• Rising incomes and improvements in infrastructure are enlarging consumer markets and accelerating the convergence of consumer tastes.
• Liberalization of the Indian economy • Increase in spending Percapita Income. • Advent of dual income families also helps in the growth of retail sector. • Shift in consumer demand to foreign brands like McDonalds, Sony, Panasonic, etc. • Consumer preference for shopping in new environs • The Internet revolution is making the Indian consumer more accessible to the growing influences of domestic and foreign retail chains.
Reach of satellite T.V. channels is helping in creating awareness about global products for local markets. • About 47% of India's population is under the age of 20; and this will increase to 55% by 2015. This young population, which is technology-savvy, watch more than 50 TV satellite channels, and display the highest propensity to spend, will immensely contribute to the growth of the retail sector in the country. • Availability of quality real estate and mall management practices • Foreign companies' attraction to India is the billion-plus population. Employment opportunities in retail sector in India India's retail industry is the second largest sector, after agriculture, which provides employment.
According to Associated Chambers of Commerce and Industry of India (ASSOCHAM), the retail sector will create 50,000 jobs in next few years. Retail companies are starting retail manamgent courses in partnership with management institutes, roping in talent from other sectors and developing comprehensive career growth and loyalty plans for existing employees. Top players like Pantaloon Retail India Limited, Trent, Shopper's Stop, RPG Group and ebony are virtually on their toes. Consider the plans of largest player, The Pantaloon Retail India Ltd, the company has developed a comprehensive strategy, where in it expects that in 2years, it will not recruit any new managers from outside.
"The estimated need is 1 lakh of employees till 2011", said Mr. Sanjoy Jog, HR Head at Pantaloon Retail India Ltd. Pantaloon has the concept of partnership with educational Institute to run retail courses across the entire chain. The company has tied up with 11-B schools including K J Somaiya , Welinkars, Narsee Monjre and IISWBM. "The students joins the course and they are given an appointment letter by Pantaloon to become employees" said Mr. Jog, Pantaloon. Pantaloon is also planning to tie up with Ahmedabad-based National Institute of Design to start a course in visual merchandising.
"The apex body of Indian organized retailers, Retailers Association of India( RAI) is also lending help hand to tide over the shortage of employees in organized retail sector. Trent has also started in-house learning programmes and now goes to under graduate colleges to recruit students. Since, the job market is hugely receptive to this with more and more business schools focusing on the sector and large retailers setting up retail academics. Challenges of Retailing in India In India the Retailing industry has a long way to go,and to become a truly flourishing industry, retailing needs to cross the following hurdles:
* The first challenge facing the organized retail sector is the competition from unorganized sector.* In retail sector, Automatic approval is not allowed for foreign investment.* Taxation, which favors small retail businesses.* Developed supply chain and integrated IT management is absent in retail sector.* Lack of trained work force.* Low skill level for retailing management.* Intrinsic complexity of retailing- rapid price changes, threat of product obsolescence and low margins.* Organized retail sector has to pay huge taxes, which is negligible for small retail business.*Cost of business operations is very high in India.ConclusionMany agencies have estimated differently about the size of organized retail market in 2010.
The one thing that is common amongst these estimates is that Indian organized retail market will be very big in 2010. The status of the retail industry will depend mostly on external factors like Government regulations and policies and real estate prices, besides the activities of retailers and demands of the customers also show impact on retail industry.As the retail market place changes shape and competition increases, the potential for improving retail productivity and cutting costs is likely to decrease. Therefore it is important for retailers to secure a distinctive position in the market place based on values relationships or experience.
Finally it is important to note that these strategies are not strictly independent of each other; value is function of not just price quality and service but can also be enhanced by personalization and offering a memorable experience
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