...a peek into the organized retail sector of India. It started making its presence felt nearly a decade after the first lot of entrepreneurs set up shop. A brief introduction and evolution shows how the organized retailing changed its gears over the period from Panwaladhukan to chain stores across the length and breadth of India. Further more, we highlight the various benefits that have accrued to the customers, retailers and the Indian economy as a result of the growth of the retail sector in India. Having learnt about the advantages of retailing in India, we next focus on the criticisms that have surfaced towards retailing activities in India. Retailing has grown and flourished in our country since its origin and hence we indulge in examining the causes behind such unprecedented growth. Owing to the fact that retail sector has seen tremendous growth in our country, the need to forecast the future of retailing in India is felt and hence we take a look into what the future holds for retailing in one of the most populated and largest economy of the world. INTRODUCTION AND EVOLUTION The word ‘Retailing’ refers to any activity that involves the direct sale to an individual customer or end user. Retailing has been the most active and attractive sector of the last decade. While the retailing industry itself has been present through out the history in our country, it is only the recent past that has witnessed so much dynamism. Retailing arena today is very different. It’s the latest...
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...MNC's Effect on Local Businesses in Retailing Sector (India) Contents Abstract 1 Introduction 2 Literature Review 2 Effect of MNC’s into Indian Retail Market 5 Advantages 5 Disadvantages 7 Hypothesis 8 Conceptual Model 8 Conclusion 10 References 10 Abstract Globalization paved the way for entrepreneurs to expand their wings beyond their respective counties. MNCs exploit the business opportunities in other countries based on the FDI policies in those countries. This has both advantages and disadvantages to the target country. The MNCs have their impact on the economy and people of countries in which they operate business. This paper focuses on the impact of MNCs on local businesses in retail sector in India. The report review existing literature which provides insights into FDI policies in India, the level of FDI allowed by Indian government with respect to single –brand and multi-brand foreign companies, the advantages, opportunities, risks, threats and disadvantages of allowing MNCs into retailing sector in India. Introduction Retailing is the business taking up by individuals or families in India. Generally mom and pop kind of businesses operate in retail sector. The retail sector has tremendous growth in India. Moreover retailing is a profitable business in India. Since India is the country with huge population, naturally it is the correct destination to foreign investors to get profits from the market. India has been traditionally depending on...
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...detailed information about the growth of retailing industry in India. It examines the growing awareness and brand consciousness among people across different socio-economic classes in India and how the urban and semi-urban retail markets are witnessing significant growth. It explores the role of the Government of India in the industry�s growth and the need for further reforms. In India the vast middle class and its almost untapped retail industry are the key attractive forces for global retail giants wanting to enter into newer markets, which in turn will help the India Retail Industry to grow faster. The paper includes growth of retail sector in India, strategies, strength and opportunities of retail stores, retail format in India, recent trends, and opportunities and challenges. This paper concludes with the likely impact of the entry of global players into the Indian retailing industry. It also highlights the challenges faced by the industry in near future. INTRODUCTION The India Retail Industry is the largest among all the industries, accounting for over 10 per cent of the country�s GDP and around 8 per cent of the employment. The Retail Industry in India has come forth as one of the most dynamic and fast paced industries with several players entering the market. But all of them have not yet tasted success because of the heavy initial investments that are required to break even with other companies and compete with them. The India Retail Industry is gradually inching...
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...Some of the factors responsible for the growth of organised retailing are as under: 1. Growth of middle class consumers: In India the number of middle class consumer is growing rapidly. With rising consumer demand and greater disposable income has given opportunity of retail industry to grow and prosper. They expect quality products at decent prices. Modern retailers offer a wide range of products and value added services to the customers. Hence this has resulted into growth of organised retailing in India. Growing consumerism would be a key driver for organized retail in India. Rising incomes and improvements in infrastructure are enlarging consumer markets and accelerating the convergence (meeting) of consumer tastes. 2. Increase in the number of working women: Today the urban women are literate and qualified. They have to maintain a balance between home and work. The purchasing habit of the working women is different from the home maker. They do not have sufficient time for leisure and they expect everything under one roof. They prefer one-stop shopping Modern retail outlets therefore offers one store retailing. 3. Value for money: Oganised retail deals in high volume and are able to enjoy economies of large scale production and distribution. They eliminate intermediaries in distribution channel. Organised retailers offer quality products at reasonable prices. Example: Big Bazaar and Subhiksha. Opportunity for profit attracts more and more new business...
