The Indian market is currently witnessing a retail boom with organized retailer offering a whole assortment of goods & services to consumers under one roof with congenial shopping ambience. Private branding enjoys a prominent share of a retailer’s shelf space in developed western economics. The trend is catching up in Indian market as well slowly but steadily.
Indian is the most attractive destination for retailers all over the world with a S 300 million market, having only 5% market is organized retail sector & the rest as the vase potential, given the fact the 75% to 80% is the average range of organized retailing in developed countries. Organized retiling is expected to grow at rate of 35% per anmum till 2010, resulting in immense changes in the retailing industry, supply chain, buying behavior & employment scenario as well as consumption habits.
The Indian retail industry is going through a period of golden sunshine. Indian retail continues to be one of the largest sectors attracting fresh investments from the private sector. Apart from existing players (such as Pantaloon) ramping up their retail chain store operations, many large business groups. Including Reliance Industries. Birla group, Bharti Enterprise have announced their intention to cumulatively invest over USS10 billion over the next five years to capture a share in the fast growing pie of the organized retail sector.
Recent news tells a fascinating story: Reliance Retail is to invest USSS 5.5 billion by 2010-2011, to create 100 millon sq.ft of retail space. Bharti-Wal-Mart is to invest USS2.5 billion by 2015 to create 10 million sq.ft of retail space. Future Group (Pantaloon Retail) will invest USS260 million by 2008, to increase its retail space to 10 million sq.ft.
The Government policy providing for opening up of this sector by allowing FDI up to 51% has been crucial in bringing about this fundamental change. The rising standards of living world class consumption patterns. Mix of shopping & entertainment global shopping experience-all these aspects given a rosy picture of the future happenings but the reality can be more than this.
Modern retailing is about getting the customers’ heart shares more than his mind share by offering a differentiating value propositions through various. 15-20 years ago. It was a seller’s market in India. Customer had to buy what was available. There was absolutely no choice. But today is entirely different scenario & this new scenario has been come due to the concept of Customer Relationship Management. India Consumers today not only have a wide variety of brands to choose from, but also the option to buy a product that is just right for them from amongst the several models available. So it is a buyer’s market.
Today, we turn around and fing huge shopping malls and multiplexes all the way. Perhaps that’s why the retail revolution in said to be spearheading the real estate boom in India. Some ane has righly said … After Green Revolution It’s Retail Revolution.
By : Abha Toshniwal |
