Retail Industry in India

As we all know, the retail industry is very crucial and is highly competitive. As this company

The industry is therefore highly competitive right now. With fewer people making their way to department stores, the industry is filled with players all struggling to maintain market share through innovative strategies. The retail industry however is unusually hard to penetrate. Despite the high level of competition among the players in the industry, new players are finding it hard to stay in the industry because of the size of the players. One of the strategies of retailers right now is expansion in almost all cities across all states. This would enable them to capture as much market as they can. The industry players ' size is one of the important barriers to entry that should be considered. With the size of the main competitors and the increase in the number of their stores, new players are finding it hard to enter the industry.

India is standing on the threshold of a retail revolution and witnessing fast changing retail

•  India's $250 billion retail business is the eighth largest in the world and has the potential to grow 7 per cent by 2011. [McKinsey Report] For a company already dominating the world markets, this is an un-passable opportunity.

Retailing industry is one of the fast growing industry. The process of these industry in early 2000 was to buy commodities in bulk and sell them to the needy ones with margin or profit. The market is completely changed now with the trend of online shopping. Although technology is catching up the entire world, report states that the online shopping only concludes to 15% of the buyer. The global retail industry is distinguished into two main categories perishable and non-perishable goods. Further concluded as grocery retailing and non-grocery retailing. The FMCG industry still dominates the entire world market. However the

With the penetration of modern retailing in the suburbs and semi-urban areas, more and more Indians

Gone are the days when “buyer beware” was the trend. The sellers used to dictate their terms as the competition was less. But after the Liberalization, Globalizations and Privatization in 1991, more companies entered into India. This changed the situation form “Buyer’s beware” to “Sellers beware”. It became more difficult for the companies to sustain in the cut throat competition. They had to shift their focus from product centric to customer centric. Companies had to think smart instead of working hard. There was a need of decisive plan of action to survive in the market.

FDI in Retailing started with FDI in cash and carry wholesale trading first permitted in 1997 to the extent of 100% under the Government approval route and thereafter in 2006 brought under the automatic route. In 2006 again FDI in Single Brand Retailing was permitted to the extent of 51%. From here it is but natural and logical that FDI would now proliferate to multi-brand retailing. But the progression to FDI in multi-brand retailing cannot take place at the cost of vital concerns raised in connection with this possible change by different groups; viz, the question of adaptability of the retailers in the unorganized sector, the question as to how the FDI in retailing can be harnessed for the benefits of Indian agriculture and Medium and Small Enterprise and above all how to impart into the economy a degree of resilience to withstand the changes that would be ushered in the wake of introduction of FDI in retailing. All these concerns have to be addressed not because the Left wing political parties and the media through their campaign have necessitated such attention but because we are constitutionally bound to do so .The Preamble of the Constitution resolves to constitute India into a Sovereign, Socialist, Secular, Democratic, Republic and to secure to all its citizens JUSTICE, social, economic and political …..EQUALITY of status and opportunity. Directive Principles of State Policy similarly exhorts the state to establish just, equitable and fair order. Article 39(c) states that the state should ensure that the operation of the economic system does not result in the concentration of wealth and means of production to the common detriment. Though both these features are not enforceable, the Executive and the Apex Court in particular have

Foreign brands whose outlets are opening up in India as per the norms, where the Government is allowing up to 100% FDI in single-brand retail and 51% FDI in multi-brand retail.

The vast and diverse nature of the Indian consumer provides ample variety of needs for retail stores to address. Mom & pop stores, departmental stores, e-commerce platforms, all target different needs of a variety of customers. With consumers becoming more and more comfortable with

Even if foreign retailers do not need the approval from one central authority anymore, they have to run after much necessary permission to open new stores. Besides, under this strong competition context, the government is hardly to bring in new laws to calm the situation. Obstacles are quite numerous. Let’s summarize this analysis into a graphic to have a better representation of the procedure how to penetrate this market.

Approximately two-thirds of the United States’ gross domestic product (GDP) comes from retail consumption (Farfan, 2014). The U.S. retail industry employs over 14 million people (Farfan, 2014). With the unemployment levels slowly lowering as the economy bounces back from the recession, the job market for retail positions at all levels is very competitive (Farfan, 2014).

Retail is usually classified by type of products as follows: Food products Hard goods ("hardline retailers") - appliances, electronics, furniture, sporting goods, etc. Soft goods - clothing, apparel, and other fabrics. There are the following types of retailers by marketing strategy:

Retailing is the sale of goods and services to a consumer. The retailer is the last link in the distribution chain. A retailer 's purchases are usually made from a wholesaler, who in turn buys from a manufacturer (Retail, 2014). According to the U.S retail industry, two-thirds of the total US GDP comes from retail consumption. The latest annual report of the U.S department of Commerce for 2013 says that total retail sales in 2011 was $4.7 trillion an increase of 8% from 2010 numbers. Retailers have turned from being an intermediary between the manufactures and consumers to a visible power who can influence both producing and consuming decisions. Be it the vast expanses of the countryside or the crowded streets of cities, a Walmart, Target, or Staples are a common sight.

The Indian retail industry is the largest among all the industries, accounting for over 10 per cent of the country’s GDP and around 8 per cent of the employment. The retail industry in India has come forth as one of the most dynamic and fast paced industries with several players entering the market. But all of them have not yet tasted success because of the heavy initial investments that are required to break even and compete with other companies. The Indian retail industry is gradually inching its way towards becoming the next boom industry.