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...Project Report on Retailing Challenges in INDIA Submitted By: Sudev Rajdarshan (2011198) Shriram Tarawade (2011204) Valluru Naveen (2011218) Varun Luthra (2011221) Vasundhara Singh (2011222) INTRODUCTION The recent time has been observed as growth of Indian organized retail market with many folds. Numerous business groups are attracted in the past few years, including some renowned business groups like Bharti, Future, Reliance, and Aditya Birla to establish hold, showing the future growth in times to come. In addition, organized retail sector has also grabbed the attention of foreign companies, showing their interest to enter India, Retailing in India is witnessing a radical transformation. The increase in the number of retail chains across the country is an indication that retailing is emerging as an industry and will boom in a big way in the near future. Retailing like any product does follow a life cycle. India is currently at a stage where customers needed variety in products and retail formats. At present, the contribution of retailing is just about two percentages to total size of $180 billion. Almost every major Indian business house are either getting into the retail space...
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... * 1. • RURAL RETAILING 1 * 2. RURAL RETAILING By R.SATHVEENA - 72060 RURAL RETAILING 2 * 3. INTRODUCTION • The world’ s econom ce ic ntre is s hifting away from the e tablis d, we s he althy econom s of Europe J apan, and North ie , Am ricaandtow e ardstheAs iaPacific • India is one of the fas s -g te t rowing larg e econom s in the w ie orld. Ove the las 15 r t years India has chang d m e uch fas r te thanm any predicte . d RURAL RETAILING 3 * 4. • Overall, competition and structural changes within the economy have raised the bar in terms of what consumers have come to expect. • Retailing is the largest private sector industry . Retail is the sale of merchandise in small quantities to the ultimate consumer. RURAL RETAILING 4 * 5. The Indian Consumer Is Rapidly Transforming Outlook– From Traditional to Modernized Traditional RURAL RETAILING 5 * 6. • From Functional to Lifestyle RURAL RETAILING 6 * 7. DEFINITION • Retailing can be defined as the set of activities that markets products or services to final consumers for their own personal or house hold use. This is done by organizing the availability of goods and then supplying them to consumer on a relatively small scale. RURAL RETAILING 7 * 8. • The mix of variables including price, location, communications, merchandise, physical attributes, services and personnel form the retail mix and these components form the over all strategic marketing components of retailing. RURAL RETAILING 8 * 98% of...
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...________________ ISSN 2249- 8834 EIJMMS, Vol.4 (8), AUGUST (2014), pp. 6-19 Online available at zenithresearch.org.in DETERMINANTS OF RETAIL CUSTOMER SATISFACTION: A STUDY OF ORGANIZED RETAIL OUTLETS IN ERNAKULUM, KERALA LIGO KOSHY*; DR. S. JOHN MANOHAR** *RESEARCH SCHOLAR, BHARATHIAR UNIVERSITY, COIMBATORE, TAMILNADU. **RESEARCH GUIDE, BHARATHIAR UNIVERSITY, COIMBATORE, TAMILNADU. ABSTRACT Retailing consists of the sale of goods from a fixed location, such as a department store or kiosk, in small or individual lots for direct consumption by the purchaser. Some retailing businesses sells a combination of goods and services. Since the last decade, the field of retailing has experienced significant changes. Retailing in India is one of the pillars of its economy and accounts for 14 to 15 percent of its GDP. The Indian retail market is estimated to be US$ 500 billion and one of the top five retail markets in the world by economic value. India is one of the fastest growing retail markets in the world, with 1.2 billion people. As of 2013, India's retailing industry was essentially owner manned small shops. In 2010, larger format convenience stores and supermarkets accounted for about 4 percent of the industry, and these were present only in large urban centers. India's retail and logistics industry employs about 40 million Indians (3.3% of Indian population). Organized retailers, defined here as a store that offers a mix of tangible goods and services, are...
