Saturday, February 9, 2008
Share your experiences
Kind of questions asked.
Experiences of interview.
Selected or not, etc.
and anything else you want to share.
Thursday, January 10, 2008
43. Re-emergence of Russian power.
The tensions between Russia and Ukraine at the start of the year have generated renewed analytical interest in Russia’s re-emerging position as a superpower, driven chiefly by its actual, or potential, domination of the global supplies of energy. Along with its role as a swing supplier of oil (enabling it to manipulate the balance of power between OPEC and the industrialised consumers), the episode has highlighted Russia’s position as the pre-eminent supplier of gas. Russia controls a third of global proven gas reserves, with Gazprom already becoming the dominant supplier in the EU and Turkey, in addition to Russia’s “near abroad”, including the energy-hungry Ukraine.
However, the drivers of Russia’s potential for becoming an energy superpower are not limited to its own resources. An additional factor is Russia’s near monopoly over the Central Asian export infrastructure, which remains unbroken by the single Baku-Tbilisi-Ceyhan oil pipeline (in operation since May 2005). Furthermore, it has been pointed out that the continued instability in the Middle East (which some argue has been deepened, rather than reduced, by the US invasion of Iraq) has boosted Russia’s position as the aspiring centre of energy geopolitics.
Add to this several other key factors such as the long-term outlook for high energy prices, the limited ability of the US and EU to diversify their supply sources and Russia’s growing ability to play a China and/or Iran “card” both in energy and geopolitics and the picture that emerges is one of a global energy superpower, capable in many ways to counter the might of present-day sole superpower the United States.
Furthermore, there have been significant signs that this re-emerging superpower also means business in the military sphere. Russia has recently commissioned a new generation of missiles (Topol-M), capable of fitting a nuclear warhead and able to evade current US anti-missile defence systems. While not signalling a return to a Cold War style arms race, this development suggests Russia is no longer willing to refrain from a bit of old fashioned sabre rattling, when it feels the need to do so.
At the same time, Moscow has notified those who need to know of its determination to protect its vital strategic interests. While not seeking to become the exclusive great power player in the former Soviet Union, Russia has let it be known that it does not regard Western interests in the region as being on par with its own. It will therefore resist Western incursion in the area deemed incompatible with the pursuit of legitimate economic and political objectives.
In practice this boils down to the promotion of anti-Russian regimes in the region, through so called “colour revolutions”. Thus, in an unusual move, Russia’s defence minister, Sergei Ivanov has written in The Wall Street Journal that the Kremlin’s key objective is the prevention of Western-fomented regime changes in Russia’s “near abroad” the CIS.
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Russia as the "Other Europe"
Let us consider the question: What does Russia really want? Is Russia a neo-imperial power that wants to dominate its weaker neighbors, or is it a post-imperial state that is simply trying to defend its legitimate interests? Does Moscow view the European Union as a strategic partner or does it view it as a threat to Russia’s ambitions in Europe? How stable is Putin’s regime, how sustainable is Russia’s economic growth, and what are the Kremlin’s long-term interests and short-term fears?
Historian Martin Malia has said that “the West is not necessarily most alarmed when Russia is in reality most alarming, nor most reassured when Russia is in fact most reassuring.” The West is most alarmed when it is confused about Russia’s interests and strategies.
Putin’s Russia is frightening precisely because it is confusing. Russia is, at the same time, a rising global power and a weak state with corrupt and inefficient institutions. The contradictions go further: Putin’s regime can be described as rock solid and also extremely vulnerable. Russia’s economic growth looks both impressive and unsustainable. Russia’s foreign policy is a puzzle. Even as Russia becomes increasingly capitalist and Westernized, its policies become increasingly anti-Western.
THE RISE OF THE DECLINING POWER
A new reality in Europe is the re-emergence of Russia as a threat to its neighborhood, a major player that is seen to be unfriendly and unreliable. At the same time, however, it is an indispensable interlocutor of the West.
