Organized Retail in Rural India

Topics: Retailing, Shopping mall, Supermarket Pages: 34 (12087 words) Published: December 9, 2010
Executive Summary
The retail sector in India is witnessing a huge change in its retail industry as traditional markets make way for new formats such as departmental stores, hypermarkets, supermarkets and specialty stores. In this project an attempt has being made to understand the current scenario of the organized retail sector in India and the future challenges as well as the opportunities for the Indian retail sector. The challenges are such as opening of the multi brand retail to foreign players, who are at present only allowed to invest in single brand retail up to 51% and 100% in wholesale retail through FDI and also the threat possessed by foreign players such as Wal-Mart, Carrefour and Tesco because it is often said that emergence of this player changes the entire game of retail in the country. It would be challenging for the Indian players to grow in the market and grasp the hold on the consumers to bring them up shopping to their store. The history of Indian retail sector is not much older but a couple of decades. The major reform in the Indian retail sector started in the year 1991 after liberalization measures were taken by the country. Since then the retail sector have being growing but yet it has to emerge as at the top. This project will put light on steps being adopted by some existing player to face this challenges possessed by emerging players and unorganized retail segment with precise case study about Sahakari Bhandar who have being in this filed for past 40 years and how it has evolved its business in recent years especially after joining hand with Reliance Retail, in systematic manner through a SWOT analysis of this firm and highlighting the some future opportunities for present players in the rural market who have till now confined their operation only to I,II,III tier cities. The project focuses majorly on opportunities in term of un-tapped market, challenges from emerging player along with a case study on the oldest player in the segment Sahakari Bhandar would be the essence of this project.

The retail sector in India is majorly categorized into two forms i.e. organized retail and unorganized retail. Organized retail consists of the modern retail stores such as super market, hyper market, etc. on the other hand unorganized retail consists of the traditional retail stores such as Kirana shop, general store, paanwala, etc. The retail sector in India is witnessing a huge changing exercise as the traditional markets make way for new formats such as departmental stores, hypermarkets, supermarkets and specialty stores. Western-style malls have begun appearing in metros introducing the Indian consumer to a shopping experience like never before. Retailing is one of the pillars of the economy in India and accounts for about 35% of the GDP. Organized retailing refers to trading activities undertaken by licensed retailers i.e. those who are registered for sales tax, income tax, etc. These include the corporate backed hypermarkets and retail chains, and also the privately owned large retail businesses. Organized retail such supermarkets accounts for just 6% of the market as of 2009. Regulations prevent most foreign investment in retailing. Retailing is emerging as a sunrise industry in India and is presently the largest employer after agriculture. Retailing includes all activities involved in selling goods or services directly to final consumers for personal, non-business use. India's vast middle class and its almost untapped retail industry are key attractions for global retail giants wanting to enter newer markets. However the Indian retail sector is still in an emerging stage. Organized retailing aims at providing an ideal shopping experience for the consumer based on the advantages of large-scale purchases, consumer preference analysis, excellent ambience and choice of merchandise. Efficient management of the supply chain to ensure the profitability of the entire chain, large outlets with...
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