This blog will talk about both the opportunities & challenges in Retail Industry with a special focus in India. The Indian retail industry is unique in nature as both Organized and Unorganized types of Retail Outlets are ruling the entire industry by joining hands. However, till this early 2021 decade, unorganized retail is overpowering the other one.
The word “RETAIL’ has been evolved from the French word “RETAILLIER” that means “to break the bulk”; hence RETAIL points/Shopping Points/Outlets are such from where end consumers can buy both goods and services for their final consumptions.
Retail industry is known as one of growing industries in India as during 2010 (2001 to 2010) decade in particular, the country has witnessed many changes in Indian buying habits as well as in lifestyles. Customers as well as Consumers of India, started accustomed with disposable income, dual income facility for a nuclear family, being attached to Mall Hopping etc. and thus they started becoming the part of organized retail more than unorganized one. However, the urban areas are equipped with the option of big shopping complexes that is known by malls but till date peri-urban as well as rural India is still inclined to unorganized retail. Therefore, a versatile picture can be seen for Indian retail industry.
The opportunities are there for both the format based retailers as both of them are getting regular buyers but organized retailers in specific geographic areas like metro cities and tier1/2 cities in particular are enjoying good amount of sale as because for customers, shopping via organized retail became an entertainment options, too. The population of the country is one of the growth drivers in terms of generating business for unorganized retailers.
Virtual retailers are doing extremely well during mid of 2020 decade and specifically pandemic helped all E-tailers to grow with their business particularly in 20-21 FY. However most of the areas are not been covered by strong internet coverage hence the predominance of urban areas will prevail, pertaining to the retail sales generated at organized and virtual retail.
Challenges are definitely at rural belt, where the life style and disposable income has not made much impact and literacy level, school drop outs etc, cannot influence customers to add value to the Indian organized retail much but with flexibility in FDI policies and changes in socio-economic condition of the country can boost more growth in retail industry in upcoming 2030 decade.
–Prof. Poulami Sengupta, Assistant Professor, Department of Marketing