Russia’s resurgence is occurring at a time when the global hegemony of the U.S. is in decline and the European Union is suffering a profound crisis of self-confidence. It comes at a time of “fundamental heterogeneity and contradiction pertaining both to the nature of political units and the character of the tensions, solidarities and oppositions between these units.” So, the question is: How serious is the Russian challenge and how did the current crisis in relations between Russia and the West arise? Is Russia a rising power, or is it a declining power that is merely enjoying a temporary revival?
Soaring gas and oil prices have made energy-rich Russia more powerful, less cooperative and more arrogant. The petrodollars that have floated the state budget have dramatically decreased the Russian state’s dependence on foreign funding. Today, Russia has the third largest hard currency reserves in the world. Moreover, it is running a huge current account surplus and paying off the last of its debts accumulated in the early 1990s. Russia’s reliance on Western loans has turned into Europe’s reliance on Russian oil and gas.
Russia’s military budget has increased six times since the beginning of the 21st century, and Russia’s intelligence network has penetrated all corners of Europe. For now at least, Chechnya has been pacified and Russia has succeeded in regaining the strategic initiative in Central Asia. Russia’s influence in global politics has also increased dramatically. The Security Council deadlock over the status of Kosovo is the latest demonstration of the new reality: Russia can no longer be ignored. In short, Russia is a rising power that will no longer accept lectures from others. Today, Russia wants to lecture.
Rise and re-emergence of Putin’s Russia
In a televised address on July 17, President Vladimir Putin proclaimed: “There are forces both in Russia and the US that abide by 20th Century thinking, rather than the 21st Century, those who love and feed on ideas of the past competition. While protecting our national interests we can always find solutions to problems through compromise, rather than confrontation”.
Precisely a month later, Putin announced: “At midnight today, August 17, 14 strategic missile carriers, support and refuelling aircraft took off from seven air-force bases in different parts of the Russian Federation and began a patrol involving a total of 20 aircraft. Such patrols will be carried out on a regular basis. The patrols are strategic in nature”.
As Russian aircraft spread out across the Atlantic, resuming a practice ended in 1992, NATO jet-fighters in Europe scrambled from their bases to deal with a totally new situation. Significantly, this development followed Moscow’s decision to develop strategic nuclear capabilities to counter the US decision to deploy anti-ballistic missile defences in Poland and the Czech Republic, despite Russian concerns.
Ever since the Soviet Union collapsed, the Russians have witnessed American and NATO measures to contain their influence and encircle them militarily and diplomatically. These measures included the admission of former Warsaw Pact members and such Soviet Republics as Poland, Bulgaria, Romania, Estonia, Latvia and Lithuania into NATO, coupled with various forms of associate arrangements between NATO and the former Soviet Republics of Azerbaijan, Georgia, Moldova and Ukraine.
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The Re-emergence of an Assertive Russia August 29, 2007
Russia's decision to resume the Soviet-era practice of sending strategic bombers on long-range flights well beyond its borders, just a few days after concluding an air exercise over the North Pole involving such aircraft, seems to suggest a willingness to challenge US intrusion into its neighbourhood and NATO's continuing eastward expansion. Some 14 strategic bombers took off from seven airfields across Russia, along with support and refuelling aircraft on August 17. These long-range bombers carried out patrol flights in various parts of the world, including over the Arctic, the Atlantic and Pacific Oceans as well as over the Black Sea. The flights concentrated on major shipping routes and areas of Russia's economic interest. This Russian move has been considered as a bounce back policy, in protest against US plans to deploy part of its missile shield in the Czech Republic and Poland supposedly for guarding new NATO states against missile attacks mainly originating from Iran. The Russian decision to despatch these bomber sorties has been interpreted as Putin's effort to boost Russian military power and show to the world Russia's renewed capabilities. Following as it does other Russian decisions in recent months like missile tests, announcements about not complying with the INF treaty and the Treaty on Conventional Forces in Europe, etc., the resumption of long-range bomber flights has led some analysts to draw similarities with the Cold War era confrontation between the Soviet Union and the United States.
