Indian Retail Sector

Evolution of the Indian Retail Sector

The origins of retailing in India can be traced back to the emergence of Kirana stores and mom-and-pop stores. These stores used to cater to the local people. Eventually the government supported
the rural retail and many indigenous franchise stores came up with the help of Khadi & Village Industries Commission. The economy began to open up in the 1980s resulting in the change of retailing. The first few companies to come up with retail chains were in textile sector, for example, Bombay Dyeing, S Kumar's, Raymonds, etc. Later Titan launched retail showrooms in the organized retail sector. With the passage of time new entrants moved on from manufacturing to pure retailing.
Retail outlets such as Foodworld in FMCG, Planet M and Musicworld in Music, Crossword in books entered the market before 1995. Shopping malls emerged in the urban areas giving a world-class experience to the customers. Eventually hypermarkets and supermarkets emerged. The evolution of the sector includes the continuous
improvement in the supply chain management, distribution channels, technology, back-end operations, etc. this would finally lead to more of consolidation, mergers and acquisitions and huge investments.

Phases in the evolution of retail sector

Weekly Markets, Village and Rural Melas

  • Source of entertainment and commercial exchange

    Convenience stores, Mom-and-pop / Kirana shops
  • Neighborhood stores/convenience
  • Traditional and pervasive reach

    PDS outlets, Khadi stores, Cooperatives
  • Government supported
  • Availability/low costs/distribution

    Exclusive brand outlets, hypermarkets and supermarkets, department stores and shopping malls

  • Shopping experience/ efficiency
  • Modern formats/ international

    Percentage of Organised Retail across the world