The Indian Retail Scene
Organized Retailing and Kirana Shops
India's retail sector is going to transform and with a three-year compounded annualgrowth rate of 46.64 per cent, retail sector is the fastest growing sector in the Indianeconomy. Traditional markets are transforming themselves in new formats such asdepartmental stores, hypermarkets, supermarkets and specialty stores. Western-stylemalls have begun appearing in metros and near metro cities, introducing the Indianconsumer to a new shopping experience.KSA-Technopak, a retail consulting and research agency, predicts that by 2010, organizedretailing in India will cross the US$ 21.5-billion mark from the current size of US$ 7.5 billion.The Indian retail market is of enormous size about US$ 350 billion. But organized retailis not so huge and it is at only US$ 8 billion. However, the opportunity for growth is huge —by 2010, organized retail is expected to grow to US$ 22 billion. With the growth of organized retailing estimated at 40 per cent over the next few years, Indian retailing isclearly at a tipping point.This report attempts to analyse the areas where retail sector is growing and will grow,what will be the target market segment for the retailers and how will they try to serve thissegment.
India is witnessing an unprecedented consumption boom. The economy is growing between 8 to 10 percent and the resulting improvements in income dynamics along withfactors like favorable demographics and spending patterns are driving the consumptiondemand. Indian Retail Industry is ranked among the ten largest retail markets in theworld. The attitudinal shift of the Indian consumer in terms of "Choice Preference","Value for Money" and the emergence of organized retail formats have transformed theface of Retailing in India. The Indian retail industry is currently estimated to be a US$200 billion industry and organized Retailing comprises of 3 per cent (or) US$6.4 Billionof the retail industry. With a growth over 20 percent per annum over the last 5 years,organized retailing is projected to reach US$ 23 Billion by 2010.The Indian retail industry though predominantly fragmented through the owner -run "Mom and Pop outlets" has been witnessing the emergence of a few medium sized IndianRetail chains, namely Pantaloon Retail, RPG Retail, Shoppers Stop, Westside (TataGroup) and Lifestyle International. In the last few years, Indians have gone through adramatic transformation in lifestyle by moving from traditional spending on food,groceries and clothing to lifestyle categories that deliver better quality and taste. Modernretailing satisfies rising demand for such goods and services with many players enteringthe bandwagon in an attempt to tap greater opportunities.According to the report of American Management Consulting Firm A. T. Kearney's 2006Global Retail Development Index (GRDI), India is on the first position , continuing for