FDI – in Indian Multi-Brand Retail Segment – Opportunities and Challenges

Dr. G. KalyaniM.Com, PhD

HOD, MBA,Sree Chaitanya College of Engineering.Karimnagarkalyanigundlapudi@yahoo.com+91 9490004582

G. Bhanu ChanderM.B.A

Assistant Professor,Sree Chaitanya College of Engineering.Karimnagar

bhanu.chandu@gmail.com+91 9533550239

Abstract:

FDI stands for Foreign Direct Investments, a component of a country’s National financial accounts. Foreign Direct Investment is investment of foreign assets into domestic structures, equipments and organizations. It doesn’t include foreign investment into stock market. FDI will bring better technologies into the market, increases competition among the local retailers compelling them to raise their standards to global level so that consumers can get better products and more choice at lower price. In abstract these things are not required.

India being a signatory to world Trade Organisation, General Agreement on Trade in Service which includes wholesale and retailing service had to open up the retail trade sector to foreign investment. Given that 95% of sector constitutes unorganized retail segments. Rise in purchasing power, growing consumerism and brand proliferation has led to retail modernization in India. The growing Indian market attracted a number of foreign retailers and domestic corporate to invest in this sector. The present paper focuses on the Indian Multi-Brand sector along with the opportunities of expansion of FDI in retail in India and the major challenges that it faces. (Plagiarism: source enclosed)

A good abstract should tell the whole story about your research. In short, it’s like a trailer of a movie. The abstract should contain information about, need of the study / purpose, objective of the study, data methods and sources, analytical tools, findings and conclusion. Below is a sample abstract extracted from Emerald Journal. For your understanding below abstract was split into sections. However, the good practice is to write whole content in one paragraph.

Abstract:

Purpose – The research presented here aims to build a picture of the changes in retail taking place in India. India is poised to become a retail power house. The paper looks at the changing scene in the retail sector in view of many MNCs and large industries entering into this segment.

Design/methodology/approach – Data were drawn from industry sources which included national and international published sources from 1993-2006.

Findings – The findings presented show that malls in 2006 are more developed in the North and West part of India. Food, groceries and apparel purchase by customers contributed to 52 percent. On average 75 percent of customers spend about 1-3 hours in the mall. Malls with multiplexes such as cinema theatres, food courts, play places for children are becoming the centre for family outings. Small retailers have improved their service to cater to Indian consumers. Credit limits and home service are helping them to hold on to their customers. Retailing focus is changing towards satisfying the different hierarchy of needs of customers.

Research limitations/implications – All are from Indian perspectives which perhaps limits its usefulness else where in the world.

Practical implication – A very useful source of information and review of this scenario which should help other retailers across the world, especially in developing economies, to face big giants more aggressively and do better.

Originality/value – This paper fulfils an identified information/resources need and offers guidance to small retailers