by faceless b

The word retail derived from the French word “retailler”, meaning to cut the bulk. In other word, it implies a first hand transaction with the customer.

 Retailing can be defined as the buying and selling of goods and services. It can also be defined as the timely delivery of goods and services demanded by consumers at price that are competitive and affordable.

 The last few years have witnessed an sudden increase of organized retail formats like supermarkets and hypermarkets in an otherwise fragmented Indian retail market. India is witnessing an unparalleled consumption explosion. The economy is growing between 8 %– 9 % and the improvement in income along with factors like favourable demographics and growths in aspiration consumption are the drivers for retail in India.

 In 2005, the retail industry in India amounted to Rs. 10000 billion accounting for about 10% growth to the country’s GDP. The organized retail market in India out of this total market accounted for Rs. 350 billion which is about 3.5% of the total revenues.

 This retail market in Indian retail sector is expected to cross Rs. 1000 billion by 2010. Traditionally the retail industry in India was largely unorganized, comprising of drug stores, medium and small grocery stores. Most of the organized retailing in India have started recently and concentrated on metropolitan cities only.

 Organized retail in India refers to the modern retail formats like supermarkets, hypermarkets prevalent in most developed countries. This sector remained a dormant sector largely due to lack of infrastructure for large scale retail, absence of product variety, and a conservative Indian consumer. Today, the flood of products in the market coupled with more informed, interested and adaptable Indian consumers, have created the atmosphere for entry of organized retail to tap into the 0 billion Indian retail industry.

  Different forms of retailing

Hypermarts  Large supermarkets, typically (3,500 – 5,000 sq. ft) Mini supermarkets, typically (1,000 – 2,000 sq. ft) Convenience store, typically (7,50 – 1,000 sq. ft) Discount/shopping list grocer Traditional retailers trying to reinvent by introducing self-service formats as well  as value-added services such as credit, free home delivery etc.

 The Indian retail sector can be broadly classified into –

food retailers health and beauty products clothing and footwear home furnishing and household goods durable good leisure and personal goods

The important shopping malls in Kolkata are as follows –

Metroplaza City Centre South City Mani Square Gariahat Mall Metropolis

Let us have a look on the characteristics of Indian consumers which are favourable for growth of Indian retail market. Indian consumer has undergone a remarkable alteration. Just a decade or two ago, they saved most of their incomes, purchased the only necessities.

But today, equipped with higher income, credit cards, exposure to new shopping culture of west, desire to show status and to improve standard of living, the Indian consumer is spending a lot. His new mentality, in turn is fueling the growth of organized retail in India.

Young shoppers –

 Most of the consumers have grown up with television, the internet, and have been exposed to the better standard of living and consumer culture abroad. This generation is also making money at a younger stage in life due to call centre jobs and other avenues of employment openings. As a result most of them are considering these shopping malls as the place for their entertainment.

Higher income/MNCs –

 With the entry of MNCs in India, the people are getting better job opportunities, and the income levels are also becoming better with different allowances. This sets the stage for a very exciting and promising retail market in the future.

Plastic Money –

 The finance section has already seen a huge expansion. Nowadays credit cards, debit cards, short time loans have become easily accessible and have contributed to the emergence of a consumer culture in India. Credit card reward schemes, flexible financing options, EMI facility, loyalty cards are tempting the Indian consumer to shop.

Urbanization –

 Growing urbanization and different facilities of cities converted the local population from net saver to net spender.

Awareness level –

 The urban population is well aware of the different shopping malls and through different media they are well known about the offers and schemes.

Aspiration –

Aspirations for better standard of living make the urban consumer spending more.

 While consumer demand is driving retail growth, it is in turn being driven by the following factors –

Economic growth Improved standard of living More affluence Mass awareness Demographics Credit availability Promotional offers Status symbol

These positive macro trends are resulting in changing preferences in demand for lifestyle goods. Mind sets are shifting towards an organized retailing experience.

But the future is not so smooth for the retail industry. A number of important issues need to be addressed suitably to foster the further growth of the retail sector in Kolkata. These are summarized as follows-

Security of these malls need to be strengthen as any given point of time thousands of people are present at these malls. The tax rate for commercial /tenanted premises is maximum in Kolkata among all other metro cities in India. It should be discussed with the authority to invite and attract retailers for the organized retail sector. An overall change is to be bringing in the mind set of the retailers. They must find out the way to satisfy the consumers. Retailers need to study the consumer behavior more cautiously and relate their efforts according to that.

In India the retail sector is one of the largest employers after agriculture. But it is highly fragmented and chiefly consists of small independent, owner – managed shops. New formats like super markets and large discount and department stores have started influencing the traditional looks of bookstores, furnishing stores and chemist shops. The retail revolution, apart from bringing in positive changes in the quality of life in the metros and bigger towns, is also bringing in slow changes in lifestyle in the smaller towns of India. Increase in literacy, exposure to media, greater availability and penetration of a variety of consumer goods into the interiors of the country, have all resulted in tapering down the differences of spending between the consumers of larger metros and those of smaller towns. However, the supply of quality real estate space would be instrumental in propelling the future growth momentum of the retail sector in India. The addition of better and affordable retail space would enable retailers to distribute more better-quality products and services to the consumers. For the retail sector to accomplish more growth, the increase of organized retailing has to become a countrywide phenomenon. The growth of the organized retail industry in the country will mean thousands of new jobs, increasing income levels and living standards, better products, and services, a better shopping experience, and more social activities.

by faceless b

The word retail derived from the French word “retailler”, meaning to cut the bulk. In other word, it implies a first hand transaction with the customer.

