Foreign direct investment (FDI) is investment directly into production in a country by a company located in another country, either by buying a company in the target country or by expanding operations of an existing business in that country. Foreign direct investment is done for many reasons including to take advantage of cheaper wages in the country, special investment privileges such as tax exemptions offered by the country as an incentive to gain tariff-free access to the markets of the country or the region. Foreign direct investment is in contrast to portfolio investment which is a passive investment in the securities of another country such as stocks and bonds.
As a part of the national accounts of a country FDI refers to the net inflows of investment to acquire a lasting management interest (10 percent or more of voting stock) in an enterprise operating in an economy other than that of the investor. It is the sum of equity capital, other long-term capital, and short-term capital as shown the balance of payments. It usually involves participation in management, joint-venture, transfer of technology and expertise. There are two types of FDI: inward foreign direct investment and outward foreign direct investment, resulting in a net FDI inflow (positive or negative) and "stock of foreign direct investment", which is the cumulative number for a given period. Direct investment excludes investment through purchase of shares.FDI is one example of international factor movements.
the total retail of the year
2011-- RS 1572550cr.
2012--- $ 400 billion
2015--- $ 800 billion( expected)
india has apporx. 98 lakh food retailers
SOME POINTS RELATED TO FDI :-
1 in next 3 years 10 millions are likely to be raised in retail sector
2 farmers and agro producers will get 12 to 15% more price for their produce
3 70% of retail is in food items most of which are locally sourced.
4 multi brand retail will be on economic driver pushing india growth to beyond 8%.*
*FIGURES COME FROM STUDY DONE BY CII
5. in india the organised retail market is less than 5%.in other countries the figures are as follows
US-- 85 %
MALAYSIA-- 55 %
BRAZIL-- 36 %
CHINA-- 20 %
6. organized retail & multi brand retail will greatly encourage refrignaion,reservation, and food irradiation.
ACCORDING TO APEDA( AGRO PROCESSING EXPORT DEVELOPMENT AGENCY) RS 27000CR. FOOD AND VEGTABLES ARE WASTED.
when multi branding comes in it is directly going to be done procument under the APMC* act
*APMC-- agricultural produce marketing community
ORGANISED RETAIL SECTOR IN INDIA--
CLOTHING-- 36 %
ELECTRONICS-- 14 %
FOOD -- 12 %
FOOTWEAR -- 9 %
THE MAIN INTERNATIONAL COMPANIES WHICH WILL COME AFTER ALLOWING FDI
WALMART
Sam Walton, a businessman from Arkansas, began his retail career when he started work on June 3, 1940, at a J. C. Penney store in Des Moines, Iowa where he remained for 18 months. In 1945, he met Butler Brothers, a regional retailer that owned a chain of variety stores called Ben Franklin and that offered him one in Newport. Walton was extremely successful in running the store in Newport, far exceeding expectations. However, when the lease came up for renewal, Walton could neither come to agreement on the existing store's lease renewal nor find a new location in Newport. Instead, he opened a new Ben Franklin franchise in Bentonville, Arkansas, but called it "Walton's Five and Dime." There, he achieved higher sales volume by marking up slightly less than most competitors.
On July 2, 1962, Walton opened the first Walmart Discount City store located at 719 Walnut Ave. in Rogers, Arkansas. The building is now occupied by a hardware store and an antique mall. Within five years, the company expanded to 24 stores across Arkansas and reached $12.6 million in sales. In 1968, it opened its first stores outside Arkansas, in Sikeston, Missouri and Claremore, Oklahoma. Walton was extremely successful in running the store in Newport, far exceeding expectations.However, when the lease came up for renewal, Walton could neither come to agreement on the existing store's lease renewal nor find a new location in Newport. Instead, he opened a new Ben Franklin franchise in Bentonville, Arkansas, but called it "Walton's Five and Dime." There, he achieved higher sales volume by marking up slightly less than most competitors., Arkansas.
CARREFOUR
Carrefour S.A. (French pronunciation: is an international hypermarket chain headquartered in Boulogne Billancourt, France, in Greater Paris.It is one of the largest hypermarket chains in the world (with 1,395 hypermarkets at the end of 2009, the second largest retail group in the world in terms of revenue and third largest in profit after Wal-Mart and Tesco). Carrefour operates mainly in Europe, Argentina, Brazil, China, Colombia, Dominican Republic, United Arab Emirates and Saudi Arabia, but also has shops in North Africa and other parts of Asia, with most stores being of smaller size than hypermarket or even supermarket. Carrefour means "crossroads" in French. Previously the company head office was in Levallois-Perret, also in Greater Paris.
