Arguments in Favour of FDI in Retailing

Play an AI-generated podcast conversation about this lesson

What is one key advantage of FDI in the retail sector related to the supply chain?

It leads to less wastage in agriculture/business due to improved distribution efficiency.

How does FDI in retail impact pricing for consumers?

It leads to smaller price differences between producer and consumer prices due to direct distribution and higher sales volumes.

What is one benefit of FDI in retail related to employment?

It creates better employment opportunities in the retail sector.

How does the organized retail sector aided by FDI impact pricing strategies?

It enables retailers to offer reasonable/better prices to consumers. Signup and view all the answers

What advantage does FDI in retail provide to manufacturers/producers?

It helps improve the sales volumes for manufacturers/producers. Signup and view all the answers

What type of customer acquisition strategies does the retail sector employ with FDI?

It enables retailers to offer creative/structured promotional offers to attract new customers. Signup and view all the answers

What is one disadvantage for Indian retailers due to the presence of FDI in retail?

Limited scope for Indian retailers Signup and view all the answers

How does the presence of foreign brands affect customer preference in retail?

More preference for foreign brands Signup and view all the answers

What challenge do Indian retailers face in terms of access to the Indian market due to FDI?

Ease of Access to Indian markets to foreigners Signup and view all the answers

How do multinational dealers impact demand in foreign markets?

More incentives to dealers by foreign brands Signup and view all the answers

What is one way foreign retailers affect the use of resources and focus in the market?

Repetitive advertising by foreign retailers Signup and view all the answers

How do foreign retailers influence customer orientation towards products?

Competitive after sales service by foreign retailers Signup and view all the answers

What are the key reasons for the prominence of organised retailers in urban India?

The key reasons for the prominence of organised retailers in urban India are the limited business opportunities in the interior areas and the greater market size and preference for convenience in metro areas. Signup and view all the answers

What is the current share of the retail sector in India's GDP and employment?

The retail sector provides more than 10% of India's GDP and is further creating an increase in employment opportunities in the market. Signup and view all the answers

What is the current growth rate of the organised retail sector in India?

The overall share of the organised retail sector in India is increasing at a rate of more than 20%, which is a very important activity for developing better business opportunities. Signup and view all the answers

How has the introduction of FDI in retail impacted the retail sector in India?

The introduction of FDI in retail, with 51% in multi-brand and 100% in single-brand retail, is a significant step to increase the share of the organised retail sector in India. Signup and view all the answers

How are the unorganised retailers in India adopting technology to improve their operations?

The unorganised retailers in India are using the latest technology for inventory management, weighing, and billing, among other functions. Signup and view all the answers

What are the key factors driving the continuous rise in retail sector demand in India?

The continuous rise in retail sector demand in India is leading to improvements in retail operations, and an increasing number of retailers have realised better opportunities for creating more customers. Signup and view all the answers