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Wednesday, May 30, 2007

Reliance to open barber shops, pan kiosks & shamshaans!

Reliance's future foray in opening cobbler shops, barber shops, tea kiosks, bangler salons, pan corners and construction of 'shamshaans', that's what says an innovative poster in Indore.

Did you notice that 'kharabpati' has been deliberately missplet as 'kharaabpati'. It is put up at the historic Rajwada in Indore.

Taking a dig at India's first ever trillionaire Mukesh Ambani and his company's entry in small business including opening of Reliance Fresh (Sabzi ki Dukaan).

The vegetable vendors are opposing it and there have been attacks on Fresh shops in several places like Ranchi (Jharkhand).

Farmers and small businessmen are anxious about the prospects. Upper-Class and Upper-Middle class people are not sure, many feel buying vegetables in AC would be a good idea. They are not worried about 'kunjra' and the castes traditionally associated with vegetable business.

Consumer ban kar sochna theek har jagah theek nahin, kabhi to insaan ban kar bhi socho, says somebody.


Anonymous said...

I find the prospect of Reliance and other big companies in veggie retail one of the most disturbing developments in recent times.

How do we know said...

but what is so wrong? It will hurt small businesses, but we did not say anything when the Big Bazaars of the world came trampling down on Kirana shops? Why this now?

Kustavan said...

I dont agree with the psentiment of this post. There is a strong socialist undercurrent to this - somehow blatently intent on painting anything capitalistic as black.

Reliance fresh venture is not wrong or evil to the society in anyway. Ventures like Reliance fresh may be bad for the roadside vegetable vendor in short or mid term - but did you consider the benefits the farmers are getting. Farmers now are directly able to sell to such large retailers (ITC, Reliance, etc)without depending on the intermediate brokers and mandi mafia - who used to eat into most of their earnings. They are getting cold storage and logistic support from these houses - saving them losses of produce. By entering into contract farming with these houses - they are assured of earnings and protected from vagaries of nature.
Its a win-win for both consumer and producer. Just because its a new channel through with producer is reaching to consumer is not bad - its just bad for the channel which has got replaced. That channel now needs to reorient and redesign itself to serve the consumers better. Thats the key to open market. You have to evolve to survive.

And just wonder what the hoohalla abt the loss of employement. These stores arent run by robots... Reliance has hired lakhs for its retail foray...thats employement generated too. Why is that being ignored?

Just to close with - I have just been to one Reliance Fresh just once so far. And the experience wasnt interesting. The place was so over crowded - that I made up my mind to not go there again. And I am still sticking to my promise and buying from the old channel.

sanjay said...

The content and sentiments expressed in the write up is true and i admit the consequences.But never forget it is not reliance only MNC gian waltmore and other similar companies are also looking for a smooth landing in this land.All thse will hurt the intrest of pesents and small vendors all over the county.
But how to stop this menace?
it is the duty of union goverment to take appropriate action and law making to preventing the fall of future of hundred thousand of small vendors in to the den of M N C and other desi giants

Kannan Iyer said...

I think too much is made out of this Retail giants coming in and wiping out the kirana stores or the neighbourhood sabzi waala. From my experience in Bangalore, i have noticed a few points:
1) The service levels of most of the retail stores like Foodworld, Big Baz, Reliance Fresh, Fabmall (now owned by Trinetra - Aditya Birla co.), @Fresh (a Heritage - Chandrababu Naidu venture) etc. are poor - long waiting times, poor quality of vegetables and fruits, too congested..
2) They are pathetic at home delivery - whereas most of the kirana stores or even some of the smaller supermarkets are very good at this.
3)There are absolutely no discounts at all in these big stores - which is quite contrary to what they should actually be pricing - due to economies of scale. ON THE other hand, you would find these smaller shops giving you that discount without talking about it.
4) You would not find some sets of items at all in these stores - for example, I am a Palakkad iyer and I love a dish called Avial - many of the vegetables that we need to make it is not even available in these superstores - for ex Reliance Fresh - so the pados kaa sabzi waala still matters.
5) Many of these retail stores do even have people who can SMILE at you. Really irritates you.
6)This may not be a big problem at other places- but in Bangalore, if the store cannot provide me adequate parking, then it is doomed. Right now, many of them have this prblem; compare that to the Stores in the US and Europe- they have massive parking grounds.


indscribe said...

hi Kannan.
great to have your comment here.