Retail Industry

The face of the retail industry in India is changing fast; the country is quickly becoming a retail destination of the world’s shoppers.

The country is emerging as a leader in terms of retail opportunities. By 2010, the retail market in India is estimated to grow to about US $427 billion.

The country is now the 39th most preferred retail market the world over.

At the moment, India is experiencing a retail boom. This state has been prompted by a number of factors; rising number of malls and hypermarkets, availability of retail space and the rising number of international brands that can be found in the country.

The fact that the Indian government opened its doors to FDI has also played a role; the country has seen an influx of foreign retailers. Gone are the days when Kirana stores could be found on every corner, the country is well on its way to becoming what is referred to as a ‘mall country’.

The emphasis of the Indian retail industry has shifted from the previous reasonable pricing ideals to its focus now being convenience, efficiency and ambience. This change in the retail industry has been fuelled by increasing disposable incomes, better living standards, western exposure and increasing consumer awareness.

The youth population and the large middle class of the country have also contributed enormously to this phenomenon. The Indian middle class has long been considered to be the major consumer group in the country and the youth buy according to trends. Tourist spending has also been on an increase in the country.

The retail sector does play a part in the economy in India but it cannot justify its size. This position of India’s retail sector is helped further by availability of real estate, adequate infrastructure and a reliable supply chain.

The future of the retail sector in the country is very promising. Proponents of further flexibility regarding foreign direct investment will not hurt the traditional businesses in any way but will instead see a further rise in the retail sector.

Two categories of the retail sector that are showing a lot of promise for the future are the food and grocery categories. Consumer durables, jewellery, and apparel are also other categories that have a lot of potential. A niche market is also being created by Indian retailers in the areas of books, gifts and music sales.