The Changing Face of Indian Retail Industry-A Journey from Unorganized Retail to Organized Retail

The retail sector has played a phenomenal role throughout the world in increasing productivity of consumer goods and services. The India Retail Industry is the largest among all the industries. Modern retail industry plays an important and vital role in the economies of all modern societies. All the big business houses are entering in this sector and it is growing at a very past pace. The present study leads to explore the changing face of Indian Retail Industry in India. This paper also focuses on the shift of consumers from unorganized retail to organized retail.

The retailing industry, which, until the early 1990s, was dominated by the unorganized sector, witnessed a rapid growth in the organized sector with the entry of corporate groups such as Tata, RPG, ITC and Bennett Coleman & Company into the retailing market. Retailing in India is progressively inching its way to becoming the next roar industry. The whole concept of shopping has tainted in terms of layout and consumer buying behavior, ushering in a uprising in shopping. Modern retail has entered India as seen in rambling shopping centers, multi-storied malls and huge complexes offer shopping, entertainment and food all under one roof. The changes in the organized retail industry are visible in the form of new retailing formats, modern techniques, exclusive retail outlets, emergence of retail chains etc.

Shopping in India has witnessed a revolution with the change in consumer buying behavior and the format of shopping. The retail industry in India has modernized, and this can be seen from the fact that there are multi stored malls, huge shopping centre's and sprawling complexes, which offer food, shopping & entertainment all under the same roof. Now the purchasing power of Indian urban consumer is growing. Increased availability of retail space, rapid urbanization, and qualified manpower also boosted the growth of the organized retailing sector. Apart from this, social changes such as increase in the number of nuclear families and the growing number of working couples resulting in increased spending power also contributed to the increase in the Indian consumers’ personal consumption.