Retail segment in India (Fastest Growing Industry)

The Indian consumer is changing rapidly. The average consumer today is richer, younger and more aspirational in his or her needs than ever before. Consumers now value convenience and choice on a par with getting value for their hardearned money. A range of modern retailers is attempting to serve the need of the ‘new’ Indian consumer. The last few years have witnessed an explosion of organized retail formats like supermarkets and hypermarkets in an otherwise fragmented Indian retail market. With various factors impacting growth in retail, some segments are bound to grow faster than others. For instance, increasing affluence is driving growth in the watches and jewelry segment, while awareness of health is driving growth in lifestyle pharmaceuticals. The retailers who participated in the survey expect growth in retail segments across the board; however, food and grocery is expected to see the highest growth, with clothing emerging as the second fastest growing segment.

Impact of modern trade(Retail) on agriculture in India

The success of any retail format largely depends on the efficiency of its supply chain. India has a fairly organised and developed non-food manufacturing supply chain, thanks to the presence of large local and multinational corporates that have built significant experience and scale by following best practices in their respective fields. Like most other developing economies, however, India continues to be lacking in the last mile distribution segment. The supply chain in India is fairly unidimensional. There is very little valueadded activity as the distribution remains fragmented and unorganised. This can be primarily attributed to the geographical and cultural diversity and complexity of the region and the lack of capital available for investing in technology and modern retail formats. Given the existing fragmented distribution system, organised suppliers are happy to retain the bargaining power they have over retailers, especially in the case of FMCG products.