Retailing In India

Retailing In India

Introduction
Retail' derived from French word ‘Retailer’ which means to ‘cut a piece off’ or ‘ To break bulk’.
The retail industry has contributed to the economic growth of many countries and undoubtedly one of the fastest changing and dynamic industries in the world.
Retailing in developed countries is a big business and better organized than that in developed and underdeveloped countries.
Organized trade in India is very underdeveloped (approx 4%) when compared with other emerging markets in Asia.

Modernization Of Retail And Its Upshots In India

Delivering value to the customer…a new way of life
Guess what’s the world’s oldest profession ? It’s Retailing !!

Indian retailing industry, which was traditionally dominated by small family, run kirana stores, seems to have finally come of age. The past few years have seen the evolution of organized retailing. Traditional grocery stores have embraced the modern retail formats, companies are setting up exclusive showrooms and professional retail chains. There are retail firms being run by even over million of workers.
To name some formats:
The Departmental stores
Super Markets
Specialty stores
Hyper Markets
Food Services
Department stores Supermarkets Specialty stores Hyper markets Food services

Shoppers’ stop Food world Music world Giant Pizza Hut

Lifestyle Nilgiri’s Tanishq Big-Bazaar Barista

Pantaloons Margin free Health & glow Star India Mc Donald’s
Bazaar

Trinetra Subhiksha Reebok Qwiky’s


All this is the whole-sole of the modernized retail. It is not really awesome, spectacular, glittering and overbearing.
On the other hand organized retail is a modern phenomenon almost fitting with the shape of development of the society.
A large sized, large scale, beautifully presented, elated retail market is the organized, modernized retail market of today.

About the major players in the Retail Business

Reliance industry
Reliance retail’s 25000 crores project will be flogged off with an outlet in Hyderabad. The company plans to target the rural market and gain a stronghold in the urban areas, roes to have a pan India foothold .The company is considering taking over the super bazaar cooperative chain in Delhi.

Pantaloons
Pantaloons made a mark as India’s family store by targeting the middle and upper-middle class of urban population of the country.

ITC
ITC launched “Choupal Sagar” the rural mall to offer variety of products and services to farmers.

Big-Bazaar
The USP of the “Big-Bazaar” was low pricing.


And there are many more to name……….

Advantages???

Benefit to unemployed youth

The Indian retail sector offers an economic opportunity on a massive scale. It provides employment to unemployed youth. According to earliest Young’s report ‘The Great Story’ this sector is expected to create 2 million jobs by 2010. about 20 crore people are dependent on this sector. There is also an increase in the retail management programmes and institutes.

Benefit to Indian Consumers

Quality product.

Reasonable price due to stiff brand competition.
The whole concept of shopping has been altered in terms of format a buying behavior. With the increasing urbanization the Indian consumer is emerging as conscious. They have focus on quality & design product as reasonable price due to stiff brand competition.

Benefit to Indian Economy

According to study it has found that retailing contributes to GDP & employees 7% of work force. India is ranking, as the next foreign investment destiny. India is the 4th largest economy as regards GDP.

FDI in Retail !!!!

The Indian government has decided to liberalize the countries retail sector by allowing 31% foreign stakes to own stores that sell single brand products. India’s fast growing retail market remains largely closed to foreign investment. Global retailers have already been sourcing from India the opening up of the retail sector to be fraught with political challenges.
Many economist & western government have been urging India to open its retail sector. The impact of the FDI would benefit the end user of consumers to a great extent & it will generate quality of employment & provide better value to end consumers, but it would give rise to “Cut throat competition” rather than prompting incremental business. It has given franchisee opportunities for local enterprises.

Problems of Indian Retailing

The Indian retail sector suffers from one fundamental problem : Technically speaking, it is not an industry. Inspite of being one of the largest employees in India, the Indian retailing sector haven't been recognized as an industry by the government. The most obvious beneficiaries of industry status to retail could be the retailers. The retailers would benefit from simpler norms, for setting up new stores and faster processing for most tasks that currently are bogged down by bureaucratic delays. Also, the retailers would benefit from easier availability of funds for financing their expansion and investment plans.

Meeting Global Challenges

The Indian retail sector is ready to take on challenges from global retail players such as Wal – mart and Carrefour because unlike them they have a better understanding of the Indian consumer’s psyche. Ultimately, a successful retailer is one who understands his customer.
The Indian customer is looking for an emotional connection, a sense of belonging. Hence, to be successful any retail outlet has to be localized. The customer should feel that it is a part of his culture, his perceived values and does not try to impose alien values or concepts on him. Indian customer is not keen to buy something just because it is sold by an international company.

Future Trends And Opportunities…..

In the near future India will see a phenomenal growth of shopping malls and specialty retail stores. The specialty stores will cater for home, electronics, furniture, watches, sunglasses and assorted items. There will be more fashion stores for youth. Specialty retail stores and malls are the future of Indian retail market. Retailing in India is gradually inching its way toward becoming the next boom industry.

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