The first Carrefour store opened on 1 January 1958 in suburban Annecy near a crossroads (carrefour in French). The group was created by Marcel Fournier, Denis Defforey and Jacques Defforey and grew into a chain from this first sales outlet. In 1995 it merged with Promodès, known as Continent, one of its major competitors in the French market.
Marcel Fournier, Denis Defforey and Jacques Defforey had attended several seminars in the United States led by "the Pope of modern distribution" Bernardo Trujillo, who influenced other famous French executives like Édouard Leclerc (E.Leclerc), Gérard Mulliez (Auchan), Paul Dubrule (Accor), and Gérard Pélisson (Accor). Their slogan was "No parking, no business".
The Carrefour group was the first in Europe to open a hypermarket, a large supermarket and a department store under the same roof. They opened their first hypermarket on 15 June 1963 inSainte-Geneviève-des-Bois, near Paris in France.
In September 2009, Carrefour updated its logo.In April 1976, Carrefour launched a private label Produits libres (free products – libre meaning free in the sense of liberty as opposed to gratis) line of fifty foodstuffs, including oil, biscuits (crackers and cookies), milk, and pasta, sold in unbranded white packages at substantially lower prices.
In May 2011, Carrefour reviewed its situation under conditions of stagnant growth and increasing competition in France from rivals including Casino Guichard-Perrachon SA, and planned to invest €1.5 billion ($2.1 billion) to change the supermarket with the new concept of Carrefour Planet in Western Europe.
TESCO
During the 1950s and the 1960s Tesco grew organically, and also through acquisitions, until it owned more than 800 stores. The company purchased 70 Williamson's stores (1957), 200 Harrow Stores outlets (1959), 212 Irwins stores (1960, beating Express Dairies' Premier Supermarkets to the deal), 97 Charles Phillips stores (1964) and the Victor Value chain (1968) (sold to Bejam in 1986).
Jack Cohen founded Tesco in 1919 when he began to sell surplus groceries from a stall at Well Street Market, Hackney, in the East End of London.The Tesco brand first appeared in 1924. The name came about after Jack Cohen bought a shipment of tea from T. E. Stockwell. He made new labels using the first three letters of the supplier's name (TES), and the first two letters of his surname (CO), forming the word TESCO. The first Tesco store was opened in 1929 in Burnt Oak, Edgware, Middlesex. Tesco was floated on the London Stock Exchange in 1947 as Tesco Stores (Holdings) Limited. The first self-service store opened in St Albans in 1956 (which remained operational until 2010, with a period as a Tesco Metro), and the first supermarket in Maldon in 1956.
Originally specialising in food and drink, it has diversified into areas such as clothing, electronics, financial services, telecoms, retailing and renting DVDs, CDs, music downloads, Internet services and software.
Jack Cohen's business motto was "pile it high and sell it cheap", to which he added an internal motto of "YCDBSOYA" (You Can't Do Business Sitting On Your Arse) which he used to motivate his sales force.
In May 1987 Tesco completed its hostile takeover of the Hillards chain of 40 supermarkets in the North of England for £220 million.
In 1994, the company took over the supermarket chain William Low, successfully fighting off Sainsbury's for control of the Dundee-based firm, which operated 57 stores. This paved the way for Tesco to expand its presence in Scotland, which was weaker than in England. In 2006 Inverness was branded as "Tescotown", because well over 50p in every £1 spent on food is believed to be spent in its three Tesco stores.
Tesco introduced a loyalty card, branded 'Clubcard', in 1995 and later an Internet shopping service. As of November 2006 Tesco was the only food retailer to make online shopping profitable.In 1996 the typeface of the logo was changed to the current version with stripe reflections underneath, whilst the corporate font used for store signage was changed from the familiar "typewriter" font that had been used since the 1970s. Terry Leahy assumed the role of Chief Executive on 21 February 1997, the appointment having been announced on 21 November 1995.
