By Madi Sharma, EuAsiaNews,
London : Retail, and especially the power of large retailers and their ability to displace small independents, is a current hot topic amongst small businesses, suppliers and consumers in Europe.
Across the world in Asia, Tesco looks to join forces with Tata in India with a $120m investment and therefore the similar discussions can be expected.
The Confederation of All India Traders (CAIT), a body of nearly 5,000 traders’ associations in India, has not wasted anytime since hearing the news of the growth of high volume retailers and yesterday (Thursday 11 Sept) it said the first two schools training small and independent retailers to help them meet challenges posed by the entry of big players into the retail sector would be opened in New Delhi and Nagpur this month.
The Indian retail industry has seen phenomenal growth since 2001, and has currently several key players such as the Future Group, Trent Ltd, RPG Enterprise, Vishal Retail, Shoppers Stop, Bata India, Provogue India, Aditya Birla Group and Reliance Industries.
The Aditya Birla Group runs the retail chains under the brand name ‘more’, while Reliance Industries’ is called Reliance Fresh.
According to an industry estimate, India’s organised retail sector will form nearly 10 percent of total retailing by 2010 at the compounded annual growth rate (CAGR) of 49.53 percent.
In early spring 2009 the European Commission DG (Directorates-General) Enterprise, DG Competition and DG Internal Market will produce reports examining the issues surrounding high volume retail in Europe.
Looking into the issue of the developments and impacts of the retail industry, the European Economic and Social Committee in Brussels has suggested a voluntary Code of Conduct at National level, in an attempt to provide due diligence for retailers and transparency for the industry and will finalise its report before the end of 2008.
The transfer of knowledge in this area, to protect small independent, farmers, suppliers, retailers and consumers would be valuable as our global marketplace becomes even smaller.
(Madi Sharma is UK Member, Employers Group , of the European Economic and Social Committee)