Page 28 - DMGT550_RETAIL_MANAGEMENT

Unit 2: Retailing in India

Size of the Operations Notes

“Size” has become the keyword in international retailing and the larger the size of the operations,
the better the economies of scale and chances of survival in this vicious war to win over the
consumer. Some global retailers are now taking over existing retail chains in a desperate bid to
consolidate their operation in this world of retailing. It is evident that eventually the
comparatively smaller retail chain will be unable to compete in the market or operate on their
own for long, and will soon sellout or merge with the much larger global retail chains.
The increasing magnitude of retailing as a business in absolute terms can also be estimated by
the fact that the sector accounts for a major portion of the GDP of many countries. Our country
has been extremely slow in responding to the trend of globalization of retailing, as a result of
which many of the distribution and retailing methods adopted here are still considered to be
prehistoric. While many countries around the world have started considering retailing as an
integral part of their social infrastructure, India still has to realize the benefits of organized
retailing that accrue to society at large.

Self Assessment

Fill in the blanks:
4. Vishal Megamart and Big Bazaar provide ........................ shopping experience to the retail
consumers.

5. The ........................ supermarket gained immense popularity due to the choice leftover on
consumers.

2.3 Drivers of Retail Change in India

Following are the drivers of retail change in India:

1. Raising incomes and improvements in infrastructure are enlarging consumer markets an
accelerating the convergence of consumer tastes
2. Liberalization of the Indian Economy

3. Increase in spending per capita income
4. Advent of dual income familiar also helps in the growth of retailer sector
5. Shift in consumer demand to foreign brands like McDonald, Sony, and Panasonic etc.
6. Consumer preference for shopping in new environment.

7. The Internet revolution is making the Indian consumer more accessible to the growing
influence of domestic and foreign retail chains. Reach of satellite TV channel is helping in
creating awareness about global products for local markets
Self Assessment

State whether the following statements are true or false:
6. Liberalisation of the Indian economy has posed a lot of restrictions and thereby the growth
of retail sector has suffered.
7. Changing customer preferences have contributed a great deal in expansion of retail sector.
8. Availability of quality real estate has fuelled the expansion of retailing in India.

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