The Retail Sector In India has gone through a major transformation over the last ten
years.This particularly noticeable shift can be seen in organised retailing.
India has been ranked as the 4th most attractive nation for retail
investment by a US based global management firm amongst other flourishing
nations.
By the
year 2017, the retail market in India is expected to reach Rs. 45
lakh crore, as it expands at an annual growth rate of 10 per cent.
Tata,
Reliance, Adani Enterprise, Bharti and other similar companies have been
investing considerably in the booming retail market. A number of other small national
brands have also entered the market and set up retail links with big Indian
companies.
With the
incorporation of technology in the Retail Sector in the form of computers, merchandise planning and management, control
of inventory costs, supplies and goods has become much easier than before. Retailers
are now entering the online domain of retail instead of having physical stores.
The retail industry is selling their products through websites asfood and
grocery stores comprise the largest chunk of the Indian retail market.
An
emerging trend in this segment is the process by which customer’s orders are
taken online through web portals and are then delivered to their doorstep the
very same day or the next day. This trend has been catching up with most of the
larger sized retail chains that have their own websites.
Organised
retail is another newforce that is emerging in India and despite a slump in the
market it is growing gradually and exponentially. As India’s economic growth continues
to rise, more and more people are being brought into the consuming class. This
along with organized retail will entice more and more shoppersand by 2015,
millions of shoppers will patronize organized retail chains.
Consumer
markets in emerging market economies like India are growing rapidly dueto
economic growth. India's modern consumption level is set to double within the
next five years to 1 trillion dollars from the present level of 700 billion
dollars.
The
growing middle class in India is another important factor that is contributing
to the growth of retail. By 2030, it is estimated that almost a 100 million
households will come under the category of middle class. Also about 500 million
people are expected to live in just the city, which is nearly twice the
population of the US today.
Therefore, with tremendous
potential and India’s ever growing population, the nation is set for a high
growth in consumer expenditure.