The Formats and Trends of Organized Retailing in India

Abstract

The retail market in India is at a transforming at a fast rate. The new formats of retailing in the form of organised retail along with e-retailing is making its way with traditional unorganised retail that existed through centuries in India. The size of retail market is US$ 1100 billion in 2019. The growth and transformation of retail market in India, on one side creating a better shopping experience and other side it is creating a lot of pressure on unorganised retailers. The retail sector and its environment have experienced radical changes in the last decade. Most of the challenges are due to changing demographic, social, politics, business climate and changes in the retail sector including the addition of Wall Mart, Reliance Fresh, Vishal Mega Mart, Metro, Big Bazaar, More mega store and several others etc. Today, the consumers prefer modern retail formats due to its significant product attributes like improved quality, variety of brands and assortment of merchandise and store attributes like parking facility, trained sales personnel and complete security. The retention strategies, promotional strategies, growth and improvement strategies, pricing strategies and competitive strategies are the major contributors for the growth of organized retailing and play an important role in enhancing the sales of retail formats. Further, the study helps in designing a framework for choice of modern retail formats from Consumers’ and Retailers’ Perspective. This paper examines the relative importance of the various products purchased at organized retail outlets and the choice of format, the consumer has when purchasing a product. The paper also discusses the expected development of organized retail in the future, focusing on aspects with potential effects on consumer purchasing behavior.