fdi retail in india
Development of Modern Retailing in India: It’s Impacts on
Distribution and Procurement Networks and
Changing Consumption Pattern
Piyush Kumar Sinha
Srikant Gokhale
Sujo Thomas
W.P. No. 2012-12-04
December 2012
The main objective of the working paper series of the IIMA is to help faculty members, research staff and doctoral students to speedily share their research findings with professional colleagues and test their research findings at the pre-publication stage. IIMA is committed to maintain academic freedom. The opinion(s), view(s) and conclusion(s) expressed in the working paper are those of the authors and not that of IIMA.
INDIAN INSTITUTE OF MANAGEMENT
AHMEDABAD-380 015
INDIA
IIMA
INDIA
Research and Publications
Development of Modern Retailing in India: It’s Impacts on Distribution and
Procurement Networks and Changing Consumption Pattern
Piyush Kumar Sinha
Professor, Indian Institute of Management Ahmedabad
Email: pksinha@iimahd.ernet.in
Srikant Gokhale
Adjunct Faculty, Indian Institute of Management Ahmedabad
Sujo Thomas
Academic Associate, Indian Institute of Management Ahmedabad
Email: sujothomas@hotmail.com
Abstract
The Indian retail industry is estimated to be $470 billion. The organized or modern retailing with 6% share stands at $26 billion. It is projected to reach US$ 1.3 trillion by 2018 with the organized retail market estimated to grow at the compounded annual growth rate of 40% and reach US$107 billion by the year 2013. Entry of these retailers in different formats, including online, has affected an irreversible change in consumer buying habits and businesses related to serving these retailers. However, unlike many other countries, India has its own unique character of size, geographical spread, cultural diversity, and multiplicity of formats being introduced at quick succession. Retailers also face the challenge of developing infrastructure, on their own or in cooperation with the
Distribution and Procurement Networks and
Changing Consumption Pattern
Piyush Kumar Sinha
Srikant Gokhale
Sujo Thomas
W.P. No. 2012-12-04
December 2012
The main objective of the working paper series of the IIMA is to help faculty members, research staff and doctoral students to speedily share their research findings with professional colleagues and test their research findings at the pre-publication stage. IIMA is committed to maintain academic freedom. The opinion(s), view(s) and conclusion(s) expressed in the working paper are those of the authors and not that of IIMA.
INDIAN INSTITUTE OF MANAGEMENT
AHMEDABAD-380 015
INDIA
IIMA
INDIA
Research and Publications
Development of Modern Retailing in India: It’s Impacts on Distribution and
Procurement Networks and Changing Consumption Pattern
Piyush Kumar Sinha
Professor, Indian Institute of Management Ahmedabad
Email: pksinha@iimahd.ernet.in
Srikant Gokhale
Adjunct Faculty, Indian Institute of Management Ahmedabad
Sujo Thomas
Academic Associate, Indian Institute of Management Ahmedabad
Email: sujothomas@hotmail.com
Abstract
The Indian retail industry is estimated to be $470 billion. The organized or modern retailing with 6% share stands at $26 billion. It is projected to reach US$ 1.3 trillion by 2018 with the organized retail market estimated to grow at the compounded annual growth rate of 40% and reach US$107 billion by the year 2013. Entry of these retailers in different formats, including online, has affected an irreversible change in consumer buying habits and businesses related to serving these retailers. However, unlike many other countries, India has its own unique character of size, geographical spread, cultural diversity, and multiplicity of formats being introduced at quick succession. Retailers also face the challenge of developing infrastructure, on their own or in cooperation with the