What is the history of retail industry?

Improve India retail industry is the largest industry in India, with an employment of around 8% and contributing to over 10% of the country's GDP. Retail industry in India is expected to rise 25% yearly being driven by strong income growth, changing lifestyles, and favorable demographic patterns. It is expected that by 2016 modern retail industry in India will be worth US$ 175200 billion. India retail industry is one of the fastest growing industries with revenue expected in 2007 to amount US$ 320 billion and is increasing at a rate of 5% yearly. A further increase of 7-8% is expected in the industry of retail in India by growth in consumerism in urban areas, rising incomes, and a steep rise in rural consumption. It has further been predicted that the retailing industry in India will amount to US$ 21.5 billion by 2010 from the current size of US$ 7.5 billion. Shopping in India has witnessed a revolution with the change in the consumer buying behavior and the whole format of shopping also altering. Industry of retail in India which has become modern can be seen from the fact that there are multi- stored malls, huge shopping centers, and sprawling complexes which offer food, shopping, and entertainment all under the same roof. India retail industry is expanding itself most aggressively; as a result a great demand for real estate is 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. 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 enter the India retail industry and convert Indian consumers to branded food. Since at present 60% of the Indian grocery basket consists of non- branded items. India retail industry is progressing well and for this to continue retailers as well as the Indian government will have to make a combined effort.

Retail Industry, Retail Sector, Retail Trade The retail industry is responsible for the distribution of finished products to the public. The retail sector comprises of general retailers (managed by individuals/families), departmental stores, specialty stores and discount stores.

The activities of the retail industry can be broadly classified into : Personal goods store retailing Hard goods: This covers deals in goods such as electronics, electrical appliances, furniture and sporting goods.

Soft goods: This includes apparel retailing. Non-store retailing This includes infomercials, catalogue sales, vending machines and ecommerce. Food retailing (restaurants) Automotive services and retailing Retail Industry: History The retail industry emerged in the US in the eighteenth century, restricted to general stores. Specialty stores were developed only in those areas that had a population of above 5,000. Supermarkets flourished in the US and Canada with the growth of suburbs after World War II. The modern retail industry is booming across the world. Revenues from retail sales in the US alone stood at $4.48 trillion in 2007, according to a report by the US Census Bureau. Retail Industry: Demand and Supply Drivers The major demand drivers of the retail industry are:

Interest rates

Population

Employment

Personal disposable income

Individual debt The supply drivers include:

Competitors in the industry

Size of the market

Cost of the factors of production Retail Industry: Major Players Of the worlds top ten retail companies in terms of total sales, six are American. Combined sales of the top ten companies, computed by Delloite, were $978.5 billion in 2007. Major retail giants include Wal-Mart, Target, Home Depot and Tesco. 26.60 Small grocery retailers 24.46 Internet retailing 25.93 Hypermarkets 19.09 Home shopping 24.04 Food/beverage/tobacco specialists 15.68 Direct selling 23.43 Discounters 7.57 Others 0.36 Total 100 Total 100

Source: World Retail Data and Statistics 2008/2009 The retail sector is vital to the world economy, as it provides large scale employment to skilled and unskilled labor, minors and casual and part-time workers. Employment in the retail sector in the US and Besides the urban market, Indias rural market has just started to be seen as a viable option and companies who understand what the rural consumer wants will grow to incredible heights. The bulk of Indias population still live in rural areas and to be able to cater specifically to them will mean generating tremendous amounts of business. Business, specifically retail business must focus on the most important factor in the Indian mind-set----Value for Money. Indian consumers are ready to pay almost any amount of money for a product or service as long as they feel they are getting good Value for Money. This is often misconstrued as being tight fisted or interested in lower priced and/or lower quality products.