 Retailing can be defined as the buying and selling of goods and services. It can also be defined as the timely delivery of goods and services demanded by consumers at price that are competitive and affordable.

 The last few years have witnessed an sudden increase of organized retail formats like supermarkets and hypermarkets in an otherwise fragmented Indian retail market. India is witnessing an unparalleled consumption explosion. The economy is growing between 8 %– 9 % and the improvement in income along with factors like favourable demographics and growths in aspiration consumption are the drivers for retail in India.

 In 2005, the retail industry in India amounted to Rs. 10000 billion accounting for about 10% growth to the country’s GDP. The organized retail market in India out of this total market accounted for Rs. 350 billion which is about 3.5% of the total revenues.

 This retail market in Indian retail sector is expected to cross Rs. 1000 billion by 2010. Traditionally the retail industry in India was largely unorganized, comprising of drug stores, medium and small grocery stores. Most of the organized retailing in India have started recently and concentrated on metropolitan cities only.

 Organized retail in India refers to the modern retail formats like supermarkets, hypermarkets prevalent in most developed countries. This sector remained a dormant sector largely due to lack of infrastructure for large scale retail, absence of product variety, and a conservative Indian consumer. Today, the flood of products in the market coupled with more informed, interested and adaptable Indian consumers, have created the atmosphere for entry of organized retail to tap into the 0 billion Indian retail industry.

  Different forms of retailing

Hypermarts  Large supermarkets, typically (3,500 – 5,000 sq. ft) Mini supermarkets, typically (1,000 – 2,000 sq. ft) Convenience store, typically (7,50 – 1,000 sq. ft) Discount/shopping list grocer Traditional retailers trying to reinvent by introducing self-service formats as well  as value-added services such as credit, free home delivery etc.

 The Indian retail sector can be broadly classified into –

food retailers health and beauty products clothing and footwear home furnishing and household goods durable good leisure and personal goods

The important shopping malls in Kolkata are as follows –

Metroplaza City Centre South City Mani Square Gariahat Mall Metropolis

Let us have a look on the characteristics of Indian consumers which are favourable for growth of Indian retail market. Indian consumer has undergone a remarkable alteration. Just a decade or two ago, they saved most of their incomes, purchased the only necessities.

But today, equipped with higher income, credit cards, exposure to new shopping culture of west, desire to show status and to improve standard of living, the Indian consumer is spending a lot. His new mentality, in turn is fueling the growth of organized retail in India.

Young shoppers –

 Most of the consumers have grown up with television, the internet, and have been exposed to the better standard of living and consumer culture abroad. This generation is also making money at a younger stage in life due to call centre jobs and other avenues of employment openings. As a result most of them are considering these shopping malls as the place for their entertainment.

Higher income/MNCs –

 With the entry of MNCs in India, the people are getting better job opportunities, and the income levels are also becoming better with different allowances. This sets the stage for a very exciting and promising retail market in the future.

Plastic Money –

 The finance section has already seen a huge expansion. Nowadays credit cards, debit cards, short time loans have become easily accessible and have contributed to the emergence of a consumer culture in India. Credit card reward schemes, flexible financing options, EMI facility, loyalty cards are tempting the Indian consumer to shop.

Urbanization –

 Growing urbanization and different facilities of cities converted the local population from net saver to net spender.

Awareness level –

 The urban population is well aware of the different shopping malls and through different media they are well known about the offers and schemes.

Aspiration –

Aspirations for better standard of living make the urban consumer spending more.

 While consumer demand is driving retail growth, it is in turn being driven by the following factors –

Economic growth Improved standard of living More affluence Mass awareness Demographics Credit availability Promotional offers Status symbol

These positive macro trends are resulting in changing preferences in demand for lifestyle goods. Mind sets are shifting towards an organized retailing experience.

But the future is not so smooth for the retail industry. A number of important issues need to be addressed suitably to foster the further growth of the retail sector in Kolkata. These are summarized as follows-

Security of these malls need to be strengthen as any given point of time thousands of people are present at these malls. The tax rate for commercial /tenanted premises is maximum in Kolkata among all other metro cities in India. It should be discussed with the authority to invite and attract retailers for the organized retail sector. An overall change is to be bringing in the mind set of the retailers. They must find out the way to satisfy the consumers. Retailers need to study the consumer behavior more cautiously and relate their efforts according to that.

In India the retail sector is one of the largest employers after agriculture. But it is highly fragmented and chiefly consists of small independent, owner – managed shops. New formats like super markets and large discount and department stores have started influencing the traditional looks of bookstores, furnishing stores and chemist shops. The retail revolution, apart from bringing in positive changes in the quality of life in the metros and bigger towns, is also bringing in slow changes in lifestyle in the smaller towns of India. Increase in literacy, exposure to media, greater availability and penetration of a variety of consumer goods into the interiors of the country, have all resulted in tapering down the differences of spending between the consumers of larger metros and those of smaller towns. However, the supply of quality real estate space would be instrumental in propelling the future growth momentum of the retail sector in India. The addition of better and affordable retail space would enable retailers to distribute more better-quality products and services to the consumers. For the retail sector to accomplish more growth, the increase of organized retailing has to become a countrywide phenomenon. The growth of the organized retail industry in the country will mean thousands of new jobs, increasing income levels and living standards, better products, and services, a better shopping experience, and more social activities.