Evolution Of Retail Sector Essay

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1.1 Evolution of the Indian Retail Sector

The origins of retailing in India can be traced back to the emergence of Kirana stores and mom-and-pop stores. These stores used to cater to the local people. Eventually the government supported the rural retail and many indigenous franchise stores came up with the help of Khadi & Village Industries Commission. The economy began to open up in the 1980s resulting in the change of retailing. The first few companies to come up with retail chains were in textile sector, for example, Bombay Dyeing, S Kumar 's, Raymonds, etc. Later Titan launched retail showrooms in the organized retail sector. With the passage of time new entrants moved on from manufacturing to pure retailing.

Retail outlets such as Foodworld …show more content…

The sole purpose of all this is retaining the brand loyalty of customers. Indian retail is currently a US$ 245 billion market and is anticipated to extend to almost US$ 385 billion mark by the next five years. The Indian retail sector is currently sporting a brand new look and together with a 46.64 per cent three-year Compounded Annual Growth Rate (CAGR), Conventional marketplaces are paving way for new shopping malls, the likes of superstores, shopping plazas, supermarkets and brand label stores. International style shopping centers have started dotting the skyline of cities and smaller towns, acquainting the Indian customer to a unique shopping experience. The retail industry in India is split up into the unorganized and organized retail …show more content…

A changeover is taking place from the conventional retail sector to organized retailing. But the unorganized segment still dominates and leads the industry. By 2010, the Indian retailing sector is anticipated to become an Rs12.5 trillion market. The share of organized retailing is supposed to jump to about 10 per cent from the existing three per cent. The anticipated staggering growth in organized retailing provides an opportunity to expand the market for both established and new players. According to the latest report India Retail Sector Analysis (2006-07) I by RNCOS, the total retail market is primarily focused in rural regions, which makes up 55 per cent or US$ 165 billion of the overall retail market as opposed to urban segment, which represents 45 per cent or US$ 135 billion of the gross retail market. The rural market is spread over 627,000 villages, even though its centre of attention is focused around a core group of 100,000 villages that makes up 50 per cent of the rural

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