Few days back, India discussed a big issue of allowing FDI in retail markets of India. Even though, it was debated a lot, the contemporary decision was taken to put an issue aside and move forward. The major factor behind the decision was resistance from big retail chains of India who are out marketing retails stores. Retailing chains enjoy the big advantage of Indian mentality of buying couple of more things than needed and that too on MRP.
It has been observed by experts that Indian Retail chains have been successful in luring people of India by offering them different kinds of deals on different times of the year. To add woes in it, even Indian people do not bother about checking the deal prices and quality on offer. The reality is that under the tags of deals and offers, these retails chains are offering the goods at the higher prices than the ones at which people can buy in a retail store beside their house.
Let us understand the condition with an example. Last week, we visited one of India’s biggest retail chains and found that under the tag of deal they were selling a pack of food oil at the prices of Rs. 135/- against MRP of Rs. 147/-. Even though people saw the saving of Rs. 12/- and bought it in bulk. However, they did not bother to check the price at retail store beside their houses who was offering the same food oil pack at Rs. 130/-.
This is just one example, there are many such examples which may help in deciding that retailing chains are proving costlier.