Retail

The retail industry has emerged as one of the most dynamic and fast-paced industries due to the entry of several new players. It accounts for over 10 per cent of the country’s and around 8 per cent of the employment.

Retail Industry has immense potential as has the second largest population with affluent middle class, rapid urbanisation and solid growth of internet.

Retail Growth:

There has been an increase in purchasing power of the consumer due to easy availability of credit which has given a push to higher value items and encouraged repeated purchases. There has been a clear shift in consumer mindset in buying. They are more educated and well informed.

They have become more experimenting and are willing to try and buy products which they haven’t been used as yet. The expansion of middle class has led to higher purchases of luxury products and brand consciousness. Significant growth in discretionary income and changing lifestyles are among the major growth drivers of Indian retail industry.

Retail Opportunities:

Rural markets show high growth potential if tapped with the right set of products and pricing. With increasing investments in infrastructure, connectivity to such towns is now becoming easier. This helps the retailer to increase reach in such high potential markets.

Segment-wise contribution in retail industry

Segment wise contribution in organised retail

  1. 1
    Retail classification

    Retail industry can be broadly classified into two categories namely- organised and unorganised retail.Retail industry can be broadly classified into two categories namely- organised and unorganised retail.

    • Organized retail – Organised traders/retailers, who are licensed for trading activities and registered to pay taxes to the government.

    • Unorganized retail – It consists of unauthorized small shops – conventional Kirana shops, general stores, corner shops among various other small retail outlets – but remain as the radiating force of Indian retail industry.

  2. 2
    Key drivers of the Retail Industry
    • Emergence of nuclear families.

    • An increase in the double-income households trend.

    • Large working population.

    • Reasonable Real estate prices.