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Retail Industry in India

India is the most attractive retail market in the world. Retail market matured in India over the years but still it is highly fragmented. There are around 12-15 million outlets in the country making it a US$ 550 billion market. In past 5 years retail market witnessed a growth of 15% from 2010 to 2014, which is higher than Indian GDP growth.

Growing youth segment and working women population, rising incomes and rising purchasing power, higher brand consciousness, changing consumer preference, growing urbanization, Increase in number of upper middle class and rising internet penetration are the biggest drivers in the growth of retail industry of India. Also, rapid real estate infrastructure development, easy access to credit, increased efficiency due to development in supply chain and growing interest of investors are also helping retail sector to grow in India.

Retail Industry in India unlike other emerging economy is still very traditional in nature and is largely controlled by Cooperatives and Independent Retail companies. Street markets play an important role in the Retail industry of India as most of the population does their shopping here. Before the liberalization and globalization in 1991, western apparel, foods etc. we’re not available in the Indian market and the brand awareness and recall among the local population was negligible but after 1991 the awareness has steadily increased. This has allowed international brands to flourish.

Apart from normal brick and mortar stores e-commerce is the next big sector in India and is poised for a boom. India has all the necessary conditions like moderate per capita GDP, rising internet connections, large number of engineering graduates etc which are required for the success of E-commerce. Currently the E-commerce Market is worth more than billions of dollars but that is just the tip of the iceberg. The retail industry of India is hugely untapped and investors can massive returns when they decide to enter India’s retail sector. The Retail Market in India is expected to grow at a CAGR of till 2020.

What the report offers

The study identifies the situation of India and predicts the growth of its Retail Market. Report talks about growth, market trends, progress, challenges, opportunities, government regulations, technologies in use, growth forecast, major companies, upcoming companies and projects etc. in the Retail Sector of India. In addition to it, the report also talks about economic conditions of and future forecast of its current economic scenario and effect of its current policy changes in to its economy, reasons and implications on the growth of this sector. Lastly, the report is segmented by bazaars, brick and mortar shops and e commerce.

Retail Software in India – The Absolute Need of All Retail Businesses

It is obvious to everyone that the retail industry is growing at breakneck speeds all over the world. In developing countries, the charge is being led by India, where retail stores are getting bigger and better each passing day. Retail software in India is becoming an absolute necessity to keep pace with the growing demands of the industry and to manage the rapid growth in this market effectively.
Organized retailing is becoming the need of the hour as major retail businesses are finding ways and means of coping up with the tremendous buying power of the new generation of professionals. As competition stiffens, medium and even small retailers are waking up to the fact that complacency in the matter can drown them for good. Retail software in India is becoming a priority for all retail businesses that are looking to ride on wave of this huge retail boom.
Conventional point-of sales systems have long become obsolete as they have their limitations. In fact many retailers have done away with such systems long back and are experimenting with retail solutions in India to have a better control over sales and inventory. Software solution providers are also waking up to the need of this segment to have better, user-friendly systems to help them get a grip on the situation.
Retail software in India can help retailers enjoy various benefits. One of the best advantages comes from having better inventory control. Retail ERP systems haves features that allow retailers of both medium and large sized stores to manage their inventory and customer service. The best retail software has functionality that allows retailers to keep many aspects of their retail business under control.
With the right type of software, taking decisions becomes easier especially when it comes to identifying the fast moving retail products and how much of stock should be maintained to retain good control over inventory positions. It is also crucial to deploy the right software so that retailers can improve the quality of business management and also maximize the efficiency of customer service.
One important driver of retail software in India is that every retailer, big or small wants to have information to enable him to make the decisions that help him have the right products available at the right prices and the right places. Research into various aspects of the retail industry reveals that proper adoption of the correct technology can attract new customers, enhance profitability and improve overall quality of business management.
In retail sectors where the scale of operation is high and involves multiple levels of control and sale points, automated processes can help in a major way. Not only does it eliminate the manual way of doing computing tasks completely, it also minimizes the chances of errors creeping into the records considerably. Efficiency levels increases to optimum levels as real time availability of information helps retail companies make better and informed decisions.
A major advantage is the ability of retail software to track down customer information at will. This can help retailers offer customized services to their loyal clients, the best way a retailer can acknowledge the importance of a customer.

