Financial Management Strategies for Retail Industry in India-a Case Study of Retail Scenario in Hyderabad and Secunderabad
FINANCIAL MANAGEMENT STRATEGIES FOR CORPORATE RETAIL INDUSTRY IN INDIA-A CASE STUDY OF RETAIL SCENARIO IN HYDERABAD AND SECUNDERABAD
SYNOPSIS
I INTRODUCTION:
(1) Retail Industry in India
The Indian retail industry is the largest among all the industries, accounting for over 10 per cent of the country’s GDP and around 8 per cent of the employment. 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 and compete with other companies. The Indian retail industry is gradually inching its way towards becoming the next boom industry.
A large young working population with median age of 24 years, nuclear families in urban areas, along with increasing working-women population and emerging opportunities in the services sector are going to be the key factors in the booming growth of the organized retail sector in India. The growth pattern in organized retailing and in the consumption made by the Indian population will follow a rising graph helping the newer businessmen to enter the Indian retail industry.
In India the vast middle class and its almost untapped retail market are the key attractive forces for global retail giants wanting to enter into newer markets, which in turn will help the retail industry in India to grow faster.
As per a McKinsey report, India 's overall retail sector is expected to rise to US$ 833 billion by 2013 and to US$ 1.3 trillion by 2018, at a compound annual growth rate (CAGR) of 10 per cent. As a democratic country with high growth rates, consumer spending has risen sharply as the youth population (more than 33 percent of the country is below the age of 15) has seen a significant increase in its disposable income. Consumer spending rose an impressive 75 per cent in the past four years alone. Also, organised retail, which accounts
SYNOPSIS
I INTRODUCTION:
(1) Retail Industry in India
The Indian retail industry is the largest among all the industries, accounting for over 10 per cent of the country’s GDP and around 8 per cent of the employment. 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 and compete with other companies. The Indian retail industry is gradually inching its way towards becoming the next boom industry.
A large young working population with median age of 24 years, nuclear families in urban areas, along with increasing working-women population and emerging opportunities in the services sector are going to be the key factors in the booming growth of the organized retail sector in India. The growth pattern in organized retailing and in the consumption made by the Indian population will follow a rising graph helping the newer businessmen to enter the Indian retail industry.
In India the vast middle class and its almost untapped retail market are the key attractive forces for global retail giants wanting to enter into newer markets, which in turn will help the retail industry in India to grow faster.
As per a McKinsey report, India 's overall retail sector is expected to rise to US$ 833 billion by 2013 and to US$ 1.3 trillion by 2018, at a compound annual growth rate (CAGR) of 10 per cent. As a democratic country with high growth rates, consumer spending has risen sharply as the youth population (more than 33 percent of the country is below the age of 15) has seen a significant increase in its disposable income. Consumer spending rose an impressive 75 per cent in the past four years alone. Also, organised retail, which accounts
References: 1. Retail Management- Perspectives and Cases by V.V. Gopal 2. Retail Strategy- the view from the bridge- by Jonathon Reynolds and Christine Cuthbertson 3. Economic times- a financial daily 4. Wall Street Journal- e –newspaper 5. Retail Owners Institute website-www.retailowner.com .