Page 40 - DMGT552_VISUAL_MERCHANDISING

Unit 2: World of Visual Merchandising

When consumers open their pocket books, the economy tends to hum along. Retail shelves Notes
empty and orders placed for replacement merchandise. Plants make more widgets and order
raw material for even more.
However, if consumers feel uncertain about their financial future and decide to hold off buying
new refrigerators or blue jeans, the economy slows down. This is why politicians have resorted
to tax rebates to give the economy a boost. By putting cash in consumers’ hands, they hoped to
spend their way out of a recession.

Did u know? On the 12th of every month, the Census Bureau releases the Retail Sales Index,
which is a measure of retail sales from the previous month as determined by a sampling
of stores both large and small across the country. Subject to future revision, the market
closely watches this number as an indicator of the nation’s economy.
The report actually lists two numbers. The first is Retail Sales and the second number is Retail
Sales Ex-Auto or without automobile sales included. The reason is auto sales can skew the
overall number that they are big-ticket items and subject to seasonal fluctuations.
The number crunchers on Wall Street come to their own conclusions before the Census Bureau
issues the report and that number is usually close. However, if the “street consensus” and the
actual report differ significantly, look for the market to react abruptly. The market does not like
surprises.
The Retail Sector of Indian Economy is going through the phase of tremendous transformation.
The retail sector of Indian economy is categorised into two segments such as organised retail
sector and unorganised retail sector with the latter holding the larger share of the retail market.
At present the organised retail sector is catching up very fast.

Task “The Retail Sector of Indian Economy is going through the phase of tremendous
transformation”. What are those transformations?

The impact of the alterations in the format of the retail sector changed the lifestyle of the Indian
consumers drastically. The evident increase in consumerist activity is colossal which has already
chipped out a money making recess for the retail sector of Indian economy. With the onset of a
globalised economy in India, the Indian consumer’s psyche has been changed. People have
become aware of the value of money. Nowadays the Indian consumers are well versed with the
concepts about quality of products and services. These demands are the visible impacts of the
Retail Sector of Indian Economy.
Since the liberalisation policy of 1990, the Indian economy, and its consumers are getting whiff
of the latest national & international products, with the help of print and electronic media. The
social changes with the rapid economic growth due to trained personnel, fast modernisation,
and enhanced availableness of retail space are the positive effects of liberalisation.
The growth factors of the retail sector of Indian economy:
 Increase in per capita income which in turn increases the household consumption.
 Demographical changes and improvements in the standard of living.

 Change in patterns of consumption and availability of low-cost consumer credit.
 Improvements in infrastructure and enhanced availability of retail space.
 Entry to various sources of financing.

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