Page 17 - DMGT552_VISUAL_MERCHANDISING

Visual Merchandising

Notes come to recognise the value of building their own stores as brands to reinforce their marketing
positioning, to communicate quality as well as value for money. Sustainable competitive
advantage will be dependent on translating core values combining products, image and reputation
into a coherent retail brand strategy.
There is no doubt that the Indian retail scene is booming. A number of large corporate houses
Tata, Rahejas, Piramals, Goenka have already made their foray into this arena, with beauty and
health stores, supermarkets, self-service music stores, new age book stores, every-day-low-
price stores, computers and peripherals stores, office equipment stores and home/building
construction stores. Today the organised players have attacked every retail category. The Indian
retail scene has witnessed too many players in too short a time, crowding several categories
without looking at their core competencies, or having a well thought out branding strategy.

Retailing in India is gradually inching its way toward becoming the next boom industry. The
whole concept of shopping has altered in terms of format and consumer buying behavior,
ushering in a revolution in shopping in India. Modern retail has entered India as seen in sprawling
shopping centres, multi-storied malls and huge complexes offer shopping, entertainment and
food all under one roof. The Indian retailing sector is at an inflexion point where the growth of
organised retailing and growth in the consumption by the Indian population is going to take a
higher growth trajectory. The Indian population is witnessing a significant change in its
demographics. A large young working population with median age of 24 years, nuclear families
in urban areas, along with increasing working women population and emerging opportunities
in the services sector are going to be the key growth drivers of the organised retail sector in
India.

1.5.2 Growth of Retail Sector in India

Retail and real estate are the two booming sectors of India in the present times. And if industry
experts are to be believed, the prospects of both the sectors are mutually dependent on each
other. Retail, one of India’s largest industries, has presently emerged as one of the most dynamic
and fast paced industries of our times with several players entering the market. Accounting for
over 10 per cent of the country’s GDP and around eight per cent of the employment retailing in
India is gradually inching its way toward becoming the next boom industry.
As the contemporary retail sector in India is reflected in sprawling shopping centers, multiplex-
malls and huge complexes offer shopping, entertainment and food all under one roof, the
concept of shopping has altered in terms of format and consumer buying behaviour, ushering in
a revolution in shopping in India. This has also contributed to large-scale investments in the real
estate sector with major national and global players investing in developing the infrastructure
and construction of the retailing business. The trends that are driving the growth of the retail
sector in India are:
 Low share of organised retailing
 Falling real estate prices
 Increase in disposable income and customer aspiration

 Increase in expenditure for luxury items (CHART)
Another credible factor in the prospects of the retail sector in India is the increase in the young
working population. In India, hefty pay packets, nuclear families in urban areas, along with
increasing working-women population and emerging opportunities in the services sector. These
key factors have been the growth drivers of the organised retail sector in India which now boast
of retailing almost all the preferences of life - Apparel & Accessories, Appliances, Electronics,
Cosmetics and Toiletries, Home & Office Products, Travel and Leisure and many more. With

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