Professional Documents
Culture Documents
Executive Summary
The case provides detailed information about the growth of retailing industry in
India. It examines the growing awareness and brand consciousness among
people across different socio-economic classes in India and how the urban and
semi-urban retail markets are witnessing significant growth. It explores the role
of the Government of India in the industrys growth and the need for further
reforms. In India the vast middle class and its almost untapped retail industry are
the key attractive forces for global retail giants wanting to enter into newer
markets, which in turn will help the India Retail Industry to grow faster. The case
includes growth of retail sector in India, strategies, strength and opportunities of
retail stores, retail format in India, recent trends, and opportunities and
challenges. This paper concludes with the likely impact of the entry of global
players into the Indian retailing industry. It also highlights the challenges faced
by the industry in near future.
Analysis and recommendation
The Indian retail sector is highly fragmented and the unorganised sector has
around 13 million retail outlets that account for around 95-96% of the total Indian
retail industry. However, going forward, the organised sectors growth potential
will increase due to globalisation, high economic growth, and changing lifestyle.
Moreover, high consumer spending over the years by the young population
(more than 31% of the country is below 14 years) and sharp rise in disposable
income are driving the Indian organised retail sectors growth. Even small towns
and cities are witnessing a major shift in consumer lifestyle and preferences, and
have thus emerged as attractive markets for retailers to expand their presence.
With more people now willing to buy goods online, the value of India's online
sales in 2015 will be over $12 billion (Rs 78,000 crore) by December, compared
with $4.5 billion (Rs 29,000 crore) last year. This is the result of innvoations in
the indian e-commerce sector be it Myntras app platform and heavy discounts
by the e-retailers facilitated by constant funding. Primary strategy lies in
launching small brands online that are not so popular at brick and mortar stores
but offer quality product and variety at cheap prices.Further facilities like
doorstep delivery, friendly return policies, accurate size charts, extensive use of
analytics (buying suggestions) make e-commerce an attractive pie in the cake of
Indian retail market. The exciting GOSF concept is something that buyers have
marked their calendars every year during diwali. Now the hyperlocal delivery ,
poppularised by Grofers, LocalBaniya, Big Basket etc. is the next target of the e-
retailers. Amazon is already piloting with Amazon Kirana and Flipkart with
Flipkart Nearby ,
The innovation is