Unorganized Retail industry at its Inflection point

Prof. Vijay Shrimali; Mrs. Chitra Maheshwari

Volume : II, Issue : IX, September - 2013

Unorganized Retail industry at its Inflection point

Prof. Vijay Shrimali, Mrs. Chitra Maheshwari

Abstract :

Unorganized retailing is one of the easiest ways to generate self employment as it does not require high investment in land and capital and also the operating costs are low owing to the cheap labor. Unorganized retail is still predominating over organized retail stores due to various benefits it offers such as home delivery, credit facility, proximity, lower costs, small transaction and personal relations. Unorganized retail is the most prominent form of retailing in India. Unorganized retail accounts for more than 96% of the total retail sector. Organized retail which constitutes 4% of the total retail market will grow much faster than traditional retail. The younger generation of today has become more selective in their purchasing and demands more lifestyle products such as perfumes, watches and jewelry. This growing consumerism will be a key driver of organized retail. Modern retail and conventional retail trade can coexist in India as both have their own competitive advantages. As Indian economy is steadily growing and there is a rise in consumption & income levels, both the retailing formats can simultaneously grow for years to come