Indian retail industry comprises of both organized and unorganized sector with much influence of unorganized one. Kirana shops, owner run grocery shops, convenience stores formulates unorganized retailing which are run in much more proportion then organized retailing. However growing income power and sustainable growth in infrastructure has seen rise in India’s organized retail sector and making way of shopping malls, hypermarkets and super-specialty stores. Malls of all sizes have begun to appear in second tier metros and cities as well which shows growing retail sector in India.
If we look at several online market survey done by market research companies organized retail market is growing with growing income and spending power. India is the favorite destination of Global Retailers who are eying the country as their major market for their products. Reports published by online market research companies’ Indian retail industry will grow much faster than China.
Organized retail penetration which was almost expected to touch 15% by 2012 seems to deficit by 5% due to global slowdown. Retailers are shifting the focus to second tier cites which is assumed to overpower Tier I cities in retail spending.According to online market survey concluded in September focus is shifting to non-food categories in organized retail which will lead the sector in coming days. Ease of FDI by Government in retail industry is showing a path to foreign retailers to establish in retail industry which seems to be bright and attractive in coming years.
