Page 19 - DMGT552_VISUAL_MERCHANDISING

Visual Merchandising

Notes  Post 1995 onwards saw an emergence of shopping centers.
 Mainly in urban areas, with facilities like car parking.
 Targeted to provide a complete destination experience for all segments of society.
 Emergence of hyper and super markets trying to provide customer with 3 V’s - Value,
Variety and Volume.
 Expanding target consumer segment: The Sachet revolution - example of reaching to the
bottom of the pyramid.
 At year end of 2000 the size of the Indian organised retail industry is estimated at ` 13,000
crore.

Regardless if it is a small town or an urban area populated by millions, tiny, usually open-air
shops line neighbourhood streets throughout India. They sell fresh fruit and vegetables, groceries,
clothing, tires, household goods and even appliances.
Traditional retail refers to these thousands of small, mostly family-owned retail businesses.
They are also referred to as the “unorganised” retail sector. The “organised” sector refers to
large, modern regional and national retail stores.
The Indian retail industry is the world’s fifth largest, and accounted for 12 percent of GDP (gross
domestic product) in 2009. Approximately 97 percent of retail businesses are traditional.
Through the centuries, Indians have purchased goods from small local vendors, entrenching
this style throughout the country. Only recently have urban shopping centers been opened that
offer goods at large “chain-type” stores. These continue to be rare in rural areas.
Supporters of traditional retail note several benefits—buyer proximity, personal service and
monthly credit. Even though it is small, traditionalists understand their customer base and only
stock goods suitable for them.
Indians debate which side—traditional unorganised or national organised—will prevail. One
such analysis entitled “Indian Retailing—Will it be Traditional or Modern” states, “Modern
retailing may take away a sizable share from traditional retailing but will never close down the
opportunities of selling certain categories in specific denomination for the traditional retailers.”

Lab Exercise Go to website http://www.euromonitor.com/retailing-in-india/report and
collect information on how does Organised retailing strengthens both non-grocery and
grocery channels.

1.5.4 Factors behind the Change of Indian Retailing Industry

There are various factors responsible for the change of Indian retailing industry. Few of them
are given below:
 Raising incomes and improvements in infrastructure are enlarging consumer markets an
accelerating the convergence of consumer tastes
 Liberalisation of the Indian Economy
 Increase in spending per capita income

 Advent of dual income familiar also helps in the growth of retailer sector

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