G r o u p 1
2Study of Operations at Retail Industry
India’s retail market which is seen as THE GOLDMINE by global players has grabbed attentionof the most developed nations. This is no wonder to the one who knows that the total Indianretail market is US $350bn. (16, 00,000 crore INR approx.) of which organized retailing is onlyaround 3 percent i.e. US $8bn (36,000 crore INR approx).“Retailing includes all activities involved in selling goods or services directly to final consumersfor personal, non-business use. A retailer or retail store is any business enterprise whose salesvolume comes primarily from retailing.” Retail is India's largest industry, accounting for over 10 per cent of the country's GDP and around eight per cent of the employment. Retail industry inIndia is at the crossroads. It has emerged as one of the most dynamic and fast paced industrieswith several players entering the market.The presence of 15million kirana stores brings into light the very fact that the Indian retailindustry is highly fragmented/ unorganized. Retailing in India is gradually inching its waytoward becoming the next boom industry, organized retailing in particular. The whole concept of shopping has altered in terms of format and consumer buying behavior, ushering in a revolutionin shopping in India. Modern retail has entered India as seen in sprawling shopping centers,multi-storeyed malls and huge complexes offer shopping, entertainment and food all under oneroof.The future of Indian retailing may even witness the concept of 24 hour retailing. Even thoughthis concept has been in existence in few retail segments like pharmaceuticals and fuel, it stillremains to be a challenge for other segments like food and groceries, apparel etc to adopt thistrend.Although the organized retailing in India is coming up in a big way, it cannot simply ignore thecompetition from the conventional stores because of various factors like reach, extending creditfacility and other intangible factors like the human touch which are provided only by theconventional stores.