Asian Journal of Management

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Indian Retail Sector-Recent Trends, Changes and Challenges


Affiliations
1 Department of Management Studies, Rajiv Gandhi Institute of Management and Science, Kakinada-533005, India
2 DCMS, Andhra University, Department of Management Studies, Rajiv Gandhi Institute of Management and Science, Kakinada-533005, India
     

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The Indian retail market, over the last decade, has been increasingly leaning towards organized retailing formats. The pattern of domestic retailing is altering with organized modern retailing. A big change from the traditional plethora of unorganized family-owned businesses because of rapid urbanization, changes in shopping and consumption pattern, demographic dividend and pro-active measures by the government are abetting the growth of the retail sector in India.

The Indian retail sector provides immense opportunity for large scale retailers to set-up their operations which results in a trend of organized retail formats like departmental stores, hypermarkets, supermarkets and specialty stores and hence altering the retailing landscape in India. India is one of the third-most attractive retail markets for global retailers among the largest emerging markets. The federal government of India allowed 51% FDI in multi-brand retail in India with some restriction. This change paved way for joint ventures (JV) in the sector. A part from JV, a trend of rural retailing is also witnessed by Indian companies to tap the rural market.

The Indian retail sector accounts for 22 per cent of the country's gross domestic product (GDP) and contributes to 8 per cent of the total employment. The industry is experiencing exponential growth, not just in major cities and metros, but also in Tier-II and Tier-III cities. This paper intends at the changes, trends and the challenges on Indian retail sector.


Keywords

Unorganized and Organized Sector, FDI, Joint Ventures, Consumer Behavior, Consumption Pattern, Rural Retailing.
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  • Satish K Batra and S H H Kazmi (2004).Consumer behaviour, text and cases New Delhi: Excel Books.

  • Rituparna Basu (2013) A review of contemporary retail formats in emerging India, Indian Journal of Marketing.Nov 2013, page.no 30.

  • Ayan Chattopadhyay (2013), Consumer shopping behavior in the new era of retailing: an empirical study on food and grocery and apparel purchase in east India. Indian Journal of Marketing. Dec 2013, page no. 47.

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  • The Department of Industrial Policy and Promotion (DIPP) (http://dipp.nic.in)

  • A McKinsey report, 'The rise of Indian Consumer Market'. (https://www.mckinsey.com)

  • Corporate catalyst India: a brief report on retail sector in India august 2013. (http://www.cci.in/cci-knowledge-bank-surveysreports. asp)

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  • Technopak-Emerging Trends in Indian Retail and Consumer 2011. (http://www.lemoci.com/media/distributioninde2011.pdf)

  • Deloitte-Indian retail market: opening more doors. (https://www.deloitte.com/assets/Dcom-India/Local%20Assets/Documents/Thoughtware/Indian_Retail_Report_Opening_more_doors.pdf)

  • Deloitte-Indian retail market: Changing with the changing times. (https://www.deloitte.com/assets/Dcom-India/Local%20Assets/Documents/Retail%20POV_low.pdf)

  • www.ncaer.org

  • www.edms.matrade.gov

  • http://www.lemoci.com/media/distributioninde2011.pdf

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  • http://www.business-standard.com/article/companies/tesco-toenter- indian-retail-space-through-joint-venture-with-tatas-113121700663_1.html

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  • http://timesofindia.indiatimes.com/business/india-business/USapparel-retailer-Gap-in-joint-venture-talks-with-Arvind-Brands/articleshow/26564270.cms

  • http://timesofindia.indiatimes.com/business/india-business/French-company-Auchan-eyes-Landmark-jointventure/articleshow/11864709.cms

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  • Economic Times, an article published on 7 Jun, 2013.


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  • Indian Retail Sector-Recent Trends, Changes and Challenges

Abstract Views: 382  |  PDF Views: 2

Authors

Shubhakar Gootam
Department of Management Studies, Rajiv Gandhi Institute of Management and Science, Kakinada-533005, India
K. Sanjay Kumar
DCMS, Andhra University, Department of Management Studies, Rajiv Gandhi Institute of Management and Science, Kakinada-533005, India

Abstract


The Indian retail market, over the last decade, has been increasingly leaning towards organized retailing formats. The pattern of domestic retailing is altering with organized modern retailing. A big change from the traditional plethora of unorganized family-owned businesses because of rapid urbanization, changes in shopping and consumption pattern, demographic dividend and pro-active measures by the government are abetting the growth of the retail sector in India.

The Indian retail sector provides immense opportunity for large scale retailers to set-up their operations which results in a trend of organized retail formats like departmental stores, hypermarkets, supermarkets and specialty stores and hence altering the retailing landscape in India. India is one of the third-most attractive retail markets for global retailers among the largest emerging markets. The federal government of India allowed 51% FDI in multi-brand retail in India with some restriction. This change paved way for joint ventures (JV) in the sector. A part from JV, a trend of rural retailing is also witnessed by Indian companies to tap the rural market.

The Indian retail sector accounts for 22 per cent of the country's gross domestic product (GDP) and contributes to 8 per cent of the total employment. The industry is experiencing exponential growth, not just in major cities and metros, but also in Tier-II and Tier-III cities. This paper intends at the changes, trends and the challenges on Indian retail sector.


Keywords


Unorganized and Organized Sector, FDI, Joint Ventures, Consumer Behavior, Consumption Pattern, Rural Retailing.

References