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Retail Chain Stores – Key to the Success of Indian Retail Industry - Today when Indian consumer fails to find refuge from sky rocketing prices, and inflation, the idea of opening up more retail stores in this country to bring down the costs comes as the ultimate respite
Retail Chain Stores – Key to the Success of Indian Retail Industry

 

PRZOOM - /newswire/ - Delhi, New Delhi, India, 2007/04/16 - Today when Indian consumer fails to find refuge from sky rocketing prices, and inflation, the idea of opening up more retail stores in this country to bring down the costs comes as the ultimate respite.

   
 
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Inflation and price rise have long been the causes of worry among the Indian consumers, however the government seems to have gone in deep slumber about this issue. In such a scenario the very thought that the attempt of setting up retail chain stores in this country could help control prices comes like a cool breeze in sweltering summer.

Retail sale is being encouraged in India by launching counters and shops under Reliance Fresh’s umbrella. Presently there are 70 retail stores of Reliance Fresh in the country, and out of these 20 are located in NCR (National Capital Region) alone. The promoters and organizers are optimistic and positive that the retail-sales depots may help in containing the soaring prices.

The retail industry in India was worth about US$ 300 Billion in 2006 and will likely reach US$ 427 Billion, and US$ 637 Billion by 2010 and 2015, respectively. Merely three percent retail in India is organized. Multiple brands’ retailers may operate via a wholesale model ‘cash-and-carry’ or a franchise.

According to reports from various parts of India, retail chains such as retailers & corporate agri buyers like the ITC are swirling traditional fruits & vegetables markets. By acquiring in bulk straight from the doorstep of farmers, and booking the future harvests too, these retailers are picking up business from traditional mandis.

Indian retail industry is gradually progressing towards a boom. The concept of shopping has come across a revolutionary change. This change is reflected in terms of shopping formats and buying pattern of consumers. Modern retail has made its way into the country as can be seen in sprawling one stop shops in the form of multi storeyed malls, huge shopping complexes, shopping centers. These one-stop-shops provide the consumers not only with the stuff or services they want to buy but also with fun while shopping from there.

As per the RNCOS report “India Retail Sector Analysis (2006-2007)”, India has highest density of retail in the world. Presently, there is one retail outlet per 100 people. The success of retail formats here can be attributed to the rise of shopping malls in this country. Malls have come across a good growth over the last 3-4 years. Increasing demand for retail space from apparel, food, consumer durables, and multiplex operators has given boost to shopping malls’ growth in India.

This research report on “India Retail Sector Analysis (2006-2007)” provides extensive research and objective analysis of the Retail Sector in India. The report finds that Indian organized retail will form 10% of total retailing by the end of this decade. In the meantime, the organized sector will grow at the rate of around 30% per annum.

The report further finds that cultural and regional differences in India are the biggest challenges in front of retailers. These factors deter retailers in India to adopt a single retail format.

About RNCOS E-Services Pvt Ltd

RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of industry experts who analyze data collected from credible sources. They provide industry insights and analysis that helps corporations to take timely and accurate business decision in today's globally competitive environment.

 
 
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Retail Chain Stores – Key to the Success of Indian Retail Industry

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