Agreed but speed with which MT get accepted is a debatable issue.
The rate of adaption will be lower than that in other countries. MT have dominated in smaller countries (EU) or where infrastructure has been in place (US)
Though GST has addressed big issue but other issues like good Road infrastructure, very diverse consumption trends, different social – economic structure compared to western countries are few issuee that will take long time to sort out.
I believe Indian mom and pop store / traditional kirana outlets are more smarter than the media gives them the credit.
Many times of news / article that we read in newspaper or online about dominance of MT and how it helps a consumer are sponsored. Organized retailer have their own body and their job is to do good PR.
So when GT or any other trade body opposes MT, they plant stories about how they being more efficient and thus how they hepls end customer by saving money.
But most of the time, this is not necessarily the case.
GT helps those who needs the most.
By offering credit to end customer, home delivery, offering product & assortments that are relevant to his needs and offering expert advice.
When gst came, many thought local shopkeeper couldn’t able to adopt it but they did.
Same goes with online payment adoption and lots of other things.
Local shopkeeper is more adaptive to changes than we believe and I strongly believe they will continue to dominate Indian retail for years to come.
This is what I referring to.
In such case, I will give more credit to local shopkeeper than dmart. Dmart buys in bulk but sell at cheaper price and thus earning lower margin. Shopkeeper will buy at cheap prices but sell at Mrp. Thus earning handsome profit.
Local shopkeeper is quickly adapt to any situation and chooses which trade offer better margin.
He’s not restricted to GT or MT or online.
Disclaimer – Dmart is one of my biggest holding and I strongly believe in long term growth story of modern retail as well as Dmart. I am also a shopkeeper / wholesaler working in apparel industry.
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