Russia considers the deployment of portions of the US missile shield in its immediate neighbourhood as a threat to its own security, mainly because any interception of missiles targeted at eastern or central Europe would definitely take place over Russian airspace, which might prove harmful to its population. Russia has pointed out that interceptors could be fired from US ships, which would result in debris harmlessly falling into the sea. Moreover, the Russian discourse on the issue highlights the point that the US claim of protecting its European allies from Iranian missiles is misleading, given that Iran is at present not in a position to manufacture missiles that can reach Europe. It is felt that the actual American intention in deploying these systems is to keep Russia pegged in. Russian analysts have also expressed the apprehension that the deployment of these systems could also potentially cause a rift between Russia on the one hand and countries of Eastern and Central Europe on the other.
As an alternative, President Putin has proposed the use of the Gabala radar facility in Azerbaijan, which is geographically closer to Iran. Moreover, the radar at Azerbaijan could easily cover the whole of Europe, whereas a similar installation in Eastern/Central Europe might not be able to do this. Negotiations on this proposal are being carried out by a working group of military and diplomatic experts drawn from Russia and the United States.
Russia To Resume Long-Range Bomber Patrols
President Vladimir Putin said Friday that he had ordered the military to resume regular long-range flights of strategic bombers, a show of Russia's resurgent military power amid a chill in relations with the U.S.Speaking after Russian and Chinese forces completed major war games exercises for the first time on Russian turf, Putin said a halt in long-range bombers' flights after the Soviet collapse had affected Russia's security. Other nations, he said, had continued such missions — an oblique reference to the United States.
"I have made a decision to resume regular flights of Russian strategic aviation," Putin said in televised remarks. "We proceed from the assumption that our partners will view the resumption of flights of Russia's strategic aviation with understanding."
In Washington, a State Department Spokesman said the U.S. was not troubled by the Russian decision.
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The Reemergence of the Iron Curtain
While the Bush administration has lost its ability to assert itself internationally, the void in cohesive diplomatic power combined with fluctuating energy markets has created the opportunity for problematic relationships to develop outside of the Western spheres. China, a country high on energy demand and human rights abuse, and Russia, supplier of ever more tainted and corrupt oil, have become important trading partners. With the United States and Great Britain’s involvement in Iraq, NATO’s deployment in Afghanistan, and the short-term reliance on Russian gas in continental Europe, China and Russia have built a viable economic partnership as both continually support undemocratic and rogue states. While this has not manifested into a full-fledged political partnership, both China and Russia are increasingly agreeing on international issues that demand multilateral efforts.In the first three months of 2006, bilateral trade between Russia and China exceeded $12 billion or up 53% year-on-year, and “it is only a beginning,” Russian President Vladimir Putin said during the SCO meeting June 15-16. “We have discussed military-technical cooperation—the volumes are very large, worth billions of dollars—and we intend to sustain these volumes”. On the sidelines of the high-profile bilateral summit meetings at the Shanghai Cooperation Organization (SCO) and the Conference on Interaction and Confidence-Building Measures in Asia (CICA) sessions, Russian and Chinese officials reiterated earlier pledges to develop trade and investment cooperation (Sergei Blagov, Jamestown Foundation). The foundation of the agreements have been China’s energy demand and the Russian ability to supply crude oil, with neither having issues with one another’s pocked human rights record. The economic agreements are strengthened by similar aspirations towards Iran and North Korea, with the West desperately seeking each diplomatic support.
42. Rising oil prices.
Oil price at record $100 a barrel Wednesday, 2 January 2008, 22:04 GMT
Oil passes $98 on weaker dollar Wednesday, 7 November 2007, 22:55 GMT
Oil retreats after breaching $96 Thursday, 1 November 2007, 21:20 GMT
Supply fears push oil above $92 Friday, 26 October 2007, 20:45 GMT
Oil reaches new records above $87 Tuesday, 16 October 2007, 19:40 GMT
Crude oil hit a record high of $78.77 Wed Aug 1, 2007 11:20am EDT
Why global oil prices are rising September 01, 2005
Oil is a major source of energy the world over. When energy (read oil) is available at low prices, the outlook towards growth is optimistic and vice versa. Crude oil prices have been rising continuously since 1998, when the price was $10 a barrel.