Virtuous Retail Retail Therapy all Over India

India’s growing demographic strengths has boosted organised retail; and the industry is expanding at a rapid pace.

But the dynamics of this segment are different from that of residential properties. The success of a mall depends on factors like location, design, anchor tenants and good tenant mix. This is where Virtuous Retail stands in good stead. With specialized know-how in creating high-performance lifestyle centres, Virtuous Retail not only offers premium commercial space but complements it with intelligent tenant relationship management. It is the only institutionally owned, developer-operator of lifestyle destinations, it has a pan-India footprint.

Virtuous Retail is currently developing world-class lifestyle centres; the flagship VR Bengaluru and Arena. Virtuous Retail offers premium retail space for lease in Bengaluru, which boasts of one of India’s fastest retail growth figures. Retail therapy takes on a whole new meaning with the advent of the ritzy VR Bengaluru. This awe-inspiring structure spans 1.5 million square feet; and features over 200 luxury and super-premium retail, entertainment and F&B outlets. Located in the heart of the buzzing Whitefield, VR Bengaluru houses top-notch commercial spaces, contemporary offices and a hotel in addition to shopping. The rooftop houses a Sky Deck, a multi-activity venue that is a wellness centre by day and a leisure hub by night.

Premium retail space for rent in Mumbai is hard to come by in a city that enjoys a mature consumer market, but is bursting at the seams. The Boulevard by Virtuous Retail is located in the swanky suburb of Juhu, the only destination in an 8-kilometer radius. Boulevard offers 8, 50, 000 square feet of luxury, premium and high street shopping; with 7,00, 000 square feet for residential development. 6, 00, 000 square feet of space is earmarked to house a high-end sports club, hotel, and banquet space. These are separate blocks connected via boulevards for retail, F&B, and outdoor events.

The retail market in Kolkata is different and an interesting one. India’s third most populous city is an eclectic mix of the traditional and the modern; and is growing by leaps and bounds. In fact, the household expenditure in Kolkata was found to be INR 1,822 per person per month on average, which is much higher compared to other metros. Naturally demand for upscale retail space for rent in Kolkata is rising. Epicentre in New Town, a joint venture of Virtuous Retail, offers a whopping 2,300,000 square feet of leasable space. This ten level mixed-use lifestyle centre is set to house 7, 00,000 square feet of retail space; along with a star hotel and upmarket residences.

Like any other real estate investments, it is important that any retail real estate investment is backed by a proven track record. Virtuous Retail’s expertise includes the entire gamut of research, planning, design, development, leasing, marketing, operations, and regulatory compliance.

Source At: http://bit.ly/1GgM464

Organised Retail In India

Retailing-An Introduction

The word “Retail” originates from a French-Italian word “retailler” meaning someone who cuts off or shreds a small piece from something. Retailing includes activities of marketing and selling products or services to end consumers for their own household or personal use. Retailer is a Person or Agent or Company or Organization who is instrumental in reaching the Goods or Merchandise or Services to the End User or Ultimate Consumer.

Kinds of Retailing

Unorganized

Traditional or Unorganized retail outlets are normally street markets, counter stores, kiosks and vendors, where the ownership and management rest with one person only. This sector accounts for two thirds of the market and requires low skilled labor. These are highly competitive outlets, with negligible rental costs (unregistered kiosks or traditional property), cheap workers (work is shared by members of family) and low taxes and overheads.

Organized Retailing

Organized retailing comprises mainly of modern retailing with busy shopping malls, multi storied malls and huge complexes that offer a large variety of products in terms of quality, value for money and makes shopping a memorable experience.

Retailing Scenario in India

Most of the retail sector in India is unorganized, which were known as mom-pop stores. The biggest advantage in this sector is the consumer familiarity that passes on from one generation to the next. The transformation stage of the retail sector started in late 1990’s. The emergence of pure retailer has started at this stage as it is been perceived as a beginner and the organized retailing is getting more attractive. In India, the retail business contributes around 11 percent of GDP in 2005. Of this, the organized retail sector accounts only for about 3 percent share, and the remaining share is contributed by the unorganized sector. The main challenge facing the organized sector is the competition from unorganized sector.

