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Topic : Retail for India Tomorrow !!!
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Retail Outlets In India

Created by : Vishal Goel, BDM, Anand Gems and Jewellers  | 08 22 2009 09:45:35 +0000
Keywords : retail outlets in india
Activity:  3088 views;  last activity : 09 20 2010 06:00:43 +0000

The retail sector in India is highly fragmented and organised retail, estimated at 4% of the total market, is at a very nascent stage.

The traditional channel consists of 'mom-and-pop' stores known as kirana shops, owner-manned general stores, paan/beedi shops, convenience stores, hand-cart and pavement vendors, wet markets and employs about 40 to 50 million persons. Of the 12 million traditional retail outlets in India, 7.3 million sell FMCG and 41% of these are in urban India.

Sales in the kirana stores are typically over the counter, and the customer cannot browse or touch the brands before buying. The kirana stores continue to perform well despite the increase in competition from modern retail chains, owing to their excellent customer service, and ability to provide branded goods at low prices.

  
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Will Traditional retail continues to dominate Vs Modern retail is growing rapidly
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Organised retail although look big and growing , lack some of the basic consumer satisfying parameters. Street corner mom n pop store give the benefit of accessability along with the convinience of home delevery ( even for a single unit purchase ), top of which it also provides petty credit to its customers. There is a sence of trust shared between the customer and shopkeeper which in some cases come over generations of purchases. What they definitly lack is the shopping experiances provided by the organised retail ( layout , comfort , merchendising , etc ). Still study shows that 95% of monthly top up purchases  and 56% of monthly purchases ( once in the begenning of the month ) go the street corner grocery stores. With all frills like Dhamaka offer and Biggest Saving Day !! still organised retail is not able to dent into the unorganised retail market , as they still radiate a feeling of being expensive and instigating loose bying ( especially in Tier 2 & 3 citys ). Therefore it is fair to assume that unoragnised market in India is there to stay , maybe they slowly graduate to a higher level.
By joy chatterjee, National Key Accounts and Trade Marketing Manager, Artsana India Pvt Ltd  09 01 2009 14:31:19 +0000
 
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Modern retail is growing fastest in the big Tier I cities of Delhi, Chennai, Mumbai, Bangalore and Hyderabad, as well as in many of the more promising Tier II & III cities.

Modern retailers are opening stores at a frenetic pace, and it is common for companies with a limited retail heritage to enter the grocery retail sector.

Hybrid hypermarkets are developing, and retailers are implementing a national roll-out strategy, building reach through multiple formats. Reliance Retail opened its first hypermarket, the largest in the country at 165,000 sq ft, in the western city of Ahmedabad on August 15, and had 45,000 customers visiting on the first day.
By Vishal Goel, BDM, Anand Gems and Jewellers  08 22 2009 11:12:08 +0000
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I strongly agree that the Mom n Pop run stores, will continue to dominate in the urban as well as the rural markets..

 
By Japan Shah, H.O.D, Oxford School of Management  | 09 04 2009 07:39:43 +0000
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they will remain forever
By sanjay , BD Manager, PPMS  | 09 03 2009 11:15:12 +0000
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I agree with Joy

I feel that the Mom-n Pop shops are customer friendly ,do trustworthy business and though not sophisticated like big retails are the shops where you go for immediate needs.

They are a type of micro finance business for themselves and the day to day common man for his small credits.

Though they cannot hype and discount on products ,they have been consistent in pricing and very minimal inclination towards hoarding.

They need to be encouraged.will need them throughout.........
By Charles davison, Project Manager, Douglas OHI LLC  | 09 02 2009 08:22:00 +0000
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Traditional retailing having a strength to reach all kind of customer in India . B , C, D segment customers still dominates in lot of grocerry & brands target to reach B, C , D customers who are still hesitate to enter Modren retailing for various reason & Modren retailng is confined to major towns Tradoitional retailing continues dominate to reach 110 Crore population.
By R N Prasad, Sales Manager ( India), K K Birla group of Food co  | 09 02 2009 06:45:54 +0000
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I agree to the point that modern retailers are growing faster than traditional retailers. But it has a lot of road to cover the remaining 96% of total indian retailing. (orgaised retail is only 4% of the total retailing in 2008). I think to dominate they atleast need to have 50%+ ratio, and I dont see that to happen in next 4-5 years.


By Kiran Kumar Koti, Merchandising Operations Manager, Zero Stock Retail Pvt. Ltd  | 09 01 2009 13:40:20 +0000
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they are growing only in metros & 1 tier cities,recession has takes its toll on them
By sanjay , BD Manager, PPMS  | 09 03 2009 11:16:36 +0000
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If we see the ratio of indian Retail Stores and International Retail Stores we will find that we r nothing but in that case also we can say that yes we r growing rapidly and within some years we will reach thier current stage..............
By Alankar Sharma, Sales Manager, Intrasoft Technologies Pvt. Ltd.  | 09 02 2009 07:33:12 +0000
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Maybe Kirana stores are more than big malls but it is true that malls are doing more business than kirana stores since people prefer to visit here more than kirana store because of its environment. They go to kirana stores just for snacks and tea. Thats it...
By Ramdas Pawar, Sales/BD Manager, Flex  | 09 01 2009 14:04:28 +0000
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Yes Vishal, modern retail is really growing at a faster phase...
By solomon , Freelancer, Freelancer  | 08 31 2009 17:45:41 +0000
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