Industry Analysis of the Indian Retail Sector
Join now to read essay Industry Analysis of the Indian Retail Sector
Industry analysis of the Indian retail sector
Modern retailing has entered India in form of sprawling malls and huge complexes offering shopping, entertainment, leisure to the consumer as the retailers experiment with a variety of formats, from discount stores to supermarkets to hypermarkets to specialty chains. However, kiranas still continue to score over modern formats primarily due to the convenience factor.
Source: IT Retailing: Are You In The Loop? July 16, 2006.
The organized segment typically comprises of a large number of retailers, greater enforcement of taxation mechanisms and better labour law monitoring system. Its no longer about just stocking and selling but about efficient supply chain management, developing vendor relationship quality customer service, efficient merchandising and timely promotional campaigns. The modern retail formats are encouraging development of well-established and efficient supply chains in each segment ensuring efficient movement of goods from farms to kitchens, which will result in huge savings for the farmers as well as for the nation. The government also stands to gain through more efficient collection of tax revenues. Along with the modern retail formats, the non-store retailing channels are also witnessing action with HLL initiating Sangam Direct, a direct to home service. Network marketing has been growing quite fast and has a few large players today. Gas stations are seeing action in the form of convenience stores, ATMs, food courts and pharmacies appearing in many outlets.
In the coming years it can be said that the hypermarket route will emerge as the most preferred format for international retailers stepping into the country. At present, there are 50 hypermarkets operated by four to five large retailers spread across 67 cities catering to a population of half-a-million or more. Estimates indicate that this sector will have the potential to absorb many more hypermarkets in the next four to five years.
List of retailers that have come with new formats:
Retailer
Current Format
New Formats. Experimenting With
Shoppers Stop
Department Store
Quasi-mall
Ebony
Department Store
Quasi-mall, smaller outlets, adding food retail
Crossword
Large bookstore
Corner shops
Piramyd
Department Store
Quasi-mall, food retail
Pantaloon
Own brand store
Hypermarket
Subhiksha
Supermarket
Considering moving to self service
Vitan
Supermarket
Suburban discount store
Foodworld
Food supermarket
Hypermarket, Foodworld express
Globus
Department Store
Small fashion stores
Bombay