Introduction of Indian Retail Industries:

In the background of high consumerism and income of the urban consumers, in recent year there
are a number of companies have expressed their interest towards retail sector outlets. As a result
numbers of shopping malls have started their operations in metro and urban areas. Pantaloon, big
bazaar, Vishal Mega Mart, Reliance Fresh are the best known examples of retail sector outlets in
India.
Retailing is the interface between the producer and the individual consumer buying for personal
consumption. This excludes direct interface between the manufacturer and institutional buyers
such as the government and other bulk customers. A retailer is one who stocks the producer’s
goods and is involved in the act of selling it to the individual consumer, at a margin of profit. As
such, retailing is the last link that connects the individual consumer with the manufacturing and
distribution chain. Some of the key features of retailing include:

 Selling directly to customers with out having any intermediaries

 Selling in smaller units / quantities, breaking the bulk
 Present in neighborhood or in the location which is quite convenient to the customers.
 Very high in numbers
 Recognized by their service levels
 Fitting any size and or location

It is assumed that due to the entry of a number of retail outlets in the urban and semi urban areas,
the mindset of the existing customers have undergone drastic changes. Besides it is also reported
that the traditional retailing such an age old Grocery shops have directly faced competition with
the organized retailing sector. In some parts of the country, it is reported that the traditional
retails are resisting the entry of organized shopping malls. For instance the traditional retails of
Bhubaneswar with the active support of the consumers at large didn’t allow reliance Fresh to
start outlet initially.

RECENT TRENDS

 Retailing in India is witnessing a huge revamping exercise as can be seen in the graph
 India is rated the fifth most attractive emerging retail market: a potential goldmine.
 Estimated to be US$ 200 billion, of which organized retailing (i.e. modern trade) makes
up 3 percent or US$ 6.4 billion
 As per a report by KPMG the annual growth of department stores is estimated at 24%
 Ranked second in a Global Retail Development Index of 30 developing countries drawn
up by AT Kearney.
Retailing in India: the present scenario

The present value of the Indian retail market is estimated by the India Retail Report to be
around Rs. 12,00,000 crore($270 billion) and the annual growth rate is 5.7 percent. Retail
market for food and grocery with a worth of Rs. 7, 43,900 crore is the largest of the different
types of retail industries present in India. Furthermore around 15 million retail outlets help
India win the crown of having the highest retail outlet density in the world. The contribution
of retail sector to GDP has been manifested below:

Country Retail Sector's share

in GDP (in %)
India 10
USA 10
China 8
Brazil 6
As can be clearly seen, retailing in India is superior to those of its contenders. Retail sector is
a sunrise industry in India and the prospect for growth is simply huge. There are many factors
that have stimulated the rise of the shopping centers and multiplex-malls in a jiffy. Some of
them can be listed as follows: