The retailing industry in India estimated at Rs 930,000 crore (2003-04) is expected to grow at 5% p.a. In line with predictions made in 2002, organized retailing is well on its way to become a Rs 35,000 crore market by 2005. The size of organized retailing market stands at RS 28,000 crore in 2004, thereby, making up a mere 3% of the total retailing market.

Moving forward, organized retailing is projected to grow at the rate of 25-30% p.a. and is estimated to reach over an astounding Rs 100,000 crore by 2010. Its contribution to total retailing sales is likely to rise to 9% by the end of the decade.

In this scenario of feverish activity, this paper aims to map the global scene to the Indian retail Industry. It looks at the factors that have been fuelling this boom so far and what will drive the growth of the industry in the future. Urban India represents only a fraction of the opportunity that the retail sector can hope to exploit. Significant portion of future growth has to come from the rural market. This paper takes a look at the modern retailing formats being experimented with, both in the cities and the countryside and highlights how they are different from one another.

INTRODUCTION

Retailing is the final step in the distribution of merchandise - the last link in the Supply Chain - connecting the bulk producers of commodities to the final consumers. It covers diverse products such as food, apparels, consumer goods, financial services and leisure

Retail Value Proposition: The value proposition that retail offers to a consumer is easy availability of the desired product in the desired size at the desired time.

Trends Affecting Indian Retail Industry

Retail Formats

Broadly, the organized retail sector can be divided into 2 segments.

Of the Top-200 Global Retailers, 21% of retailers fall in the specialty stores category, followed by 18% in supermarket, 12% in department and 9% each in hypermarket and discount stores.

In line with the global evolution, Indian Retailing has also witnessed a series of experiments across the country with new format being tested out; old ones tweaked around or just discarded. Some of these are listed in the table below: -