Retailing: the next driver of the Indian economy… the good job that was started by industries such as IT/ITeS, Insurance has now been taken over by retail. While other industries keep up the pace of the growth, we have a new kid on the blocks.
However, how new it may sound, the concept of retailing started back as late as in1863.
Since then, the economy had seen few players in the modern or organized retail…. Companies like Pantaloon Retail, Pyramid Retail, and Shoppers Stop have been the “Big Players” of the industry
Retailing is the largest employer in India. The Indian retail industry is about 9.9 lakh crore.
The question is what has made industry people al of the sudden stand up and take note of it?
The answer lies in the change in the spending by consumers with increase in the number of middle class households acting as a catalyst. The average income of Indian middle calss family is increasing and so is the need for quality at the right price…
Right now, the organized retail forms a mere 3% of the total pie, hence the potential in terms of growth is immense, in fact 30% to be precise over net 3 years (source: KPMG-KSA Techno park-FICCI survey 2005). 97% showcases stores like mom and pop which is the most popular form of retailing in India.
Growth in organized retailing is happening also because of the formats that are being adopted by the retailers. From the known format of life style retailing, retailers have come up with supermarkets, hypermarkets and discount stores such a Big Bazaar, Spencer’s, Sabka Bazaar etc..
These stores offer the same quality available at any mom and pop store but at a discounted price which is usually lower than the MRP.. Another aspect that mobilizes footfalls is of “one stop shop”. One can find from a pin to a printer under one roof.
Big Bazaar is one instance which is changing the buying habits of consumers and that too fast. Regular innovative schemes such as “exchange mela” keep the buyer in the loop and Kishore Biyani, MD, Pantaloon retail knows that pretty well. “We focus on giving customer, value for money” he said in a recent interview with a business magazine.
The Indian market is warming up quite nicely to the organized retailing and stores like Big Bazaar; spencer’s are preparing a perfect competitive environment for the likes of Wal Mart and other international players for the time when they enter Indian market
Coming Up Next: Organized Retailing: Opportunities & Challenges
However, how new it may sound, the concept of retailing started back as late as in1863.
Since then, the economy had seen few players in the modern or organized retail…. Companies like Pantaloon Retail, Pyramid Retail, and Shoppers Stop have been the “Big Players” of the industry
Retailing is the largest employer in India. The Indian retail industry is about 9.9 lakh crore.
The question is what has made industry people al of the sudden stand up and take note of it?
The answer lies in the change in the spending by consumers with increase in the number of middle class households acting as a catalyst. The average income of Indian middle calss family is increasing and so is the need for quality at the right price…
Right now, the organized retail forms a mere 3% of the total pie, hence the potential in terms of growth is immense, in fact 30% to be precise over net 3 years (source: KPMG-KSA Techno park-FICCI survey 2005). 97% showcases stores like mom and pop which is the most popular form of retailing in India.
Growth in organized retailing is happening also because of the formats that are being adopted by the retailers. From the known format of life style retailing, retailers have come up with supermarkets, hypermarkets and discount stores such a Big Bazaar, Spencer’s, Sabka Bazaar etc..
These stores offer the same quality available at any mom and pop store but at a discounted price which is usually lower than the MRP.. Another aspect that mobilizes footfalls is of “one stop shop”. One can find from a pin to a printer under one roof.
Big Bazaar is one instance which is changing the buying habits of consumers and that too fast. Regular innovative schemes such as “exchange mela” keep the buyer in the loop and Kishore Biyani, MD, Pantaloon retail knows that pretty well. “We focus on giving customer, value for money” he said in a recent interview with a business magazine.
The Indian market is warming up quite nicely to the organized retailing and stores like Big Bazaar; spencer’s are preparing a perfect competitive environment for the likes of Wal Mart and other international players for the time when they enter Indian market
Coming Up Next: Organized Retailing: Opportunities & Challenges
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