Retail RomanceP/MN/R/08/149
Introduction:
Indian retail industry was growing at rapid rate till mid 2008, companies with or without priorexperience and expertise in this business was joining the retail bandwagon. Retailers especiallyorganized retailers were opening new stores in each and every corner of big metro cities as well as insmaller tier-II and tier-III cities. Industry experts were going gaga over the golden future that retailindustry will unfold.But then financial slowdown and liquidity crunch started showing the ugly side of consumerism whichlater resulted in recession and economic downturn. This tough economic climate revealed the basicweaknesses of the Indian retail industry which were previously remained out of picture. Now thing arelooking very ugly with big retailers who were too busy opening new shops earlier now planning to cutcosts by closing a bulk of them just to stay afloat. So the question arises-
‘
Is the honeymoon period of retail in India over?
’
Before finding out what actually the scenario is let’s see the growth of Indian retail industry and the
breakup among the players.Indian retail industry started growing at a breakneck speed after liberalization policies improved thegrowth rate of Indian economy. Indian economic growth paved the way for retail boom.High private consumption, growing middle income group, large number of young professionals is someof the causes that supported the retail growth. Following are the breakup of Indian consumption.
0%2%4%6%8%10%
1 9 9 7 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7
GDP (%)
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