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...unorganized sector as their biggest challenge, followed by competition between organized retailers and the inefficiency of distribution channels, internal logistical problem and retail shrinkage, while unorganized retailers see organized retailing as their major challenge, followed by cost of operation, logistical problems, competition between other kirana retailers and inefficient distribution channels. It was also found that organized retailers see Bangalore‟s growing middle class as their greatest opportunity followed by large number of earning youth customers, Bangalore having people from all over India, proportionate increase in spending with earnings and India‟s booming economy, while the kirana retailers see Bangalore having people from all over India as their biggest opportunity, followed by Bangalore‟s growing middle class, India‟s booming economy, large number of educational institutions in Bangalore and proportionate increase in spending with earnings. Thus, the study found that the major challenges as well as opportunities of organized and unorganized retail are almost the same. This means that mitigating the challenges and leveraging on the opportunities could benefit both sectors. Keywords: retailing, organized and unorganized retailing, competition, distribution channels, logistics, retail shrinkage, cost of operation. *Mihir Dash, School of Business, Alliance UniversityChikkahagade Cross, Chandapura-Anekal Road,Anekal, Bangalore-562106e-mail: mihirda@rediffmail...
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...sale to the ultimate consumer. Thus, retailing can be said to be the interface between the producer and the individual consumer buying for personal consumption. This excludes direct interface between the manufacturer and institutional buyers such as the government and other bulk customersRetailing is the last link that connects the individual consumer with the manufacturing and distribution chain. A retailer is involved in the act of selling goods to the individual consumer at a margin of profit. Division of Retail Industry – Organised and Unorganised Retailing The retail industry is mainly divided into:- 1) Organised and 2) Unorganised Retailing Organised retailing refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. These include the corporate-backed hypermarkets and retail chains, and also the privately owned large retail businesses. Unorganised retailing, on the other hand, refers to the traditional formats of low-cost retailing, for example, the local kirana shops, owner manned general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc. The Indian retail sector is highly fragmented with 97 per cent of its business being run by the unorganized retailers. The organized retail however is at a very nascent stage. The sector is the largest source of employment after agriculture, and has deep penetration into rural India generating more than 10 per cent of India’s...
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...INDIAN FOOD RETAIL SECTOR IN THE GLOBAL SCENARIO Vijay Anand1 & Vikram Nambiar2 (The figures indicated with reference to revenues of unlisted companies are based on press information and other sources of information that are not published and therefore, may not be accurate) GLOBAL RETAILING INDUSTRY The latter half of the 20th Century, in both Europe and North America, has seen the emergence of the supermarket as the dominant grocery retail form. The reasons why supermarkets have come to dominate food retailing are not hard to find. The search for convenience in food shopping and consumption, coupled to car ownership, led to the birth of the supermarket. As incomes rose and shoppers sought both convenience and new tastes and stimulation, supermarkets were able to expand the products offered. The invention of the bar code allowed a store to manage thousands of items and their prices and led to 'just-in-time' store replenishment and the ability to carry tens of thousands of individual items. Computer-operated depots and logistical systems integrated store replenishment with consumer demand in a single electronic system. The superstore was born. On the Global Retail Stage, little has remained the same over the last decade. One of the few similarities with today is that Wal-Mart was ranked the top retailer in the world then and it still holds that distinction. Other than Wal-Mart’s dominance, there’s little about today’s environment that looks like the mid-1990s. The global economy...
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...ASIA PACIFIC JOURNAL OF MARKETING AND MANAGEMENT REVIEW Vol.1 Issue 1, SEPTEMBER 2012, ISSN 2319-2836 GROWTH AND CHALLENGES OF RETAIL INDUSTRY IN INDIA: AN ANALYSIS SUNITA SIKRI & Ms. DIPTI WADHWA Assistant Professor M.L.N College Yamuna Nagar-Haryana ABSTRACT The Indian Retail Industry is the fifth largest in the world. Comprising of organized and unorganized sectors, Indian retail industry is one of the fastest growing industries in India, especially over the last few years. Though initially the retail industry in India was mostly unorganized, however with the change of taste and preferences of consumers, the Industry is getting more popular these days and getting organized as well. The Indian Retail Industry is expected to grow from US$330 billion in 2007 to US$640 billion by 2015. According to the 10th Annual Global Retail Development Index (GRDI) of A.T. Kearney, India is having a very strong growth fundamental base that’s why it’s the perfect time to enter into Indian Retail Market. Indian Retail Market accounts for 22% of country’s GDP and it contributes to 8% of the total employment. The total retail spending is estimated to double in the next five years. Of this, organized retail –currently growing at a CAGR of 22%- is estimated to be 21% of total expenditure. The unorganized retail sector is expected to grow at about 10% per annum with sales expected to rise from $309 billion in 2006-07 to $496 billion in 2011-12. This paper focused on changing face of Retail...
