Retailing as we ?an say is the sale ?f
g??ds ?r assets fr?m a fixed ?r parti?ular pla?e, su?h as a department st?re,
in small quantities f?r dire?t ??nsumpti?n by the pur?haser. Retailers are at
the end ?f the supply ?hain. Vend?rs ?f pr?du?ti?n pr?du?ts ??nsider the retail
pr??ess a ne?essary part ?f their ?verall distributi?n strategy as retailing pr?vides
them a rea?h t? the market with?ut whi?h the ??mpany ?r pr?du?t has n? life. Gl?bally,
the ??ntributi?n ?f retail se?t?r t? the w?rld’s GDP is alm?st ab?ut 27%. N?w, if we talk ab?ut the retail
industry in India, we ?an say that it is und?ubtedly ?ne ?f the fastest gr?wing
retail industries in the w?rld. Being the largest ?f all industries and a???unting
ab?ut 10% ?f the ??untry’s GDP, it empl?ys ab?ut 8% ?f the w?rkf?r?e. In India,
there has been seen a drasti? ??mmer?ial rev?luti?n in terms ?f pur?hasing behavi?ur
?f ??nsumers that is a m?dernizati?n and devel?pment fr?m sh?pping malls t?
multi-st?rey sh?pping malls that ?ffer sh?pping, entertainment and f??d under ?ne
r??f. It is be?ause ?f this trend that the retail se?t?r is witnessing a rev?luti?n
like many new f?rmats markets su?h as hypermarkets, supermarkets and department
st?res. India was als? the main supply destinati?n in the w?rld in 2016-17 and
parti?ipati?n in this ?ateg?ry is 55 per?ent. In India, mu?h ?f the middle ?lass
and even the untapped retail market is an attra?tive f?r?e f?r all retail
giants w?rldwide. ?ur a?tive p?pulati?n with an average age ?f bel?w 25 years,
al?ng with emerging ?pp?rtunities in the retail se?t?r, is ?ne ?f the main gr?wth
fa?t?rs in the Indian retail se?t?r. Gr?wth in the retail se?t?r is p?sitively expe?ted,
as many new entrepreneurs are entering the retail se?t?r. The t?tal retail industry
is estimated at 9 lakh ?r?re, ?f whi?h the ?rganized se?t?r represents ?nly 9 per?ent,
indi?ating a large p?tential market ?pp?rtunity. India’s retail se?t?r is experien?ing
a??elerated gr?wth and retail devel?pment is ???urring als? in Tier-II and Tier-III
?ities and n?t ?nly in large ?ities and metr?p?litan areas, whi?h pe?ple presume
it t? be gr?wing. The pur?hasing p?wer ?f the ??nsumer plays an imp?rtant r?le
in the de?isi?n making ?r the lifestyle ?f the pe?ple and here we ?an see that
the pur?hasing p?wer ?f the Indian ??nsumer is gr?wing in ?ateg?ries su?h as ?l?thing,
??smeti?s, f??twear, wat?hes, drinks, f??d and even jewellery. Due t? the
expansi?n ?f the middle men f?ll?wing their pur?hasing p?wer and the ease ?f d?ing
business where there is a simplified tax stru?ture after the intr?du?ti?n ?f the
G??ds and Servi?e Tax, India ?an f?resee and expe?t gr?wth in the Retail
MARKET SIZE AND ?HARA?TERISTI?S
MARKET SIZE ?F THE INDUSTRY
The Indian retail
industry is ?ne ?f the fastest gr?wing industry in the w?rld. India’s retail se?t?r
is expe?ted t? gr?w t? $ 1,100 billi?n in 2020, fr?m $ 672 billi?n in 2017.
India is the
fifth fav?rite retail destinati?n in the w?rld. The ??untry is am?ng the highest
in the w?rld in terms ?f availability ?f st?res per ?apita. The Indian retail se?t?r
is experien?ing an exp?nential gr?wth and retail devel?pment is ???urring n?t ?nly
in large ?ities and metr?p?litan areas, but als? in level II and III ?ities.
This gr?wth and devel?pment pr?p?rti?nally in?reases the size ?f the retail
market as well. Healthy e??n?mi? gr?wth, an ev?lving dem?graphi? pr?file, an in?rease
in disp?sable in??me, urbanizati?n, tastes and ?hanging ??nsumer preferen?es are
?ther fa?t?rs behind the gr?wth ?f the retail market ?rganized in India. Even the
?nline retail market is expe?ted t? in?rease fr?m $ 14.5 billi?n t? $ 60 billi?n
between 2016 and 2020.
su?h as Walmart, GAP, Tes?? and J? Penney are in?reasing their pur?hases fr?m
India and are m?ving fr?m third-party pur?hasing ?ffi?es t? establish their
fully-managed and fully managed pur?hasing and pur?hasing ?ffi?es.
The Indian g?vernment
has intr?du?ed ref?rms t? attra?t f?reign dire?t investment (FDI) in the retail
se?t?r. The appr?val ?f G?vernment f?r 51% FDI in multi-brand retailers and in?reasing
the limit ?f f?reign dire?t investment t? 100% in the retail st?res ?f a single
brand is a sign ?f b??st f?r in?reasing the market size ?f retail and attra?ting
Gl?bal retailers. We ?an see that gl?bal retailers su?h as Walmart, GAP, Tes??
and J? Penney are in?reasing their pur?hases fr?m India and are m?ving fr?m
third-party pur?hasing ?ffi?es t? establish their fully-managed and fully managed
pur?hasing and pur?hasing ?ffi?es.
The retail se?t?r ??nsists ?f many
vari?us segments ?ut ?f whi?h s?me imp?rtant ?nes are F??d and Gr??ery, Apparel,
Jewellery, ??nsumer durables and IT, Furniture and Furnishing, Pharma?y and f??twear.
The year 2017 was fav?urable f?r the herbal-ayurvedi? brand and hen?e in up??ming
years there are pr?spe?ts f?r in?rease in the gr?wing herbal segment.
Key Drivers ?f Indian Retail Industry’s
Large w?rking p?pulati?ns
M?re ?f nu?lear
Easy ??ust?mer ?redit
and ??nsumer behavi?ur
Reas?nable real estate
The retail industry ?an be ?lassified
int? tw? ?ateg?ries: