============ Off-topic (Indian Economy) ==================

Why do I buy my monthly groceries from Spencers or other multi-brand retailers and not from the nearby small grocery shop? I get better deals and I save money. I also get a greater variety to choose from. The small grocery shops sell at the MRP printed on the packs while they can sell for much less. If the cost price is Rs. 20 and printed MRP is Rs. 25, the small grocery sells at the MRP thus maximising their profits. The chain supermarkets sell at Rs. 23 making a profit of Rs. 3 and passing on the other Rs.2 benefit to the customer.

But that does not mean we rely only on the big supermarkets for all our needs. We do the bulk monthly purchase during the beginning of the month from the supermarkets but rely on the neighborhood grocery store for daily purchases. I would not go through the pains of driving through the Gurgaon traffic to the malls, pay a hefty parking fee and browse through rows of shelves to buy a kilogram of sugar. I would just walk up to the grocery store nearby.

Not all areas have access to a Spencers or a Food Bazaar. It’s only a few pockets which has access to these hypermarkets and these are mostly in the metros. I still believe 80% of India does not rely on the hypermarts and supermarts of the world for their household needs. It’s only a meagre less than 20% who shop here once or twice a month.

If the political parties are OK with Indian multi-brand retailers like Spencers, Reliance and Big Bazaar, I don’t see why they would have problems with Walmarts and Carrefours. The small kinara shops will always thrive in India and I don’t see any threat to them. On the contrary, they will end up providing better deals to the consumer to compete with these. The farmers and producers will also profit because they will get a better price for their produce since the multi-layered middlemen will be eliminated.

Ultimately it is the consumer and the producer who will win. The only loser I see in this entire scheme of things are the middlemen who buy a pitiable prices from the poor farmers and make a killing. This middlemen lobby is, I presume, a big contributor to the political party funds of India.

There is no reason why a Walmart Superstore can wipe out Waliullah-ki-Dukaan*.

(*Waliullah-ki-Dukaan = Waliullah’s Shop. He is the friendly neighborhood grocer who stocks nearly everything and will readily deliver anything to your doorstep at any time of the day.)

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