We spent today with Ramit of Amway India. He is a retail market strategist and helped us understand how goods get to households in India. 96% of retailing in India is what Ramit calls the unorganized sector… characterized by small stand-alone shops with lower quality goods, under developed supply chains, negotiable prices, home delivery and purchasing on credit. The remaining 4% of retailing is what Ramit called the organized sector and looks more like the USA… “normal” stores, higher quality and more expensive goods and stronger supply chains. After receiving a lecture on this for an hour we went out and explored these two types of retailing. We first went to Lajpat Nagar Central Market which is mostly unorganized retail. Then we went to Select City Walk in Sakat which is a large mall with shops ranging from department stores to grocery stores to high end single brand stores. Ramit said that there is an evolution happening from unorganized to organized retail as incomes rise and preferences evolve. The mall certainly was busy! But Ramit said most people still prefer their mom & pop small shops in the neighborhood. Foreign owned multi line stores (such as Walmart) are not allowed in India at this point.. although legislation allowing this has recently been considered and rejected by parliament.
Ramit treated us to a delicious huge lunch at the mall. After we had been served a lot of good food and we were feeling quite full, it was announced that appetizers were over and it was time for the main course buffet. Below you see Ramit at the end of the table, before any food was served.
In one of the unorganized sector shops Brad tried on some fancy wedding clothes. Does he have a girlfriend?