Essay PreviewMore ↓
The most promising and booming industry of future is retailing. AT Kearney, a well-known international management consultancy, recently identified India as the ‘the most attractive retail destination’ globally from among thirty emergent markets (2007). According to a Knight Frank survey, India ranks fifth amongst the 30 emerging retail markets in the developing countries.
• Traditionally, retailing in India can be traced to the emergence of the Corner stores (Kirana) catering to the convenience of the consumers
• Era of government support for rural retail: Indigenous franchise model of store chains run by Khadi & Village Industries Commission
• 1980s experienced slow change as India began to open up economy.
• Textile sector with companies like Bombay Dyeing, Raymond's, S Kumar's and Grasim, saw the emergence of retail chains
• Later, Titan successfully created an organized retailing concept and established a series of showrooms for its premium watches
• The latter half of the 1990s saw a fresh wave of entrants with a shift from Manufactures to Pure Retailers. For e.g. Food World, Subhiksha and Nilgiris in food and FMCG; Planet M and Music World in music; Crossword and Fountainhead in books.
• 1995 onwards saw an emergence of shopping centers, mainly in urban areas, with facilities like car parking targeted to provide a complete destination experience for all segments of society
• Emergence of hyper and super markets trying to provide customer with 3 V’s - Value, Variety and Volume
• Expanding target consumer segment: The Sachet revolution - example of reaching to the bottom of the pyramid.
• At year end of 2000 the size of the Indian organized retail industry was estimated at Rs. 13,000 crore
The retail industry is divided into organized and unorganized sectors.
Organized retailing refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. These include the corporate-backed hypermarkets, retail chains, and also the privately owned large retail businesses. Unorganized retailing, on the other hand, refers to the traditional formats of low-cost retailing, for example, the Corner stores (Kirana shops), owner manned general stores, Cigarette stalls (paan/beedi), convenience stores, hand cart and pavement vendors, etc.
Table 1: India Retail Structure
Retail formats 2002 2003
Total Grocery Outlets 5,170,709 6,037,738
Traditional grocery outlets 4,525,264 5,273,310
Supermarkets 175 2,314
Other grocery outlets 645,270 762,114
Total Drug stores 352,786 405,743
Traditional medical/drugstores 247,582 276,058
Cosmetic stores 105,204 129,685
Source: Business world Marketing White book 2005
Retailing in India is currently estimated to be a US$ 230 billion industry, of which organized retailing makes up 3 percent.
How to Cite this Page
"Retail In India." 123HelpMe.com. 18 Aug 2018
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- Retail reality I. Introduction: The most promising and booming industry of future is retailing. AT Kearney, a well-known international management consultancy, recently identified India as the ‘the most attractive retail destination’ globally from among thirty emergent markets (2007). According to a Knight Frank survey, India ranks fifth amongst the 30 emerging retail markets in the developing countries. Industry evolution • Traditionally, retailing in India can be traced to the emergence of the Corner stores (Kirana) catering to the convenience of the consumers • Era of government support for rural retail: Indigenous franchise model of store chains run by Khadi & Village Industries Commissi... [tags: Business Retail India]
1122 words (3.2 pages)
- 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.... [tags: Information Technology India Retail Market]
1433 words (4.1 pages)
- ... In order to overcome these problems the Company entered into strategic marketing alliances with certain key wholesalers in UAE, UK, Singapore and USA. Under the alliances the Company exported large consignments of approved designs to be stocked and retailed widely at the respective centers. The Company was thus able to provide a larger variety of its products to its retailers readily. This ensured increased offtake and faster payments. In 1995, the company offered initial public offering (IPO), and was listed on the Bombay Stock Exchange and National Stock Exchange of India.... [tags: retail, diamonds, showroom]
649 words (1.9 pages)
- As per estimates made by ASSOCHAM, the US$ 300 bn Indian retail sector, which has been notching YoY growth of almost 35% to 40%, is expected to surpass US$ 365 bn in CY08. Growth prospects are likely to face hurdles owing to factors such as restrictions on FDI (foreign direct investment), the lack of a uniform tax structure across states and increasing pressure on infrastructure in key consumer markets (logistics issue). The retail sector is growing at a hasty pace, fuelled by a strong economy, favourable demographics, rising disposable income level and rapidly changing lifestyles and consumer aspirations of an ever-burgeoning middle class.... [tags: Retail India Business Analysis Market]
881 words (2.5 pages)
