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Q.

I was against biggies like Reliance entering the retail business because of monopolistic trend it can lead to. Now I am wondering if they can serve the AAM AADMI better by giving far better retail prices what is wrong in it. What do you think?

Tags: money, real estate, reliance
Asked by Good Citizen, 13 Mar '11 03:15 pm
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Answers (8)

 
1.

Even an organisation like Reliance is driven, ultimtely by maximising profits.

Anyway an ultimate consumer is being fleeced. Major portion of what we ultimately pay to the retailers [whoever he is] goes not to the Producer of goods or services but to the intermedieries. The producer still continues to get only a miniscule amount of the final price that we pay.

But............the biggies have the capacity to source it directly from the producer. If they temper their own margins reasonable limits, then we could definitely gain with better prices, for the simple reason that multiple intermedieries are eliminated.
Answered by S. Ramesh, 14 Mar '11 07:55 am

 
  
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2.

Typically, these dudes give u lower prices till the competition is driven out of business and once that happens, service prices just shoot up 2x.

U should also remember the SOURCING stratergy. Reliance buys from large scale farms who can deliver large scale quantity. Most of India's 60 percent farming population are small scale farmers. If the small scalers are cornered perpetually from the end consumer by big business, that will just be 60 percent more desperate folk.

60 percent more desperate folk = 60 percent more members for the CPI Maoist- eventually.

Unless u want that to happen that is...I'd say we should opt 4 buying from small scalers, even if they're unable to meet economies of scale.
Answered by A Moin, 13 Mar '11 03:18 pm

 
  
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3.

1) There is nothing wrong in big corporate houses entering the retail businesses. Several players are already there. But do you feel any difference as far as price advantage is concerned? The experience may vary from person to person.
2) As far as I know, I have the advantage of shopping in a flashy shopping mall in a relaxed manner with abundant choices, sometimes so confusing but never had the advantage of buying cheap. Because, they cannot afford to sell cheap when their capital cost is so high. You already know that the establishment costs are going through the roof.
3) I do not say that the above concept is not working at all. It still has not been working in India.
Answered by Tony Fernandez, 13 Mar '11 11:47 pm

 
  
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4.

Yes, and no - usefull for the corporate and the farmer but not so much for the street vendor - however reliance can't reach every nook and corner - so u'll find a lot of vendor's around as well as low price's offered at reliance
Source: logic
Answered by simon waaras, 13 Mar '11 03:17 pm

 
  
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5.

I believe they can do good
in urban and semi urban areas
Answered by anil garg, 13 Mar '11 03:21 pm

 
  
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6.

They are doing good job.

Already we are shopping with reliance fresh ...retail shop.
Answered by anantharaman, 13 Mar '11 03:19 pm

 
  
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7.

I am not againstsuchmega stores.But being a a w are customer I always compare their prices with other shops.Mostly the pricesof mega stores are high but sometimes on some products they offer good bargains.I try to get the best of both worlds.
Answered by HEMANT MEHTA, 13 Mar '11 03:18 pm

 
  
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8.

Correct...i m also against
Answered by varen bali, 13 Mar '11 03:16 pm

 
  
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