In the past decade, international companies entering India (Levis, Pepe, Tommy Hilfiger, Marks and Spencer, Mango) have generally offered moderately priced to expensive items. They have aimed for the upper-middle and rich classes of Indian society. These are consumers who travel abroad often and can buy these items overseas quite easily. Instead, international companies should be focusing on the lower and lower-middle classes of India. This is where the real potential is, the aspirational class of consumers who want to lead a better lives and believe in education, hard work and absorb knowledge from every possible angle. The phenomenal success of Big Bazaar, Pantaloons version of Wal-Mart, is proof that there is enormous potential in providing products and services to this class of consumers. Indians are very curious by nature and will try everything at least once before rejecting it. The initial success of KFC in India proved that Indians could make a success of most new ventures entering India but reject a concept once they have tried and tested the offering and found nothing worth going back for. The menu at KFC was rather boring and insipid to the Indian consumer who is used to the innumerable combinations and permutations of street food. For their second run in India, KFC re-thought its menu and has been very successful marketing at specific groups within India, like the Punjabis who have quite a history of loving the Chicken leg and have made the Chandigarh outlet a huge success! A company entering India cannot have just one game plan to apply to the entire country as the people, their tastes, the lifestyle, the budgets etc are all too divergent. International entrants must enter each market specifically focusing only on that area to be successful. Metros: Delhi, Mumbai, Chennai and Kolkata Second rung but will soon outpace metros: Hyderabad, Bangalore, Ahmedabad, Gurgaon, Pune, Baroda Small and developing fast: Chandigarh, Coimbatore, Trivandrum, Faridabad, Ludhiana, Cochin, Simla, Mysore Retailing From Wikipedia, the free encyclopedia Jump to: navigation, search "Retail" and "Retail stores" redirect here. For the comic strip by Norm Feuti, see Retail (comic strip).

Drawing of a self-service store. Retail consists of the sale of goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser.[1] Retailing may include subordinated services, such as delivery. Purchasers may be individuals or businesses. In commerce, a "retailer" buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells smaller quantities to the end-user. Retail establishments are often called shops or stores. Retailers are at the end of the supply chain. Manufacturing marketers see the process of retailing as a necessary part of their overall distribution strategy. The term "retailer" is also applied where a service provider services the needs of a large number of individuals, such as a public utility, like electric power. Shops may be on residential streets, shopping streets with few or no houses or in a shopping mall. Shopping streets may be for pedestrians only. Sometimes a shopping street has a partial or full roof to protect customers from precipitation. Online retailing, a type of electronic commerce used for business-to-consumer (B2C) transactions and mail order, are forms of non-shop retailing. Shopping generally refers to the act of buying products. Sometimes this is done to obtain necessities such as food and clothing; sometimes it is done as a recreational activity. Recreational shopping often involves window shopping (just looking, not buying) and browsing and does not always result in a purchase.

San Juan de Dios Market in Guadalajara, Jalisco

Inside a supermarket in Russia

A marketplace is a location where goods and services are exchanged. The traditional market square is a city square where traders set up stalls and buyers browse the merchandise. This kind of market is very old, and countless such markets are still in operation around the whole world. In some parts of the world, the retail business is still dominated by small familyrun stores, but this market is increasingly being taken over by large retail chains. Retail is usually classified by type of products as follows: Food products Hard goods ("hardline retailers") - appliances, electronics, furniture, sporting goods, etc. Soft goods - clothing, apparel, and other fabrics. Department stores - very large stores offering a huge assortment of "soft" and "hard goods; often bear a resemblance to a collection of specialty stores. A retailer of such store carries variety of categories and has broad assortment at average price. They offer considerable customer service. Discount stores - tend to offer a wide array of products and services, but they compete mainly on price offers extensive assortment of merchandise at affordable and cut-rate prices. Normally retailers sell less fashionoriented brands. Supermarkets - sell mostly food products; Warehouse stores - warehouses that offer low-cost, often high-quantity goods piled on pallets or steel shelves; warehouse clubs charge a membership fee; Variety stores or "dollar stores" - these offer extremely low-cost goods, with limited selection; Demographic - retailers that aim at one particular segment (e.g., high-end retailers focusing on wealthy individuals). Mom-And-Pop : is a retail outlet that is owned and operated by individuals. The range of products are very selective and few in numbers. These stores are seen in local community often are family-run businesses. The square feet area of the store depends on the store holder. Specialty stores: A typical speciality store gives attention to a particular category and provides high level of service to the customers. A pet store that specializes in selling dog food would be regarded as a specialty store. However, branded stores also come under this format. For example if a customer visits a Reebok or Gap store then they find just Reebok and Gap products in the respective stores. General store - a rural store that supplies the main needs for the local community;

There are the following types of retailers by marketing strategy:

Convenience stores: is essentially found in residential areas. They provide limited amount of merchandise at more than average prices with a speedy checkout. This store is ideal for emergency and immediate purchases. Hypermarkets: provides variety and huge volumes of exclusive merchandise at low margins. The operating cost is comparatively less than other retail formats. *Supermarkets: is a self service store consisting mainly of grocery and limited products on non food items. They may adopt a Hi-Lo or an EDLP strategy for pricing. The supermarkets can be anywhere between 20,000 and 40,000 square feet. Example: SPAR supermarket. Malls: has a range of retail shops at a single outlet. They endow with products, food and entertainment under a roof. Category killers or Category Specialist: By supplying wide assortment in a single category for lower prices a retailer can "kill" that category for other retailers. For few categories, such as electronics, the products are displayed at the centre of the store and sales person will be available to address customer queries and give suggestions when required. Other retail format stores are forced to reduce the prices if a category specialist retail store is present in the vicinity. E-tailers: The customer can shop and order through internet and the merchandise are dropped at the customer's doorstep. Here the retailers use drop shipping technique. They accept the payment for the product but the customer receives the product directly from the manufacturer or a wholesaler. This format is ideal for customers who do not want to travel to retail stores and are interested in home shopping. However it is important for the customer to be wary about defective products and non secure credit card transaction. Example: Amazon, Pennyful and Ebay. Vending Machines: This is an automated piece of equipment wherein customers can drop in the money in machine and acquire the products.

Some stores take a no frills approach, while others are "mid-range" or "high end", depending on what income level they target. Other types of retail store include: Automated Retail stores are self service, robotic kiosks located in airports, malls and grocery stores. The stores accept credit cards and are usually open 24/7. Examples include ZoomShops and Redbox. Big-box stores encompass larger department, discount, general merchandise, and warehouse stores. Convenience store - a small store often with extended hours, stocking everyday or roadside items; General store - a store which sells most goods needed, typically in a rural area;

Retailers can opt for a format as each provides different retail mix to its customers based on their customer demographics, lifestyle and purchase behaviour. A good format will lend a hand to display products well and entice the target customers to spawn sales. [edit] Retail pricing The pricing technique used by most retailers is cost-plus pricing. This involves adding a markup amount (or percentage) to the retailer's cost. Another common technique is suggested retail pricing. This simply involves charging the amount suggested by the manufacturer and usually printed on the product by the manufacturer. In Western countries, retail prices are often called psychological prices or odd prices. Often prices are fixed and displayed on signs or labels. Alternatively, when prices are not clearly displayed, there can be price discrimination, where the sale price is dependent upon who the customer is. For example, a customer may have to pay more if the seller determines that he or she is willing and/or able to. Another example would be the practice of discounting for youths, students, or senior citizens.. [

[edit] Bibliography Krafft, Manfred; Mantrala, Murali K. (eds.) (2006). Retailing in the 21st century: current and future trends. New York: Springer Verlag. ISBN 3540283994

India Retail Industry

Retails Industry News Aditya Birla Retails plans expansion in India Growth Phase of Indian Retail Sector to Continue Indian Garment exporters focusing on domestic retail The Indian retail industry is the fifth largest in the world. Comprising of organized and unorganized sectors, India retail industry is one of the fastest growing industries in India, especially over the last few years. Though initially, the retail industry in India was mostly unorganized, however with the change of tastes and preferences of the consumers, the industry is getting more popular

these days and getting organized as well. With growing market demand, the industry is expected to grow at a pace of 25-30% annually. The India retail industry is expected to grow from ` 35,000 crore in 2004-05 to ` 109,000 crore by the year 2010.

Growth of Indian Retail

According to the 8th Annual Global Retail Development Index (GRDI) of AT Kearney, India retail industry is the most promising emerging market for investment. In 2007, the retail trade in India had a share of 8-10% in the GDP (Gross Domestic Product) of the country. In 2009, it rose to 12%. It is also expected to reach 22% by 2010. According to a report by Northbride Capita, the India retail industry is expected to grow to US$ 700 billion by 2010. By the same time, the organized sector will be 20% of the total market share. It can be mentioned here that, the share of organized sector in 2007 was 7.5% of the total retail market. Major Retailers in India

Pantaloon: Pantaloon is one of the biggest retailers in India with more than 450 stores across the country. Headquartered in Mumbai, it has more than 5 million sq. ft retail space located across the country. It's growing at an enviable pace and is expected to reach 30 million sq. ft by the year 2010. In 2001, Pantaloon launched country's first hypermarket Big Bazaar. It has the following retail segments: Food & Grocery: Big Bazaar, Food Bazaar Home Solutions: Hometown, Furniture Bazaar, Collection-i Consumer Electronics: e-zone Shoes: Shoe Factory Books, Music & Gifts: Depot Health & Beauty Care: Star, Sitara E-tailing: Futurebazaar.com Entertainment: Bowling Co.

