The Rise And Rise Of Retail In India
The Indian Retail industry is all set to travel to the next level. In step with the report prepared by global consultancy Northbridge Capital, the retail market, which is currently worth $400 billion, is clocking an annual growth rate of thirty%. "The market is predicted to grow to $700 billion by the tip of 2010.
Of the entire retail market, the share of organised retail in 2008 is 7.five%, valued at $300 million," Although most of the Indian Retail trade continues to be characterized by an unorganized market however the previous couple of years have seen tremendous growth in the organised retail in India. With the Indian big giants like RPG, Pantaloons, Reliance, ITC etc and therefore the foreign players like Adidas, Reebok, McDonalds, the Indian Organised retailing has been growing at a rapid pace. Noting that organised retail market is growing at the rate of forty%, Northbridge Capital said that faster growth rate would be maintained in the next three years, especially with the entry of major world players and Indian corporate houses.
Drivers of the Indian Organised Retail Industry
Changing consumption patterns - Convenience is the need of the hour. The concept of one stop shopping is "IN" and with the rise in the incomes, the consumers are even prepared to pay a lot of to save lots of their time. Per a report by AT Kearney "The consumer spending in India has increased by an impressive seventy five per cent in the last four years and can quadruple in the following 20 years." These days the customers are looking additional for the luxury merchandise and are spending additional on health and wonder care products except for the attire, food and grocery items.
The Stress on Rural markets - The Indian Retail companies has realized that the agricultural markets are a serious supply of revenue, most of which is untapped. Once the arrival of ITC's Chaupal Sagar, DCM Sriram's Hariyali Bazaar and Tata's kisan sansar, the opposite players in retail are looking for expanding into the rural markets.
The impact of technology -.The rise in the use of net has given a replacement direction to the retail industry and has led to the growth of the so known as "e-age" in India. Nowadays a giant variety of organizations share there data with a massive variety of audience through internet. The technologies like Universal Product Code or bar code, RFID chips, Electronic information interchange, Database management etc have given a brand new life to the retailing in India.
The Retail Reforms - The government has allowed one hundred % FDI in the cash and carry format and 51 p.c in the single complete retailing. The International players will conjointly take the routes of Franchise and joint ventures to enter into the Indian Retailing. Over the past few years, a variety of corporations have entered the country through these routes. Some of the international players that have already entered India embody McDonald's, Pizza Hut, Dominos, Levis, Lee, Nike, Adidas, Benetton etc.
Of the entire retail market, the share of organised retail in 2008 is 7.five%, valued at $300 million," Although most of the Indian Retail trade continues to be characterized by an unorganized market however the previous couple of years have seen tremendous growth in the organised retail in India. With the Indian big giants like RPG, Pantaloons, Reliance, ITC etc and therefore the foreign players like Adidas, Reebok, McDonalds, the Indian Organised retailing has been growing at a rapid pace. Noting that organised retail market is growing at the rate of forty%, Northbridge Capital said that faster growth rate would be maintained in the next three years, especially with the entry of major world players and Indian corporate houses.
Drivers of the Indian Organised Retail Industry
Changing consumption patterns - Convenience is the need of the hour. The concept of one stop shopping is "IN" and with the rise in the incomes, the consumers are even prepared to pay a lot of to save lots of their time. Per a report by AT Kearney "The consumer spending in India has increased by an impressive seventy five per cent in the last four years and can quadruple in the following 20 years." These days the customers are looking additional for the luxury merchandise and are spending additional on health and wonder care products except for the attire, food and grocery items.
The Stress on Rural markets - The Indian Retail companies has realized that the agricultural markets are a serious supply of revenue, most of which is untapped. Once the arrival of ITC's Chaupal Sagar, DCM Sriram's Hariyali Bazaar and Tata's kisan sansar, the opposite players in retail are looking for expanding into the rural markets.
The impact of technology -.The rise in the use of net has given a replacement direction to the retail industry and has led to the growth of the so known as "e-age" in India. Nowadays a giant variety of organizations share there data with a massive variety of audience through internet. The technologies like Universal Product Code or bar code, RFID chips, Electronic information interchange, Database management etc have given a brand new life to the retailing in India.
The Retail Reforms - The government has allowed one hundred % FDI in the cash and carry format and 51 p.c in the single complete retailing. The International players will conjointly take the routes of Franchise and joint ventures to enter into the Indian Retailing. Over the past few years, a variety of corporations have entered the country through these routes. Some of the international players that have already entered India embody McDonald's, Pizza Hut, Dominos, Levis, Lee, Nike, Adidas, Benetton etc.
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