On 21 March 1997 Tesco announced the purchase of the retail arm of Associated British Foods, which consisted of the Quinnsworth, Stewarts and Crazy Prices chains in the Republic of Irelandand Northern Ireland, plus associated businesses, for £640 million. The deal was approved by the European Commission on 6 May 1997. This acquisition gave it both a major presence in (and marked a return to) the Republic of Ireland and a larger presence in Northern Ireland than Sainsbury's, which had begun its move into Northern Ireland in 1995.
In 1997, Tesco and Esso (part of Exxonmobil) formed a business alliance that included several petrol filling stations on lease from Esso, with Tesco operating the attached stores under their Express format. In turn Esso operates the forecourts and sells their fuel via the Tesco store. 200 Tesco/Esso sites now exist across the world.
IKEA
IKEA is a privately held, international home products company that designs and sells ready-to-assemble furniture such as beds, chairs, desks, appliances and home accessories. The company is the world's largest furniture retailer. Founded in 1943 by 17-year-old Ingvar Kamprad in Sweden, the company is named as an acronym comprising the initials of the founder's name (Ingvar Kamprad), the farm where he grew up (Elmtaryd), and his hometown (Agunnaryd, in Småland, South Sweden).The company is known for its modern architectural designs on various types of appliance and furniture, often associated with a simplified eco-friendly interior design.
Product names
IKEA products are identified by single word names. Most of the names are Scandinavian in origin. Although there are some notable exceptions, most product names are based on a special naming system developed by IKEA.
Upholstered furniture, coffee tables, rattan furniture, bookshelves, media storage, doorknobs: Swedish placenames (for example: Klippan)
Beds, wardrobes, hall furniture: Norwegian place names
Dining tables and chairs: Finnish place names
Bookcase ranges: Occupations
Bathroom articles: Scandinavian lakes, rivers and bays
Kitchens: grammatical terms, sometimes also other names
Chairs, desks: men's names
Fabrics, curtains: women's names
Garden furniture: Swedish islands
Carpets: Danish place names
Lighting: terms from music, chemistry, meteorology, measures, weights, seasons, months, days, boats, nautical terms
Bedlinen, bed covers, pillows/cushions: flowers, plants, precious stones
Children's items: mammals, birds, adjectives
Curtain accessories: mathematical and geometrical terms
Kitchen utensils: foreign words, spices, herbs, fish, mushrooms, fruits or berries, functional descriptions
Boxes, wall decoration, pictures and frames, clocks: colloquial expressions, also Swedish place names
RADIO SHACK
The company was started as Radio Shack in 1921 by two brothers, Theodore and Milton Deutschmann, who wanted to provide equipment for the then-nascent field of amateur, or ham, radio. The brothers opened a one-store retail and mail-order operation in the heart of downtown Boston at 46Brattle Street, near the site of the Boston Massacre. They chose the name "Radio Shack," which was the term for a small, wooden structure that housed a ship's radio equipment. The Deutschmanns thought the name was appropriate for a store that would supply the needs of radio officers aboard ships, as well as "ham" radio operators. The term was already in use - and is to this day - by "hams" when referring to the location of their stations.
The company issued its first catalog in 1939 as it entered the high-fidelity music market. In 1954, Radio Shack began selling its own private-label products under the brand name Realist, but was subsequently sued and consequently changed the brand name to Realistic. After expanding to nine stores plus an extensive mail-order business, the company fell on hard times in the 1960s. Radio Shack was essentially bankrupt, but Charles Tandy saw the potential of Radio Shack and retail consumer electronics and bought the company for $300,000.
RadioShack Corporation (formerly Tandy Corporation) is an American franchise of electronics retail stores in the United States, as well as parts of Europe, South America and Africa. As of 2008, RadioShack reported net sales and operating revenues of $4.81 billion. The headquarters of RadioShack is located in Downtown Fort Worth, Texas. RadioShack is also a sponsor for the Samsung/RadioShack 500NASCAR Sprint Cup Series race at Texas Motor Speedway. On July 21, 2009, RadioShack announced a partnership with T-Mobile USA, and started offering the service in August 2009. The T-Mobile partnership ended on September 15, 2011, when Verizon Wireless launched in over 4,000 of the retail stores nationwide.