Since the death of the King Fahd of Saudi Arabia on August 3, crude oil prices have crossed $60 a barrel. Recently, crude prices crossed $70 a barrel as the hurricane Katrina hit the United States and brought production in the Gulf of Mexico to a halt.
All this has led to talk of sustained high prices in the days to come. But, as history tells us, oil is a cyclical business: prices go up only to come down again. So the question that needs to be asked is: why have oil prices been going up and will this increase continue in the days to come?
41. National knowledge commission.
National Knowledge Commission
In particular, the Commission was to advise the Prime Minister's Office on policy related to education, research institutes and reforms needed to make India competitive in the knowledge economy. The Commission was to recommend reform of the education sector, research labs, and intellectual property legislation; as well as consider whether the Government could itself upgrade its use of the latest techniques to make its workings more transparent.
National knowledge commission overview : pdf file
35. Appreciation of the Indian rupee and its impact on the Indian economy.
There is good saying - a million dollar question, probably the usage of the saying might change in near future to - a million rupees question. Certainly, this might happen if more analyses are made on the devaluation of dollar and appreciation of Indian rupees. Within a span of 12 months, the value of dollar has significantly dropped from around 47 to 48 rupees to around 39 rupees. Of late, the value of 1 US dollar is around 39 rupees.
Indian economy is among the fastest growing economies of the world. The appreciation of the rupees against the dollar would be another giant sign towards its economic prosperity and augmentation. However, the economic epidemics like poverty, unemployment etc., could not be dealt in the short-run.
The appreciation of the rupees will help the economy in many ways. There will be positive impact on importers and negative impact on the exporters. Let’s evaluate the possible impact of the devaluation of dollar and appreciation of rupees on the export & import in India. The dollar has been the popular medium of foreign exchange for a long time. Most of the payment for the export or import is made through dollar.
The devaluation of the dollar will have a positive impact on the importers, while it will have adverse effect on the exporters. Importers of goods and services will be getting the goods and services by paying less, as they used to pay 47 rupees against one dollar, now they will be paying around 39 to import the same. The exporter will be getting their return in dollar at the cost of 39 rupees per 1 US dollar, whereas they used to get around 47 rupees against one dollar. The difference in the previous and present exchange would have high impact if the volume of exchange is in millions of rupees or dollars.
In the past one year, the dollar has dropped by around 20 per cent against Indian rupees. This reveals that positive or negative impact on volume of export or import would be around 20 per cent, which can not be over looked as the exporters are suffering losses, whereas importer are on gain. However the impact will remain until there is depreciation of dollar against rupees. If it continues, then a great change can be expected on a long run in international trade arena. Another impact would be the fantasy of dollar has been losing ground day by day.
Analyses made it clear that earlier people were fascinate about dollar due to its value against Indian rupees. But the scenario has completely changed. Those, who were planning to move to US for job, now might plan to settle in Britain, as British economy is one of the strongest economies in the world.
The appreciation of the rupees will have a positive impact, whereas in the global economy the Yen, Euro and other currencies would find place in the foreign exchange race. At the international level, the sliding dollar will have huge impact as it is the global player despite all the hiccups. Finally it would worthwhile to say - depreciation of dollar: a million rupees question.
SOURCE
THE RUPEE’S (INR) appreciation during the last six months or so has taken the wind out of
But there is another side to the story. Certain sections of the economy are welcoming the appreciation. This is because of the following key reasons:
READ HERE
How a rising rupee can make you rich
LINKS to important reports
REPORT 1
REPORT 2
REPORT 3
REPORT 4
34. Coalition governments and political stability.
33. intellectual property rights.
{Covers everything}
The bulletin deals with the wide range of subjects on IPR, including user friendly explanation of different types of IPRs, case studies on patents granted in India and other countries, special studies on technology evaluation, analyses of patent applications filed in India in various technology areas, international treaties and conventions and patent laws in other countries. Besides regular features like domestic and international news and information about patents for being opposed are included.
