EMERGING TRENDS IN INDIAN ORGANIZED RETAIL SECTOR
There is a fantastic rise in the Indian organized retail sector in a very short period of time between 2001 and 2006. Eventually, out of the shadows of the unorganized retail sector, India has a chance of tremendous economic growth, both in India and abroad.
The infrastructure of the retail sector will evolve radically in the recent future. The emergence of shopping malls is increasing at a steady pace in the metros and there are further plans of expansion which would lead to 150 new ones coming up in India by 2008. As the count of super markets is going up much faster than rate of growth in retail sector, it is taking the lions share in food trade.
The growth of the Indian organized retail sector is anticipated to be heavier than the growth of the gross domestic product. Alterations in people’s lifestyle, growth in income levels, and encouraging conventions of demography are proving favorable for the new emerging trends in the Indian organized retail sector.
The success of this retail sector would also lie in the degree of penetration into the lower income strata to tap the possible customers in the lowest levels of society. The demands of the buyers would also be enhanced by more access to credit facilities.
With the arrival of the Transnational Companies (TNC), the Indian retail sector will undergo a transformation. At present the Foreign Direct Investments (FDI) is not encouraged in the Indian organized retail sector but once the TNC’S get in they inevitably try to oust their Indian counterparts. This would be challenging to the retail sector in India.
The trends to follow in the future:
- The Indian Organized retail sector will grow up to 10% of total retailing by 2010.
- No one single format can be assumed as there is a huge difference in cultures regionally.
- The most encouraging format now would be the hyper marts.
- The hyper mart format would be further encouraged with the entry of the TNCs.