Financial Daily from THE HINDU group of publications
Tuesday, Sep 27, 2005
Financial Daily from THE HINDU group of publications Tuesday, Sep 27, 2005 |
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Marketing
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Consumerism Amendments to Consumer Protection Act likely Our Bureau
New Delhi , Sept. 26 THE Ministry of Consumer Affairs is considering amendments to the Consumer Protection Act (CPA) to prevent manufacturers from selling goods that are detrimental to consumers, said Mr D.K. Mukhopadhyay, Economic Advisor, Ministry of Consumer Affairs on Monday, at the Inception Workshop of Confederation of Indian Industry's (CII) Project on Building Trade Related Capacity in Retail Sector. Mr Mukhopadhyay said this was necessary to protect the interests of consumers. The current protection under CPA was inadequate and redressal procedures were tedious. "Consumers need value for money from retail trade because they are often cheated by shopkeepers in the unorganised retail sector," he added. On the issue of foreign direct investment (FDI) in retailing, he said the organised retail sector had to attract FDI to improve services and upgrade capabilities. FDI will come in across various segments and will not be restricted to one or two sectors, said Mr Mukhopadhyay. FDI in retailing will not result in a loss of jobs as is being feared, he said. On the contrary, it will generate new employment especially in food processing, agriculture and textiles by creating markets for new products. He further said it would not replace the local kirana stores, but make them more competitive and improve service. The Government feels there is need for more organised retailing, because space for both organised and unorganised retailing still exists in India. Organised retailing will actually benefit consumers by removing the intermediaries between them and producers, resulting in cheaper and better goods, added Mr Mukhopadhyay. Mr Chitranjan Dar, Divisional Chief Executive Officer, Lifestyle Retailing Business Division, ITC, enumerated the challenges that retailers faced. "Consumer buying in India is still driven by durability and functionality, not fashion." Speaking about the rental spaces in the country, he said, "Occupancy costs in India are very high especially for good locations." The retail sector suffered from a lack of trained manpower that affected its relationship with customers. There were several State laws that controlled working hours and the number of hours shops could remain open. Speaking on the sidelines, Mr Dar informed that ITC is planning to take the number of Wills Lifestyle Stores, ITC's premium clothing chain of stores to 47 in the next one year from the existing 41 stores. He also said that leather accessories and perfumes would also be retailed from these stores, which would contribute 25 per cent of the revenue from the stores in the next two years. Speaking on the occasion, Mr Manoj Agarwal, President, Delhi Apparel Retailers Association, said that in order to beat competition from foreign players, the small readymade garment retailers in the country would have to join hands for their purchases from manufacturers.
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