Proposed Research Topic On Retail Industries
Proposed Research Topic On Retail Industries
Proposed Research Topic On Retail Industries
And Opportunities
Submitted to
COMMERCE
BY
Arvind W. Ubale
Reader
Department of Commerce and Management
Dnyanopasak College
Parbhani (MS)
2008
CONTENTS
1) Introduction
2) Importance of study
3) Review of literature
4) Objectives of study
5) Research methodology
6) Hypothesis
7) Chapter scheme
8) References
The Changing Face of Indian Retail Industry: Its Growth, Challenges and
Opportunities
1. INTRODUCTION
The word ‘retail’ is derived from the French word ‘retaillier’ , meaning ‘to cut
a piece off’ or ‘to break bulk’. In simple terms, it implies a first –hand
transaction with customer.
Retailing involves a direct interface with the customer and the coordination
of business activities from end to end- right from the concept or design stage
of product or offering, to its delivery and post delivery service to customer.
The industry has contributed to the economic growth of many countries and
is undoubtedly one of the fastest changing and dynamic industries in the
world today.
The service sector accounts for a large share of GDP in most developed
economies. And the retail sector forms a very strong component of the
service sector. Retailing is not only an important aspect of the economic
structure but very much a part of our lives. Although trading of goods have
been existing since the olden days, it is only in the recent past that the
buying and selling of goods have become more of formal and a brand
dominated activity. In fact, today retailing is evolving into global high- tech
business.
For centuries now, India has been operating within her own unique concept
of retailing . Retailing in its initial period was witnessed at the weekly haats
or gathering in a market place where vendor put on display their goods. Of
course, this practice is still prevalent in many towns and cities in India. Then
the market saw the emergence of the local baniya and his neighbourhood
“kirana shop”. These were the common local mummy-daddy or multipurpose
departmental stores, located in residential area. Such shops stocked goods
with multipurpose utility and were built with the vision of providing
convenience at the doorsteps of consumer.
The India Retail Industry is the largest among all the industries, accounting
for over 10 per cent of the country’s GDP and around 8 per cent of the
employment. The Retail Industry in India has come forth as one of the most
dynamic and fast paced industries with several players entering the market.
But all of them have not tasted success of the heavy initial investments that
are required to break even with other companies and compete with them.
The India Retail Industry is gradually inching its way towards becoming the
next boom industry.
The total concept and idea of shopping has undergone an attention drawing
change in terms of format and consumer buying behavior, ushering in a
revolution in shopping in India. Modern retailing has entered into the Retail
market in India as is observed in the form of bustling shopping centers,
multi-storied malls and the huge complexes that offer shopping,
entertainment and food all under one roof
A large young working population with median age 24 years, nuclear families
in urban areas, along with increasing workingwomen population and
emerging opportunities in the services sector are going to be the key factors
in the growth of the organized Retail sector in India .The growth pattern in
organized retailing and in the consumption made by the Indian population
will follow a rising graph helping the newer businessmen to enter the India
Retail Industry.
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.
Indian Retail is expected to grow 25 per cent annually. Modern retail in India
could be worth US $ 175-200 billion by 2016. The food Retail Industry in India
dominates the shopping basket. The mobile phone Retail Industry in India is
already a US $ 16.7 billion business, growing at over 20 per cent per year
.The future of the India Retail Industry look promising with the growing of the
market, with the government policies becoming more favorable and the
emerging technologies facilitating operations.
India is the country having the most unorganized retail market. Traditionally
it is a family’s livelihood, with their shop in the back, while they run the retail
business. More then 99% retailer’s function in less then 500 square feet of
shopping space. Global retail consultants KSA Techno park have estimated
that organized retailing in India is expected to touch Rs.35,000crore in the
year 2005-06. The Indian retail sector is estimated at around RS
900,000crore of which the organized sector accounts for a mere 2 pre cent
indicating a huge potential market opportunity that is lying in the waiting for
the consumer-savvy organized retailer.
There is no doubt that the Indian retail scene is booming. A number of large
corporate houses-tata’s, Raheja’s, Piramala’s, Goenka’s –have already made
their foray into this arena, with beauty and health stores, supermarkets, self-
service music stores, new age book stores, every day-low-price stores,
computer and peripherals stores, office equipment stores, and home/building
construction stores. Today the organized players have attacked every retail
category. The Indian retail scene has witnessed too many players in too
short a time, Crowing several categories without looking at their core
competencies, or having a well thought out branding strategy.
