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Retail Segments in India: Coimbatore District

The retail industry in India is the fifth largest in the world and is growing rapidly, especially in recent years. It is expected to grow from $35 billion in 2004-2005 to $109 billion by 2010. By 2013, the retail industry in India is projected to reach $833 billion and $1.3 trillion by 2018, growing at a compound annual growth rate of 10%. While the industry was traditionally unorganized, it is becoming more organized to meet growing consumer demand and changing consumer tastes. The organized retail sector is expected to grow at an annual rate of 40% by 2013.

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173 views5 pages

Retail Segments in India: Coimbatore District

The retail industry in India is the fifth largest in the world and is growing rapidly, especially in recent years. It is expected to grow from $35 billion in 2004-2005 to $109 billion by 2010. By 2013, the retail industry in India is projected to reach $833 billion and $1.3 trillion by 2018, growing at a compound annual growth rate of 10%. While the industry was traditionally unorganized, it is becoming more organized to meet growing consumer demand and changing consumer tastes. The organized retail sector is expected to grow at an annual rate of 40% by 2013.

Uploaded by

Chitra Rajesh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Coimbatore district

Mettupalayam, Thondamuthur, Singanallur, Kinathukkadavu, Pollachi, Valparai, Sulur, Kavundampalayam,


Coimbatore South and North.

Retail Segments in India


1. Clothing, textiles and fashion accessories
2. Jewellary
3. Watches
4. Footwear
5. Health and beauty products
6. Pharmaceuticals
7. Consumers durables and home appliances
8. Mobile handsets, accessories and services
9. Furniture, utensils, furniture-home and office
10. Food and grocery
11. Catering , service
12. Books , music and gifts
13. Entertainment

India Retail Industry


The Indian retail industry is the fifth largest in the world. Comprising of organized and unorganized
sectors, India retail industry is one of the fastest growing industries in India, especially over the last
few years. Though initially, the retail industry in India was mostly unorganized, however with the
change of tastes and preferences of the consumers, the industry is getting more popular these days
and getting organized as well. With growing market demand, the industry is expected to grow at a
pace of 25-30% annually. The India retail industry is expected to grow from ` 35,000 crore in 2004-05
to ` 109,000 crore by the year 2010.
In the Indian retailing industry, food is the most dominating sector and is growing at a rate of 9%
annually. The branded food industry is trying to enter the India retail industry and convert Indian
consumers to branded food. Since at present 60% of the Indian grocery basket consists of nonbranded items.
Growth of Indian Retail
It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200 billion. India
retail industry is one of the fastest growing industries with revenue expected in 2007 to amount US$
320 billion and is increasing at a rate of 5% yearly. A further increase of 7-8% is expected in the
industry of retail in India by growth in consumerism in urban areas, rising incomes, and a steep rise
in rural consumption. It has further been predicted that the retailing industry in India will amount to
US$ 21.5 billion by 2010 from the current size of US$ 7.5 billion.
According to the 8th Annual Global Retail Development Index (GRDI) of AT Kearney, India retail
industry is the most promising emerging market for investment. In 2007, the retail trade in India had
a share of 8-10% in the GDP (Gross Domestic Product) of the country. In 2009, it rose to 12%. It is
also expected to reach 22% by 2010.
According to a report by Northbride Capita, the India retail industry is expected to grow to US$ 700
billion by 2010. By the same time, the organized sector will be 20% of the total market share. It can
be mentioned here that, the share of organized sector in 2007 was 7.5% of the total retail market.
Major Retailers in India
Pantaloon:
Pantaloon is one of the biggest retailers in India with more than 450 stores across the country.
Headquartered in Mumbai, it has more than 5 million sq. ft retail space located across the country.
It's growing at an enviable pace and is expected to reach 30 million sq. ft by the year 2010. In 2001,
Pantaloon launched country's first hypermarket Big Bazaar. It has the following retail segments:

Food & Grocery: Big Bazaar, Food Bazaar


Home Solutions: Hometown, Furniture Bazaar, Collection-i
Consumer Electronics: e-zone
Shoes: Shoe Factory
Books, Music & Gifts: Depot
Health & Beauty Care: Star, Sitara
E-tailing: Futurebazaar.com
Entertainment: Bowling Co.

Tata Group
Tata group is another major player in Indian retail industry with its subsidiary Trent, which operates
Westside and Star India Bazaar. Established in 1998, it also acquired the largest book and music
retailer in India Landmark in 2005. Trent owns over 4 lakh sq. ft retail space across the country.
RPG Group
RPG Group is one of the earlier entrants in the Indian retail market, when it came into food & grocery
retailing in 1996 with its retail Foodworld stores. Later it also opened the pharmacy and beauty care
outlets Health & Glow.
Reliance
Reliance is one of the biggest players in Indian retail industry. More than 300 Reliance Fresh stores
and Reliance Mart are quite popular in the Indian retail market. It's expecting its sales to
reach ` 90,000 crores by 2010.
AV Birla Group
AV Birla Group has a strong presence in Indian apparel retailing. The brands like Louis Phillipe,
Allen Solly, Van Heusen, Peter England are quite popular. It's also investing in other segments of
retail. It will invest ` 8000-9000 crores by 2010.
Retail formats in India
Hypermarts/supermarkets: large self-servicing outlets offering products from a variety of categories.

Mom-and-pop stores: they are family owned business catering to small sections; they are
individually handled retail outlets and have a personal touch.
Departmental stores: are general retail merchandisers offering quality products and services.
Convenience stores: are located in residential areas with slightly higher prices goods due to
the convenience offered.
Shopping malls: the biggest form of retail in India, malls offers customers a mix of all types of
products and services including entertainment and food under a single roof.
E-trailers: are retailers providing online buying and selling of products and services.

Discount stores: these are factory outlets that give discount on the MRP.
Vending: it is a relatively new entry, in the retail sector. Here beverages, snacks and other
small items can be bought via vending machine.
Category killers: small specialty stores that offer a variety of categories. They are known as
category killers as they focus on specific categories, such as electronics and sporting goods.
This is also known as Multi Brand Outlets or MBO's.
Specialty stores: are retail chains dealing in specific categories and provide deep assortment.
Mumbai's Crossword Book Store and RPG's Music World are a couple of examples.

Challenges facing Indian retail industry

The tax structure in India favors small retail business


Lack of adequate infrastructure facilities
High cost of real estate
Dissimilarity in consumer groups
Restrictions in Foreign Direct Investment
Shortage of retail study options
Shortage of trained manpower
Low retail management skill

The future
The retail industry in India is currently growing at a great pace and is expected to go up to US$ 833
billion by the year 2013. It is further expected to reach US$ 1.3 trillion by the year 2018 at a CAGR of
10%. As the country has got a high growth rates, the consumer spending has also gone up and is
also expected to go up further in the future. In the last four year, the consumer spending in India
climbed up to 75%. As a result, the India retail industry is expected to grow further in the future days.
By the year 2013, the organized sector is also expected to grow at a CAGR of 40%.
India retail industry is progressing well and for this to continue retailers as well as the Indian
government will have to make a combined effort.
Last Updated on 1/3/2012

Related Links

India Shopping Malls


Scope of Retail Market
Organized Retail Market
Growth Factors Retail sector
Opportunities Retail sector
Challenges Facing
Role of Supply Chain Retail
Employment Generation
Impact on Lifestyles
Emerging Trends
Growth of Retail Companies

Evolution of Indian Retail


FDI Retail Sector
Formats Retail Sector
Consumer Durables Retail

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