FINANCIAL MANAGEMENT STRATEGIES FOR CORPORATE RETAIL INDUSTRY IN INDIA-A CASE STUDY OF RETAIL SCENARIO IN HYDERABAD AND SECUNDERABAD
(1) Retail Industry in India
The Indian retail industry is the largest among all the industries, accounting for over 10 per cent of the country’s GDP and around 8 per cent of the employment. The retail industry in India has come forth as one of the most dynamic and fast paced industries with several players entering the market. But all of them have not yet tasted success because of the heavy initial investments that are required to break even and compete with other companies. The Indian retail industry is gradually inching its way towards becoming the next boom industry.
A large young working population with median age of 24 years, nuclear families in urban areas, along with increasing working-women population and emerging opportunities in the services sector are going to be the key factors in the booming growth of the organized retail sector in India. The growth pattern in organized retailing and in the consumption made by the Indian population will follow a rising graph helping the newer businessmen to enter the Indian retail industry.
In India the vast middle class and its almost untapped retail market are the key attractive forces for global retail giants wanting to enter into newer markets, which in turn will help the retail industry in India to grow faster. As per a McKinsey report, India's overall retail sector is expected to rise to US$ 833 billion by 2013 and to US$ 1.3 trillion by 2018, at a compound annual growth rate (CAGR) of 10 per cent. As a democratic country with high growth rates, consumer spending has risen sharply as the youth population (more than 33 percent of the country is below the age of 15) has seen a significant increase in its disposable income. Consumer spending rose an impressive 75 per cent in the past four years alone. Also, organised retail, which accounts for almost 5 per cent of the market, is expected to grow at a CAGR of 40 per cent from US$ 20 billion in 2007 to US$ 107 billion by 2013. According to the Investment Commission of India, the overall retail market is expected to grow from US$ 262 billion to about US$ 1065 billion by 2016, with organised retail at US$ 165 billion (approximately 15.5 per cent of total retail sales). India is expected to be among the top 5 retail markets in the world in 10 years. The future of the retail industry in India looks promising with the growing of the market, with the government policies becoming more favorable and the emerging technologies facilitating better operational efficiencies.. (2) Retail Scenario in Hyderabad and Secunderabad
Retail forms a large part of the business sector in Hyderabad and Secunderabad both in terms of establishments and employment . The burgeoning retail outlets in Hyderabad and Secunderabad are evidence of the immense potential that these twin cities offer for business. The emergence of Hyderabad as the preferred destination for the IT and ITES industry in recent times has brought with itself the cascading effect on other industries like retail and real estate. Big corporates like the Mukesh Ambani led Reliance Industries, the Kishore Biyani led Future group etc. have made substantial investements and are ready to invest more in the Hyderabad retail industry. The retailing industry in Hyderabad has come into big Shopping Malls, and huge departmental stores and retail chains like Big Bazaar, Shopper Stop, and Metro, Hyper Mart etc..The employment opportunities in Hyderabad retail are highly increased, and have good financial rewards also. In the next two years thousands of jobs will be generated in this sector. Innovative retail formats like Integrated retailing, retail cum entertainment is booming at a great pace in the Hyderabad city, e.g., Big Bazar combines with Big Cinemas, Hyderabad Central with PVR Cinemas and GVK Mall with INOX etc....
References: 1. Retail Management- Perspectives and Cases by V.V. Gopal
2. Retail Strategy- the view from the bridge- by Jonathon Reynolds and Christine Cuthbertson
3. Economic times- a financial daily
4. Wall Street Journal- e –newspaper
5. Retail Owners Institute website-www.retailowner.com
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