Retail in India Organized retailing is a decade old industry in India with an overall market share of 3 percent. Currently, the estimated total sales of organized retailers are Rs.175 billion. The sector has witnessed robust growth during the last two years which could mainly be attributed to the establishment of international quality formats modified to suit the Indian purchase behavior; entry of several domestic and international players; development of retail-specific properties; improvement in retail processes and turnaround in operations of some existing retailers. This growth in organized retail is being driven by a number of structural, social, and demographic and macroeconomic factors as well. The increasing globalization of the Indian economy has led to growing exposure to foreign markets resulting in increasing demand for international shopping experience in India.
India’s second largest market is the apparel industry with $3.5 billion (Data monitor). In the past and till the present time, organizations in order to obtain overseas funding used to sell their single branded products to common public. In the retail outlet, investment of 51% was allowed in individual branded products. An increase in the number of local designers who have benefited from international identification recently is one of the major reasons for this expansion. Other factors like the introduction of related courses for business education indulged in developing designers and creating an association with the industry are responsible for such growth in the Indian fashion industry as well.
“Food and Grocery” and “Mobile and telecom” are the other major contributors to this segment. 184.108.40.206. Key drivers of retail growth in India The growing disposable income in the country is resulting in increasing consumer spending habits. A large young working population with age of 24 years, nuclear families in urban areas, along with increasing working women population and emerging opportunities in the services sector are going to be the key factors in the growth of the organized Retail sector in India. (Thambala, 2013) Factors driving the organized retail sector include the following: • Higher incomes driving the purchase of essential and non-essential products.
High-end suppliers of premium products have mostly disappeared, but interior designers still drive sales of the carriage trade (ABTV Industry Watch Report, 2013). U.S. furniture exports are also showing a steady increase in revenue with 4% growth in both 2012 and 2013. Total exports were valued at $1.1 billion in 2013 with the largest foreign consumers of U.S. furniture being China, Canada and Mexico. Some companies focused on manufacturing for the export market have reported gains w... ... middle of paper ... ...stry where customers are still inclined to touch and feel a product before purchase, combining traditionally preferred customer points of contact with web-based shopping channels into a single experience is claimed to be a powerful means of capturing a local market. However, ecommerce and omni-channel selling require significant investments in web development and marketing (Cory, Furniture Today).
Sainsbury’s has been expanding its clothing offer to include more trend-led and exclusive items, as well as growing its focus in quality and design with a premium Tu collection and an occasion wear range. The importance of E-commerce. However, this is likely to change due to e-commerce which has taken a different dimension, from e-marketing to online retail. The introduction of e-commerce has indeed tremendously changed the target market for the industry and consumer preference. According to Mintel, online sales of clothing, footwear and accessories are estimated to grow by 17.3% to reach £13.9 billion in 2017, accounting for 24% of all spend in the clothing retail market.
In 2012-13, almost 80% of the total exports of that year came from exporting apparels of approximately $21515.73 billion. Inspite of the postponement of the MultiFibre Agreement (MFA) quota system in the United States from 2004, the RMG exports of Bangladesh has experienced a high-rise since then. Both small and large firms are expanding their export network and improving production capacities and export apparels to the famous international brands like H&M, Li & Fung, Tom Tailor, Levis, Gap, Texco, OBS, Pierre Cardin, Neck & Neck etc. However, the garments industry is feared to become infirm because of recent unfortunate events like the factory of ‘Rana Plaza’ collapse on April 24, 2013 and fire in the ‘Tajrin garments’ in late 2012 killed almost 1300 workers in total. These incidents made the importers and the foreign investors rethink the future of their operation at the same time raised the issue of workplace safety and proper remuneration of the garments labors.
Ac... ... middle of paper ... ...od and bright, promising future as Organized retail is a new experience in India and despite the downturns, the market is growing exponentially well, as economic growth brings more of India’s population into the consuming classes and organized retail is bringing more and more existing shoppers into its open doors. By 2015, more than 300 million shoppers are likely to support organized retail chains. The growing middle class is also an important factor contributing to the growth of retail industry in India. By 2030, it is estimated that 91 million households will be ‘middle class’, up from 21 million today. Also by 2030, 570 million people are expected to move in cities, nearly twice the population of the United States today.
Employing roughly 1.9 million people in the United States, the fashion and apparel industries have helped bring unemployment out of previous troughs. (U.S. Bureau of Labor) With constant growth in fashion, the education level requirements rise in the United States to acquire careers in fashion, resulting in higher degrees and wages for those in these fields. More than 200 schools across the country offer fashion-related programs and prepare students for high-wage jobs in the fashion industry. (Sociology of Sexuality) These programs help prepare children by building skills and tools needed to survive and thrive in the fashion field. Supporting these programs has made it a dramatic jump in the economy.
Demographics— Proctor and Gamble is one of the largest consumer product companies in the world. They registered in the 2004 fiscal year global sales of $51.4 billion in the segments of fabric and home care, beauty care, baby and family care, healthcare, and snacks and beverages. The products in these segments include Tide, Crest, Charmin, Downy, Pampers, Folgers, Bounty, Ariel, Pringles, Always, Pantene, and Iams. The industry is growing rapidly due to the high demand of these products, because of increased competition. There is a higher population density caused by the increase in households per year.
The pace of economic development, growth in world trade and communications, and the investment in physical capital and education have all played a role in the sudden rise of the East Asian economies. One factor which has helped the long-term economic growth of South Korea and Taiwan is the pace of economic development. The pace has accelerated over time. As time progresses, countries seem to be able to grow at a much more rapid rate. From 1780, it took Great Britain 58 years to double its real income per head.