Indian Retail
About India
In a country where a multitude of customs, cultures, religions, languages and races come together; in a land where the rich and poor, the intellects and illiterates, the theist, the atheist and the agnostic all intermingle in a panorama that stretches from snow-clad Himalayas to azure waters of the Indian Ocean, from the Bay of Bengal to the Arabian Sea, India encompasses one of the most economically challenging markets in the world. Understanding and catering to the widely diverging retail market in this region calls for a special brand of retailer, one who is capable of focusing on the subtle nuances and variance in preferences that underscore states in this region.
Indian Retail Scenario
There are over 4.3 million retail outlets in India and yet, organized retailing in India accounts for only two percent of the total, which compared to other South Asian countries is dismal. for instance, in Malaysia organized retailing accounts for 50% of retail business and the percentages of organized retailing against traditional retailing in other countries show similar high numbers - Thailand with 40%, Philippines with 35%, Indonesia with 25%, China with 20% and South Korea with 15% of organized retailing.
India has around 200 shopping malls presently located in cities. A sharp growth rate of 35-40% across the country is a positive sign of where organized retailing is headed in India. The total domestic retail market was estimated to be around Rs.9,300 billion in 2003-04 and the annual growth rate is around 4 to 6 per cent. Price Water House Coopers (PWC) had estimated India among the six most attractive destinations in retailing alongside China, Turkey, Thailand, Malaysia and Hungary.
Big business houses in India like Reliance, Godrej, Mahendras, Wadia, Tata, Hero and Malhotras are now actively involved in the retail sector with Reliance India entering into the sector with an initial investment of Rs 25,000 crores and with an estimated employment of around 10 lakhs. Meanwhile, Pantaloon, Shoppers Stop, RPG Group, Trent, Life Style and a horde of others have already established retail networks in the county in a big way.
The international players who have already entered into retailing business in India include McDonald's, Pizza Hut, Dominos, Levis, Lee, Nike, Adidas, TGIF, Benetton, Sony