READ HERE
Intellectual property
wikipedia LinkLINK TO PDF FILE :: Article
32. The influence of online social networks on our youth.
read here
http://www.pewinternet.org/pdfs/PIP_Teens_Privacy_SNS_Report_Final.pdf
Most teenagers with social network profiles online are taking steps to protect themselves from the most obvious risks
Still, 63% of teens with online profiles believe that a motivated person could eventually identify them from their online profile
WASHINGTON – The majority of teens actively manage their online profiles to keep the information they believe is most sensitive away from the unwanted gaze of strangers, parents and other adults. While many teens post their first name and photos on their profiles, they rarely post information on public profiles they believe would help strangers actually locate them such as their full name, home phone number or cell phone number.
At the same time, nearly two-thirds of teens with profiles (63%) believe that a motivated person could eventually identify them from the information they publicly provide on their profiles.
A new report, based on a survey and a series of focus groups conducted by the Pew Internet & American Life Project examine how teens, particularly those with profiles online, make decisions about disclosing or shielding personal information.
Some 55% of online teens have profiles and most of them restrict access to their profile in some way. Of those with profiles, 66% say their profile is not visible to all internet users. Of those whose profile can be accessed by anyone online, nearly half (46%) say they give at least some false information. Teens post fake information to protect themselves and also to be playful or silly.
read more
Youthroots.com Launches Unique Youth Group and Leadership Social Network
Lightworks New Media has launched Youthroots.com, a social networking website designed to help today's youth self-organize to serve their local or global community. The social network offers youth groups and their leaders an alternative to well-known sites like Myspace and Facebook, in that the emphasis is placed on the group to which the youth belongs, rather than the individual. Youthroots also adds increased security measures to protect privacy of its participants.
read more
Social online networks capturing the Heart of American Youth Culture—A Peak inside Latest Trends from Label Networks
read here
Why youth(heart) social network sites
Important link http://www.danah.org/papers/WhyYouthHeart.pdf
Social Network Sites: Definition, History, and Scholarship
Since their introduction, social network sites (SNSs) such as MySpace, Facebook, Cyworld, and Bebo have attracted millions of users, many of whom have integrated these sites into their daily practices. As of this writing, there are hundreds of SNSs, with various technological affordances, supporting a wide range of interests and practices. While their key technological features are fairly consistent, the cultures that emerge around SNSs are varied. Most sites support the maintenance of pre-existing social networks, but others help strangers connect based on shared interests, political views, or activities. Some sites cater to diverse audiences, while others attract people based on common language or shared racial, sexual, religious, or nationality-based identities. Sites also vary in the extent to which they incorporate new information and communication tools, such as mobile connectivity, blogging, and photo/video-sharing.
Scholars from disparate fields have examined SNSs in order to understand the practices, implications, culture, and meaning of the sites, as well as users' engagement with them. This special theme section of the Journal of Computer-Mediated Communication brings together a unique collection of articles that analyze a wide spectrum of social network sites using various methodological techniques, theoretical traditions, and analytic approaches. By collecting these articles in this issue, our goal is to showcase some of the interdisciplinary scholarship around these sites.
The purpose of this introduction is to provide a conceptual, historical, and scholarly context for the articles in this collection. We begin by defining what constitutes a social network site and then present one perspective on the historical development of SNSs, drawing from personal interviews and public accounts of sites and their changes over time. Following this, we review recent scholarship on SNSs and attempt to contextualize and highlight key works. We conclude with a description of the articles included in this special section and suggestions for future research.
read here
Social network sites : private, public or What ?
Link http://www.danah.org/papers/KnowledgeTree.pdf
Visualizing online social networks
Link http://www.danah.org/papers/InfoViz2005.pdf
Understanding social networks
Link http://www.ell.aau.dk/fileadmin/user_upload/documents
/staff/Malene_Larsen_-_Documents/
Paper_Malene_Charlotte_Larsen_REVISED_version_Sep07.pdf
Understanding how information and communication technology matter to youth
Link http://web.uvic.ca/~mecht/dissapril27final.pdf
30. E- learning : a substitute for classroom learning?
29. Infrastructure in india : What needs to be done.
28. Retail boom in India.
The study of the history of retailing business throws up the fact that in most economies organised retailing passes through four distinct phases in its evolution cycle.
