The Retail Revolution, Part III

by Chetan Ahya – Morgan Stanley

Summary

India’s liberalization program has so far been very successful in developing a large-sized private corporate sector. However, the small and medium-scale sector has underperformed the large-scale sector. A combination of improving demand due to organized retail sector development and an increasing trend of capital deepening is likely to drive a significant change in the SME sector to meet the demand from the emerging middle-class population. We believe that some of the large players in the retail business will encourage the emergence of efficient small and medium-sized suppliers of modern retail goods. Although in the near term, organized retail chain stores could rely on imports for certain segments such as toys, select types of general merchandise and electronics goods, over the medium term most of these players will focus on higher domestic sourcing, boosting demand for small and medium-scale manufacturing.

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Additional Readings:
Off-Topic Readings:

Can money buy happiness?

  • Parting Thought:
    • The profes

      sors who taught Efficient Market Theory said that someone throwing darts at the stock tables could select stock portfolio having prospects just as good as one selected by the brightest, most hard-working securities analyst. Observing correctly that the market was frequently efficient, they went on to conclude incorrectly that it was always efficient. – Warren Buffett

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    2 Responses to The Retail Revolution, Part III

    1. Anonymous says:

      Hey , wanna exchange links. It seems we write on quite similar topics. My blog is Murkywatersresearch.blogspot.com

    2. ksankaran says:

      hey how come no new posts since dec 02 ?

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