Organised Retail Industry in India
MKTG/114 IBS Center for Management Research
Organized Retail Industry in India
This case was written by Komal Chary, under the direction of Vivek Gupta, IBS Center for Management Research. It was compiled from published sources, and is intended to be used as a basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation.
2006, IBS Center for Management Research. All rights reserved. To order copies, call +91-08417-236667/68 or write to IBS Center for Management Research (ICMR), IFHE Campus, Donthanapally, Sankarapally Road, Hyderabad 501 504, Andhra Pradesh, India or email: info@icmrindia.org
www.icmrindia.org
MKTG/114
Organized Retail Industry in India
“We believe that India is a rising star at the beginning of a growth cycle , with consumer spending increasing at a strong rate, and people seeking and demanding a better quality of life. India is going to be one of the fastest-growing regions of the future. All conditions are right to invest in India.” 1 - Jeff Immelt, Chief Executive, “FDI in retail trade can not only organize GE. a significant part of the largely unorganized domestic retailing, but also invite established global retail brands into the Indian market, thereby creating greater outlets for outsourcing and marketing Indian products.” - Recommendations Survey from Economic
2
of 2004-05.
INTRODUCTION
Retailing is the second largest industry in the US in terms of number of people employed. WalMart, the largest retailer in the world with annual sales of US$ 284 billion is also the largest employer in the US (Refer Exhibit I for share of organized retailing across the globe and Exhibit II for top retailers in the world). The retailing industry in the US employs more than 22 million Americans and generates more than $3 trillion in sales annually. Like the US, many developed and developing economies rely on this sector for growth. In India, the retail industry is broadly
Organized Retail Industry in India
This case was written by Komal Chary, under the direction of Vivek Gupta, IBS Center for Management Research. It was compiled from published sources, and is intended to be used as a basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation.
2006, IBS Center for Management Research. All rights reserved. To order copies, call +91-08417-236667/68 or write to IBS Center for Management Research (ICMR), IFHE Campus, Donthanapally, Sankarapally Road, Hyderabad 501 504, Andhra Pradesh, India or email: info@icmrindia.org
www.icmrindia.org
MKTG/114
Organized Retail Industry in India
“We believe that India is a rising star at the beginning of a growth cycle , with consumer spending increasing at a strong rate, and people seeking and demanding a better quality of life. India is going to be one of the fastest-growing regions of the future. All conditions are right to invest in India.” 1 - Jeff Immelt, Chief Executive, “FDI in retail trade can not only organize GE. a significant part of the largely unorganized domestic retailing, but also invite established global retail brands into the Indian market, thereby creating greater outlets for outsourcing and marketing Indian products.” - Recommendations Survey from Economic
2
of 2004-05.
INTRODUCTION
Retailing is the second largest industry in the US in terms of number of people employed. WalMart, the largest retailer in the world with annual sales of US$ 284 billion is also the largest employer in the US (Refer Exhibit I for share of organized retailing across the globe and Exhibit II for top retailers in the world). The retailing industry in the US employs more than 22 million Americans and generates more than $3 trillion in sales annually. Like the US, many developed and developing economies rely on this sector for growth. In India, the retail industry is broadly