In the first phase, new entrants create awareness of modern formats and raise consumer expectations. During the second phase, consumers demand modern formats as the market develops, leading to strong growth. As the market matures, intense competition forces retailers to invest in back-end operating efficiency.
n the final phase, retailers explore new markets as well as inorganic opportunities as growth tapers off. Supply chain management (SCM) attains top priority in the third phase of evolution.
Fierce competition forces retailers to respond quickly to changes in the market, bringing forth the importance of SCM in handling availability of stock, supplier relationships, value-added services and cost cutting.
Traditional retailers are expected to enhance their investments in supply chain, whilst new entrants are likely to look at supply chain first broadening their national reach.
What will fuel the boom?
Where are the road-blocks?
The road ahead
4 reasons why retail is booming May 31, 2005
It has been a decade-and-a-half since India embarked on an ambitious economic liberalisation programme. Over the last five years, many of its benefits have manifested themselves and one of the areas where growth is clearly reflected is retailing.
The latest pronouncements of Finance Minister P Chidambaram about the sector have fuelled interest in stocks from the segment. Let's turn the spotlight on the factors that triggered the exponential growth in the sector.
Primary reasons
The prime reasons that fuelled this boom include favourable demographics, rising consumer incomes, real estate developments, especially the emergence of new shopping malls, availability of better sourcing options - both from within India and overseas - and changing lifestyle.
These factors have transformed hitherto savings-oriented and conservative Indian consumers and made them akin to those in developed markets.
Organised versus unorganised
In a sharp contrast to the retail sector in developed economies, retailing in India - though large in terms of size - is highly fragmented and unorganised. With close to 12 million retail outlets the country has one of the highest retail densities worldwide.
Retailers include street vendors, supermarkets, department stores, restaurants, hotels and even two-wheeler and car showrooms.
Counter stores, kiosks, street markets and vendors, where the ownership and management rest with one person, are classified as traditional or unorganised retail outlets.
These formats typically require employees with low skills and account for around two-thirds of the sector's output. These are highly competitive outlets, with minimal rental costs (unregistered kiosks or traditional property), cheap labour (work is shared by family members) and negligible overheads and taxes.
However, unorganised retailers suffer due to poor shopping experience and inability to offer a wide range of products and value-addition due to lack of sourcing capabilities.
The modern Indian consumer is seeking more value in terms of improved availability and quality, pleasant shopping environment, financing options, trial rooms for clothing products, return and exchange policies and competitive prices. This has created a rapidly growing opportunity for organised, modern retail formats to emerge in recent years and grow at a fast pace.
Inefficiency in the existing supply chains presents further opportunity for organised players to draw on this large market even as lack of consumer culture and low purchasing power restricted the development of modern formats. Migration from unorganised to organised retail has been visible with economic development in most countries.
Changing age profile and disintegration of joint family
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India powers ahead on retail boom December 03, 2004
A retail revolution is sweeping through India. Organised retailing has grown from just Rs 5,000 crore (Rs 50 billion) in 1999 to estimated Rs 30,000 crore (Rs 300 billion) in 2004 -- making it among the fastest-growing industries in the country.
With the growth of malls, multiplexes, and hypermarkets, the consumer is being exposed to a new kind of shopping experience and services which is quietly and surely redefining her expectations from shopping. This will drive change in four areas:
Need to minimise time for shopping whenever necessary. Home delivery, express check-out counters, service and installation by appointment, valet parking -- all little services that need to be offered keeping the consumer's time importance in mind.
Consumer durables and servicing marketers have not yet got on to the discipline of operating on fixed appointed times and this is an opportunity for differentiation.
Retailers themselves need to use scientific linear programming to determine optimal number of checkout counters at different hours and plan for them.
Need for all-in-one offer. With growing time constraints and choices, the consumer is getting used to having options readily at hand when she steps out to make the final purchase decision without much dissonance. Even in a category of movie watching, multiplexes give the "freedom of choice" under one roof!
