An analysis of the Indian retail industry

The Indian retail sector is witnessing tremendous growth with the changing demographics and an improvement in the quality of life of urban people. The growing affluence of India’s consuming class, the emergence of retail entrepreneurs and a variety of imported products particularly in the food and grocery segment, has been one of the main drivers for the current retail boom in the domestic market.

Retailing, one of the largest sectors in the global economy, it is going through a transition phase in India. For a long time, the corner grocery store was the only choice available to the consumer, especially in the urban areas. This is slowly giving way to international formats of retailing. The traditional food and grocery segment has seen the emergence of supermarkets/grocery chains, convenience stores and fast-food chains.

The traditional grocers, by introducing self-service formats as well as value-added services such as credit and home delivery, have tried to redefine themselves. However, the boom in retailing has been confined primarily to the urban markets in the country. Even there, large chunks are yet to feel the impact of organized retailing. There are two primary reasons for this. First, the modern retailer is yet to feel the saturation' effect in the urban market and has, therefore, probably not looked at the other markets as seriously. Second, the modern retailing trend, despite its cost-effectiveness, has come to be identified with lifestyles.

[...] In the next couple of years, India will see at least two Indian retail businesses attaining the magic figure of Rs 1,000 crore ($218 million) in sales. Several others are expected to attain a critical mass as growth in the industry picks up momentum. This will be driven by two key factors: Availability of quality real estate and mall management practices Consumer preference for shopping in new environs A whiff of things to come The $ 18.3 billion Chicago-based Sara Lee Corporation is making a foray into the apparel market. [...]

[...] There is one difference, however, a category manager in retail manager several categories, since the numbers of categories are larger in number, whereas most brand managers are responsible for a single brand. B Business models 1. Single outlet Single Location Inventory Control S1 S1 S1 Sn Imports Cash sale Local purchase Credit sales Inter state purchase Credit card sale Supplier C Customer C1 C1 C1 Cn Major Indian retail business model & retail space occupied by most pf them is less than 500 Sq. [...]

[...] The chief software requirements of a retail enterprise are: Merchandise planning and management software This is typically an ERP and business intelligence package that generates data on what is moving at the store level. Analyses the data and helps in the planning process. Vendor management software- This deals with the entire process of vendor selection, evaluation and transaction. This system needs to be linked with ERP for best results. Logistics and warehousing software Links the transporters and the warehouses to the Erp. [...]