“The Sad Tale of Indian Retail” – such is the title of an informed article in Mint today, an article that saddens the reader. As with another potential boom sector – civil aviation – in retailing too it is our The State that is screwing up the whole scene. As I recently blogged, IKEA has opted out of India – and we consumers are losing. But when an entire sector is prevented from growing by State diktat, there are lots of other losers as well – employees, real estate and construction, supply chain vendors and so on.
And all this to “protect” mom-n-pop stores. What a joke on the sheeple!
Recall that our The State has always been in the big-ticket retailing business itself. Super Bazaar is a State-owned retailer, as is Kendriya Bhandar. I wonder why our Nehruvians of today, led by Chacha Manmohan, didn’t think of the harm they would do to small shopkeepers when their The State entered large scale retailing in the 50s and 60s – when there was nothing much to sell!
It shows: These guys have no Principles.
They are confused. Duds.
And they want to teach!
About retailing, allow me to tell the tale of Chaudi, the main market town of South Goa, which lay 3 km from the small cottage I lived in. So, for almost all my shopping needs, I had to drive there.
The biggest shop in Chaudi is a government sponsored co-operative supermarket. It is no Wal-Mart. It is no Tesco’s. It is no Sainsbury’s. But it is the most popular shop in Chaudi. It is always packed with customers. Chaudi is the main market town for villagers in a 15 km radius – and all these villagers like to shop at the co-op supermarket.
The question I wish to pose is this: Would the people of South Goa not be better off if real supermarkets – like Wal-Mart, Sainsbury’s or Tesco’s – opened up in Chaudi? Indeed, just by entering the market these retailers would raise the value of all the real estate in the town. Locals would shop better, obtain better buys at better prices. Locals would get jobs. Tourists would be happier too.
The critical error in official policy in India remains the same: They do not care for the consumer. Of course, socialist theory is to blame, because this theory looks at the “capitalist” as being in control of the market economy. In reality, the capitalist only serves the consumer. It is consumers who are the real bosses in Capitalism. The socialists cannot admit that.
Away with socialist theory. Away with their errors. Away with their teachings.
And full power to the Consumer.
i don't think anyone is stopping individuals from setting up shop here. It's just that the private sector doesn't, as yet, seem to have realised the huge opportunity that exists. Village people may be simple, but if you go by the number of banks in Chaudi (about a dozen)they have pots of money and nowhere to spend it.
ReplyDeleteThe entire point of the post is that The State is stopping people from setting up supermarkets.
ReplyDelete