Abstract

India is one of the fastest growing economies in the world and is witnessing rapid changes in all activities including retail industry with one of the highest growth rates. The Indian retail market, the fifth largest retail destination globally, has been ranked as the most attractive emerging market for investment in the retail sector by AT Kearney’s latest annual Global Retail Development Index (GRDI). The retail industry in India is of late hailed as one of the sunrise sectors in the economy. It is the largest component of the services sector. With the contribution of 14 to 15 per cent to the national Gross Domestic Product (GDP) and employing 7 per cent of the total workforce (21 million people) in the country, the retail industry is definitely one of the pillars of the Indian economy. According to a study conducted by the Indian Council for Research on International Economic Relations (ICRIER), the retail sector is expected to contribute to 22 per cent of India’s GDP by 2012. The McKinsey report ‘The rise of Indian Consumer Market’, foresees the Indian consumer market growing by four times by the year 2025, the Indian Retail industry is worth $300 billion in terms of value. The industry’s contribution to the Gross Domestic Product is the highest compared to all other Indian Industries. India is one of the fastest growing retail markets in the world, with 1.2 billion people. Today retailing is considered as a fast-growing industry in India after InfoTech with almost all the big players vying for a share of the coveted pie. India’s retailing industry is essentially owner manned small shops. In 2010, larger format convenience stores and supermarkets accounted for about 4 per cent of the industry, and these were present only in large urban centers. India’s retail and logistics industry employs about 40 million Indians (3.3 per cent of Indian population). Out of 12 million retail outlets in India, 78 per cent are owned by small family business. There are 2500 organised retail stores, account for hardly 30 per cent of total Rs. 9,30,000/- crores retail sector. Of late, retail businesses have broken rank and seem poised to surge ahead with renewed vigor, optimism, confidence and capability. After 50 years of unorganized retail and fragmented kirana stores, the Indian retail industry has finally begun to move towards modernization, systemization and consolidation. In other words, the present business environment favours growth of organized sector. This industry witnesses a compounded annual growth of 15 per cent. 46 malls are going to be set up in Mumbai and 300 malls in India soon. More and more players are entering the retail business in India to introduce new formats like malls, super markets, Discount stores, Departmental stores and even changing the traditional looks of Book stores, Drug stores, Chemist shops and Furnishing stores. The attraction of the retail business for Foreign Direct Investment (FDI) has been open. This has led to vast expansion of the retail business with wide ramifications. Against this background, an attempt is made in this study to present the various perspectives of retail business in India. It also identifies the major challenges encountered by the organized retail industry and the opportunities it derives when those challenges are overcome effectively.
Key Words:
Retail Markets, Organized Retailing, Unorganized Retailing, Economic Relations

Book Citation

Dr. RAMA JYOTHI (2024).A STUDY OF STORE ATTRIBUTES AND CUSTOMER SATISFACTION IN ORGANIZED RETAILING: THE CASE OF VISAKHAPATNAM. Magestic Technology Solutions (P) Ltd. ISBN: 978-93-92090-53-0 DOI: www.doi.org/10.47716/978-93-92090-53-0