abhishreshthaa
New member
Today the number of smaller retailers ($500pa) has shot up from 40% in 1990 to 54% in 1996, whereas the number of large stores (turnover of $3000pa) increased from 2.8% to 6.5%. Thus though large retailers are growing the smaller outlets are growing even faster. However changing shopping attitudes of an average customer will make future growth increasingly difficult for unorganized retail sector.
Currently in India, organized retailing accounts for 6% of the industry turnover, comprising value-added foods (Rs770bn), music & entertainment (Rs40bn), colour cosmetics (Rs12bn) etc. By 2005 organized retailing will account for 20% the total retailing industry turnover (Rs8300bn).
Big business houses today are in a position to provide Indian masses with shopping satisfaction, entertainment, quality product, polite salesperson, product information and discounts. Though margins currently are low due to high property cost and poor infrastructure.
This is the only business where one buys in credit and sells for cash. Further the number of households earning more than Rs150000 per annum amounts to 30mn today and is expected to grow to 80mn by 2007. Additionally financial institutions are encouraging such ventures.
ICICI has recently sanctioned term loans to Vivek & co, a mega-retailer, in Chennai to meet their expansion plans. Very shortly the market will also witness IPOs for some of these Retail Ventures.
Currently in India, organized retailing accounts for 6% of the industry turnover, comprising value-added foods (Rs770bn), music & entertainment (Rs40bn), colour cosmetics (Rs12bn) etc. By 2005 organized retailing will account for 20% the total retailing industry turnover (Rs8300bn).
Big business houses today are in a position to provide Indian masses with shopping satisfaction, entertainment, quality product, polite salesperson, product information and discounts. Though margins currently are low due to high property cost and poor infrastructure.
This is the only business where one buys in credit and sells for cash. Further the number of households earning more than Rs150000 per annum amounts to 30mn today and is expected to grow to 80mn by 2007. Additionally financial institutions are encouraging such ventures.
ICICI has recently sanctioned term loans to Vivek & co, a mega-retailer, in Chennai to meet their expansion plans. Very shortly the market will also witness IPOs for some of these Retail Ventures.