Tata Group Tata group is another major player in Indian retail industry with its subsidiary Trent, which operates Westside and Star India Bazaar. Established in 1998, it also acquired the largest book and music retailer in India Landmark in 2005. Trent owns over 4 lakh sq. ft retail space across the country. RPG Group RPG Group is one of the earlier entrants in the Indian retail market, when it came into food & grocery retailing in 1996 with its retail Foodworld stores. Later it also opened the pharmacy and beauty care outlets Health & Glow. Reliance Reliance is one of the biggest players in Indian retail industry. More than 300 Reliance Fresh stores and Reliance Mart are quite popular in the Indian retail market. It's expecting its sales to reach ` 90,000 crores by 2010. AV Birla Group AV Birla Group has a strong presence in Indian apparel retailing. The brands like Louis Phillipe, Allen Solly, Van Heusen, Peter England are quite popular. It's also investing in other segments of retail. It will invest ` 8000-9000 crores by 2010. Retail formats in India

Hypermarts/supermarkets: large self-servicing outlets offering products from a variety of categories. Mom-and-pop stores: they are family owned business catering to small sections; they are individually handled retail outlets and have a personal touch. Departmental stores: are general retail merchandisers offering quality products and services. Convenience stores: are located in residential areas with slightly higher prices goods due to the convenience offered. Shopping malls: the biggest form of retail in India, malls offers customers a mix of all types of products and services including entertainment and food under a single roof. E-trailers: are retailers providing online buying and selling of products and services. Discount stores: these are factory outlets that give discount on the MRP.

Vending: it is a relatively new entry, in the retail sector. Here beverages, snacks and other small items can be bought via vending machine. Category killers: small specialty stores that offer a variety of categories. They are known as category killers as they focus on specific categories, such as electronics and sporting goods. This is also known as Multi Brand Outlets or MBO's. Specialty stores: are retail chains dealing in specific categories and provide deep assortment. Mumbai's Crossword Book Store and RPG's Music World are a couple of examples.

Challenges facing Indian retail industry The The tax structure in India favors small retail business Lack of adequate infrastructure facilities High cost of real estate Dissimilarity in consumer groups Restrictions in Foreign Direct Investment Shortage of retail study options Shortage of trained manpower Low retail management skill Future

The retail industry in India is currently growing at a great pace and is expected to go up to US$ 833 billion by the year 2013. It is further expected to reach US$ 1.3 trillion by the year 2018 at a CAGR of 10%. As the country has got a high growth rates, the consumer spending has also gone up and is also expected to go up further in the future. In the last four year, the consumer spending in India climbed up to 75%. As a result, the India retail industry is expected to grow further in the future days. By the year 2013, the organized sector is also expected to grow at a CAGR of 40%. 'Textile retail sector expected to grow to Rs.9.9 lakh crore by 2020' 17 Feb 2011 The story has been read 742 times.

The 11th edition of India Fashion Forum (IFF 2011) kicked off with a positive note for the Indian textile retail sector, which is expected to witness a high growth rate in the years to come. The two-day event (February 17-18) is being held at The Renaissance hotel in Mumbai. The textile retail sector will be one of the largest employment generators, apart from being a large value creator in the Indian economy, said Nikhil Meswani, chairman of IFF 2011 and executive director, RIL, in his inaugural address. The growth outcome expected from the Indian fashion retail sector throws open an investment opportunity of over Rs.30,000 crore annually across the textile retail value chain. This is expected to increase the size of the textile retail industry from its current size of Rs.3,15,000 crore to Rs.9,90,000 crore by 2020, he stressed. Commenting on the business outlook for the textile retail sector in India, Meswani said, I see convergence in price points of products that cater to need, comfort and luxury in India. Such a challenging business scenario compels us to re-strategise on the traditional thoughts in marketing. This is primarily because business models become obsolete before the product loses its appeal. There is need to continuously innovate, redefine and reinvent businesses to adapt to the changing needs of the consumer. He further said the key challenges was to re-achieve what we did in the last 50 years within the next 10 years. To make the industry competitive, Meswani suggested, there is an urgent need to keep up-to-date with the latest fashion trends. IndiaRetailing Bureau

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With a population on 1.2 billion, India is a market worth the notice. The size of the textile retail industry is $70 billion nearly thrice the size of the textile exports from India.

