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FUTURE TRENDS IN RETAIL IN INDIA

FUTURE TRENDS IN RETAIL IN INDIA

ABSTRACT

Retail is the largest industry in India, representing more than 10 percent of GDP and around eight per cent of employment. retail industry in India is at a crossroads. It has become one of the industries most dynamic and fast-paced multi-player on the market. But due to heavy initial investment necessary, the balance is difficult to achieve and many of these players have not tasted success so far. However, the future is promising, the market is growing, government policies are becoming more favorable and emerging technologies are facilitating operations.

TRENDS FUTURE OF RETAIL IN INDIA

R. Yuvarani *

INTRODUCTION

sector retail in India is highly fragmented in comparison with developed countries and other developing countries. This shows great potential for industry organized retail to thrive in India, as the market for final consumption in India is very large. Retail trade is largely privately owned independent structure and distribution of fast moving consumer goods consisting of multiple layers, such as transport and forwarding agents, distributors burly, wholesalers and retailers. Therefore, the potential for growth in organized retail is huge. In the next 2-3 years, India finally see the operations of a number major international players-net support the current restrictions on FDI in retail.

The retail sector in India is ready to take on challenges global retail players like Wal-Mart and Carrefour, because unlike them, have a better understanding of the Indian consumer psyche. Ultimately, a dealer Successful is one who understands his client. The client is India in search of an emotional connection, a sense of belonging. Therefore, to succeed any point of sale has to be located. The customer must feel that is a part of their culture, their perceived values, and not try to impose alien values ​​or concepts about it. customers in India is not willing to buy something just because it is sold by an international company.

 

 

CURRENT SCENARIO

Retail in India is witnessing the rise of the terms of modern retail formats, etc centers future commercial retail for any product around the country will definitely be in shopping centers where consumers can get the variety, quality and environment.

However, despite this ongoing debate to be or not, recently the government has allowed up to 51 percent of FDI in retail brand only foreign companies like Reebok and Louis Vuitton. From now on, retailers operate through a single franchise route and there is a strong belief that FDI in this segment will not displace jobs or the impact of local industry, but to help create employment.

Even today the government is undecided on the level of FDI in retail, but a number of foreign players, including Wal-Mart Stores, Inc., have announced their intention to enter India in a way large. Today, Wal-Mart is operating through its subsidiary in Bangalore, which functioned as a liaison office until last year. He is now in the process the establishment of offices in New Delhi and Mumbai.

RETAILING IN THE 21ST CENTURY

Retail in the new millennium presents as an industry as exciting, complex and business critical in most developed and emerging economies. Today, the retail industry is being shaken by a series of forces at the same time, for example, increased competition within and between the formats of retailing, the growth of online retailing, the advent of "Radio Frequency Identification (RFID), the explosion in the availability of customer data level, the global expansion of major retail chains such as Wal-Mart and METRO Group and so on. Making sense of all this is not easy, but vital for professionals in retail, and policy analysis.

RETAIL IN INDIA – THE FUTURE

A study is currently the size of the retail market in India estimated at Rs.704 crores, which represents a paltry 3% of the total retail market. As the market becomes more and more organized retail industry in India will have greater value. The sector retail in small towns and cities will increase by 50% to 60% on easy and cheap availability of land and demand among consumers.

The growth of India's real estate sector is also complement the retail sector and therefore becomes an important element in the outlook. During a period of next 4 years will see demand for commercial space of 40 million square feet, however, with growing real estate sector limitation space will not be there to meet this demand. The growth in the retail sector is also caused by the development of retail specific properties as shopping malls and multiplexes.

According to a report in the years 2003 to 2008, retail sales are growing at a rate of 8.3% annually. With this wholesale Organised retail, which currently has only 3% of the total market share acquisition of 15% -20% market share for the year 2010.

Factors they are playing a role in promoting India's bright future retail are:

• The average income of India is increasing and therefore there is a proportional increase in purchasing power.
• The infrastructure is fast improving in all regions are benefiting from the market.
• India's economy and its policies are becoming more liberal and more decisions for a wide range of companies to enter the Indian market.
• indigenous population has learned to be a consumer and all national and international brands are benefiting from this new awareness.
• Another major factor Internet is the revolution that is allowing foreign brands to understand Indian consumers and influence before entering the market. Due to the scope of media in the most remote of the market, consumers are aware of global products and helps build brands that are faster in a new region

Yet despite these factors contribute to the growth of the retail industry in India, there are some challenges the industry faces that must be addressed in order to achieve the full scope of growth in the Indian market.

