Experts say the term 'multi-brand retail' deters entry of retail FDI into India.
Consumption is evolving significantly in India, but the government is far removed from the reality of modern retail – that was the general consensus among experts who addressed the ‘India Retail Forum (IRF) 2013’ in Mumbai on Wednesday.
Kishore Biyani, founder and CEO of the Future group and a veteran of modern retail business, said the industry has tried extremely hard but failed so far in making the government understand modern retail.
“It is really unfortunate that the entire retail policy in the country has been made around the term ‘multi-brand retail’. In fact, we are the only country in the world to use that term. I think the entire retail industry is trying to make sense of what it really means,” Biyani said.
Instead of facilitating the development and growth of the retail industry, the government coined an innovative phrase – multi-brand retail – so that global retailers would think twice before considering bringing in foreign direct investment or FDI.
Indian-born British economist and Labour Party peer Lord Meghnad Desai said the Indian political class across parties is deeply anti-business. “No politician would admit to helping business. There is nobody championing reforms. Even if they do it, they’ll do it quite silently and won’t talk about it. It’s what they don’t say – that is what you go for.”
Venkatesh Kini, deputy business unit president, Coca-Cola India and South West Asia, said, “India is among the lowest price realisation markets for us.”
Industry players said land is a very scarce commodity. Worse, the 1.4 billion population puts pressure on the resources. “Building a retail real estate asset is a challenge here, especially where people reside. No one really wants to take up space in properties with no significant catchment,” said Kini.
India Retail Forum 2013 sidelights
Future Lifestyle to list in next 10 days
Future Group-promoted Future Lifestyle Fashion (FLF) is set to get listed in the next 10 days. Kishore Biyani said that FLF will list on the BSE and NSE next week i.e October 1 or October 3, 2013.
Future Lifestyle has reached the last leg of divesting fashion apparel brand BIBA and Anita Dongre’s AND Designs.
Fabindia plans to launch tulsi drink
Taking its innovative approach to business a step further, Fabindia is working on introducing a drink based on tulsi leaves. The beverage is currently under test and is likely to be introduced in nine to 12 months . The company was also working on reviving Khadi and is working with farmers growing organic cotton.
Tara Jewels to open 20 stores
Undeterred with the overall slowdown in the retail industry, Tara Jewels is set to open 20 retail outlets this fiscal. With these, the company’s total number of stores will increase to 50. All the stores are being launched under the company owned and operated model, wherein the retail space is taken on a long lease.
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