RETAILING: AN OVERVIEW essays
Retailing is the process of selling products to the customer after procuring it from the wholesalers. Retailing is the last stage in the distribution process.
Before moving further let us look at the history of retailing in India. For Indian retailing, things started to change slowly in the 1980s, when Indiafirst began opening its economy. Textiles sector (which companies like Bombay Dyeing, Raymond’s, S Kumar’s and Grasim) was thefirst to see the emergence of retail chains. Later on, Titan, maker of premium watches, successfully created an organized retailing concept in India by establishing a series of elegant showrooms.
For long, these remained the only organized retailers, but the latter half of the 1990s saw a fresh wave of entrants in the retailing business. This time around it was not the manufacturer looking for an alternative sales channel. These were pure retailers with no serious plans of getting into manufacturing. These entrants were in various fields, like – FoodWorld, Subhiksha and Nilgiris in food and FMCG; Planet M and Music World in music; Crossword and Fountainhead in books.
Retailing is the one of the largest industries in the world. In India it is still to get a recognition as an industry as most of the transactions occur in the unorganized sector. Retail sales, which amounted to about Rs7,400 billion in 2002, expanded at an average annual rate of 7% during 1999-2002. With the upturn in economic growth during 2003, retail sales are also expected to expand at a higher pace of nearly 10%.
In a developing country like India, a large chunk of consumer expenditure is on basic necessities, especially food related items. Sales through supermarkets and department stores are small compared with overall retail sales. However, their sale has grown much more rapidly. The high acceleration in sales through modern retail formats is expected to continue during the next few years with the rapid growth in numbers of