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Synovate Retail Performance is now part of Ipsos.Visit Ipsos Retail
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Home World Industry DirectoryRetail Industry Indian Retail Industry
Indian Retail Industry
By: EconomyWatch Date: 30 June 2010
About The Author
The core Content Team our economy, industry, investing and personal finance reference articles.
EconomyWatch, Content Team
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inShare2 Retail Industry, Retail Sector, Retail Trade
By: EconomyWatch Date: 30 June 2010
About The Author
The core Content Team our economy, industry, investing and personal finance reference articles.
EconomyWatch, Content Team
inShare0
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The retail industryis responsible for the distribution of finished products to
the public. The retail sector comprises of general retailers (managed by
individuals/families), departmental stores, specialty stores and discount
stores.The activities of the retail industry can be broadly classified into:
Personal goods store retailing
Hard goods: This covers deals in goods such as electronics, electrical appliances, furniture and sporting goods.
Soft goods: This includes apparel retailing.
Non-store retailing
This includes infomercials, catalogue sales, vending machines and ecommerce.
Food retailing (restaurants)
Automotive services and retailing
Retail Industry: History
The retail industry emerged in the US in the eighteenth century, restricted to general stores. Specialty
stores were developed only in those areas that had a population of above 5,000. Supermarkets
flourished in the US and Canada with the growth of suburbs after World War II. The modern retail
industry is booming across the world. Revenues from retail sales in the US alone stood at $4.48 trillion
in 2007, according to a report by the US Census Bureau.
Retail Industry: Demand and Supply Drivers
The major demand drivers of the retail industry are:
Interest rates
Population
Employment
Personal disposable income
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Individual debt
The supply drivers include:
Competitors in the industry
Size of the market
Cost of the factors of production
Retail Industry: Major Players
Of the worlds top ten retail companies in terms of total sales, six are American. Combined sales of the
top ten companies, computed by Delloite, were $978.5 billion in 2007. Major retail giants include Wal-
Mart, Target, Home Depot and Tesco.
Retail Industry: Statistics
The total sales from store retailers stood at 108,449.8 million in 2007 and the sales value of non-
store retailers was 469.9 million. The percent composition of store and non-store retailers in 2007
was:
Store Retailers Non-Store Retailers Supermarkets 32.83 Vending 26.60 Small grocery retailers 24.46
Internet retailing 25.93 Hypermarkets 19.09 Home shopping 24.04 Food/beverage/tobacco specialists
15.68 Direct selling 23.43 Discounters 7.57 Others 0.36 Total 100 Total 100
Source: World Retail Data and Statistics 2008/2009
The retail sector is vital to the world economy, as it provides large scale employment to skilled and
unskilled labor, minors and casual and part-time workers. Employment in the retail sector in the US
and Europe surpassed 32 million in 2007.
Evolution of Indian retail Industry:
Indian Retail Industry is standing at its point of inflexion, waiting for the boom to take place. The
inception of the retail industry dates back to times where retail stores were found in the village fairs ,
Melas or in the weekly markets. These stores were highly unorganized. The maturity of the retail sector
took place with the establishment of retail stores in the locality for convenience. With the government
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intervention the retail industry in India took a new shape. Outlets for Public Distribution System,
Cooperative stores and Khadi stores were set up. These retail Stores demanded low investments for its
establishment.
The retail industry in India gathered a new dimension with the setting up of the different International
Brand Outlets, Hyper or Super markets, shopping malls and departmental stores.
Key Players in the Indian Retail Sector:
The untapped scope of retailing has attracted superstores like Wal-Mart into India, leaving behind the
kiranas that served us for years. Such companies are basically IT based. The other important participants
in the Indian Retail sector are Bata, Big Bazaar, Pantaloons, Archies, Cafe Coffee Day, landmark,
Khadims, Crossword, to name a few.
Retailing in India: a forecast:
Future of organized retail in India looks bright. According to recent researches it is projected to grow at
a rate of about 37% in 2007 and at a rate of 42% in 2008. It will capture a share of 10% of the total
retailing by the end of 2010.
According to the Union Minister of Commerce & Industry, Shri Kamal Nath, the organized retail sector is
expected to grow to a value of Rs. 2,00,000 crore (US$45 billion) and may generate 10 to15 million jobs
in next 5 years. This can happen in two forms- 2.5 million of these people may be associated directly
with retailing and the rest 10 million people may be gainfully employed in related sectors that will be
pulled up through the strong forward and backward linkage effects.
However to compete in this sector one needs to have up-to-date market information for planing and
decision making. The second most important requirement is to manage costs widely in order to earn atleast normal profits in face of stiff competition.
inShare2
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jayakrishnan s menon 1 comment collapsed Collapse Expand
good....contribution.
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6 months ago
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