Abstract


India has stepped in the exuberant age of retail. It ranks second after Russia as the most alluring destination for retailers among 30 emerging markets, accordingto the Global Retail Development Index developed by AT Kearney, a consultancy.The 10-12% increase in the economy's disposable income can be seen clearly bythe way goods and services are being brought and sold. Retail Trade contributes10-11% of India's GDP and currently employs over 4 crore people.


The Drive For Retail


The reason for the boom in retail is the gradual increase indisposable incomes of the middle and upper class household. Countries like US, Japan, U.K. have started out sourcing business activities and are willing to pay a handsome packageto those who deserve. The out sourcing will create 10-24 million jobs by 2020.The Indian youth is zealous, Intelligence and has the will to work hard. Thisis attracted foreign business organizations in the country where by increasingthe income levels and the purchasing power of consumers. The Indian consumerhas a great amount of disposable income which has increased demand level of thecountry. This demand is accompanied by the desire to get the best quality. In India over 65% of the population is below 35 years of age and 54% are below 25 years. Theyhave enough to pay for all their dream desires. Moreover there is a switch fromjoint family to nuclear family and DINK segment is making its presents felt.Driven by changing lifestyles, strong income growth and favourable demographic patterns,Indian retail is expanding at a rapid pace.


Mall space, from a meager one million square feet in 2002,is expected to touch an estimated 60 million square feet by end-2008, saysJones Lang LaSalle's third annual Retailer Sentiment Survey-Asia.


The Indian consumer wants the best. This has increaseddemand for exclusive brands. Now Nike has over 100 outlets and Reebok has over400 outlets. Thus the increase consumption pattern is having a direct bearingon the growth of retail sector. The consumption in 2005-06 was Rs.2124000 Crore(Approximately 480 billion.)



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About the Author


The authoris Lecturer, Department of Business Administration, Integral University, Lucknow.