Impact of Recession on the Indian Retail Market

2081 Words Apr 2nd, 2010 9 Pages
The retail market in India is facing slowdown with the ongoing financial crisis happening across the world markets. Since the markets always have internally linked with each other, the impact of the crisis is generally shared among all. The following circumstances are creating unwelcome interruptions to the Indian retail industry. The industry hopes for the best alternations to overcome the acrimonious situations.
Markets in recession worldwide and India too:
The current meltdown in the world markets is shaking the globe today. Not even a single country seems to be off the hook. The high level of inflation has been a wet blanket for the global markets. The roots of the world markets are nearly pulled away with the heavy downfall of the
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More than 80% of the retail industry in the country is concentrated in the large cities. A study reveals that among the more than 20 locations, for organized retail in India, Mumbai was found to be the most preferred location followed closely by Bengaluru in the second position.
Retail formats in India

• Hypermarts / supermarkets: large self-servicing outlets offering products from a variety of categories.

• Mom-and-pop stores: they are family owned business catering to small sections; they are individually handled retail outlets and have a personal touch.

• Departmental stores: are general retail merchandisers offering quality products and services.

• Convenience stores: are located in residential areas with slightly higher prices goods due to the convenience offered.

• Shopping malls: the biggest form of retail in India, malls offers customers a mix of all types of products and services including entertainment and food under a single roof.

• E-trailers: are retailers providing online buying and selling of products and services.

• Discount stores: these are factory outlets that give discount on the MRP.

• Vending: it is a relatively new entry, in the retail sector. Here beverages, snacks and other small items can be bought via vending machine.

• Category killers: small specialty stores that offer a variety of categories. They are known as category killers as they focus on specific categories, such as electronics and sporting goods. This is
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