Todays news is about Arvind Mills, Indias premier textile manufacturer. The retail arm of the company, in the name of Arvind lifestyle makes a turnover of $270 million. The $250 odd million they make is a good part of the organized retail trade in India, which is dominated by unorganized retail sector. Over 40% of the companys turnover comes from franchisee/license agreements from foreign lifestyle brands. Arvind lifestyle boasts of names like Newport, Ruff and Tuff, Arrow and Flying Machine among others. The Indian retail industry is set to sky-rocket in the coming decade, and the textile retail sector will touch anywhere close to $220 billion, an industry equal to the size of Chinas textile exports! I would say the local manufacturers have nothing to lose if EU does not agree to the bi-lateral trade agreement with India, we have a growing market to cater. Share your opinion in the comments below. In a world of Facebook, I have a Facebook fan page dedicated to this blog, like it here to receive instant post updates.

Textile Companies in India

Companies in India > Textile Companies in India The textile business is among Indias largest foreign exchange earners. This sector has benefited significantly with the termination of the Multi-Fiber Arrangement (MFA) in January 2005. It employs over 35 million people. Indian textiles account for 14 per cent of its industrial production and about 17 per cent to the total export from India. Readymade garments and carpets are large contributors to exports. India's textiles and apparel industry is worth $49 billion where 39 per cent of the value is exported. Cotton remains the most significant raw material and India is the second largest producer of the fiber in the world. Other fibers used are silk, jute, wool, and man-made fibers.

AT Kearneys Retail Apparel Index has ranked India as the third most promising market for apparel retailers. The domestic textile market in India is witnessing strong growth owing to an increase in disposable income of the young elite, and a rapid growth in organized retail. International brands in India are aspirational and the companies with strong branding and high margins are already profitable. There is increased collaboration between Indian and foreign companies such as Armani, Benetton, Esprit, Levi Strauss, Hugo Boss, Liz Clairborne. S. Kumar Nationwide Limited is one of India's leading textile and apparel companies. It claims to be the only textile major in the country that operates in all product categories - fabrics, apparel, and home textiles; all fiber categories - natural, man-made, and blended; and caters to all socio-economic segments of the Indian market, manufacturing over 200,000 meters a day. Century Textiles and Industries of the BK Birla group. The company operates in four segments: Textiles, Pulp and Paper, Cement, and Others. The Textile segment provides yarn, cloth, garment, denim cloth, viscose filament yarn, and tire yarn. Bombay Dyeing Fabindia Grasim Industries JCT Limite Lakshmi Machine Works Lakshmi Mills Mysore Silk Factory

This section contains several short lists of Indian Companies in some select industries. Please Contact Us if you would like expert help when selecting, approaching, and working with these, or any other, company in India.

Indian Textile Industry to Foster on the Back of Retail boom

Mar 30, 2007 Share |
The largest man-made textile industry of India, Surat, is poised to see a retail boom. The textile industry of Surat contributes 65% of the countrys total man-made textile production and is projected to register a growth of 15-20% in synthetic fabrics demand. The Chairman of Federation of Indian Art Silk Wearing Industry (FIASWI), Arun Jariwala, said in a statement reported on February 5, 2007, by The Economics Times, that the retail boom would create demand for polyester fabrics. Many industrialists opine that demand of polyester textiles is likely to grow as cotton fabrics are dearer by 40%. "Fabrics and garments will have a major concentration in the retail mall structure. Since polyester fabrics are cheaper than cotton fabrics, the demand for polyester is likely to grow", stated Alok Shah, Director, Garden Silk Mills, in statement reported by The Economics Times on February 5, 2007.

The prospering retail industry is believed to be a light of hope for the decentralized Indian textile industry that shouldered losses worth crores of Rupees in the floods in 2006. Mr. Jariwala said, "The industry has suffered huge losses due to the floods and now the time has come to cash in on the booming retail market". This will provide a thrust to the decentralized textile industry as more businesses will upgrade their manufacturing units, thereby reducing their production costs to significant levels to remain in the competition. According to "India Retail Sector Analysis (2006-2007)", a report by RNCOS, Indian retail industry has witnessed a significant growth in the past five years. Apparel category is among the fastest growing sectors in the retail industry. This category garnered revenues of approx US$ 22.8 Billion in 2005 in India and is expected to rise at a potential volume of US$ 44.6 Billion by 2010 at a CAGR of 14.3%. The market research report provides a thorough analysis on the Indian retail industry with distinguished focus in unorganized and organized sectors. A detailed statistical account on supermarkets, specialty stores, and other retail formats has been given. The product-wise segmentation of the retail industry alongwith retail scenario in rural India has been discussed in detail. The other highlight of the report is the industry analysis that covers consumer behavior, growth drivers, challenges, opportunities and M&As in the industry. For more information visit: http://www.rncos.com/Report/IM058.htm