General analysis of the retailing industry in Indian
Indian had the eighth largest retail market in 1995. The traditional retail was dominating the industry. In 1993, 82% of Indian’s retail sales were from traditional outlets. There was only 0.4% of Indian’s retail sales come from the modern, organized retail.
Traditional outlets were like small, local and family business stores which employees few than 4 people and sold staples and household items. And also there were other retailers in open-air markets selling goods from stalls and handcarts. This traditional outlet mode was widely accepted by most Indian household because of the convenience and low price advantage. Modern, organized retail was like the supermarket, hypermarket and department stores.
There were two kinds of modern retailing in India: value and lifestyle retailing. Value retail format was like hypermarket, food supermarket, discount stores which focused on offering low prices. Lifestyle retail format consisted of department stores and single brand outlets.
Although the proportion of modern retail was low right now, it was growing rapidly. An analyst predicted the share of the model retail in India would grow to 10%-12% of a projected $300 billion market in 2010. The growth was mainly triggered by three reasons.
First, the new shopping experience modern retailers provided, like the improved ambience, displays and facilities may attract some customers. Second, consumers were increasingly influenced by western culture, and the consumption rate ware fast-growing in the 20-40year-old segment. Third, government was easing restrictions on import and reducing the tariffs. In this way, Modern retailer could offer variety of international products.
General analysis of Big Bazzar
Big Bazzar was an extremely successful modern retail example in India. Its parent company,
Pantaloon Retail