Transformation of the Retail Scenario in India

As Indian retailing is witnessing rapid transformation in different areas of business by using ascendable and gainful retail models across different categories, consumers started accepting the modern retail irresistibly. The unorganized market is making its way for modern retail formats such as malls, provision stores, hypermarkets, discount stores etc. Most of the malls started expanding from metros to tier 2 cities as part of the expansion plans. Consumers are more attracted to these because of the shopping experience they provide and extra facilities like food court, entertainment which is set under one roof.

Demand and Supply Factors

Economic growth: Economic growth is one of the major demand factors of Retail sector in India. Rapid economic growth has resulted in greater disposable incomes for the booming Indian middle class. Disposable incomes are expected to rise at an average of 8.5% p.a. till 2015. Higher numbers of working women have also increased both consumption and purchasing power. Real GDP grew at an annual rate of 9.4% in the fiscal year 2006 (ending March 2007), the fastest expansion for 18 years.

Demographics: A tidal wave of young adults are entering India’s consumer society with rising aspirations, new lifestyle requirements and an insatiable demand for consumer brands. A large number of young working populations between the age of 24 and 35 are also a major factor.

Urbanization: Urban areas are the engines of productivity and growth in the country. Urbanization is associated with higher incomes, improved health, higher literacy, improved quality of life and other benefits. The Indian urban population is projected to increase from 28% to 40% of the total population by 2020 and incomes are simultaneously expected to grow in these segment.

Media Explosion: TV, Internet, radio & Press have the power to influence the population when it comes to promotion. Compared to previous years the presence of media has become more important. Our televisions have over 200 channels: international, national, regional and local. And the print media is still strong in this area. The radio is opening up and growing by the day.

Infrastructure Development: Real Estate development, ownership of private transport, banking/credit are other factors which comes in the demand side. The real estate story in India is growing bigger by the day. Industry experts believe that Indian real estate has huge demand potential in almost every sector — especially commercial, residential and retail. Organized retail is expected to create a demand for around 220 million square feet of retail space by 2010. Ownership of private transport gives accessibility. Credit facility is also playing a major role as the availability of it is more liberalized and the rates of interest are in an affordable position.

Competition: As the market is a mix of organized and unorganized players, it is obvious that there will be a competition from the unorganized and the future stores.

Pricing: Pricing will be a crucial variable due to its direct relationship with a firm’s goal and its interaction with other retailing elements. The importance of pricing decisions is growing because today’s customers are looking for good value when they buy merchandise and services. Price is the easiest and quickest variable to change.

Scale of Operations: Scale of operations includes all the supply chain activities, which are carried out in the business. It is one of the challenges that the Indian retailers are facing. The cost of business operations is very high in India.

The Human resource factor: As this sector has only recently emerged from its nascent phase, sourcing right talented people and training them will be a major factor.

Organized Retail in India

Organized retail business in India is very small but has tremendous scope and is expected to grow faster than GDP growth in next few years. Research done by the Tata Strategic Management Group (TSMG ) indicates that over the next 10 years, the total retail market in India is likely to grow at a compounded annual growth rate (CAGR) of 5.5 per cent (at constant prices) to USD374 billion (Rs 16,77,000 crore) in 2015. The organized retail market is expected to grow much faster, at a CAGR of 21.8 per cent to USD55 billion (Rs 246,000 crores) in the same time frame, garnering around 15 per cent of overall retail sales. Based on their projections, the top five organized retail categories by 2015 would be food, grocery and general merchandise; apparel; durables; food service; and home improvement.

Last few years witnessed the growth of retail sector in India. Growth of this sector led to the entry of foreign players, expansion plans, use of new technologies and processes. Supply chain plays a major factor in new era retailing because of their complex structure which includes different suppliers, retailers and other third party suppliers. Supply chain includes activities like proper relation and communication with suppliers, stock management, cost cutting and reducing wastage, which is one of the major factors.

Conclusion

Finally, it is important to note that value is function of not just price, quality and service but can also be enhanced by personalization and offering a memorable experience. In fact, building relationships with customers can by itself increase the quality of overall customer experience and thus the perceived value. But most importantly for winning in this intensely competitive marketplace, it is critical to understand the target customer’s definition of value and make an offer, which not only delights the customers but also is also difficult for competitors to replicate.