abhishreshthaa
Abhijeet S
India considered by many as the country of shopkeepers is true to a large extent because India has 5.5 outlets per 1000 people, which puts India in a unique position of having the maximum number of outlets in comparison to any other country in the world. Small independent outlets currently are dominating Indian scenario, in fact they contribute as much as 96% of the total retail sales.
But with increasing number of nuclear families, working women, greater work pressure and increased commuting time; consumers are looking for convenience. And, convenience is defined as having everything under one roof and multiplicity of choice.
This offers an excellent opportunity for organized retailers in the country. Growth & development of organized retailing in India will be mainly influenced by two factors: Price & benefits the consumers can't resist. Economies of Scale will drive down the cost of the supply chain and increases benefits offered to the customer interface.
According to A.T.Kearney (global management consultants) retail business in India for the year 2000 was Rs.400000 crore, and they estimate it will increase to Rs.800000 crore by the year 2005 an annual increase of 20 %, and Rs.20000 crore was the contribution of organized retail in the year 2000. As per A.T.Kearney from a size of Rs.20000 crore the organized retail industry will grow to Rs.160000 crore by 2005 (estimated).
Retail today is on the thresholds of a revolution fuelled mainly by a paradigm shift in consumer behaviour & the availability of cutting edge tools. India is rapidly evolving into an exciting & competitive market place with potential target consumers for both segments (niche & middle class).
The market trends indicate tremendous growth opportunities. Indian consumer & retail market has seen a tremendous amount of interest from global majors as well. Over the years many international brands like Lacoste, Mc Donald's, Swarovski, Domino's amongst a host of others have come in. Big Indian Corporates who were earlier not into retailing are investing heavily and entering this industry. The potential in this sector is huge.
Organizations ready to take this challenge can leverage the opportunities offered by the population of hundred crores.The prospects are very encouraging. Lifestyles in India are changing and the concept of "Value for Money" is picking up.
A report from the Center for Monitoring the Indian Economy, says investments in organized retailing -- which include shopping malls, retail chains, etc-- has doubled from RS.1000 crore in January 2000 to RS.2000 crore in January 2001.
But with increasing number of nuclear families, working women, greater work pressure and increased commuting time; consumers are looking for convenience. And, convenience is defined as having everything under one roof and multiplicity of choice.
This offers an excellent opportunity for organized retailers in the country. Growth & development of organized retailing in India will be mainly influenced by two factors: Price & benefits the consumers can't resist. Economies of Scale will drive down the cost of the supply chain and increases benefits offered to the customer interface.
According to A.T.Kearney (global management consultants) retail business in India for the year 2000 was Rs.400000 crore, and they estimate it will increase to Rs.800000 crore by the year 2005 an annual increase of 20 %, and Rs.20000 crore was the contribution of organized retail in the year 2000. As per A.T.Kearney from a size of Rs.20000 crore the organized retail industry will grow to Rs.160000 crore by 2005 (estimated).
Retail today is on the thresholds of a revolution fuelled mainly by a paradigm shift in consumer behaviour & the availability of cutting edge tools. India is rapidly evolving into an exciting & competitive market place with potential target consumers for both segments (niche & middle class).
The market trends indicate tremendous growth opportunities. Indian consumer & retail market has seen a tremendous amount of interest from global majors as well. Over the years many international brands like Lacoste, Mc Donald's, Swarovski, Domino's amongst a host of others have come in. Big Indian Corporates who were earlier not into retailing are investing heavily and entering this industry. The potential in this sector is huge.
Organizations ready to take this challenge can leverage the opportunities offered by the population of hundred crores.The prospects are very encouraging. Lifestyles in India are changing and the concept of "Value for Money" is picking up.
A report from the Center for Monitoring the Indian Economy, says investments in organized retailing -- which include shopping malls, retail chains, etc-- has doubled from RS.1000 crore in January 2000 to RS.2000 crore in January 2001.