Retail Chain
indian institute of management kozhikode
Managing Demand Fluctuations in Supply Chain System of MORE
Project Proposal
SCM Section A
Contents
Retail Industry in India
Potential
India’s retail industry accounts for 10 percent of its GDP and 8 percent of the employment to reach $17 billion by 2010. The Indian retail market is estimated at US$ 350 billion. But organized retail is estimated at only US$ 8 billion. Organized retail seems to be a mar 5 % of the industry. The sector is dominated by the local kirana shops, owner-managed general stores, chemists to drug stores, footwear shops, apparel shops, paan and beedi (small corner shops) and handcart vendors.
However this is changing very fast and many foreign and domestic players have entered market with huge chains of stores. With potential driven by an emerging middle class, highly qualified labour force and high acceleration rate of most of the major economic indicators as favouring factors India’s retail market seem promising.
India has been ranked fourth on Global Retail Development Index (GRDI). Other than the three major factors pointed out earlier other factors for India to become a sort after destination includes
High saving and investment rates;
Huge amount of FDI inflow (FDI from April 2000 to Feb 2012 stood at US$246.6bn) the service sector is attracting the biggest chunk
Internet and technological advancement: Another retail market includes e-retail which is as reported by industry body Assocham is growing at 35% annually and India is soon going to have third largest number of internet users in the world which could further drive up the growth rate.
The exposure to brands have increased significantly and as it keeps growing further they would become more discerning consumers
Trends
According to Department of Industrial Policy and Promotion the FDI in single brand retail in India is 46mn USD. The lax that government showed for regulatory
Managing Demand Fluctuations in Supply Chain System of MORE
Project Proposal
SCM Section A
Contents
Retail Industry in India
Potential
India’s retail industry accounts for 10 percent of its GDP and 8 percent of the employment to reach $17 billion by 2010. The Indian retail market is estimated at US$ 350 billion. But organized retail is estimated at only US$ 8 billion. Organized retail seems to be a mar 5 % of the industry. The sector is dominated by the local kirana shops, owner-managed general stores, chemists to drug stores, footwear shops, apparel shops, paan and beedi (small corner shops) and handcart vendors.
However this is changing very fast and many foreign and domestic players have entered market with huge chains of stores. With potential driven by an emerging middle class, highly qualified labour force and high acceleration rate of most of the major economic indicators as favouring factors India’s retail market seem promising.
India has been ranked fourth on Global Retail Development Index (GRDI). Other than the three major factors pointed out earlier other factors for India to become a sort after destination includes
High saving and investment rates;
Huge amount of FDI inflow (FDI from April 2000 to Feb 2012 stood at US$246.6bn) the service sector is attracting the biggest chunk
Internet and technological advancement: Another retail market includes e-retail which is as reported by industry body Assocham is growing at 35% annually and India is soon going to have third largest number of internet users in the world which could further drive up the growth rate.
The exposure to brands have increased significantly and as it keeps growing further they would become more discerning consumers
Trends
According to Department of Industrial Policy and Promotion the FDI in single brand retail in India is 46mn USD. The lax that government showed for regulatory