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Assignment - 1
Indian Retail Sector and its
Problem
Introduction:
India is the second quickest developing
economy on the planet. It is third biggest
economy on the planet as far as GDP and
fourth biggest economy as far as Purchasing
Power Parity. India displays a colossal chance
to the world at age, to use as a center point.
Remaining on the limit of a retail insurgency
and seeing a quick changing retail scene, India
is all situated to encounter the wonder of
worldwide town. India is the "guaranteed
area" for worldwide brands and Indian
retailers An "Energetic economy". India best in the rundown of developing business for
worldwide retailer and India's retail division is extending and modernizing quickly in
accordance with India's financial development. What's to come is promising; the business sector
is developing, government strategies are turning out to be more ideal and rising advances are
encouraging operations.
Retailing in India is step by step creeping its way toward turning into the following blast
industry. The entire idea of shopping has changed as far as configuration and customer
purchasing conduct, introducing a transformation in shopping in India. Present day retail has
entered India as found in sprawling strip malls, multi-storied shopping centers and colossal
edifices offer shopping, amusement and sustenance all under one rooftop. The Indian retailing
part is at an expression point where the development of composed retailing and development in
the utilization by the Indian population is going to take a higher growth trajectory. The Indian
population is witnessing a significant change in its demographics. A large young working
population with average age of 24 years, nuclear families in urban areas, along with increasing
working-women population and emerging opportunities in the services sector are going to be the
key growth drivers of the retail sector in India. Retailing in India is evolving rapidly, with
consumer spending growing by unprecedented rates and with increasing no of global players
investing in this sector. Organized retail in India is undergoing a metamorphosis and is expected
to scale up to meet global standards over the next five years. Indias retail market has
experienced enormous growth over the past decade. The most significant period of growth for
the sector was between year 2000 & 2006, when the sector revenues increased by about 93.5%
translating to an average annual growth of 13.3%.The sectors growth was partly a reflection of
the impressive Indian economic growth and overall rise in income level of consumers. Apparels
and consumer durables are the fastest growing vertical in the retail sector. Mobile phone as a
product category has witnessed the highest growth in the consumer demand amongst all retail
products offering, with increasing penetration of telecommunication in towns and villages. The
telecommunication sector has been adding on an average 5 million new users every month. The
other product categories are gaining traction predominantly in the urban areas and emerging
cities, with increasing average income and spending power of young urban India.
India remained as the most attractive market for third year in a row in an index prepared by At
Kearney. Retail sector is the largest contributing sector to countrys GDP.
HYPER MARKET
CASH & CARRY
DEPARTMENT STORES
SPECIALITY STORES
DISCOUNT STORE
CONVENIENT STORE
Government limitations on
FDI point of confinement are
bringing about constrained
introduction to worldwide best
practices.
Malls remain empty on week
days and overcrowded on
weekends.
Promotional strategies
HR PROBLEM:
Following are some of the HR problem according to me faced by modern retail industry.
Recruitment: Its hard to get a good and talented employee in retail sector as the sector is
not considered as an industry.
Training & Development: There is no proper module and method for training and
development of employees and as a result employees are not compatible enough to
handle customers.
Admin & Legal compliances: The legal problems are common in retail industry.
Salary Management & Performance Management: Many a times employees are not
given salary on time due to decrease in sales for that month. Also there is no proper
method for performance management.