Indian Retail Industry

Indian retail industry is growing like never before. With all the major business houses of the globe targeting one of the largest economies in the world it is bound to happen, that the retail will boom. The Indian retail market -- one of India's fastest growing industries -- is expected to grow from US$ 350 billion to US$ 427 billion by 2010. Studies conducted show an average increase of about 7% in terms of growth.

Modern retail accounts for about 4 per cent of the total retail market in India. This share is expected to increase to about 15 -20 per cent with the entry of a number of corporate into the segment. Retail industry has seen an ever rising growth in the economy in all its sectors. We will discuss the various sectors of retail in brief.

Retail space : Retail players in India are the most aggressive in Asia in expanding their businesses, thus creating a huge demand for real estate. Their preferred means of expansion is buy increasing the number of outlets in a city, and also expand to other regions of the subcontinent.

Food Retail :Food dominates the shopping basket in India. It forms 44 per cent of the entire FMCG(fast moving consumer goods ) sales, is growing at 9 per cent and has set the growth agenda for modern trade formats. The prospect for growth of the branded segment is huge, as nearly 60 per cent of the average Indian grocery basket still comprises non-branded items.

Luxury Brands : With the number of consumers for luxury goods more in numbers than adult population of several countries, many luxury brands have been attracted to set up shops in India to tap the growing market. Many companies such as Bang & Olufsen, Escada, Brioni, Chanel, Louis Vuitton, Versace, Fendi, Valentino, and Swarovski among others have already opened shops in the country

Agricultural Retail : India's large consumer base along with export potential and reforms in agriculture (such as opening up of many agriculture sectors, allowing farmers to sell their produce directly to buyers) have attracted a large number of corporates into the agricultural retail segment.

Discount Malls : Top realtors and local retail chains are developing malls in regional boroughs, specifically to sell premium branded goods at prices 30 to 40 per cent cheaper than the maximum retail price. At least 50 such malls are to come up in the next two years across the country

Retail Reform : The Government allows 100 per cent foreign direct investment (FDI) in cash and carry through the automatic route and 51 per cent in single brand. Besides, the franchise route is available for big operators. Now, the Government also proposes further liberalisation in the retail sector allowing 51 per cent FDI in consumer electronics, sports goods, stationery and building equipment. Thus the crux of the entire matter is that in a nut shell the retail industry is "the" industry.