Retailormade

With the present global scenario in mind the Indian market is still showing a positive growth but at the end of the day where does all this lead to especially for industries that have been worst effected. Just a few months ago organizations were treading with great caution and trying to prepare themselves for the worst are now a bit more relaxed. Retail being one such industry was at it’s peak until the beginning of last year and suddenly seemed to have collapsed but what does the future look like for them. What is the government doing to revive the same and how the retailers are dealing with all this to cope up and come out as winners. This section briefly talks about my views based on facts which I though of sharing with you all which is informative and forces you to think of what lies ahead and how to survive the challenges.

What is the actual current scenario?

Looking at the current scenario we see that Indian cities have the potential to have over 300 new hypermarkets by 2011, mostly in tier-I and tier-II cities and even in 2008, 212 towns had sufficient market potential for hypermarkets for break-even existence. Also today things are gradually picking up momentum especially in the country’s home retail segment  which was among the categories worst affected by the slowdown with a decline of 15-25% in sales for e.g.

How do the new policies affect the predictions and will the new entrants benefit from the same?

But how far are these predictions true with the new policies and the signal that retail trade sector may not be opened any further by the government in order to protect the interests of small traders as the retail industry is the second largest employer after agriculture. Also with Parliamentary Standing Committee report opposing the entry of heavyweights into the retail trade, Indian Retailers looking for foreign tie-ups are in a cautious mood.

Will the new entrants benefit?

The Indian retail market, being the fifth largest retail destination globally, has been ranked the second most attractive emerging market for investment after Vietnam in the retail sector by AT Kearney's seventh annual Global Retail Development Index (GRDI), in 2008. The share of retail trade in the country's gross domestic product (GDP) was between 8–10 per cent in 2007. It is currently around 12 per cent, and is likely to reach 22 per cent by 2010.

  

In this section here is what I would like to give my two bits on…. So what is the future of Indian Retail Industry?

The Indian retail market, being the fifth largest retail destination globally, has been ranked the second most attractive emerging market for investment after Vietnam in the retail sector by AT Kearney's seventh annual Global Retail Development Index (GRDI), in 2008. The share of retail trade in the country's gross domestic product (GDP) was between 8–10 per cent in 2007. It is currently around 12 per cent, and is likely to reach 22 per cent by 2010.

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