Organised Retail in India-Mba Economics PaperJoin now to read essay Organised Retail in India-Mba Economics PaperRetailing-An IntroductionThe word “Retail” originates from a French-Italian word “retailler” meaning someone who cuts off or shreds a small piece from something . Retailing includes activities of marketing and selling products or services to end consumers for their own household or personal use. Retailer is a Person or Agent or Company or Organization who is instrumental in reaching the Goods or Merchandise or Services to the End User or Ultimate Consumer.
Kinds of RetailingUnorganisedTraditional or Unorganized retail outlets are normally street markets, counter stores, kiosks and vendors, where the ownership and management rest with one person only. This sector accounts for two thirds of the market and requires low skilled labor. These are highly competitive outlets, with negligible rental costs (unregistered kiosks or traditional property), cheap workers (work is shared by members of family) and low taxes and overheads.
Organised RetailingOrganized retailing comprises mainly of modern retailing with busy shopping malls, multi storied malls and huge complexes that offer a large variety of products in terms of quality, value for money and makes shopping a memorable experience.
Retailing Scenario in IndiaMost of the retail sector in India is unorganised, which were known as mom-pop stores. The biggest advantage in this sector is the consumer familiarity that passes on from one generation to the next. The transformation stage of the retail sector started in late 1990’s. The emergence of pure retailer has started at this stage as it is been perceived as a beginner and the organised retailing is getting more attractive. In India, the retail business contributes around 11 percent of GDP in 2005 . Of this, the organized retail sector accounts only for about 3 percent share, and the remaining share is contributed by the unorganized sector. The main challenge facing the organized sector is the competition from unorganized sector.
The introduction of more sophisticated forms of retail has made the business of this sector very good. The number of new stores has reached Rs 2,500 crore in India, whereas the unorganized sector has only Rs 8,500 crore. This creates a risk that the industry can be overwhelmed. This is what led to a decline in retail investment of 40-50 percent and is now seeing its share declines. Analysing statistics shows that a loss of nearly 80,000 jobs (in the form of Unorganized Manufacturing) a year could amount to Rs 1.2 trillion in 2013. At present, the unorganized sector accounts for over 25% of all U.S. retail business, while the larger category of “goods and service economy” still accounts for 20-25% as of 2013. (Source: CFAO)
This is because unorganised sector has only about $60 million to $100 million in income each year. It is a much better solution to the problem. The retail sector is also a unique one in that a company has the capital to become an unorganized retailer, which is easy for the individual and large retailers to do. Unorganised retailer is also an option to start out in business before taking a break. This means entrepreneurs, with a strong portfolio will easily take over when they want to start out. If the businesses are prepared to look after the infrastructure, including a network of retailers, it could attract a lot of customers who may do business with a retail company. Another way to increase the impact of organised retail is to create more opportunities for entrepreneurs and employees alike.
India for Business-Equality
India has been a strong market for the business of different kinds of business. This has brought along with it the possibility to produce a wide range of economic conditions. Moreover, this has also allowed other sectors to become a big player. For instance, unorganised business has attracted new recruits, many of them from other parts of the world like the Central Asian Republics. This means that the economic situation should be transformed through the process of development by all sectors in India. This is because unorganised sector has its own history and experience, but it also wants to help the country. It seeks to help in developing the country, and in promoting business development in others places. In this way India will become a better place to start out than one would have like to imagine it did in the 1990s.
Source: CFAO
India is one of the most progressive countries in developed industrialized countries. It has the longest track record for making an impact in business development, and it has a rich history to help it. This has attracted people from the Indian and other regions. For instance, the government of Kerala is also keen to encourage entrepreneurship, and is interested in helping to develop opportunities for the entrepreneurs which they have in India.
The success of India’s organised retail industry has generated the idea of creating unorganised retail companies. As more and more businesses want
The introduction of more sophisticated forms of retail has made the business of this sector very good. The number of new stores has reached Rs 2,500 crore in India, whereas the unorganized sector has only Rs 8,500 crore. This creates a risk that the industry can be overwhelmed. This is what led to a decline in retail investment of 40-50 percent and is now seeing its share declines. Analysing statistics shows that a loss of nearly 80,000 jobs (in the form of Unorganized Manufacturing) a year could amount to Rs 1.2 trillion in 2013. At present, the unorganized sector accounts for over 25% of all U.S. retail business, while the larger category of “goods and service economy” still accounts for 20-25% as of 2013. (Source: CFAO)
This is because unorganised sector has only about $60 million to $100 million in income each year. It is a much better solution to the problem. The retail sector is also a unique one in that a company has the capital to become an unorganized retailer, which is easy for the individual and large retailers to do. Unorganised retailer is also an option to start out in business before taking a break. This means entrepreneurs, with a strong portfolio will easily take over when they want to start out. If the businesses are prepared to look after the infrastructure, including a network of retailers, it could attract a lot of customers who may do business with a retail company. Another way to increase the impact of organised retail is to create more opportunities for entrepreneurs and employees alike.
India for Business-Equality
India has been a strong market for the business of different kinds of business. This has brought along with it the possibility to produce a wide range of economic conditions. Moreover, this has also allowed other sectors to become a big player. For instance, unorganised business has attracted new recruits, many of them from other parts of the world like the Central Asian Republics. This means that the economic situation should be transformed through the process of development by all sectors in India. This is because unorganised sector has its own history and experience, but it also wants to help the country. It seeks to help in developing the country, and in promoting business development in others places. In this way India will become a better place to start out than one would have like to imagine it did in the 1990s.
Source: CFAO
India is one of the most progressive countries in developed industrialized countries. It has the longest track record for making an impact in business development, and it has a rich history to help it. This has attracted people from the Indian and other regions. For instance, the government of Kerala is also keen to encourage entrepreneurship, and is interested in helping to develop opportunities for the entrepreneurs which they have in India.
The success of India’s organised retail industry has generated the idea of creating unorganised retail companies. As more and more businesses want
Transformation of the Retail Scenario in IndiaPicture 1As Indian retailing is witnessing rapid transformation in different areas of business by using ascendable and gainful retail models across different categories, consumers started accepting the modern retail irresistibly. The unorganised market is making its way for modern retail formats such as malls, provision stores, hypermarkets, discount stores etc. Most of the malls started expanding from metros to tier 2 cities as part of the expansion plans. Consumers are more attracted to these because of the shopping experience