Why retail sector is developing rapidly in India?

Dear Sir,

It is quite natural that retail stores are developing in India. We can compare: The simple retail business at a petty shop in a crowded area in the town is very busy and running profitably. The business at a grocery and provisions store is very good in a good populous residential area.

A sophisticated super market in a posh residential area also runs, but with some difficulty. A big discount shop also runs with its big bang advertising on its reduced prices, even it is a little far off.

We can notice that a crowd of potential buyers become more important in retail business. When it is big, the corporate company should be in a position to offer either good shopping ambiance or low prices to attract the mass. In this attempt, they may loose the profit.

Every care should be taken to sell more at low price and earn more  and spend less by high turnovers - a peculiar strategy being adopted by bigger stores like M/s Kannan department stores at Coimbatore and nearby towns.

An optimization in expenditure on advertisements, sales force and shop maintenance will be necessary to become successful in this retail stores.

As the need for essential goods and semi durable commodities are immeasurable in this populous country, the demand for retail business sector will grow.

But, success depends on performance of individual corporates. No wonder, a shrewd small retailer will be more successful. Let him grow!

With regards,

Pnk Guru

Business Strategist (EKS)

I would go with Ms. Kiran on this topic. One thing we should keep in mind is, when retail format was first introduced in India, the nation was riding high on IT wave. The fresh graduates were earning a 20K plus salary and had to find out a way to show off. They needed to shriek out that they were FOREIGNised. Big retail stores and Malls became the answer. They provided the IT generation with a much needed weekend getaways (separated from friends and families in some far flung ares, what will you do for time pass?) and at the same time enticed them with shiny labels to flush out some cash. Indians, with a never before so fat a wallet, were spoilt for choices. Bigger formats with more items followed. Boom came the retail revolution; numerous retail stores mushroomed in tier 1 cities, with each company jostling for more and more spaces.

The bigger picture what they missed was:

1. The sudden demand for retail space was driving the floor rents sky high. Was this rental model sustainable?

2. We followed the retail format of Walmarts and TESCOs. But can indian consumers match their per capita income? Most importantly, in a country like India where such a great emphasis is on "Savings", how many will normally fall prey to the enticements of airconditioned shops and foreign labels. It was too intimidating for the common Indian mass.

3. From the business perspective: Are the retail houses following the Walmart model? The very concept of big organised retail format is buy in bulk @ cheaper price and pass on the benefits to the customers. But surprisingly, this did not happen with Indian retail players. Kirana shops still offers a lower price, albeit the variety is less; but who cares, in general, Indians are very much brand loyal. The retail companies were busy giving bundle offers and prize scemes, rather than reducing the price of merchandise.

4. Improper selection of items. The stores were filled with slow moving (or not moving) inventories which added to the cost.

Now with the economy taking a hit, no wonder Indian retail sector is doing bad.

i am new to toostep, and have high regards for the contants of this site, but ( No personal) the postings of Devi Mam and Dixit sir are hurtenign one...... any way reason of retail sector gorwth can be tremed as fofflows:-

FDI-Liberalization-Literacy-Employment-MNCs-Media-westernization of indian culture.

Devi Mam,

I am quoting your own comment to Viktor in another debate..

".... just let it be. Probably they find happiness in rating selective people thumbs down"

For a person like you having 5000+ points in Toostep.. is there anything to worry on few thumbs downs? Just let it be.. please ignore.. your postings are very much required for us...

You see this is the reason why RETAIL is developing rapidly in India!! As Indians our levels of curiousity is high, levels of trying something for the first time is high and then choose our brands that we are sworn to bew loyal to!! :))

Indians are good at heart but very emotional too... What I hate is injustice!! What I hate is ganging up.. What I hate more is the fact that we show remorse but we dont mean it!! These kind of twi faced front is so foolish!! It just tells me more about people.

VERY WISE ADVICE SHAJU, THIS IS WHAT I ALSO REQUESTED  TODAY MORNING.

THANKS FOR SIMILAR THINKING.

It is really unfortunate that, nowadays most of the articles end up in fight between few... this could be the reason why many professionals are not active in toostep now. I have a request to everybody... if you could post difference of opinion/personal attacks through personal messages, it will help toostep in retaining its popularity as a professional website for sharing knowledge (not for personal fights).

Hope u will take it positively .Hope u will take it positively

Mr Dikshit sir, as per your request, I will not participate in any of your future posting. I hope you will be relieved to hear this.