Page 18 - DMGT552_VISUAL_MERCHANDISING

Unit 1: Introduction to Retail

this the retail sector in India is witnessing rejuvenation as traditional markets make way for Notes
new formats such as departmental stores, hypermarkets, supermarkets and specialty stores.

Figure 1.1: Predicted Mall Distribution Space in India

The retailing configuration in India is fast developing as shopping malls are increasingly
becoming familiar in large cities. When it comes to development of retail space specially the
malls, the Tier II cities are no longer behind in the race. If development plans till 2007 is
studied it shows the projection of 220 shopping malls, with 139 malls in metros and the remaining
81 in the Tier II cities. The government of states like Delhi and National Capital Region (NCR)
are very upbeat about permitting the use of land for commercial development thus
increasing the availability of land for retail space; thus making NCR render to 50% of the malls
in India.
India is being seen as a potential goldmine for retail investors from over the world and latest
research has rated India as the top destination for retailers for an attractive emerging retail
market. India’s vast middle class and its almost untapped retail industry are key attractions for
global retail giants wanting to enter newer markets. Even though India has well over 5 million
retail outlets, the country sorely lacks anything that can resemble a retailing industry in the
modern sense of the term. This presents international retailing specialists with a great
opportunity. The organised retail sector is expected to grow stronger than GDP growth in the
next five years driven by changing lifestyles, burgeoning income and favourable demographic
outline.

1.5.3 Industry Evolution

Traditionally retailing in India can be traced to:
 The emergence of the neighbourhood Kirana stores catering to the convenience of the
consumers.

 Era of government support for rural retail: Indigenous franchise model of store chains run
by Khadi & Village Industries Commission.
 1980s experienced slow change as India began to open up economy.

 Textiles sector with companies like Bombay Dyeing, Raymond’s, S Kumar’s and Grasim
first saw the emergence of retail chains.
 Later Titan successfully created an organised retailing concept and established a series of
showrooms for its premium watches.
 The latter half of the 1990s saw a fresh wave of entrants with a shift from Manufactures to
Pure Retailers.

 For example, Food World, Subhiksha and Nilgiris in food and FMCG; Planet M and Music
World in music; Crossword and Fountainhead in books.

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