Indian retail industry is among the largest industrial segments in India, with net employment of around 8% and contributing to over 10% of the country's GDP. On the back of rising prosperity, the Indian retail industry is expected to rise 25% annually - being driven by strong income growth, changing lifestyles, and favorable demographic patterns.
Shopping in India has undergone a sea change with the consumer buying pattern and the whole format of shopping also altering. From the days of the ubiquitous Kirana stores, the retail industry has graduated to multi- stored malls, huge shopping centers, and sprawling complexes which offer food, shopping, and entertainment all under the same roof. What was once akin to small scale industry or cottage industry has now become organized and is now a key driver of industrial economics.
Most of the more noticeable changes in Indian have occurred post liberalization, since 1991. However, the pace of rapid growth and expansion in Indian retail industry increased even more since the early years of the current decade. Along with changes in other demand-supply indicators, a great demand for real estate in urban conglomerates is also being created. Indian retailers preferred means of expansion is to expand to other regions and to increase the number of their outlets in a city. It is expected that by 2010, India may have 600 new shopping centers. This expansion of construction activities has been a domino effect of the growth of Indian retail story.
In the Indian retailing industry, food is the most dominating sector and is growing at a rate of 9% annually. The branded food industry is trying to acquire a foothold in the market and convert Indian consumers to branded food. There is enormous scope of food industry becoming more brand oriented since at present 60% of the Indian grocery basket consists of unbranded items. Consciously or unconsciously, we as a nation are climbing up the value chain.
While the India retail industry has done well so far, with minimal Government interference, much of the future prospects of the industry depend on how the Government responds to challenges faced by the industry at present. We will talk about those challenges in our next post.
Shopping in India has undergone a sea change with the consumer buying pattern and the whole format of shopping also altering. From the days of the ubiquitous Kirana stores, the retail industry has graduated to multi- stored malls, huge shopping centers, and sprawling complexes which offer food, shopping, and entertainment all under the same roof. What was once akin to small scale industry or cottage industry has now become organized and is now a key driver of industrial economics.
Most of the more noticeable changes in Indian have occurred post liberalization, since 1991. However, the pace of rapid growth and expansion in Indian retail industry increased even more since the early years of the current decade. Along with changes in other demand-supply indicators, a great demand for real estate in urban conglomerates is also being created. Indian retailers preferred means of expansion is to expand to other regions and to increase the number of their outlets in a city. It is expected that by 2010, India may have 600 new shopping centers. This expansion of construction activities has been a domino effect of the growth of Indian retail story.
In the Indian retailing industry, food is the most dominating sector and is growing at a rate of 9% annually. The branded food industry is trying to acquire a foothold in the market and convert Indian consumers to branded food. There is enormous scope of food industry becoming more brand oriented since at present 60% of the Indian grocery basket consists of unbranded items. Consciously or unconsciously, we as a nation are climbing up the value chain.
While the India retail industry has done well so far, with minimal Government interference, much of the future prospects of the industry depend on how the Government responds to challenges faced by the industry at present. We will talk about those challenges in our next post.
I agree.
ReplyDeleteIndian retail industry is still in its nascent stages,and offers a big business opportunity in near future
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