Retailing in India:Recent Trends & Challenges

Retailing is the mantra of success for the companies today.Retail is the fastest growing sector in the Indian economy. Traditional markets are making way for new formats such as departmental stores, hypermarkets, supermarkets and specialty stores. Western-style malls have begun appearing in metros and second-rung cities alike, introducing the Indian consumer to an unparalleled shopping experience. India is currently the ninth largest retail market in the world.The Indian retail market is estimated at US$ 350 billion whereas organised retail is estimated at only US$ 8 billion. However, the opportunity is huge-by 2010, organised retail is expected to grow to US$ 22 billion.An intense war in retailing has also begun.Recently Sunil Mittal's Bharti signed a pact with Wal-Mart to enter Indian retail segment.Seeing this AS Watson Ltd, one of Asia's top retailers and the world's largest in the health and beauty segment which is a part of Hutchison Whampoa, has zeroed in on Dubai-based Landmark for an India entry.In response to Indian local players such as Mukesh Ambani's Rs 25,000-crore and Kumar Mangalam Birla's Rs 15,000-crore retail ambitions, Adi Godrej has also initiated talks with four leading global retailers, including Carrefour and Tesco, for a slice of the $7-billion organised retail business.Though the scope of success is immense in retailing but all these players have to cope with the challenges alongwith.How to drive out customers out of kiryana shops,how to cope with the intense competition for the big players and how the government will protect the kiryana playes,all these challenges will make retailing very interesting and happening sector in the near future in India.