Retail Industry

Retailing is the process of selling a product or service to the end consumer and is the last leg in the product supply link. The retail industry is growing tremendously in India. It's the biggest sector next to agriculture in terms of employment and turnover.

 

The rapid expansion is being experienced due to the entry of both the Indian corporations as well as the global players. Further, the hike in the purchasing power, evolving consumer needs, attitude, and lifestyle are making it a very promising field.

 

Out of the US$ 1 million retail industry, the bulk is held by the food industry. Second in line is the apparel and textile industry. In the field of organized retailing the time segment and footwear segment are at the forefront. Other sectors, such as accessories, electronics, and home-based products, are also gaining in prominence.

 

The Indian retail industry is completely overhauling itself. The days of local food stores and grocers is well past. New formats like malls, department and specialty stores, supermarkets, and fast food joints are establishing themselves and making their presence felt. So the haphazard retail situation in India is giving way to a more organized format.

 

The entry of technology and communications in this sector has made it more consumer-friendly. Today, the shoppers are provided with greater choices, improved quality, and more convenience. With the entry of foreign investors in this field, the productivity and competitiveness of the sector will rise further. This will further enhance the position and image of this sector.

 

What's driving this field in India is its vast population. There is an enormous customer base that has not been tapped yet. Improved per capita income and exposure to the west is making Indians vie for foreign brands. Thus, there is a huge market for these products and services in India, and many foreign brands are starting their operations here.

 

The investment opportunities are numerous in the food, interiors, apparels, fast food, and consumer durables industries. In fact, many foreign companies are making ties with Indian firms to market their products here. Some examples of these collaborations are the Bharati group tying up with Wal-Mart. Or the many franchisees of fast food joints, such as McDonald's, Domino's, or Pizza Hut in the food section. In the apparel and sports section, Adidas, Reebok, Nike, Sony, and Levi’s are making their presence felt.

 

The government as of now allows 51% FDI for single-brand companies. Other than that, franchisees are available for foreign outlets to tap the Indian retail Industry. Multi-brand outlets are not permitted to invest in the Indian markets yet.

 

Also, this field provides many employment opportunities that help raise the economy and in turn the standard of living. This thereby increases the customer base for the products themselves. Thus, by all means and ways, the Indian retail industry is paving a way for itself.

 

Hence, the Indian retail industry is expanding rapidly and offers huge potential for investors to cash in on the large consumer base in India.

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