Page 29 - DMGT550_RETAIL_MANAGEMENT

Retail Management

Notes 2.4 Size of Retail in India

Organized retailing accounts for 6% of the industry turnover, comprising value-added foods
worth ` 770 billion, music and entertainment worth ` 40 billion and color cosmetics worth ` 12
billion. Big business houses today are in a position to provide Indian masses with shopping
satisfaction, entertainment, quality products, polite salespersons, product information and
discounts. Though current margins are low due to high property cost and poor infrastructure,
this scenario is going to change. Retailing is the only business where one buys in credit and sells
for cash. Further, there are 30 million houses with an annual income of more than ` 150,000 and
this is expected to grow to 80 million by 2008. Financial institutions are encouraging such
ventures, as there is permission for opening up of branded foreign retail outlets in India.

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Caution Today the number of smaller retailers with a business less than ` 40000 per annum
has grown to a greater percentage, whereas the number of large stores with a turnover of
` 150,000 has increased from 2.8% to 6.5%. So, the smaller outlets are growing faster than
large retailers. However, changing shopping attitudes of an average customer will make
future growth increasingly difficult for the unorganized retail sector.

2.5 Retail Clothing in India

Retail clothing is a contemporary clothing concept, gaining fast popularity in India. With the
growth in earning opportunities and consequently more disposable incomes available with the
Indian middle class, retailing is assuming new dimensions in the country. And when it comes to
retail clothing, there obviously is no dearth of color, style and substance in the Indian scenario.
The concept of retail clothing though has undergone a huge transformation and smaller retail
stores selling clothes are gradually making way for big, impressive shopping malls and plazas.
The media onslaught and greater availability of means of information has resulted in people
finding their desire and expectations in almost all spheres of life increasing continuously. With
greater and wider number of choices being available in the market today, the demand for better
option in terms of retail clothing too has gone up. In big cities especially, there is increasing
number of retail outlets that cater to the requirements of various classes of people in the society.
Each dress is sold off at different prices. During festivals and other popular occasions, one comes
across special discounts and offers given as part of marketing and sales promotion.

With retail shopping assuming new dimensions in India, different types of clothing such as
formal, informal, casual, western, denim, fashion and many others are getting launched now
and then, aimed at specific audiences. While consumers have the advantage of getting all such
retail clotting of different hue and colors under a single roof, the companies get the benefit of
increasing number of buyers. With some of the leading corporate houses of the country joining
the retail bandwagon, the retail clothing industry is all set for a big leap forward in near future.

Example: Some of the leaders in the field of retail clothing in India are:

1. Pantaloons
2. Westside
3. Raymond
4. Bombay Dyeing

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