In the background of high consumerism and income of the urban consumers, in recent year there are a number of companies have expressed their interest towards retail sector outlets. As a result numbers of shopping malls have started their operations in metro and urban areas. Pantaloon, big bazaar, Vishal Mega Mart, Reliance Fresh are the best known examples of retail sector outlets in India. Retailing is the interface between the producer and the individual consumer buying for personal consumption. This excludes direct interface between the manufacturer and institutional buyers such as the government and other bulk customers. A retailer is one who stocks the producer’s goods and is involved in the act of selling it to the individual consumer, at a margin of profit. As such, retailing is the last link that connects the individual consumer with the manufacturing and distribution chain. Some of the key features of retailing include:
* Selling directly to customers with out having any intermediaries * Selling in smaller units / quantities, breaking the bulk * Present in neighborhood or in the location which is quite convenient to the customers. * Very high in numbers
* Recognized by their service levels
* Fitting any size and or location
It is assumed that due to the entry of a number of retail outlets in the urban and semi urban areas, the mindset of the existing customers have undergone drastic changes. Besides it is also reported that the traditional retailing such an age old Grocery shops have directly faced competition with the organized retailing sector. In some parts of the country, it is reported that the traditional retails are resisting the entry of organized shopping malls. For instance the traditional retails of Bhubaneswar with the active support of the consumers at large didn’t allow reliance Fresh to start outlet initially.
* Retailing in India is witnessing a huge revamping exercise as can be seen in the graph * India is rated the fifth most attractive emerging retail market: a potential goldmine. * Estimated to be US$ 200 billion, of which organized retailing (i.e. modern trade) makes up 3 percent or US$ 6.4 billion * As per a report by KPMG the annual growth of department stores is estimated at 24% * Ranked second in a Global Retail Development Index of 30 developing countries drawn up by AT Kearney.
RETAIL SALES IN INDIA
GROWTH FACTOR FOR INDIAN ORGANIZED RETAIL INDUSTRY
India's economy is booming, due to so many economic reforms. The rise in the working population which is young and reduction of the unemployment rate:
* pay- packets which are hefty, and having a huge package of salary package. * more nuclear families in urban areas
* rise in the number of working women
* more disposable income and customer aspiration
* western influenced life style is adopted by all the people. * growth in expenditure for luxury items increases.
GROWTH OF RETAIL INDUSTRY:
Growth of Retail Companies in India exhibits the boom in the retail industry in India over the years. The increase in the purchasing power of the Indian middle classes and the influx of the foreign investments has been encouraging in the Growth of Retail Companies in India.
Reasons for the growth of retail industry are:
* Existing Indian middle classes with an increased purchasing power * Rise of upcoming business sectors like the IT and engineering firms * Change in the taste and attitude of the Indians
* Effect of globalization
* Heavy influx of FDI in the retail sectors in India
TYPES OF RETAIL
The retail industry is divided into organized and unorganized sectors. Organized retailing refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. These include the corporate-backed...