailTrading_VN

http://online.wsj.com/article/BT-CO-20110722-7111

http://www.Moneyconrol.com

http://www.atkearney.com/index.php/Publications/at-kearneys-globalretail-

development-index.htmlGujarat Samachar

Business Standard

Economic Times

8/4/2019 FDI in MBR. Amit Dodwani

http://slidepdf.com/reader/full/fdi-in-mbr-amit-dodwani 22/22

 Thank You