The growth of the Indian economy is now manifesting itsepf in the growing purchasing power of its citizens. A 10% to 12% increase in the economt's disposable income and a much higher one in urban a4reas is also reflecting itself in the way goods and services are bought and sold.The retail scenario in India is unique as retailing in India is vastly unorganized. There is no supply-chain management perspective. According to a survey by AT Kearney, an overwhelming proportion of the Rs. 400,000 cr retail market is unorganized. In fact, only a Rs. 20,000 cr segment of the market is organized. Organized retailing was worth Rs. 23,000 cr in 2003 and is growing at a rate of 25-30% annually. According to Harminder Sahni, Associate Director and Principal of KSA Technopak, by 2010, organized retailing will be valued at Rs. 70,000 cr and will account for 10% of the total retail market.
"India Retail Sector Analysis (2006-2007)" report clearly reveals that organized retail will form 10% of total retailing by the end of this decade (2010). From 2006 to 2010, the organized sector will grow at the CAGR of around 49.53% per annum. Cultural and regional differences in India are the biggest challenges confronting retailers. This factor deters the retailers in India from adopting a single retail format. The arrival of multinationals will further push the growth of hypermarket format, as it is the best way to compete with unorganized retailing in India. Given the pacey lifestyle, increased buying power and changing spending pattern of consumers, retailing has a great future. |