RadioShack's current proprietary brands include RadioShack branded products (parts, adapters, telephones and other legacy/classic products), AntennaCraft (outdoor antennas and amplifiers), Auvio (audio/video cables, LCD TV's, headphones, premium surge protectors and speakers),Enercell (batteries and power), Gigaware (computer, GPS and iPod accessories, mp3 players and accessories, as well as digital cameras, digital camera accessories and digital picture frames) and PointMobl (Wireless Phone Accessories).
Discontinued brands include Accurian (audio and video equipment and accessories), MyMusix (MP3 players; now marketed under the Gigaware brand), Kronus (tools), Optimus (formerly audio and PA/DJ equipment; later used for digital camera accessories), Presidian (audio and video equipment, telephones, flashlights, calculators, and 2-way radios), VoiceStar (wireless phone accessories), Archer (wiring and antennas), Duofone (telephones & accessories), Micronta (scientific and educational equipment) and Realistic (sound equipment).
In 2009, the company became the main sponsor of a new cycling team, Team RadioShack, with Lance Armstrong and Johan Bruyneel as two of the members.
BEST BUY
In 1966, Richard M. Schulze and business partner Gary Smoliak, opened Sound of Music, an audio specialty store, in Saint Paul, Minnesota. In 1967, Sound Of Music acquired Kencraft Hi-Fi Company and Bergo Company. Two additional Sound of Music stores were opened near the University of Minnesota and in downtown Minneapolis. The Sound of Music ended its first year with gross sales of $173,000 (USD). In 1969, Sound of Music's stock began trading as a publicly held company, the company enacted its first employee stock option plan, and three stores opened in the Twin Cities area. In 1970, Sound of Music hit the $1 million mark in annual revenues. In 1979, Sound of Music became the first suppliers of video and laserdisc equipment including Panasonic, Magnavox, Sony and Sharp.
On June 14, 1981, a tornado hit the Roseville, Minnesota store. Sound of Music responded with a "Tornado Sale," (with the sale promoted as a "Best Buy") and it became an annual event. In 1983, Sound of Music's board of directors approved a new corporate name: Best Buy Co., Inc.,the company opened its first superstore in Burnsville, Minnesota, featuring expanded selling space, a wide assortment of discounted brand-name goods, central service, and warehouse distribution. Stores began selling appliances and videocassette recorders. In 1985, Best Buy (symbol BBY) debuted on the New York Stock Exchange with an offering of 8.3 million shares. In 1987, Best Buy's brand logo changed to the yellow tag. In 1989, Best Buy unveiled a new "grab-and-go" store format.
Best Buy Co., Inc. is an American specialty retailer of consumer electronics in the United States, accounting for 19% of the market. It also operates in Puerto Rico, Mexico, Canada and China. The company's subsidiaries include Geek Squad, CinemaNow, Magnolia Audio Video, Pacific Sales, and, in Canada operates under both the Best Buy and Future Shop label. Together these operate more than 1,150 stores domestically and internationally In addition, the company operates over 100 Best Buy Express Automated Retail stores or "ZoomShops", operated by Zoom Systems, in airports and malls around the U.S. The company is headquartered in Richfield, Minnesota, United States.
Best Buy was named "Company of the Year" by Forbes magazine in 2004, "Specialty Retailer of the Decade" by Discount Store News in 2001,ranked in the Top 10 of "America's Most Generous Corporations" by Forbes magazine in 2005 (based on 2004 giving), and made Fortunemagazine's List of Most Admired Companies in 2006.
SOME INDIAN COMPANY OF THE RETAIL SECTOR
FUTURE GROUP :-
1 SPENCER
2 BIG BAZAAR
3 PANTALOON
4 PARK X
5 COLOR PLUS
ADITYA BIRLA GROUP :-
MORE
K. RAHEJA :-
1 SHOPPER'S STOP
2 CROSSWORD
TATA GROUP :-
1 LANDMARK
2 TITAN
3 WESTSIDE
FDI ALLOWED IN OTHER COUNTRIES ARE SUCH AS :-
CHINA- 100%
RUSSIA-100 %
BRAZIL-100%
*IN 2002 MONASOLI MARAN PROPOSED 100% RETAIL IN INDIA.
* IN 1997, 51 % FDI WAS ALLOWED BY DR. MANMOHAN SINGH
* ALL FIGURES ARE TAKEN BY SOME SURVEY