Foreign direct investment is not allowed in the retail sector that may be a concern for many brands. But franchise agreements to circumvent this problem. Along with these regulations, local laws and restrictions to purchase real property cause problems. Apart from this lack of integrated supply chain management and lack of skilled labor and the flow of the market in terms of price and choice products must be eliminated.

The India Street retail is set to glow bright with India to regain its position as the most attractiveness to global retailers, despite the global crisis. According to the Global Retail Development Index (GRDI) released by the U.S. global consulting firm management, AT Kearney, India has emerged as the best country among the 30 emerging markets. This reinforces the fact that the trade with India is a golden opportunity to be capitalized. Interestingly, Russia secured the second position, while China was formed with third. The report also noted that India has become the most attractive destination for retail investment for the fourth time in five years.

India currently has one of the largest number of outlets in the retail world. According to a report of images of no account that the number of operating centers will more than double, ie, cross 412, with 205 million square feet get covered by 2010. About 715 sites will be added by 2015, with significant retail developments in Level II and Level III-cities fueling additional growth.
Many global retailers have taken hits to trade with India.
The future ahead Experts believe that increasing the rural sector in the coming years. At present, the rural market comprising nearly half of the retail market India's domestic, ie U.S. $ 300 billion. The per capita income of rural India has grown in the reports, 50 percent in the last 10 years, mainly due to raw material prices and higher productivity. According to E & Y India, basic infrastructure, generation of employment guarantee, better information and access to finance are taking in good times for rural households.

• According to The market research report new RNCOS, organized retail market is expected to reach U.S. 50 billion U.S. dollars in 2011

• The boom in the market promote the growth of retail logistics market. It is estimated that the market will reach around U.S. 20 billion in 2011.

• Retail Sales mobile phones and accessories is estimated to reach about U.S. $ 990 million in 2010.

• The rural market is expected to lead the landscape India's retail industry in the future.

• Shopping malls are expected to increase at a CAGR of over 18.9 percent from 2007 to 2015.

India's retail landscape

Rising incomes and increasing consumerism are fueling retail growth.

Year

$ Billions of lower growth

1998

201

2000

204

2002

238

2004

278

2006 *

321

2008 *

368

2010 *

421

* Estimates

Sources: Retail in India-A CII-AT Kearney report

NCEAR According to forecasts, the number of "haves" of the households (the target market of modern retail stores) is expected to more than double the $ 57 million in 2002 to 107 million in 2010. The proportion of population India, who is under 25 years of age is over 50 percent today, while more than 80 percent of the population is below the age of 45. This segment of "young people" is driving changes in consumer habits and spending patterns. An increasing proportion of the population Young joins the work force, adding that global spending, which should bode well for the growth of modern retail formats in India. Increasing urbanization (Shopping centers tend to be concentrated in urban areas) is also fueling modern format retail growth. It is expected that India's urban population grow from 21 percent of the total population in 2000 to 32 percent in 2010.

Accelerating Change

The following factors will be important to drive growth in the retail sector:

Consumption factors

Supply side factors

Consumption factors

• Increased revenue

• Working women

• Changes lifestyle in the demand for "global" trend

Supply side factors

¨ The growing importance of trade retailer in the political and economic agenda.

· The estate reforms to be undertaken in the next 24 months.

° Greater restructuring the limitations of the manufacturing sector to facilitate the provision of products for the retail efficiently.

• Reduction of import duties offering more global supply options.

COMPETITION FOR THE FUTURE OF MARKET LEADER

organized retail in India but less than Rs 45,000 crore in size, already has several players from different formats and categories. The major players are the future of the group (Big Bazzar and pants) of Kishore Biyani, Tata Group (which runs on Westsite department stores, a book and music chain called Landmark, Star India Bazaar hypermarket, and a client of durable goods chain named crime, in a tie with Woolworths UK), Sanjiv Goneka, s RPG Group (World Food & Spencer) and Dubai-based Micky Jagtiani land mark group (lifestyle). In addition, several smaller players, including Subhiksha, Trinetra, and Nilgiri. More recently, the Kumar Mangalam Birla-led AV Birla Group has announced plans to enter retail.

CONCLUSION
The retail sector has played a great role in the world to increase the productivity of consumer goods and services. It is also the second largest industry in U.S. in terms of number of employees and establishments. There is no denying the fact that most developed economies are much trust in the retail sector as an engine of growth. The retail sector in India has emerged as one of the most dynamic and fast paced industries with several players in the market. But they all have not tasted success due to heavy initial investments required to achieve equilibrium with other companies and compete with them. India's retail industry be inching its way to become the next booming industry. favorable government policies and the continued growth means that the future belongs to the most aggressive players. The future is now.

About the Author

R.Yuvarani, M.Phil Scholar , Department of Commerce, Periyar University, Salem-11.

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