The word "Retail" originates from a French-Italian word. Retailer-someone who cuts off or sheds a small piece from something. Retailing is the set of activities that markets products or services to final consumers for their own personal or household use. It does this by organizing their availability on a relatively large scale and supplying them to customers on a relatively small scale. Retailer is a Person or Agent or Agency or Company or Organization who is instrumental in reaching the Goods or Merchandise or Services to the End User or Ultimate Consumer.Retail industry is the largest industry in INDIA, with an employment of around 8% and contributing to over 10% of the country's GDP. Retail industry in INDIA is expected to rise 25% yearly being driven by strong income growth, changing lifestyles, and favorable demographic patterns.
It is expected that by 2016 modern retail industry in INDIA will be worth US$ 175-200 billion. INDIA retail industry is one of the fastest growing industries with revenue expected in 2007 to amount US$ 320 billion and is increasing at a rate of 5% yearly. A further increase of 7-8% is expected in the industry of retail in INDIA by growth in consumerism in urban areas, rising incomes, and a steep rise in rural consumption. It has further been predicted that the retailing industry in INDIA will amount to US$ 21.5 billion by 2010 from the current size of US$ 7.5 billion.
Shopping in INDIA has witnessed a revolution with the change in the consumer buying behavior and the whole format of shopping also altering. Industry of retail in INDIA which has become modern can be seen from the fact that there are multi- stored malls, huge shopping centers, and sprawling complexes which offer food, shopping, and entertainment all under the same roof.
INDIA retail industry is expanding itself most aggressively; as a result a great demand for real estate is being created. INDIAN retailers preferred means of expansion is to expand to other regions and to increase the number of their outlets in a city. It is expected that by 2010, INDIA may have 600 new shopping centers.
In the INDIAN retailing industry, food is the most dominating sector and is growing at a rate of 9% annually. The branded food industry is trying to enter the INDIA retail industry and convert INDIAN consumers to branded food. Since at present 60% of the INDIAN grocery basket consists of non- branded items.
INDIAN retail industry is progressing well and for this to continue retailers as well as the INDIAN government will have to make a combined effort. INDIAN retailing industry has seen phenomenal growth in the last five years (2001-2006). Organized retailing has finally emerged from the shadows of unorganized retailing and is contributing significantly to the growth of INDIAN retail sector. The “INDIA Retail Sector Analysis (2006-2007)” report helps clients to analyze the opportunities and factors critical to the success of retail industry in INDIA.
INDIAN retail industry is going through a transition phase. Most of the retailing in our country is still in the unorganized sector. The spread out of the retails in US and INDIA shows a wide gap between the two countries. Though retailing in INDIA is undergoing an exponential growth, the road ahead is full of challenges.