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...Growth of E-Retailing in India By: Shifa Hashmi MBA – 1 Year Tapmi School of Business, Jaipur Abstract Consumer’s perception regarding shopping has been changed with the introduction of Internet media. Retail industry has witnessed major revolution in the changing technology oriented business scenario of 21st century in India. Internet has shrunk the entire World. The rules of the game in retailing are fast changing with the introduction of Information Technology. The e Retailing website is the front door of the online store that interacts between the e-retailer and consumers. The electronic retailing (e-Tailing, e-Retailing, internet retailing etc.) is the model of selling of retail goods using electronic media, in particular, the internet. E-Retailing is a subset of e-Commerce (Electronic Commerce). E-Retailing accounts for about 10% of the overall growth of e Commerce market. The growth in the e-Retailing market is driven by the need to save time by urban India. It is estimated that 2.5 billion internet users, access to internet has played a significant role in growing the business markets. The Internet gives retailers an instrument for: broadening target markets, enhancing consumer relationships, extending product lines, improving cost efficiency, improving consumer communications, and delivering customized offers. E-Retailers serve 24 hours x 7 days in a hassle free manner to consumers. Along with advantages of e-Retailing some major issues...
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...Indore, INDIA Institute of Management and research, IPS Academy, Indore, INDIA 3 Pioneer Institute of Professional Studies, Indore, INDIA Available online at: www.isca.in Received 25th May 2012, revised 28th June 2012, accepted 30th June 2012 Abstract Retail is currently the flourishing sector of the Indian economy. This trend is expected to continue for at least the next twothree decades, and it is attracting huge attention from all entrepreneurs, business heads, investors as well as real estate owners and builders. Availability of quality, retail space, wider availability of products and brand communication are some of the factors that are driving the retail in India Retail sector is also supporting to create huge employment while a new form of organized retail sector has emerged within the retail industry and it gave speedy phase to Indian retail sector. The rationale of the study is twofold: First, to examine the nature of changes in the retail sector taking place due to organized form of retailing and implications of shift to this new form of retailing. Secondly, this area has remained largely an unexplored part of research till date especially in the Indian context. The broad objective of the study is to understand consumer behavior towards organised and unorganised retail stores and to find out the consumers satisfaction level from organised retail stores as well as unorganised retail stores. The perception of the traditional retailers about the modern retailing. The...
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...Introduction Retailing in India is one of the pillars of its economy and accounts for 14 to 15% of its GDP The Indian retail market is estimated to be US$ 450 billion and one of the top five retail markets in the world by economic value. India is one of the fastest growing retail markets in the world, with 1.2 billion people India's retailing industry is essentially owner manned small shops. In 2010, larger format convenience stores and supermarkets accounted for about 4% of the industry, and these were present only in large urban centers. India's retail and logistics industry employs about 40 million Indians. Until 2011, Indian central government denied foreign direct investment (FDI) in multibrand retail, forbidding foreign groups from any ownership in supermarkets, convenience stores or any retail outlets. Even single-brand retail was limited to 51% ownership and a bureaucratic process. In November 2011, India's central government announced retail reforms for both multi-brand stores and single-brand stores. These market reforms paved the way for retail innovation and competition with multi-brand retailers such as Walmart, Carrefour and Tesco, as well single brand majors such as IKEA, Nike, and Apple. The announcement sparked intense activism, both in opposition and in support of the reforms. In December 2011, under pressure from the opposition, Indian government placed the retail reforms on hold till it reaches a consensus. In January 2012, India approved reforms...
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...peek into the organized retail sector of India. It started making its presence felt nearly a decade after the first lot of entrepreneurs set up shop. A brief introduction and evolution shows how the organized retailing changed its gears over the period from Panwala dhukan to chain stores across the length and breadth of India. The market size and related details gives a statistical view of increasing market in a few major areas of retailing. The major market players who enlivened the present caricature of retail sector are presented briefly along with statistics. The changing scenarios of Indian consumers give a proof to the potential opportunity in the retailing arena. SWOT and its subheads take you to the crux of analysis into retail industry. Out of which we formulated the future prospects. One major lifesaver of the Indian retailing is the advertising and promotional strategies; which comes out with innovative ways to win consumers over and keep them permanently happy. FDI in retail has been contentious issue and may face resistance, given the perceived political scenario. FDI will be a defining moment for Indian retail and how government policies effect the retail industry is given briefly to the end. INTRODUCTION AND EVOLUTION The word ‘Retailing’ refers to any activity that involves the direct sale to an individual customer or end user. Retailing has been the most active and attractive sector of the last decade. While the retailing industry itself has been present through...
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