FDI in Multi Brand Retailing (A case study of

Mysore)

NAME:-Nisha K Parmar(15066)

DIV: - B

BATCH:-2015-17

ABSTRACT:
The present study was conducted in the city of Mysore to analyze
the perception of the common men about FDI (foreign direct
investment) in MBR (multi brand retailing).The major objective of
these study are:
(1)To know the perceptions of common men about FDI in MBR
(2)To know the differences in their perceptions

INTRODUCTION:
FDI in MBR means a retail store with a foreign investment that can
sell multiple brands under one roof. At present India is number
one in terms of attractiveness to global players. it is also reported
that the Indian retail sector accounts for 22% of the countrys
GDP and contributes to 8% of the total employment. The present
debate by politician is on about FDI in MBR.

LITERATURE REVIEW:
The review of Literature shows that the major impact of FDI in
MBR will be felt by the Farmers, The Local retailers, The SME(small
medium entrepreneur and also it will affect on employment
opportunities, consumers and retail workers.
Impact of farmers: FDI in MBR would be the biggest benefit for the
farmers. Because they will gets maximum profit of direct selling.
Impact of Local retailers: A permission granted to FDI in MBR can
hurt the Local retailers financially and also lead them to losing
livelihood. But another side due to FDI, retailers becomes more
professional and customer friendly. Technology up gradation is
also solution for local retailers to survive against the MBR.

Impact on Employment opportunities: global data shows that

more than 2/3rd of the total employment is connected with retail
sector. Due to FDI, number of modern RETAIL will increase; they
expand the market and creating large amount of additional jobs in
retail.
Impact on consumers: as a consumer point of view, multi brand
retail would help in reduce the problem of adulteration, short
weighing & substandard goods. Also consumers will get access to
quality goods at low cost.
Impact on retail workers: allowing FDI in the retailing is also
expected to have an impact on retail workers by their salaries.

RESEARCH METHODOLOGY:
Data required for this study was collected from the primary
sources. Primary data is relating to perceptions of people
regarding FDI in questionnaire.

DATA ANALYSIS AND INTERPRETATION:

The response of the respondents was different from people to
people, but that overall statements mainly focus the impact of FDI
in MBR on following nine areas.

producers
local retailers
agro based activities
types of consumers
benefit to consumers
prices government
employment generation
wholesalers

ANAYLISIS:-

From the research paper, it is observed that the allowing of FDI in

MBR is affect the producers to large extent and results are in
favor of producers. Where the sales of local retailers will
decrease.FDI is also favorable for Agro based industries. Research
says that number of agro based industries will rise. As per
respondents view, FDI in MBR had positive effects on
customres.number of customers who are quality conscious will
increase. General prize level is also affected by FDI in MBR.
Research observes that FDI in MBR are also in favor of
government, because government gets profit from the service tax
& other tax. It can be inferred that the respondents opinion that
more employment opportunities will be created for skilled and
unskilled workers. On the other side, there may be an increasing
the number of cases in which women employees getting
exploited. If the FDI will allow in MBR, there should be huge effect
on wholesalers. Number of wholesalers will reduce.

TABLE 1:-Mean scores of respondents perceptions on the

impact (of FDI on MBR) on eight dimensions
Number
1
2
3
4
5
6
7
8

dimension
Products
Local retailers
Agro-based
industries
Benefits to
customers
General price level
Government
Employment
Wholesalers

Mean scores
3.81
3.53
3.62

Grand mean

3.69

3.69
3.85
3.86
3.56
3.61

Table 1 show that the overall MEAN SCORES for the nine factors
which were perceived to be affected due to permitting FDI in MBR.
In the opinion of the respondents, the following are the areas
where the impact of FDI in MBR would be favorable.
(1) Customers (2) Government (3) General Price levels (4)
producers
Also research was done in difference Gender-wise, different agewise and different income-wise.

LIMITATION:
The major limitation of this study is that the results may not be
universally applicable. The response of the different people will
different at different time.

CONCLUSION:
To conclude according to the perception of the people of Mysore
city, the impact of allowing FDI in MBR will be favorable for the
government and for the producers. Also government announced
that FDI in MBR will help to improve employment opportunities,
but that could not be proved in this study and impact on the local
retailers is also not established in this study. Hence the result of
this study may not be universally applicable.

AUTHOR:
G.H.mahadevaswamy
R.Nalini

REFERENCES:
Indian journal of marketing
Augast-2013

 Volume number-7