Mumbai, Sep 25 (UNI) Organised Retail has come of age in India with a bright future that could take it to a USD 450 billion business by 2015, according to a management consultant expert.
McKinsey and Company, in a report 'The Great Indian Bazaar: Organised Retail Comes of Age in India', stated that organised retail was expected to grow from the current five percent of the total market to 14 - 18 per cent of total retail in 2015.
As organised retail evolves, mom and pop stores will continue to remain relevant in India, across both large and small towns, the report said suggesting that the retail in India can be profitable but not with 'cut and paste' global formats.
The report said profitable retailers will need to keep four mantras in mind as they explore this high potential market. First, develop innovative formats for material differentiation for which three decisions will be critical- where to participate in the retail value chain, which geographies to play in and what price points to offer. Second, craft a customer-insight driven merchandise strategy to stimulate consumption and lock in core customers. Third, create an efficient retail operating platform consisting of a self sufficient system of suppliers, logistics providers and even loyal shoppers. Finally, build an evolving organisation with an empowered front-end selling team that owns local catchments. Thus, the greatest challenge will be to maintain the organisation's focus on profitability while cultivating flexibility.
The report said of the 204 million households in the country McKensy expected only about 13 million households are comfortable and have the income to patronise organised retail. This relevant consumer segment would grow five fold from 13 million to 65 million households in the next eight years.
UNI VK OBB NP1946