The Indian Retail business is prepared to go to the next level. Consistent with the report ready by world consultancy Northbridge Capital, the retail market, which is currently value $400 billion, is clocking an annual growth rate of 30%. "The market is predicted to grow to $700 billion by the tip of 2010. Of the full retail market, the share of organised retail in 2008 is 7.five%, valued at $300 million," Though most of the Indian Retail industry remains characterized by an unorganized market however the previous few years have seen tremendous growth within the organised retail in India. With the Indian big giants like RPG, Pantaloons, Reliance, ITC etc and also the foreign players like Adidas, Reebok, McDonalds, the Indian Organised retailing has been growing at a speedy pace. Noting that organised retail market is growing at the speed of 40%, Northbridge Capital said that faster growth rate would be maintained in the next three years, particularly with the entry of major international players and Indian corporate houses.
Drivers of the Indian Organised Retail Trade
Changing consumption patterns - Convenience is the necessity of the hour. The concept of one stop shopping is "IN" and with the increase in the incomes, the shoppers are even prepared to pay more to save their time. In line with a report by AT Kearney "The patron spending in India has increased by an impressive 75 per cent within the last four years and will quadruple in the subsequent twenty years." These days the shoppers are trying more for the luxurious product and are spending more on health and wonder care products other than the attire, food and grocery items.
The Emphasis on Rural markets - The Indian Retail firms has realized that the agricultural markets are a major supply of revenue, most of which is untapped. When the arrival of ITC's Chaupal Sagar, DCM Sriram's Hariyali Bazaar and Tata's kisan sansar, the other players in retail are also trying for expanding into the rural markets.
The impact of technology -.The increase in the use of internet has given a new direction to the retail business and has led to the growth of the thus called "e-age" in India. These days a large range of organizations share there data with a massive range of audience through internet. The technologies like Universal Product Code or bar code, RFID chips, Electronic data interchange, Database management etc have given a new life to the retailing in India.
The Retail Reforms - The government has allowed 100 percent FDI within the money and carry format and 51 p.c in the one complete retailing. The International players will conjointly take the routes of Franchise and joint ventures to enter into the Indian Retailing. Over the past few years, a variety of companies have entered the country through these routes. A number of the international players that have already entered India include McDonald's, Pizza Hut, Dominos, Levis, Lee, Nike, Adidas, Benetton etc.
Author Resource:
William Evan has been writing articles online for nearly 2 years now. Not only does this author specialize in Retail, you can also check out his latest website about:
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