By Ranjan De Silva
Bangladesh is a relatively new player in the world modern food retail scene and we have a lot to go. The future for the Bangladesh modern food retail industry is promising and it is also article attempts to identify where Bangladesh is in the world in terms of the modern the rest of the world and what lessons we can take to grow the industry in Bangladesh. The term 'modern trade' is used to describe the super store business, as it is modern in comparison to the unorganised retail shops and the wet market. The importance:
The importance given to the 'modern trade' is dependent on its share in the entire retail trade is only around 0.5% and is one of the smallest in the world. Developed countries in the Australias, Western Europe and Australia have a share in excess of 80 per cent . It is around 50 per cent in Thailand and many far eastern countries and around 15 per cent in Sri Lanka. The larger the share the better the attention from suppliers and therefore should become the joint effort of the industry players; The formation of the Bat Association therefore is an important step in this direction. The more important step is to share of modern trade. The benefit of growing modern trade:
While there are concerns that modern trade can eliminate livelihoods of many small business shops it is important to look at the issue in a holistic manner, understand the benefits of modern trade and think strategies to reduce. Why? It is a reality that modern trade will grow as it is a natural outcome of globalization. When there is economic growth, the beneficiaries of such economic growth and globalisation. When there is economic growth, the beneficiaries of such economic growth would have more disposable income. Such families will have exposure to new lifestyles through cable TV and experience such lifestyles and they at least feel that their children deserve to be exposed to such experience. It is not only the lifestyle that matters, growing awareness of health and hygiene issues, products and brands, the desire to maintain the right social status, the need for respect and dignity receive when they have to shop at the traditional wet market which comes with all the rude behave underweight of products and other discomforts are making more and more people move. From an economic point of view, modern trade will become a catalyst in improving supply chain when supplies as well as supply chain specialist start investing in up-to-date collecting, sorting, storing and transport facilities. The investments in cold/chill rooms, food preservation packaging, plastic crates and chilled transport etc helps reduction of wastage that is estimated at around 35 per cent and improvement of quality that can fetch a better price for all the players in the value chain. Sri Lanka made it mandatory by act of parliament for the use of plastic crates for transportation of produce from farm to the shelf on the 1St of September. Therefore rather than trying to restrict the growth of modern to meet the aspirations of Bangladeshi families while addressing the perceived negative issues that comes with such change. India for example did not allow global retail chains to establish retail outlets until recently. They allowed them to come into the industry to support supply chain, wholesalers etc. Such strategies need to be recommended by BSOA for the consideration of the government. Bangladesh has banned the use of poly bags and as such all supermarkets have moved to the use of cloth bags. This is very expensive alternative putting pressure on business. India allowed the use of poly bags but this year they made it mandatory for supermarkets to charge for the poly bags to encourage customers to bring back their shopping bags. In order to reduce the impact of the environment. The ingredients:
There are many ingredients for the success of modern retail and I will highlight them with relevant...