Trends in Retailing

Topics: Retailing, Shopping mall, Product Pages: 7 (2431 words) Published: April 21, 2013
The word retail has a very small meaning , it means ‘to cut or to break the bulk’, however the term Retail Management is not a small concept , it has a very broad meaning and a wide framework. When we say that Retailing is dynamic , it simply means that is progressive in nature , it keeps on changing itself with the emerging trends. There are various elements that are working as the forces for retail dynamics. One such force is Rural retail. The retail business in India accounts for Rs 7400 billion with about 1200 million retailers.90percent of retail shops are kirana stores .Rural India has about 3.7 million shops spread over 063 million villages , with an average of six shops per village with an average sale of Rs 5000 only. In recent years, rural markets have acquired significance in countries like China and India, as the overall growth of the economy has resulted into substantial increase in the purchasing power of the rural communities. On account of the green revolution in India, the rural areas are consuming a large quantity of industrial and urban manufactured products. In this context, a special marketing strategy, namely, rural marketing has taken shape. Also rural market is getting an importance because of the saturation of the urban market. As due to the competition in the urban market, the market is more or so saturated as most of the capacity of the purchasers have been targeted by the marketers.So the marketers are looking for extending their product categories to an unexplored market i.e. the rural market Rural retail includes fast moving consumer goods ,durables, agricultural inputs and vehicle .The total rural market forms around 40 percent of the total size of the retail market in India.

There may be a slowdown in urban retail, but `Bharat' is still shining for retailers. The next phase of growth is expected to come from rural markets with rural India accounting for almost half of the domestic retail market, which is valued over $300 billion. 

Rural India is set to witness an economic boom, with per capita income having grown by 50% over the last 10 years, mainly on account of rising commodity prices and improved productivity. Development of basic infrastructure, generation of employment guarantee schemes, better information services and access to funding are also bringing prosperity to rural households.  In rural markets, consumers are practical and price sensitive. Even though consumers at the bottom of the pyramid do not seem to have predictable income (which affects purchasing dynamics), the rural market proved to be surprisingly loyal. Given that an overwhelming majority of India's population lives in rural areas, retailers are fast penetrating the hinterland. Rural India is experiencing the same changes as urban India - changing consumer preferences and consumption patterns, increasing exposure to different lifestyles and products, and increasing purchasing power. As much as Rural India presents a great opportunity to retailers, there are still many challenges that have to be overcome RURAL RETAILING- A PARADIGM SHIFT

Retailing in rural areas was been done by many market linkages , however a shift in the retail format of the rural market has been observed in the recent years, this change has been discussed in this section When we bifurcate the rural retail , we come across its two major cross sections , they are: The unorganised segment of rural retail

The organised segment of rural retail
UNORGANISED SEGMENT of rural retail consist of traditional channel of distribution system consisting oh haats, melas, shandies There are 47,000 haats and 25,000 melas, which function as the economic, social and cultural nerve centres of rural India. MART undertook the first comprehensive study of these traditional fora for the Government of India in 1995. The objective was to understand the types of products sold, profile buyers, track sales achieved at these haats and melas...
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