- With the rise of British colonization of South Asia in mid-late 18 century came western ideas of the “public”, contextualized in spatial, social and political terms. The later construction of “public” spaces during mid-late 19th century, like parks, evidences that overtime the municipalities, consisting of both Indian and European officials, attempted to alter the landscape of the major cities in an effort to replicate the sociopolitical environment of the western world. However, although, as Sudipta Kaviraj argues, notions of the common or collective identity readily existed in India, adoption of a socio-politically defined “public” sphere proved to be difficult precisely because the ideas... [tags: India]
1606 words (4.6 pages)
- 1.9 Key players: The apparel retail industry is now experiencing a huge development and making a remarkable contribution to GDP, it needs a better and exclusive regulatory framework to sustain the impressive overall growth of the industry. Competition in the retail apparel sector is getting stiffer in the nation as many big market players both national and international are testing and applying different retail plans in the market .Entry by new players is still at a promising stage. But, the increasing competition in the sector would, in due course, lead to a drop of profits with each retail chain trying to attract consumers through new, innovative and effective ways.... [tags: competitions, fashion, clothing]
1003 words (2.9 pages)
- At the end of the 19th century, India's maharajahs discovered a Parisian designer called Louis Vuitton and flooded his small factory with orders for custom-made Rolls-Royce interiors, leather picnic hampers and modish polo-club bags. But after independence, when India's princes lost much of their wealth, the orders dried up. Then in 2002 LVMH, the world's largest luxury-goods group, made a triumphant return to India, opening a boutique in Delhi and another in Mumbai in 2004. Its target was the new breed of maharajah produced by India's liberalised economy: flush, flash, and growing in number.... [tags: India Economy Luxury Market]
1626 words (4.6 pages)
- The main aim of this research is to understand effects of sales promotion on consumer’s perception. Here in this research the major benefits of sales promotion, various sales promotion techniques and how influential these promotions are in the process of making buying decision are clearly analysed and explained. This research also try find effectiveness of various sales promotional methods with respect to Bigbazaar ,New Delhi. For the purpose of carrying out the evaluation literature review's & research methodology & presentation & assimilation has been done this study.... [tags: techniques, consumers, marketing]
651 words (1.9 pages)
- India's Food Processing Sector Report Highlights: India’s food-processing sector, although still in a nascent stage, has undergone important changes over the last six to seven years. The types, variety, quality, and presentation of products have all improved, mainly as a result of economic liberalization, which led to foreign direct investment (FDI) in this sector. Several multinational companies, including US companies like Pepsi, Coca Cola, ConAgra, Cargill, Heinz, and Kellogg’s have invested in the Indian food-processing industry.... [tags: India Food Sector Market Business]
1727 words (4.9 pages)
- Wal-Mart Wal-Mart, a "Big-Box Retailer" employs more than 2.1 million associates worldwide and has two-thousand seven-hundred stores in the United States with many more in Argentina, Brazil, Canada, Central America, Chile, China, Germany, Japan, Korea, India, Mexico, Puerto Rico, and the United Kingdom, making Wal-Mart the largest retailer in the world. "Wal-Mart accounts for upward of 30 percent of U.S. sales, and plans to more than double its sales within the next five years" (Lynn 29-36). Why is Wal-Mart so successful, and is Wal-Mart actually bad for America.... [tags: Retail]
1169 words (3.3 pages)
A study conducted by Fitch, expects the organized retail industry to continue to grow rapidly, especially through increased levels of penetration in larger towns and metros and also as it begins to spread to smaller cities and B class towns. Fuelling this growth is the growth in development of the retail-specific properties and malls. According to the estimates available with Fitch, close to 25mn sq. ft. of retail space is being developed and will be available for occupation over the next 36-48 months. Fitch expects organized retail to capture 15%-20% market share by 2010.
While organized retail makes up for over 70-80 per cent of the total business in developed countries, the Indian organized retail segment pales in comparison with other Asian countries such as China, South Korea and Thailand. Retailing is the largest private sector industry in the world economy, with the global industry size exceeding $6.6 trillion, according to Euromonitor. In China, the organized retail segment accounts for about 20 per cent of the overall business; in Thailand, it is around 40 per cent, while in Malaysia it makes up for nearly 50 per cent of the total business, according to the data.
