Propaganda of Retail

A government ‘study’ has come up, proving that organised big retail is harming the unorganised small retail shops’ business. [Link] This survey (and they call it a study) was started on the directive of UPA chairperson. The survey involved around 1000 small retailers in four Indian cities, including 800 who were within a 2.5 km radius of new organised retailers. The methodology of the survey involved asking small unorganised retailers whether their sales have been affected by the emergence of big retailers or not. The result? 50% of small retailers reported lower sales, and 61% of surveyed retailers pointed to competition from organised retail for their declining financial health.

In my small town, my neighbourhood kirana store gave me some discount even over the maximum retail price (MRP), at lease for some items like Chyavanpras, Horlicks, and some local made products. Here in Mumbai, the neighbour mom-n-pop store takes not a penny less than whatever is printed over the packet, even if the item is an agarbatti. On the other hand, they will keep complaining of the Big Bazars and the big malls. The point is, in absence of an option, I will have to buy from the small shop, at higher price and some times bad service. But if I get an option and go to a Big Bazar or Hyper City, the small store wallahs would complain.

I don’t understand why either the government or the industry should take note of this survey. This is common psychology that a small shop owner would always complain of losses due to the presence of a big retail outlet. If we had to remain small, whole India would remain nothing but a Sabji Mandi! I believe organised retail is a thing whose time has come.

How many small unorganised retailers give you proper receipts and pay income taxes to government? How many of them cover their employees with insurance? How many of them give dignity to the employees they take help of? How many never employ child labour? It is sad that while the governments worldwide would like the unorganised sectors to migrate into organised ones, the politics of numbers would make the governments in India try to keep up the status quo. India should remain a nation of snake charmers, you know. Pappu paas kab hoga?