Indian Book Retail Industry

Only available on StudyMode
  • Download(s) : 272
  • Published : January 13, 2013
Open Document
Text Preview
Indian book retail Industry: An Overview
The Indian book retail industry is estimated to be over Rs 3,000 crore, out of which organised retail accounts for only 7 per cent.The industry is expected to grow by approximately 15 per cent a year.Book retail contributes only about 1 per cent to the overall retail industry. Text and curriculum books account for about 50 per cent of the sales. Second-hand books are also a big chunk of the book retail market. In the past few years, several large format book store chains have come up, such as Landmark, Crossword and Om Book Shop etc . More than 75 per cent stores of these large chains are in top eight cities. These Organized Book retailers are focusing on improved customer experience. Many book stores have also introduced coffee shops and provide a library-like atmosphere where customers can sit and read, while sipping coffee. Besides this online channel is also significant with players like Flipkart, Indiaplaza, Infibeam etc. With the printed word considered an endangered species in much of a rapidly digitizing world, India now represents one of the best book markets in the world. “There has definitely been a huge jump in the size of the industry in terms of book sales and the number of books being published,” said Mita Kapur, the founder of Siyahi, a literary agency, who says the number of books published in English is growing by 30 percent a year.  Vikrant Mathur, associate director of Nielsen Book, India, said the volume of book sales grew by 45 percent during the first half of 2011. For the entire year, Nielsen, a global information provider, documented English-language book sales of 3.28 billion rupees – about $62 million – from more than 12 million books sold. And that is probably only a fraction of true total sales, since Nielsen only measures about 35 percent of the total market. “Where physical books are concerned India right now is a very, very big market,” said Priyanka Malhotra, director of Full Circle Publications. “There is a whole younger generation coming up from BPOs who are starting to read in English, which is where a lot of new demand is coming from.” Online retail have also spurred growth in the industry. To summarize India’s book retail industry is broadly divided into 3 sectors : 1. Organized

2. Unorganized
3. Online
The organized sector has big names such as : crosswords, OM book shop , landmark etc to name a few. On the other hand unorganized sector is huge and highly fragmented, with shops spanning from local book stores to road side book shanties to red light book sellers etc. This sector is also filled with piracy and pirated copies of original books (which is a serious threat to the sales of organized sector) Online sector is the newest of them all and has just started to takeoff in sales since last 3-4 years. The major advantage of such a format is the wide variety of offerings under one roof and ease of access for the users. Thus this is the fastest growing sector among all of them. The prominent players in this category are Flipkart.com, Infibeam.com etc.

Unorganized sector (Golden book depot)
Golden book depot is a typical book store among many in the unorganized sector of the india book retail industry. This store is loacated in the vicinity of our target organized sector store ( OM book shop) i.e. Ber Sarai ( adjacent to IIT) in south Delhi.

As can be seen in the photograph, this is a small shop , almost 1/10th of the size of om book shop and most of the products are available behind the counter, with only magazine stand placed just outside the store. As magazines as a category has most no of impulse purchase. On an average around 50-70 customers come to this book store, and this tore has a footfall conversion of over 85% which is very high as compared to the organized sector (OM book shop) . The reason for this behavior is that most of the products in these kind of shops are behind the counter and it doesn’t provide the...
tracking img