Emerging Retail Trends in India

INTRODUCTIONIndia represents an economic opportunity on a massive scale, some(prenominal) as a global base and as a domestic market. Indian Retail sector consists of small family-owned stores, locate in residential aras, with a shop floor of little than 500 square feet. At present the organized sector accounts for only 2 to 4% of the total market although this is pass judgment to rise by 20 to 25% by next 3 years.

Retail growth in the coming pentad years is expected to be stronger than GDP growth, driven by changing lifestyles and by strong income growth, which in turn leave alone be supported by favorable demographic patterns and the purpose to which organized retailers succeed in reaching lower mound the income scale to reach potential consumers towards the bottom of the consumer pyramid. Growing consumer address will also help in boosting consumer demand.

The structure of retail will also develop rapidly. Shopping malls are beseeming increasingly common in large cities, and announced festering plans project at least 150 new obtain malls by 2008. The number of department stores is growing much hurrying than overall retail, at an annual 24%. Supermarkets subscribe been victorious an increasing share of general food and grocery condescension over the last two decades.

However, dispersal continues to improve, but it shut away remains a major inefficiency.



Poor quality of infrastructure, join with poor quality of the dissemination sector, results in logistics costs that are very high as a proportion of GDP, and inventories, which have to be maintained at an unusually high level. Distribution and marketing is a huge cost in Indian consumer markets. Its a lot easier to cut manufacturing costs than it is to cut distribution and marketing costs.

Also, government has relaxed regulatory controls on foreign behave investment (FDI) considerably in recent years, while sell currently remains...

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