Need for an enhanced look and feel of the shopping environment. With retail ambiences getting upgraded, clearly the poky neighbourhood kirana stores are becoming part of the past for the hypermarket consumer, and she will soon find it difficult to shop "regularly" at the dusty grocery shop.
This will push the consumer's overall need for greater aesthetics in many other areas. Interestingly, in the late 80s, when Titan launched its first showrooms, it had to battle the consumer perception that "swank" means "expensive".
Today with the growth of malls and hypermarkets, that has changed and consumers no longer think "expensive looking" means "expensive". To actually establish premium imagery through shopping environment is going to be that much more difficult!
Need for customer service to encourage consumers to come back again and again and buy more. Quite contrary to the thought that technology will dehumanise transactions, the truth is humans will make all the difference.
A couple of years ago, Shoppers Stop discovered that their Customer Care associates were an area of concern. There was high turnover and they were not motivated enough.
The real story of India's retail boom January 19, 2007
on a weekday, the DLF Mega Mall -- located in the IT and ITES hub of Gurgaon on the outskirts of Delhi -- bears a deserted look. Of the few operating shops in this large mall, most have nary a customer. The same goes for several other retail outlets and many of the other malls in the vicinity.
True, a retail chain like Future Group's Big Bazaar may be clocking heady sales (growing at 100% year-on-year), but the dozen-odd shops operating in its proximity wear a deserted look, giving a somewhat hollow ring to the much-talked-about retail boom in the country.
In what seems like a quirk of circumstance, malls have sprung up all over urban India in anticipation of a consumption boom that may itself prove to be eventually truant.
Move to Mulund (West), a suburban locality of India's financial nerve, Mumbai. Rajesh Parashar, a resident of the area has the option of shopping at Big Bazaar, Apna Bazaar, Subhiksha, Spinach, Shoprite, Foodland or at the local Sai Supermarket, all of which are within a two-kilometre radius of his residence
This is paralleled by the developments happening in the Delhi suburb of Ghaziabad, where the upcoming Shipra Mall at Indirapuram already has Big Bazaar operating out of its lower-ground floor, while Reliance is slated to open shop on the third floor. Customer footfalls, however, are more in the projections of the occupiers of the mall than real.
All this retail activity, and more, and the sheer gargantuan size of the investments planned, beg the question -- does the consumer's wallet have enough money in it for everyone?
"Only time will tell," is KPMG's executive director, Deepankar Sanwalka's laconic answer. To a great extent the success or the failure of malls will hinge on the consumer population of the area. "If the spending power of consumers is high in a locality, it could sustain two-to-three large players." Not so, elsewhere, he adds poignantly.
The significance of these remarks sinks in gradually. With planned investments of $22 billion over the next five years -- excluding what might be brought in by new global and large local players henceforth -- the retail sector is expected to grow 40% to $427 billion by 2011.
Organised retail, which is 3% of the whole currently, is in turn pegged to grow to $64 billion by 2015. And one consequence of all those investments will be the fact that India's present two square-feet per capita retailing space will rise 15-20% by 2010.
Challenges of India's retail boom January 30, 2007
Andrew Levermore gestures impatiently to the bottle of mineral water on the table. It is clearly old stock - the brand recently rolled out its new look and colours in a high-decibel campaign. But it's not the vintage that is bothering the CEO of Hypercity, Mumbai's largest hypermarket.
"They changed the packaging a couple of months ago, but the bottles still don't have barcodes," Levermore shakes his head in disbelief. "A package makeover in 2006 - and no barcode."
Does it really matter? Perhaps not to the kirana or paan shops, which, admittedly, collectively sell more bottled water than the hypermarket, but a barcode is a critical business tool for organised retail, where it helps track products from the warehouse to store shelves and, finally, the checkout counter.
And when suppliers don't provide barcoded products, retailers need to print their own barcodes and then employ staff to stick them on every piece of merchandise. In a store like Hypercity, which carries 80,000-100,000 SKUs (stock-keeping units) at any given time, that means a lot of sticking.
It is also an indicator of the changes organised retail brings in its wake. For decades now, consumer goods companies have been used to delivering to India's proverbial "12 million kiranas" more or less on terms of their own choosing.
