Current Retail Trend In India

AANCHAL TIWARI 09/02/DFMRM/12

About India
Country Capital Area (km2) Population (Million) Density (/km2) Language
India

y y y y y

New Delhi 3287263 1215.94 369.89 Hindi 30%, English, Bengali, Gujarati, Kashmiri, Hindi/Urdu; 1,600+ dialects

y y y y y y y y

GDP Nominal (billion) GDP Nominal Per Capita GDP PPT Base (billion) GDP PPT Base Per Capita Economic Growth Currency Export Import

$1537.97 $1264.84 $4060.39 $3339.31 10.37% Rupee textile goods, gems & jewelry, engineering goods crude oil, machinery, gems, fertilizer, chemicals

INTRODUCTION
This research is basically done to find out the training needs of the sales people in the retail industry and how they are being fulfilled. The retail industry in our country is at boom and getting organized day by day, the demands of customers are not just great products but also great shopping experience and to make this possible a retail outlet should have well trained sales people. This study is made to know how well the sales people of retail industry in INDIA are trained to meet the customer expectations and global standards. The retail industry in INDIA has changed its face and approach. Sales people working in this industry play major role in handling the customers effectively. This study is done to evaluate the training system used by the retail industry in INDIA and also to understand training aspects which keeps the sales force of retain industry fit and ready to face any kind of challenges, particularly due to increasing domestic and international competition.

INDIAN RETAIL SCENARIO

The word retail is derived from the French word retailer , meaning to cut a piece off or to break bulk . Retailing involves a direct interface with the customers and the coordination of business activities from end to end. The retail scenario in India is unique. Much of it is in the unorganized sector. With over 12 million retail outlets of various sizes and formats. Almost 96% of these retail outlets are less than 500sq.ft. In the size and the percapita retail space in India being 2 sq.ft compared to the U.S. figure of 16sq.ft. India s percapita retailing space is the lowest in the world. With more than 9 outlets per 1000 people, India has the largest number in the world. Most of them are independent and contribute as much as 96% to total retail sales. There is an incredible amount of activity in terms of creation of retail-oriented space across India. As per some estimates, there are over 200 retail mall projects under construction or
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under active planning stage spanning over 25 cities. This may translate into over 25 million sq. f t. of new retail space in the market within next 24 months.

PRESENT INDIAN SCENARIO

Retailing in India is witness to the boom in terms of modern retailing formats, shopping malls etc. the future of retailing for any product across the country will definitely be in malls where the consumer can get variety, quality and ambience. However, in spite of this continuous debate to be or not to be, recently Government has allowed up to 51 percent FDI in single brand retailing by foreign companies like Reebok and Louis Vuiton. As of now, single brand retailers operate through the franchisee route and there is a strong view that FDI in this segment would not displace jobs or impact the local industry but help create employment. Even today the government is undecided about the level FDI in retail, but a number of foreign players, including the Wal-mart stores, Inc., have announced their intention to enter India in a big way. At present Wal-mart is operating through its subsidiary in Bangalore, which was functioning as a liaison office till last year. Now it is in the process of setting up offices in New Delhi and Mumbai. Unorganized market: Rs. 583,000 crores Organized market: Rs.5, 000 crores 5X growth in organized retailing between 2000-2005 Over 4,000 new modern retail outlets in the last 3 years Over 5,000,000 sq. ft. of mall space under development The top 3 modern retailers control over 750,000 sq. ft. of retail space Over 400,000 shoppers walk through their doors every week

Growth in organized retail on par with expectations and projections of the last 5 Years on course to touch Rs. 35,000 crores (US$ 7 Billion)

RETAILING IN THE 21ST CENTURY

Retailing in the new millennium stands as an exciting, complex and critical sector of business in most developed as well as emerging economies. Today, the retailing industry is being buffeted by a number of forces simultaneously, e.g., increasing competition within and across retailing formats, the growth of online retailing, the advent of Radio Frequency Identification (RFID) technology, the explosion in customer-level data availability, the global expansion of major retail chains like WAL-MART and METRO Group and so on. Making sense of it all is not easy but of vital importance to retailing practitioners, analysis and policymakers. Many global retailers have given thumps up to trade with India. The future ahead Industry experts see the rise of the rural sector in the coming years. Currently, rural market comprises nearly half of the domestic retail market of India, i.e., US$ 300 billion. The per capital income of the rural India has reportedly grown by 50 percent over the last 10 years, mainly because of the rising commodity prices and better productivity. According to E&Y India, basic infrastructure, generation of employment guarantee schemes, better information services and access to funding are ushering in good times for the rural households.

CHANGE ACCELERATORS
The following factors will be significant in driving growth in the retail sector: y y y y Consumer factors Increase in income Working women Changes in lifestyle demand for global trend

Supply side factors y Growing importance of retailing in political and economic agenda.
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y y y

Real estate reforms to be undertaken in the next 24 months. Major restructuring of the manufacturing sector easing product supply constraints for efficient retailing. Reduction in import duties- offering more global sourcing options.

GROWTH OF RETAIL SECTOR

Retail and real estate are the two booming sectors of India in the present times. And if industry experts are to be believed, the prospects of both the sectors are mutually dependent on each other. Retail, one of India s largest industries, has presently emerged as one of the most dynamic and fast paced industries of our times with several players entering the market. Accounting for over 10 per cent of the country s GDP and around eight per cent of the employment retailing in India is gradually inching its way toward becoming the next boom industry. As the contemporary retail sector in India is reflected in sprawling shopping centers, multiplex- malls and huge complexes offer shopping, entertainment and food all under one roof, the concept of shopping has altered in terms of format and consumer buying behavior, ushering in a revolution in shopping in India. This has also contributed to large scale investments in the real estate sector with major national and global players investing in developing the infrastructure and construction of the retailing business. The trends that are driving the growth of the retail sector in India are y y y y Low share of organized retailing Falling real estate prices Increase in disposable income and customer aspiration Increase in expenditure for luxury items

CONCLUSION
The government is now set to initiate a second wave of reforms in the segment by liberalizing investment norms further. This will not only favor the retail sector develop in terms of design concept, construction quality and providing modern amenities but will also help in creating a consumer-friendly environment. Retail industry in India is at the crossroads but the future of the consumer markets is promising as the market is growing, government policies are becoming more favorable and emerging technologies are facilitating operations in India. And this upsurge in the retail industry has made India a promising destination for retail investors and at the same time has impelled investments in the real estate sector. As foreign investors cautiously test the Indian Markets for investments in the retail sector, local companies and joint ventures are
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expected to be more advantageously positioned than the purely foreign ones in the evolving India's organized retailing industry The retail sector has played a phenomenal role throughout the world in increasing productivity of consumer goods and services. It is also the second largest industry in US in terms of numbers of employees and establishments. There is no denying the fact that most of the developed economies are very much relying on their retail sector as a locomotive of growth. The Retail Industry in India has come forth as one of the most dynamic and fast paced industries with several players entering the market. But all of them have not yet tasted success because of the heavy initial investments that are required to break even with other companies and compete with them. The India Retail Industry is gradually inching its way towards becoming the next boom industry. Favorable government policies and continued growth will mean that the future belongs to the most aggressive players. The future is now.