However, the post liberalization era, saw retail industry undergoing a
revolutionary change. The changes in the organized retail industry is visible
in the form of new retailing formats , modern techniques, exclusive retail
outlets, emergence of retail chains etc.
2. IMPORTANCE OF STUDY
Modern retail industry plays an important and vital role in the economies of
all modern societies. Retailing in India is currently estimated to be a US$ 200
billion industry, of which organized retailing makes up a paltry 3 percent or
US$ 6.4 billion. By 2010, organized retail is projected to reach US$ 23 billion.
For retail industry in India, things have never looked better and brighter.
Challenges to the manufacturers and service providers would abound when
market power shifts to organized retail.
Retail sales and employments are the key economic contributors and often
mirror trends in a nation’s overall economy. Retailing is a major part of
United States of America’s commerce. India is also embarking in this
direction, career in retailing are going to catch up and are on pathway to
success of young generation.
Now –a-days, in India we see a rise in the purchasing power, and growth of a
middle class which follows the western lifestyle. Hence, conditions are
conducive for the rapid growth of organized retail in India. The Indian
environment is different from that of western countries in many ways. Indian
cities are congested and a large part of the population is still concentrated in
rural areas. The Indian houses are smaller and Indian consumer is still not
used to buying in bulk on weekends. The rapidly rising income levels and
accompanying changes in lifestyle greatly contributed to the growth of
organized retail in West. The Indian retail scene is hence very different from
that prevailing in the developed countries. As organized retail grows, retail
formats, which evolved in the West, needs to be modified and new formats
suitable to Indian conditions, have to evolve. Even as organized retail grows,
a large part of Indian retail is still likely to be unorganized. Hence, it is very
important to understand the difference in the retailing environment and
retailing institution in India.
3. REVIEW OF LITERATURE
A. “The retail sector has played a phenomenal role throughout the world in
increasing productivity of consumer goods and services. It is also the second
largest industry in US in terms of numbers of employees and establishments.
There is no denying the fact that most of the developed economies are very
much relying on their retail sector as a locomotive of growth. The India Retail
Industry is the largest among all the industries, accounting for over 10 per
cent of the country’s GDP and around 8 per cent of the employment. The
Retail Industry in India has come forth as one of the most dynamic and fast
paced industries with several players entering the market. But all of them
have not yet tasted success because of the heavy initial investments that
are required to break even with other companies and compete with them.
The India Retail Industry is gradually inching its way towards becoming the
next boom industry.”Paper Presented on Retail industries trends in India By
Dr. M. Dhankabham lecturer in Commerce , Department of Commerce ,
Rajastan University.
This book has given more emphasis on electronic aspect of retailing and
provides a strategic look at retailing, current coverage and organization
around a strategic decision- making model.
D. “Although retailing in its various formats has been around in our country
for many years, it was confined for a long time to family or mom-and-pop
stores. Now, various professional organizations are setting up shops and
retailing in India; they have a passion to be closer to customers.”
4. OBJECTIVES OF STUDY
Retailing has come to occupy a prominent position in today’s modern society
therefore it is very important to do study on the following area of Retail
Industry.
India.
Retailer in India.
sector in India.
India.
5. RESEARCH METHODOLOGY
The present study leads to explore the changing face and growth of
Indian Retail Industry and Its challenges and opportunities in India with
special reference to Maharashtra State. The study tries to analysis
trend of organized Retail Industry and FDI in India. The study will do
comparative study of unorganized and organized retailing in
Maharashtra. The present study is a descriptive type which includes
surveys and fact-finding enquiries of different kinds. The research
models selected ‘Ex post facto --research’ for descriptive research
study, Empirical, Quantitative and historical nature.
The secondary data was also analyzed and used for drawing
conclusion.
6. HYPOTHESIS.
The hypothesis of the present research work is as follows:
Indian economy.
7. CHAPTER SCHEME.
1. Introduction
2. Research Methodology
3. Review of Literature
4. Research Problem
5. Data Interpretation
7. Bibliography
8. REFERENCES
Sr.No Author Title Publication Year
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