Go retail with smart design for fresh produce

November 29, 2013 by Indro

If you are the average Indian you have been bombarded with ideas that profit seeking is bad and big business houses are bad. What the preachers of these ideas do not tell you or do not realise is that people who have a lot of money do not run charities through businesses, they invest if they think there is profit. And efficiency is often the key to make money out of thin air. Sometimes you do not have to produce more, you just have to plug a few leaks through redesign of markets and make money in the process. That requires smart thinking and smart business sense which people who are keen to make their money multiply try their best to develop.
Nothing makes more sense than to allow retail chains all across India for fresh produce. There is a lot of leaks to be plugged and money to be made in that sector through smart supply chain management and storage investments. There are foreign retail chains that have figured this out already, then why not allow them in?
That is bad for the country’s domestic sellers? There are smart ways to sell licenses to allow the stores to operate in markets. You are worried that the big businesses will want licenses to sell only in the profitable markets? No problem, tie the licenses! You are worried that the licenses will make them local monopolies? No problem let the smaller stores and fresh produce bazaars operate, too! Build public infra structure with the money collected from licenses to bring down the cost of supply chain management. There are smart market designs that you can actually do to address much of your concerns.
You don’t believe there is a lot of money that can be saved through plugging the holes at the first place? Check out the link below. That is a lot of money to be saved, how do you care if some business houses are saving that money for you and pocketing half of it at the same time. You get the other half out of thin air!


Cheap Talk

A blog about economics, politics and the random interests of forty-something professors

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