Indian Retail Industry
The Indian retail industry is the fifth largest in the world. Comprising of organized and unorganized sectors, India retail industry is one of the fastest growing industries in India,especially over the last few years. Though initially, the retail industry in India was mostly unorganized, however with the change of tastes and preferences of the consumers, the industry isgetting more popular these days and getting organized as well. With growing market demand, the industry is expected to grow at a pace of 25-30% annually. The India retail industry is expected to grow from Rs. 35,000 crore in 2004-05 to Rs. 109,000 crore by the year 2010.Growth of Indian Retail According to the 8th Annual Global Retail Development Index (GRDI) of AT Kearney, India retail industry is the most promising emerging market for investment. In 2007, the retail trade in India had a share of 8-10% in the GDP (Gross Domestic Product) of the country. In 2009, it roseto 12%. It is also expected to reach 22% by 2012. According to a report by Northbride Capita, the India retail industry is expected to grow to US$700 billion by 2012. By the same time, the organized sector will be 20% of the total marketshare. It can be mentioned here that, the share of organized sector in 2007 was 7.5% of the total retail market.
Major Retailers in India
Pantaloon
Future Group
Tata Group - Trent
RPG Group - Health and Glow
Reliance - Reliance Fresh and Reliance Mart
AV Birla group
Spencers
Bharti Group-walmart
Carrefour
Retail formats in India
Hypermarts/supermarkets: large self-servicing outlets offering products from a variety of categories.
Mom-and-pop stores: they are family owned business catering to small sections; they areindividually handled retail outlets and have a personal touch.
Departmental stores: are general retail merchandisers offering quality products andservices.
Convenience stores: are located in residential areas with slightly higher prices goods dueto the convenience offered.
Shopping malls: the biggest form of retail in India, malls offers customers a mix of alltypes of products and services including entertainment and food under a single roof.
E-trailers: are retailers providing online buying and selling of products and services.
Discount stores: these are factory outlets that give discount on the MRP.
Vending: it is a relatively new entry, in the retail sector. Here beverages, snacks and other small items can be bought via vending machine.
Category killers: small specialty stores that offer a variety of categories. They are knownas category killers as they focus on specific categories, such as electronics and sportinggoods. This is also known as Multi Brand Outlets or MBO's.
Specialty stores: are retail chains dealing in specific categories and provide deepassortment. Mumbai's Crossword Book Store and RPG's Music World are a couple of examples
Challenges facing Indian retail industry
The tax structure in India favors small retail business
Lack of adequate infrastructure facilities
High cost of real estate
Dissimilarity in consumer groups
Restrictions in Foreign Direct Investment
Shortage of retail study options
Shortage of trained manpower
Low retail management skill
The Future
The retail industry in India is currently growing at a great pace and is expected to go up to US$833 billion by the year 2013. It is further expected to reach US$ 1.3 trillion by the year 2018 at aCAGR of 10%. As the country has got a high growth rates, the consumer spending has also goneup and is also expected to go up further in the future. In the last four year, the consumer spendingin India climbed up to 75%. As a result, the India retail industry is expected to grow further inthe future days. By the year 2013-14 organised sector is expected grow at CAGR of 40%.
Major Retailers in India
Pantaloon
Future Group
Tata Group - Trent
RPG Group - Health and Glow
Reliance - Reliance Fresh and Reliance Mart
AV Birla group
Spencers
Bharti Group-walmart
Carrefour
Retail formats in India
Hypermarts/supermarkets: large self-servicing outlets offering products from a variety of categories.
Mom-and-pop stores: they are family owned business catering to small sections; they areindividually handled retail outlets and have a personal touch.
Departmental stores: are general retail merchandisers offering quality products andservices.
Convenience stores: are located in residential areas with slightly higher prices goods dueto the convenience offered.
Shopping malls: the biggest form of retail in India, malls offers customers a mix of alltypes of products and services including entertainment and food under a single roof.
E-trailers: are retailers providing online buying and selling of products and services.
Discount stores: these are factory outlets that give discount on the MRP.
Vending: it is a relatively new entry, in the retail sector. Here beverages, snacks and other small items can be bought via vending machine.
Category killers: small specialty stores that offer a variety of categories. They are knownas category killers as they focus on specific categories, such as electronics and sportinggoods. This is also known as Multi Brand Outlets or MBO's.
Specialty stores: are retail chains dealing in specific categories and provide deepassortment. Mumbai's Crossword Book Store and RPG's Music World are a couple of examples
Challenges facing Indian retail industry
The tax structure in India favors small retail business
Lack of adequate infrastructure facilities
High cost of real estate
Dissimilarity in consumer groups
Restrictions in Foreign Direct Investment
Shortage of retail study options
Shortage of trained manpower
Low retail management skill
The Future
The retail industry in India is currently growing at a great pace and is expected to go up to US$833 billion by the year 2013. It is further expected to reach US$ 1.3 trillion by the year 2018 at aCAGR of 10%. As the country has got a high growth rates, the consumer spending has also goneup and is also expected to go up further in the future. In the last four year, the consumer spendingin India climbed up to 75%. As a result, the India retail industry is expected to grow further inthe future days. By the year 2013-14 organised sector is expected grow at CAGR of 40%.