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Published by onThursday, August 21, 2008 at12:09:00 PM

Retail Industry an Emerging Sector

Retail Industry - Retailing is a distribution channel function where one organization buys products from supplying firms or manufactures the product them selves, and then sells these directly to consumers. A retailer is a reseller (i.e., obtains product from one party in order to sell to another) from which a consumer purchases products.

Retailing in India

The 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$ 175 to US$ 200 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% to 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.

Pantaloon Retail (India)

Pantaloon's Kishore Biyani believes in changing the rules. When Pantaloon started the Big Bazaar discount stores in 2002, malls were not part of the shopping culture. Big Bazaar became a hit, as it combined the look and feel of Indian Bazaars with aspects of modern retail like choice, convenience and quality. Headquartered in Mumbai, the Rs. 3,500 crore company now operates over 5 million sq. ft. across 40 cities.

Shopper's Stop

A men wear store owned by K. Raheja in the Mumbai suburb of Andheri in 1991 has now transformed into Shopper's Stop, with 27 departmental stores. The company entered airport retailing in a joint venture with the Nuance Group. It also launched India's largest hypermarket, Hyper-City. In 2005, it bought the Crossword bookstore chain.

Lifestyle

Growing from one store in Bahrain in 1973, the NRI led Landmark Group today operates over 5 million sq.ft. in the Middle East and India. The group's first Lifestyle store in India opened in Chennai in 1999. Now it has 325,000 sq.ft in Chennai, Hyderabad, Bangalore, Gurgaon and Mumbai.

Reliance Retail

Mukesh Ambanis 15,000 plus people Reliance Retail has opened 250 convenience stores, branded as "FRESH", across the southern states. It is now launched about 30 such outlets in Mumbai. Reliance Retail plans to invest Rs. 25,000 crore on hypermarkets, supermarkets and specialty stores in the next few years.

Aditya Birla Retail

The company, which will operate under the brand "MORE", has selected two formats hypermarkets and supermarkets for its initial foray. The first store has opened in Pune. Last January, the company acquired Trinethra Super Retail, which has given it more than 5,00,000 sq. ft. and a strong presence in the South. The Birlas outlay for the business over the next three years is Rs. 9,000 crore.

Bharti Retail

The world's largest retailer WalMart, which prefers to go it alone outside the US, Chose Sunil Mittal's Bharti Enterprises as its partner in India. The Venture will start with the cash & Carry (Wholesale) format, Which could be extended to retail operations once foreign direct investment is allowed in multibrand retail, as is expected.
Published by IzajAhmed Shaikh.
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I am, Mr.IzajAhmed Shaikh, a Computer Professional and a Pro. Blogger, who belongs to Shahabad, Karnataka India. My basic Qualifications are B.Sc., and M.C.M. done from University of Pune., formerly known as, Poona University,. I like to write articles based on my personal experiences.

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