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Modern Retailing in India

International Journal of Management Prudence

Volume 1 Issue 2

Published: 2010
Author(s) Name: H.S.Cheema
Locked Subscribed Available for All

Abstract

Indian retailing is undergoing a process of evolution and is poised to undergo rapid transformation. The Indian retail industry which was traditionally dominated by small by small mom & pop stores i.e kirana stores, seems to have finally come to an age. At present India is on the threshold of a great era in retailing which has brought many changes and also opened door for many domestic as well as foreign players. Historically rural reach was through weekly markets i.e haats, jhatras, melas, village fairs, which is also the source of entertainment. Another traditional retail reach is through convenience stores also known as mom & pop stores, is a key element in the retail in India due to consumers unwillingness to go long distance for purchasing daily needs. The Indian retail, which was dominated by small entrepreneurs, i.e family members kirana stores, seems to have finally come to age. The traditional grocery stores have EMBRACED the modern retail formats. Modern formats such a discount stores, hyper market, supermarket, department stores, specialty stores, convenience stores, warehouse retailers have emerged. The emergence of new formats and the evolution of modern retail in India have attracted the attention of the aspiring class. The young consumers are looking for shopping experience and now value convenience and choice on a par with getting value for their money. Many retailers are attempting to serve the latent needs of the "new" aspiring Indian consumers. Retailing is an important segment of any economy, both in relation to GDP contribution and share in total employment. The opportunities and scope for more employment in retailing sector cant be ACCENTUATED. Sales from large format stores are to be expanding at growth rates ranging from 24 percent to 49 percent per year during 2003-08 according to a latest report of Euromonitor International, a leading provider of global consumer - market intelligence. Currently, retailing is a new concept for the Indian market and is largely disorganized. Only 3 percent of total retailing sector comes under organized retailing. As per the Technopak consultants the retail industry is expected to sink all of $ 36 billion into various formats by 2013, this would result in an industry with an estimated total of $ 100 billion by 2014. The retail sector is highly fragmented and has the highest retail density in the world. This paper will discuss the challenges like FDI in retail sector, real estate, manpower planning, supply chain in modern retailing in India. Key words: FDI in retail, real estate, manpower planning, supply chain.

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