Page 36 - DMGT552_VISUAL_MERCHANDISING

Unit 2: World of Visual Merchandising

opportunities. The retail market in India is anticipated to grow to 427 billion USD by the year Notes
2010.
However, the face of the Indian retail industry is changing. India is passing through a retail
boom today. A number of changes have taken place on the Indian retail front such as increasing
availability of international brands, increasing number of malls and hypermarkets and easy
availability of retail space. With the Indian government having opened up the doors for FDI, the
entry of foreign retailers into the country has become easier. India has come a long way from the
traditional Kirana stores and is on its way to becoming a ‘mall country’. The emphasis has
shifted from reasonable pricing to convenience, efficiency and ambience.

The major factors fuelling this change are the increase in disposable income of the people,
improving lifestyles, increasing international exposure and increasing awareness among the
customers. India has a large middle class as well as youth population, which has contributed
greatly to the retail phenomenon. The middle class is considered to be a major potential customer
group. The youth are perceived as trend setters and decision makers. Tourist spending in India
is increasing, which has also prompted the retail boom.

Example: Food and grocery are the two categories in the Indian retail sector which offer
the most promising opportunities. Apart from this, the other areas where there are vast
possibilities for Indian retailers are jewellery, apparel and consumer durables. Indian retailers
are also trying to create a niche for themselves in areas such as books, gifts and music.

The Indian retail industry is going through a period of golden sunshine.

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Caselet Wal-Mart – Changing the Face of Retail

he company’s five-element healthier food strategy is the latest in a long line of
sustainability-oriented initiatives that are changing the face of retailing, not just in
TAmerica, but in many of Wal-Mart’s principal market economies including Canada
and Mexico.

Wal-Mart started its greening initiative back in 2005 under Lee Scott, the company’s then
worldwide president, who sensed that change was needed to counter the less than
favourable image as a company focused solely on endless consumerism and as a price-
cutting bully driving out local ‘Mom and Pop’ retail outlets out of business.
Wal-Mart immediately launched an initiative to ‘green’ its supply chain, forcing existing
and would be suppliers to the retail giant to examine all aspects of their operations to
lower their carbon footprints, to reduce packaging wastage and to be more energy efficient
in transporting products to Wal-Mart outlets.
The company then began to green its own operations by deploying energy saving
technologies in its warehousing, renovating outlets to lower electricity usage, opening
new outlets with advanced green building features - solar panels, green roofs, natural
lighting, etc., and by switching to green energy supply wherever feasible.
But the new emphasis on healthier food at lower prices opens a new dimension of the fast
changing face of retailing, one that not only could lead to changes in consumer buying
habits, but also in the consumers themselves by changing their dietary habits.

Contd...

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