India is in the throes of a retail revolution that is leading the New World Order and taking everyone by surprise. We endeavor to help our clients make the most of this tsunami that is striking our shores. The country’s dynamic retail landscape presents a grand opportunity to investors within the country and from across the globe, to use India as a strategic business and consumer hub. With the changing face of retail, the Indian consumer industry is in for radical growth. Let us begin with a primer on the various formats that retail outlets come in. A ‘Vibrant Economy’, India topped A T Kearney’s list of emerging markets for retail investments for three consecutive years and stood 2nd only behind Vietnam this year. The 2nd fastest growing economy in the world, the 3rd largest economy in terms of GDP in the next 5 years and the 4th largest economy in PPP terms after USA, China & Japan, India is rated among the top 10 FDI destinations. Over the last few years Indian retail has witnessed rapid transformation in many areas of the business by setting scalable and profitable retail models across categories. Indian consumers are rapidly evolving and accepting modern retail formats. There is strong emergence of India specific retail formats irrespective of the size. For example, hypermarkets, supermarkets or convenience stores that are emerging in India today are specifically designed for the Indian consumer. New and indigenised formats such as departmental stores, hypermarkets, supermarkets, specialty and convenience stores, and malls, multiplexes and fun zones are fast dotting the retail landscape. Following are the kinds of retail formats found in India:
A box-office phenomenon in India, wedding malls stock everything from clothes, accessories, jewellery to the paraphernalia that builds the grand picture that is the Great Indian Wedding.
Khadi Plaza were launched by the Khadi and Village Industries Commission, a Government of India enterprise which occupies a unique position in India’s rural economy by ontributing towards economic strength and by utilising untapped resource and significant manpower. Rural and tribal handicrafts are packaged to woo the the attention of urban lifestyles and attitudes.
Just like their urban counterparts, they provide multiple services and outlets in a single location. Spearheaded by the Gujarat government, village malls grow on the age old concept of the government fair price shop revamped to cater to the greater needs of the people.
Excerpts from ‘India Retail Report 2009 by IMAGES F&R Research’ and ‘NaukriHub’