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Impact of Organized Retailing

The document discusses the emergence and growth of organized retailing in India and its potential impacts on the unorganized retail sector. While organized retail has strengths like location, familiar products, and credit options, traditional retail lacks modernization, variety, space, and capital. Both sectors have areas of concern. To understand the effects, an in-depth study of how organized retail impacts the unorganized sector considering various factors is needed. Organized retail is unlikely to completely replace traditional retail but may take away some business, though opportunities remain.

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Roshan Pius
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58 views9 pages

Impact of Organized Retailing

The document discusses the emergence and growth of organized retailing in India and its potential impacts on the unorganized retail sector. While organized retail has strengths like location, familiar products, and credit options, traditional retail lacks modernization, variety, space, and capital. Both sectors have areas of concern. To understand the effects, an in-depth study of how organized retail impacts the unorganized sector considering various factors is needed. Organized retail is unlikely to completely replace traditional retail but may take away some business, though opportunities remain.

Uploaded by

Roshan Pius
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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by Mrs.Sara & Mrs.

Jayalakshmi

Industry Profile:

Retailing, consists of goods or merchandise from a fixed location, such as departmental Store, kiosk etc., in small for direct consumption by the purchaser. Retail sector is the fastest growing sector in the Indian economy with a 3yr compounded growth rate of 46.64%.(Ranked among 10 largest retail growing countries in the World)

An important aspect of the current economic scenario in India is the emergence of organized retail. There has been considerable growth in organized retailing business in recent years and it is poised for much faster growth in the future. Major industrial houses have entered this area and have announced very ambitious future expansion plans. However, opinions are divided on the impact of the growth of organized retail in the country. Concerns have been raised that the growth of organized retailing may have an adverse impact on retailers in the unorganized sector. It has also been argued that growth of organized retailing will yield efficiencies in the supply chain, enabling better access to markets to producers (including farmers and small producers) and enabling higher prices, on the one hand and, lower prices to consumers, on the other.

In the context of divergent views on the impact of organized retail, it is essential that an in-depth study on the possible effects of organized retailing is to be Observed. The study is focused on Impact of Organized Retailing on the Unorganized Sector by considering various factors.

STRENGTH-

THE

The locational advantage The Familiarity Advantage The Product Advantage The Credit Advantage

AREAS OF CONCERN

lack of

modernization lack of deeper variety lack of space lack of price advantage lack of capital

STRENGTH

THE

The bulk of

AREAS OF CONCERN

investments The entrance of corporate houses Greater product assortment Technological advantage High street locations

Lack of localization Lack of sectoral concentration Poor scores on customized service Higher real estate prices

Re Establishment of Customer base Service Delivery Mechanism Phenomenon of Discounting and Free Home Delivery: Customer Information System Prominent Feed Back System Consortium

Modern

retailing may take away a sizeable share from traditional retailing but will never close down the opportunities of selling certain categories in specific denomination for the traditional retailers.

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