Dispelling a common notion, the Indian Council of Research in International Economic Relations (Icrier) has observed that intermediaries are amongst the biggest gainers of organised retail. The economic think-tank made a presentation of its retail report to the commerce and industry ministry on Monday, almost a year after it was commissioned to study the impact of organised retail on unorganised retail.
The study, government sources say, shows that organised retail in India needs the help of intermediaries to run their retail operations. ?Despite all the talk of dis-intermediation of retail to make margins, retailers do realise that in a country like India you need intermediaries given the supply-side bottlenecks?, a source said.
Even with taut supply chains, there will be ample opportunities for intermediaries to diversify and take up new alternatives thrown up by the organised retail trade given their market information, skills and knowledge, a government source said.
Another interesting find is that most unorganised retailers don?t perceive big retail chains as a threat to their existence. The popular perception is that small retailers, who accounts for 97% of retail trade earnings, fear big retail chains? entry into the filed. The report also says 40% unorganised retailers would like their children to continue in the trade.
The retail report studied a sample of 10 metros and cities where it surveyed over a 2,000 unorganised retailers, 200 farmers, over 1,000 consumers and around 100 intermediaries.