The Hindu Business Line : `Govt must study impact of big retailers on small vendors'

RETAIL SUMMIT: Mr Surjit Singh Barnala, Tamil Nadu Governor, (second from right) seen with (from left) actor Kamal Hassan; Mr M. Rafeeque Ahmed, Chairman, FICCI, Tamil Nadu State Council, and Mr L.K. Tripathy, Chief Secretary, at the inaugural session of a retail conference in Chennai on Friday. — K.V. Srinivasan

Chennai June 15 The world is now looking at India as the nation of the future. India is on its way to emerging as a top player in the field of IT, biotechnology, pharma and automotive sectors.

Over the last few years, many international retailers have entered the Indian market on the strength of the rising affluence levels here, heightened awareness of global brands and increased availability of retail space.

Development of India as a sourcing hub shall further make the country an attractive retail opportunity for the global retailers.

At the same time, the Government must make an assessment on the future of small vendors, as retail trade is the source of livelihood for thousands of small hawkers in the country.

Their livelihood should not be placed in any kind of jeopardy, said the Tamil Nadu Governor, Mr Surjit Singh Barnala, while addressing the inaugural session of the two-day conference on `Riding high on the retailing wave' organised by FICCI, Tamil Nadu chapter, here today.

The impact of transnational retail giants and big domestic retailers on small-scale entrepreneurs in the country should also be studied so that they are able to play a constructive role in the development of the country, he said.

As the Indian economy is expected to grow at 8 per cent, with average hike in salaries being about 15 per cent, there is tremendous scope for more consumption leading to a better retailing climate.

Cascading effect

In the context of rising salaries, Mr Barnala said the present boom in salaries has had a cascading effect on the retail sector in the country.

Side by side, there is a welcome trend wherein store attendants in some retail shops are being offered salaries ranging from Rs 6,000 per month with incentives linked to sales. And, there is a manpower crunch in the sector resulting sometimes even in poaching of personnel from rival firms. "Unethical poaching may be undesirable. However, this highlights the importance attached to shop floor persons in the retail industry," Mr Barnala pointed out.

Delivering the `theme address' in his capacity as a FICCI Frames 2007 Living Legend Awardee and "an important part of the retail wave — consumer", actor Kamal Hassan said riding the wave is a tricky business. If one intends to ride the wave right, the floating device should be complementary to one's travel plan. And, India is good at it. "While the rest of the world was thinking of leak-proof boats, we in India with our lateral thinking brilliance came up with a boat full of leaks — catamaran," he said.

Lauding FICCI's brand protection initiative, he said the fact remains that there are dark undercurrents which might deter the wave rider. The dark world of counterfeiting will weaken even the strongest stride forward.

"I think, more than deterrent punitive measures, which of course are necessary, we should consider converting the more greedy members of this community to be ethical," he said.

Thrust area

Earlier, welcoming the gathering, Mr M. Rafeeque Ahmed, Chairman, FICCI , Tamil Nadu State Council, said retailing has been identified as a thrust area for promotion of textiles, processed foods, agricultural and horticultural produces.

Despite its tremendous potential, this sector has not received its due attention. However, there are several constraints that have to be overcome for this opportunity to be tapped.

More Stories on : Retailing | Industry Associations

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page