After passing of 51% FDI in multi- brand retail in Lok Sabha, many big foreign players in retail sector have got the entry to extend their business operations in one of the world’s largest consumption driven economy. The big Indian players can give the competition to foreign players because of its brand value, availability of funds to expand their business or they can be a partner with them, but will have major impact on those who are operating their small business for their living.
Although the Government has imposed condition that it is mandatory for the foreign players to have 30% local sourcing from small retailers but there is no clarity that how it will work. Also it will not be beneficial for all the SME’s because of the existence of massive number of retailers in unorganized sector.
So they have to work from now to avoid the harmful impact which can have on their standard of living. Some little efforts can be made like
1) They can do survey around their business area to know about consumer’s preference of daily usage products & accordingly stores them, so that they will always be in a position to satisfy their customer’s demand.
2) Be aware of the new products launched in the market & keep the availability of some of its sample/product, so that they will not loose the new customer’s of that product.
3) Should start home delivery services, subject to quantity ordered, so as to maintain better relationship with their customers.
4) As per the financial viability of business, they can give small gifts on purchasing of larger quantity of items & can also have yearly lucky draw of regular customers.
5) Small retailer should also build up strong networking with others retailers in the area, in order to have more information about different products, customer needs, pricing etc.
6) Should take feedback from their regular customers on time to time basis & make improvement thereof.
Name: Amit Dobhal