They are now finding that modern format retail doesn't operate along quite the same lines. In fact, it is so dramatically different, it is an entirely new business. "With the rise of organised retail, the balance of power shifts in favour of retailers," points out Jagdish Sheth, Charles H Kellstadt professor of marketing in the Goizueta Business School at Emory University.
What opportunities and challenges do organised retail present for consumer goods suppliers? And what strategic changes will help them do better business with giants like Wal-Mart, Reliance Fresh, Foodworld and Food Bazaar? the strategist takes a look.
The kiranas continue
What's in store
The distribution dilemma
Jo dikhta hai, woh bikta hai
RETAIL BOOM FUELLED BY IT IN INDIA AND CHINA
Smaller towns to fuel retail boom
AFTER the big metros, it is the turn of tier-II towns — with population of up to a million — to become the focus of the retail industry boom.
According to a research paper by KSA Technopak and ICICI Property Services, tier-II towns and cities will witness major retail format developments of less than 1,00,000 sq. feet by 2006. It says that the retail boom, 85 per cent of which has so far been concentrated in the metros, will percolate to smaller cities and towns and that the contribution of these tier-II cities to total organised retailing sales will grow to 25 per cent.
Prominent tier-II cities and towns that are witnessing a pick-up in activity include Surat, Lucknow, Dehradun, Vijaywada, Bhopal, Indore, Vadodara, Coimbatore, Nasik, Bhunaneshwar, Varanasi and Ludhiana.
Availability of cheaper real estate options coupled with brand acceptance among consumers in these cities is leading retailers and property developers to achieve breakeven much faster compared to larger cities. Average rental values for groundfloor space range between Rs 50-60 a sq. foot a month as opposed to Rs 100-120 a sq. foot a month in some of the prominent metropolitan cities.
Retail boom fuels player competition
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Retail boom: FDI can give the extra thrust
Market liberalisation, a growing middle-class, and increasingly assertive consumers are sowing the seeds for a retail transformation that will bring more Indian and multinational players on the scene.
The big Indian retail players looking to expand their operations include Shopper's Stop, Pantaloon, Lifestyle, Subhiksha, Food World, Vivek's, Nilgiris, Ebony, Crosswords, Globus, Barista, Qwiky's, Café Coffee Day, Wills Lifestyle, Raymond, Titan, Bata and Westside.
Well-established business houses such as Wadia, Godrej, Tata, Hero, Malhotras, etc., are drawing up plans to enter the fast-growing organised retail market in India.
Taking advantage of the retail boom, Himatsingka Seide, India's largest manufacturer of silk and silk-blended fabrics and a 100 per cent export oriented unit, has floated a subsidiary, Himatsingka Seide Wovens, to foray into the retail business with a series of fine furnishings stores, called Atmosphere, across the country.
Similarly, Welspun, a leading manufacturer of terry towels, has entered the domestic retail business with a home textile brand, Spaces, which will offer a range of bed, bath, kitchen and table linen, specifically for the Indian market. The company currently exports to 32 countries.
According to reports, Reliance Industries Ltd plans to enter the retail business in a big way and has identified 18 cities, starting with Ahmedabad, to set up malls. It will spend Rs 30-50 crore on each mall, that are to be modelled after those in Dubai and East Asia.
27. Corporate social responsibilty.
- 1 Development and analysis
- 2 Definitions of CSR
- 3 Approaches to CSR
- 4 Auditing and reporting
- 5 The business case for CSR
- 5.1 Human resources
- 5.2 Risk management
- 5.3 Brand differentiation
- 5.4 License to operate
- 6 Critical Analysis
- 7 CSR from a Business Perspective
- 7.1 Disputed business motives
- 7.2 Critics who believe that CSR is self interested
- 7.3 Hindrance of free trade
- 8 Drivers of Corporate Social Responsibility
- 9 Ethical Consumerism
- 10 Globalization and Market Forces
- 11 Social Awareness and Education
- 12 Corporate Behaviour and Culture
- 13 Government Laws and Regulation
- 14 Consequences and Events