Current Status of Retailing in India
The size of the retailing industry in India is estimated to be in the order of Rs. 7200 to 8100 billion (US $ 160-180 billion), with organised retailing estimated to be approximately 2 % (Rs 160-180 billion) of the total retailing industry in the country. Food and grocery retailing is estimated to contribute to around 50% (Rs 3500-4000 billion) of the total sales from retailing. The number of total retail outlets in the country is estimated to be around 12 million. The retail sector is the second largest employer of the country after agriculture. According to the National Readership Survey of 1999, 6.6% of the urban adults and 2% of the rural adults are estimated to be shop owners. India's unorganized retail entrepreneurs may be uneducated. But they are not street-stupid, but street-smart, who know and sense every pulse and breath of the Indian consumer. Dominance of the unorganized sector
The unorganized sector has dominance over the organized sector in India, especially because of the low investment needs. As we know Retailing is the principal link between the producer and the consumer and plays a major role in price formation therefore Unorganized retailers can play their role effectively only by establishing an efficient and cost-effective supply chain. They are the most important link in the supply chain. They should develop such a supply chain which will reduce the wastage and transaction cost thereby reducing the cost of inventories. A reduction in the cost of inventory management will lead to a reduction in the final price to the consumer. We feel if the small unorganized retailers abide the following retail marketing strategies, they will definitely flourish in the Era of organized Retailing.
1.Re Establishment of Customer base
In their preparation to face fierce competitive pressure, Indian retailers must...