Sector Watch : Indian retail Industry ( Evolution of Indian retail Industry )

By CROW -
Indian Retail Industry is standing at its point of inflexion, waiting for the boom to take place. The inception of the retail industry dates back to times where retail stores were found in the village fairs , Melas or in the weekly markets. These stores were highly unorganized. The maturity of the retail sector took place with the establishment of retail stores in the locality for convenience. With the government intervention the retail industry in India took a new shape. Outlets for Public Distribution System, Cooperative stores and Khadi stores were set up. These retail Stores demanded low investments for its establishment.

The retail industry in India gathered a new dimension with the setting up of the different International Brand Outlets, Hyper or Super markets, shopping malls and departmental stores.

Key Players in the Indian Retail Sector:

The untapped scope of retailing has attracted superstores like Wal-Mart into India, leaving behind the kiranas that served us for years. Such companies are basically IT based. The other important participants in the Indian Retail sector are Bata, Big Bazaar, Pantaloons, Archies, Cafe Coffee Day, landmark, Khadims, Crossword, to name a few.

Retailing in India: a forecast:

Future of organized retail in India looks bright. According to recent researches it is projected to grow at a rate of about 37% in 2007 and at a rate of 42% in 2008. It will capture a share of 10% of the total retailing by the end of 2010. According to the Union Minister of Commerce & Industry, Shri Kamal Nath, the organized retail sector is expected to grow to a value of Rs. 2,00,000 crore (US$45 billion) and may generate 10 to15 million jobs in next 5 years. This can happen in two forms- 2.5 million of these people may be associated directly with retailing and the rest 10 million people may be gainfully employed in related sectors that will be pulled up through the strong forward and backward linkage effects. However to compete in this sector one needs to have up-to-date market information for planing and decision making.
The second most important requirement is to manage costs widely in order to earn at least normal profits in face of stiff competition.

Source : economyindia

Comments

  1. AnalystSeptember 26, 2007 at 3:53 PM

    Theoretically India is ready for the big retail boom, but some how it has not materialised.

    There seeem to be a bid political issue. It reminds me of times when people resisted the computer boom. Many stated that computer will take away low paying jobs. but India eventually went ahead.

    I find the biggest problem politically is when rich people get affected. ( in retail case, there are rich people who own two or three shops) They are the one who are opposing this concept.

    When do you think retail Industry will have the political backing?

    Do you see this boom coming before the election or after?

    ReplyDelete
  2. CROWSeptember 27, 2007 at 3:53 PM

    Boom will surely Come after Election.
    Now we have big player like Big Bazzar, Pantaloons, Archies, Cafe Coffee Day, landmark, Khadims, Crossword and many others making there mark in metro cities.
    Bharati has already entered the market after having strategic aliance with Walmart.
    Once such big players start operating this will generate more jobs Oppun for Medium size retailers and at ground level.
    Keep eye on Retail industry in 2008.

    ReplyDelete

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