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1. 4th JULY – 10th JULY
Evol
Evolution of Indian Retail Industry
etail
Indian Retail Industry is standing at its point of inflexion waiting for the
inflexion;
boom to take place. The inception of the retail industry dates back to
time where retail stores were found in the village fairs, melas or in the
weekly markets. These stores were highly unorganized. The maturity of
the retail sector took place with the establishment of convenience retail
place
stores in the locality. With the government intervention the retail
intervention,
industry in India took a new shape. Outlets for Public Distribution System,
cooperative stores and Khadi stores were set up. These retail stores demanded low investments
tores
for its establishment.
The retail industry in India gathered a new dimension with the setting up of the different
international brand outlets, hyper or super markets, shopping malls and departmental stores.
yper artmental
Key Players in the Indian Retail Sector:
The untapped scope of retailing has attracted superstores like Wal Mart into India, leaving behind
Wal-Mart
the Kiranas that had been serving us for years. Such companies are basically IT based. The other
ing
important participants in the Indian retail sector are Bata, Big Bazaar, Pantaloons, Archies, Cafe
mportant
Coffee Day, Landmark, Khadims, Crossword to name a few.
andmark, Crossword,
Retailing in India: A forecast
Future of organized retail in India looks pretty bright. According to the
Union Minister of Commerce & Industry, Shri Kamal Nath, the organized
retail sector is expected to grow to a value of `2,00,000 crore (US$45
billion) and may generate 10 to 15 million jobs in next 5 years. This can
happen in two forms- 2.5 million of these people may be associated
directly with retailing and the rest 10 million people may be gainfully
employed in related sectors that will be pulled up through the strong
forward and backward linkage effects.

2. The India Retail Industry: Who's Who?
Big Bazaar- Big Bazaar is a chain of department stores owned by the
Pantaloon Group (Future Group) and headed by Kishore Biyani and
)
headquartered at Mumbai. It offers all types of household items such
as home furnishing, utensils, fash
fashion products etc. It has a grocery
department and vegetable section known as the Food Bazaar and its
online shopping site is known as FutureBazaar.com. The real estate
fund management company promoted by the Future Group expects
to develop more than 50 projects across India covering a combined area of more than 16 million
jects
sq. ft.
Bharti Retail- A wholly owned s
subsidiary of Bharti Enterprises has announced two joint
ventures (JV) with the international retailing behemoth, Wal Mart. The first JV ensures cash and
Wal-Mart.
carry business, in which 100 percent FDI is permitted and it
can sell only to retailers and distributors. The second JV
concerns the franchise arrangement. Sunil Mittal Chairman of
Mittal,
Bharti Group assured that the ventures will use “low prices
every day” and “best practices for the satisfaction of the
customer”. Processed food and vegetables will be delivered by
Bharti Field Fresh, Bharti's JV with Rothschild. Bharti Retail
aims to foray every city with a population exceeding 1 million. It has plans to come up with an
investment of more than $2 billion in convenience stores, supermarkets and hypermarkets spread
over an aggregate 10 million sq. ft.
Reliance Retail- Reliance claimed last year to start a retail chain
that will be unique in size and spread, will lead to the welfare of
one and all ranging from Indian farmers, manufacturers and
ultimately consumers. It is known as Reliance Retail Ltd (RRL) and
Ltd.
is a 100 percent subsidiary of Reliance industries Ltd (RIL).
y Ltd.
Reliance Retail has plans to open 4,000 outlets across 1,500 towns
for an investment of $5.6
DLF Shopping Malls DLF Retail Developers Ltd. is one of the part of the DLF Group.
Malls-
Besides being India's largest real estate developer, DLF is also of the leaders in
estate
innovating shopping malls in India. It caught public eye when it launched the 2 2,
50,000 sq ft. shopping mall in Gurgaon. It has brought a dramatic change in the
lifestyles and entertainment with its City Centres and DT Cinemas. DLF has plans to
invest `2000-3000 crore in all the emerging areas from metros to A class cities in the
3000
next two years. Till last year the company was involved in building 18 malls out of
ars.
which 10 were in the NCR region. Future plans of DLF involve opening up of 100 malls (specialty
malls, big box retailing and integrated malls) across 60 cities in next 8 10 years.
8-10

3. E-Retailing in India
Retailing
E-retailing, most commonly known as e
retailing, e-tailing is
nothing but shopping through the internet and
other media forms. There are many things that are
common between direct retail stores and online
retail stores. Both have the process of bi
billing of the
customers and have to maintain a relationship
with the suppliers.
Bottlenecks Faced By E-Retailing in India
Retailing
• Problems with the Payment System
People in India are not used to the online shopping system and moreover the online payment
system through the credit card is also totally alien to them. Most of them do not avail of the
ugh
transaction facilities offered by the credit cards. They are also dubious regarding the online
payment system through the credit cards. Hence different payment options sho
Hence, should be made
available to them like the credit card, cash on delivery and net banking to give them further
assurance.
• Problems with Shipping
The customers using the online shopping channel should be assured that the products that they
have ordered would reach them in due time. For this the retail companies have resorted to
ach this,
private guaranteed courier services as compared to postal services.
• Offline presence
The customers should be assured that the online retailers are not only available online but offline
as well. This gives them the psychological comfort that these companies can be relied upon.
• Products offered at discounted rates
The online retailers save on the cost of building and employee salaries. Some part of this benefit
should also be enjoyed by the online customers by a reduction in the price of the product. The
e
customers should be conveyed this message that they are getting the products at a discounted
price.

4. • Language Problem
Most internet retail shops use English as their mode of communicatio
communication.
English may not be comprehensible to the majority of the Indian population.
To increase the customer base, content in the online retail shops should be
provided in local language.
Another reason why the concept of e retailing or online retailing has not
e-retailing
gained prominence in India is that the Indians prefer to touch the products
physically before buying them. This facility is provided through the multi
multi-
brand outlets, not available online. Studies have revealed the preferences of
the customers towards the traditional shopping methods. Hence the retailer
Hence,
online should first make it a point to spot the potential customers and accordingly plan out the
product. If the customers are more open to online shopping, then nothing can be more beneficial.
They save the time and effort to visit, departmental stores, shopping malls, etc. products can be
e
delivered by a click of the mouse.
Another problem is that the retail industry is standing on its point of inflexion and considering its
infant stage, it would take time for the new concept of e
e-retailing to take off.
• Some online retailing sites in India
E-Bay is heading the race of online retailers. In this race it has become very difficult to determine
Bay
the online retail store that makes the products available at convenient and cheap rates. From this
very difficulty has cropped up comparison sites. Comparison is done on the basis of an index
Comparison
which is constructed from the data available from different shopping sites. The bechna.com and
the ultop.com are such sites though many more sites are entering this zone.
The comparison sites not only help to choose the online sites that would be providing the best
deal but also offline as well. Sites like Rediff product search, Compareindia.com have constructed
ndia.com
the data that is taken from the conventional local retai ers. These sites help the customer in
retailers.
finding out the local retail store that will best suit his purpose.
• Future of E-retailing in India
retailing
There are divergent views on the future of e retailing in India. Some experts are of the opinion
e-retailing
that the giant, big brand retailers would dominate the small ones due to their wider investment
their
capacities. It would be next to impossible for the small retailers and the Kiranas to prove their
iranas
existence in the battlefield of online retailing. Another viewpoint is that there would be an
exponential growth in the online retailing business in India.