Ashu Xavier

Dhiraj Sawant
Dhairyasheel Powar
Fiona Alphonso
Introduction:
•This article provides growth of retail industry in
India.
•It examines the growing awareness & brand
consciousness among people across different
socio-economic classes in India & how the urban
& semi-urban retail markets are witnessing
significant growth
•Key forces for global retail giants are vast
middle class & it’s almost untapped retail
industry.
•The Indian population is witnessing a
significant change in its demographics.
 India retail industry is the largest among all
the industries, accounting for over 10% of the
country’s GDP & around 8% of the
employment.

 India retail industry is expected to grow 25%

annually.

 Modern retail in India could be worth US $175-

200 billion by 2016.
 A large young working population with
median age of 24 years, nuclear families in
urban areas, along with increasing working
women population & emerging
opportunities in the services sector are
going to be the key drivers of the organized
retail sector in India.

 The trends that are driving the growth of

the retail sector in India are
4. Low share of organized retailing
5. Falling real estate prices
6. Increase in disposable income and customer
aspiration
7. Increase in expenditure for luxury items
 Malls
 Discount Stores
 Department Stores
 Hyper marts/ Supermarkets
 Convenience Stores
 MBO (Multi Brand Outlets)
 For manufacturers and service providers the emerging
opportunities in urban markets seem to lie in capturing and
delivering better value to the customers through retail.

 However, manufacturers and service providers will also

increasingly face a host of specialist retailers, who are
characterized by use of modern management techniques,
backed with seemingly unlimited financial resources.
Organized retail appears inevitable.

Retailing in India is currently estimated to be a US$ 200 billion
industry, of which organized retailing makes up a paltry 3
percent or US$ 6.4 billion. By 2010, organized retail is
projected to reach US$ 23 billion. For retail industry in India,
things have never looked better and brighter. Challenges to
the manufacturers and service providers would abound when
market power shifts to organized retail.
 The retail sector has played a phenomenal
role throughout the world in increasing
productivity of consumer goods and
services.
 The Retail Industry in India has come forth
as one of the most dynamic and fast
paced industries with several players
entering the market. But all of them have
not yet tasted success because of the
heavy initial investments that are required
to break even with other companies and
compete with them. The India Retail
Industry is gradually inching its way
towards becoming the next boom
industry.
 Constant fight for market share
 Consumers-the decision makers
 Consumer buying decision depends on

various factors
 Small room
 Merchandise

arranged as per
convenience
SERVICES
 No bargains  Bargains may be
 Equal discounts considered
and offers to all the  Discounts and

customers offers may differ

 No home delivery  Home delivery may

clause be considered
RANGE
 Varied brands  Limited brands
 Varied price range  Limited price range
 Employment opportunities
 One stop shop
 Raises the standard of living
 Range of offers ,discounts and brands
 Employment opprtunities-75%-80% of part
time job openings
 Shut down of small stores and local

businesses
 No economic development due to shut

down of stores
 Deficit household budgeting
 Monopoly
Factors that would facilitate
a continued Retail Boom in
India
Source-MARKETING
MASTERMIND
JUNE-2009
Paradigm shift in Consumer Lifestyle.
Traditional Outlook to Modern Outlook
Shopping as a Necessity to shopping for

pleasure.
Itemized Purchase to Bulk purchase
Prepared Food to Ready to eat
Utilized-Based products to Lifestyle

Products
Conservative Spending to Liberal

Spending
Increased Buying During Holidays and

Festive Seasons
Enormous potential for rural retail.
50billion dollar organized retail market
by 2011
Presently 87%of rural markets have no
acess to organized rural areas
Future it would be seen integration of
rural supply chain and urban retailers.
Scope for increased FDI in retail.
In future India would eventually have to
open its doors to the likes of
Walmart,Tessco and such others.
Technology Trends
Organized retail sector in india can expect to witness a
second big revolution in the not too distant future,in spite
of setback faced due to the current economic slowdown.
A possible decision to allow FDI in multi-brand retailing
could provide significant impetus, as India is a huge
market with very low percentage .
Inspite of certain speculations organized retail sector is very
likely to bounce back and once again begin growing at
rapid pace.