Consumer attitude and buyer behavior and also concentrate on rural and urban consumption pattern 4 opportunities for organized retail sector in india there are many factors which act as opportunities for the organized retail players and has a positive impact as indian economy is the fourth largest economy in the world. Organised retail in rural india- opportunities and challenges by garima srivastava student jaipuria institute of management lucknow according to the provisional data released by census india (2011), the population of india is 121 billion comprising rural and urban population that is 6884 percent and. To understand the importance of rural retailing 3 to understand the challenges in rural retailing and rural markets to understand the opportunities in rural retailing to visit few organized rural retail stores and understand their practices to suggest some recommendations if any 1) introduction rural india is prospering,. Only 10,000 out of 6,00,000 villages in india have access to organized retail services the huge market potential is undisputable itc, godrej pantaloons, dcm shriram consolidated ltd(dscl) is the main organizations which have entered in the rural retail sector strategies of these organizations are described in detail in.
The industry, however, is confident of exploiting the potential of rural retail in times to come “the penetration of organised retail is very low in rural india approximately 10,000 out of 6,00,000 villages in india have access to organised retail services the huge market potential is undisputable the company. Organised retailing in india : opportunities and challenges industry in india it also highlights the challenges faced by the industry in near future introduction retailing in india is one of the pillars of its economy and human resource and skill requirements in the organised retail sectorof the rural. Penetration into rural india generating more than 10 per cent of india's gdp the estimated value of retailing in india is usd 200 billion, of which organized retailing (ie modern trade) makes up approximately 3 percent or usd 64 billion expected annual growth of organized retail is 25-30 percent and is likely to reach.
Ajay s shriram has given up after a decade of trying to establish a chain of hariyali bazaar retail stores in rural areas, the chairman and senior managing director of dcm shriram consolidated ltd (dscl) has exited the business it was a wise decision, he says organised retail in rural india is a difficult. Usa 85% organised retail : india vs china indian and chinese markets are comparable in many aspects • both countries are not homogeneous they are composed of many markets within a single country with significantly varying cultures and customer preference across regions • there is a significant rural population.
India is the 5th most favourable destination for international retailers of the total indian retail market, 8% is made up by the organized retail segment various estimates put the share of organized retail to go up to 20 per cent by the jobs in the retail outlet could be reserved for rural youth and a certain amount of farm. The rural market in india is fast emerging as the rural consumers are becoming quality conscious emerging rural market image courtesy : exectuckdartmouth edu/images/uploads/cms/432/market_stall_kim__detailjpg thus due to huge potential in rural retailing organised retailers are developing new products and. Topic : rural retailing in india – aroad ahead ashok sengupta asstprofessor, braj institute of management & technology organized sector :- the growth of in the organized retailing has resulted in the establishmentof departmental stores, supermarkets, rural retailing, e- retailing and luxury retailing.
Into rural india retailing contributes to 10% of gdp and around 8% of the employment retail sector is one of india's fastest growing sectors with a 5% compounded annual growth rate it is expected that retail in india could be worth us$ 175- 200 billion by 2016 the organized retail industry in india had not evolved till the. Rural india has become the land of opportunities of marketers due to its vast outlook and changing scenario india's retail market is expected to nearly double to retailing is counted as one of the biggest industry in the indian market it has changed its face from unorganized to more organized, and is now focusing on. And rural organized retail penetration21 while major cities in china witnessed the saturation and maturity of organized retail, the rural areas were still seeing organized retail in the infancy or early development phase this forced large- retail chains to equip themselves with the skills necessary to handle all. Organized retail in the rural markets in india wwwiosrjournalsorg 17 | page industry in india is largely unorganized and predominantly consists of small, independent, owner-managed shops that have dominated indian retailing over the decades and are present in every village and local community or street corner stores,.
Right now, one out of six rural customers has access to organized retailing or distribution so, rural retailing has tremendous potential for growth a major part of “bottom of pyramid” consumer class resides in rural areas there is paradigm shift towards higher value consumption among rural consumers like. More than sixty-five per cent of india's population is living in rural areas with organized retail increasingly taking off in india, retailers are fast penetrating rural markets with different models to serve the shoppers of rural and semi-urban india with many innovative ideas like smaller size products that.
While small traditional retailers in the developed world have been struggling for survival against larger organized retail stores in both urban (carter, williams, & reynolds, 1997) and rural areas (crank et al, 1995 phillips & swaffin-smith, 2004), running small shops (traditional retail) is one of the highest. However, there are intrinsic problems in the way products and services are retailed in rural india therefore the organized retailers have been facing a difficult time to lure customers from traditional kirana stores, especially in the food and grocery segment other impediments include gaps in road and telecommunications. Organized retailing offers huge potential for future growth of retailing in india this paper provides information about the growth of retailing in india and rural market by 2012 the rural retail market is projected to have a total of more than 50% market share india's retail market is expected to be worth about us $ 410.
Highlighting the opportunities in rural retail segment, mr rs vijan, executive vice president, godrej agrovet, informs, “the opportunities - especially in the rural retail sector - are huge organised retail in india is still in its nascent stage – less than three per cent of the entire retail market to a large extent, the rural retail. Terms afterwards the usa, china & japan india is rated a part of the top 10 fdi destinations currently, as a fastest growing abridgement by 2030, india may become one of the top 5 economies in agreement of gdp presently, the indian retail industry is in an awful alternate state the organized bartering allotment in the. The paper also focuses on various challenges and opportunities for growth of organized retailing in india introduction sale of goods to ultimate consumers for use and the rural market in india is fast emerging as the rural consumers are becoming quality conscious thus due to huge potential in rural retailing organized. Organized retail in rural india by neha verma lecturer amity institute of telecom technology & management amity university sector-125 c- block, noida -201303 introduction india, like britain, is also a nation of shopkeepers with over 12 mn retail outlets, india has one of the highest densities of.