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Follow UsThe Indian retail is poised for a transformation owing to a plethora of changes within and outside its marketplace. According to the India Retail Report 2005 the size of the organized retailing market (Rs. 35,000 crore in 2005) was expected to reach the figure of Rs. 100,000 crore by 2010 at an average growth rate of about 30 per cent.
However, going by the current growth trend and considering the fact that existing prominent players in organised retail have stepped up their expansion drive with Reliance announcing big plans and other Indian corporate houses too evincing keenness on investing heavily in this sector as also the inking of the joint-venture between the world's largest retailer Wal-Mart and Bharti - the expectation from organised retail will almost be double now of what was estimated two years ago.
"The organised retail in India has indeed gained top speed and is now on the verge of take-off", says Amitabh Taneja, Chief Convenor, India Retail Forum.
The Indian economy is integrating with the world, and yet it simultaneously has its own dynamics, which cushion global shocks as in no other country. India had kept the retail sector largely closed to outsiders to safeguard the livelihood of nearly 15 million small storeowners and only allows 51 per cent foreign investment in single-brand retail with prior government permission.
FDI is also allowed in the wholesale business. Single-brand retailers such as Louis Vuitton, Fendi, LLadro, Nike and Toyota can operate now on their own. Metro is already operating through the cash-and-carry wholesale mode.
The issue of Foreign Direct Investment (FDI) has been debated time and again as the Indian Government has been under pressure to open up further. The policy makers continue to explore areas where FDI can be invited without hurting the interest of local retail community.
Off late the Commerce & Industry Minister has been indicating in the media that Government would probably consider opening up the retail trading for select sectors such as electronic goods, stationery, sports goods, and building equipment.
"To understand the reasoning and implications of such moves it was vital to size up the entire retail market in various segments and consumption levels across product categories with share of the organized segment and it was just the right time for India Retail Forum to take the initiative of researching the scope of retail businesses in India", says Taneja.
"Realising the need, for the first time, the entire retail industry, Images F&R Research and world's some of the top global research & consulting firms like AT Kearney, Ernst &Young, PWC, Technopak, KPMG, ICICI, AC Nielsen-ORG Marg, Synovate, Cushman & Wakefield etc. came together to contribute for a detailed study of the Indian retail Industry", says R S Roy, Editorial Director, India Retail Report 2007.
"Otherwise also the last two years have seen a lot happening on the Indian retail front and it was time to update the retail world with the second edition of India Retail Report", adds Roy.
Shri Kamal Nath, Minister of Commerce & Industry, Govt. of India will release the much awaited India Retail Report on 9th January 2007 at a high powered meet of senior industry leaders, Govt. officials, and media fraternity.
A truly international presentation in a coffee table format, the India Retail Report 2007 will also carry visionary thoughts of Shri Kamal Nath, Dr. Ajay K Dua, Secretary, Department of Industrial Policy & promotion, Ministry of Commerce & Industry and over 40 thought leaders from the retail industry covering almost every aspect of retail business.
Profiling formats and retailers therein, the study, full of facts and figures, is expected to reveal many interesting facets of the Indian retail industry that could open up newer avenues of business both for the established players and the new comers as well.
India Retail Report 2007 will set benchmark figures on consumer spend, retail market size across key categories and segments with scope and also performance of key players and their expansion plans.
CIOL Bureau