The retail sector in India is highly fragmented and organized retail in the country is at a very nascent stage. Of the 12 million retail outlets, more than 80 per cent are run by small family business, which use only household labour. China and Brazil, took 10-15 years to raise the share of their organized retail sectors from 5 per cent to 20 per cent and 38 per cent respectively. India too is moving towards growth and maturity in the retail sector at faster pace, according to Ernst and Young India.
According to the E&Y India Retail Report:
• Hypermarkets to be the preferred format for the international retailers entering India
• Malls to move beyond the metros, increase presence in tier II cities
• Organized retail penetration highest across footwear, clothing segment.
• Franchising gaining steam with retailers.
Retail sales in India amounted to be about Rs.7400 billion in 2002, expanded at an average annual rate of 7% during 1999-2002. With the upsurge in economic growth during 2003, retail sales are also expected to expand at a higher pace of nearly 10%. Across the country, retail sales in real terms are predicted to rise more rapidly than consumer expenditure during 2003-08. The forecast growth in real retail sales during 2003- 2008 is 8.3% per year, compared with 7.1% for consumer expenditure.
Modernization of the Indian retail sector will be reflected in rapid growth in sales of supermarkets, departmental stores and hypermarts. Sales from these large-format stores are set to expand at growth rates ranging from 24% to 49% per year during 2003-2008, according to a report by Euromonitor International, a leading provider of global consumer-market intelligence.
Retail Trade 2005 2006 2007 2008 2009 2010
Retail Sales (Rs Bn) 15,409 17,360 19,465 21,715 24,215 27,107
Retail sales (Us $bn) 349.4 385.8 421.3 467.0 516.3 564.7
Retail Sales volume growth (%) 6.0 7.5 7.7 6.9 6.8 7.3
Retail sales US$ Value growth (%) 13.6 10.4 9.2 10.8 10.6 9.4
The trends that are driving the growth of retail sector in India are:
• Low share of organized retailing
• Falling real estate prices
• Increase in disposable income and customer aspiration
• Increase in expenditure for luxury items
Table 3: INDIA RETAIL: 2006 (at current prices)
Retail Segments India Retail Value (Rs.Crore) Organised Retail (Rs.Crore) % Organised in 2006
Clothing, Textiles & Fashion Accessories 113,500 21,400 18.9
Jewellery 60,200 1,680 2.8
Watches 3,950 1,800 45.6
Footwear 13,750 5,200 37.8
Health & Beauty care services 3,800 400 10.6
Pharmaceuticals 42,200 1,100 2.6
Consumer Durables, Home Appliances/equipments 48,100 5,000 10.4
Mobile handsets. Accessories & Services 21,650 1,740 8.0
Furnishings, Utensils, Furniture-Home & Office 40,650 3,700 9.1
Food & Grocery 743,900 5,800 0.8
Catering Services (F & B) 57,000 3,940 6.9
Books, Music & Gifts 13,300 1,680 12.6
Entertainment 38,000 1,560 4.1
US$ 270 Billion US$ 12.4 Billion
Source: IMAGES F&R Research
Quick Stats of Indian Retail
• Market size (total) 2006: US$ 300 bn/annum
• Market size (total) 2010: US$ 427 bn/annum
• Market size (total) 2015: US$ 637 bn/annum
• Market size (modern retail) 2006: US$ 9-12 bn/annum
• Market size (modern retail) 2011: US$ 60 bn/annum
• Annual rate of growth (modern retail): 35%
• Penetration (modern retail) 2006: 3 to 4%
• Penetration (modern retail) 2010: 10%
• Number of retail outlets (total): 12 million
• New Investment by 2011: US$ 30 bn
• No. of persons employed (total): 21 mn
• No. of new jobs in next two years: 2 mn.
• No. of dollar designated millionaires in India(2006) 100,015
• Typical space per outlet: 100 to 500 sq.ft.
• Space occupied (modern retail): 35 mn sq.ft.
• Operating Malls 2007: 114 (35 mn sq.ft.)
• New Malls under construction: 361 (117 mn sq.ft.)
• New space distribution: 65% (top 7 cities), 35% (tier II & III cities)
• New space distribution (among top 7 cities): NCR 34%, Mumbai 23%, Rest 43%