The word Retail means ‘the sale of goods to the public in relatively small quantities for use or consumption rather than for resale.’ Only few years back, local kirana shop, vegetable vendor, small petty clothes, electronics sellers used to constitute retail. But with changing times, a big revolution has come in retail market in India.
Setting up of malls, multi brand outlets, e-retail are some of the retail formats that have found place in definition of retail today. Retail sector has seen massive investments, both from domestic and international players, in past few years. The investment on one side was seen positive for development of real estate, logistics and manufacturers, on the other side it was considered to eat up the market of small retail shops. Hence the Indian government had to face stiff resistance in allowing FDI investments in multi and single brand retail stores.
Factors contributing to the rising interest in retail as a market by Indian corporate houses like Reliance, Birla and Tata’s was the India’s local consumption driven market. Growing young population, increasing employment, increase women workforce, increasing nuclear families and increasing disposable income are some of the factors contributing to rise in Retail industry in India. India’s local market was seen as honey for many international retail biggies to make investment in India, either through owned single brand outlet and forming joint ventures with Indian partners for multi brand outlet.
As of today we can find big retail shops occupying two to four storeys in a mall and buzzing with young crowd. Chains like Big Bazaar, Shopper’s Stop, Birla’s More, Reliance Fresh, Pantaloon, Trent, Westside, Star Bazzar are some of the popular ones.
Apart from electronics and clothing, many retail chains have come in Food market. Pizza Hut, McDonald’s, Dominos, Mad over Donuts, Starbucks, Barista, Café Coffee Day are some of the names that have become well known in Food retail segment.
In times to come, we can see lot of activity happening around the retail sector and changes to take place in terms of format, target, and coverage of retail players. Still more than 80 to 90% of retail in India is un-organized, throwing up lot of space of every small or big company to establish itself and offer superior value to Indian customer.