We are providing many paragraphs, long essay in very simple language with the boundaries of different words here. Here you can find Essay on Organised vs Unorganised Retail in English language for students in 1000 words. In this article cover Topic : Introduction of retail sector, Division of retailers, Scenario in Indian retail market, The evolution of Indian retail sector, Famous retailers of Indian market and New organised retail in India.
Retail can be defined as the process of selling goods from a fixed location. In this process, the retailer works as a facilitator between the manufacturer and the consumers. Therefore, a retailer can be called an arbitrator or reseller who works as a bridge between the consumer and the manufacturer. Organized retailers or traders are licensed by government to run their business. They are bound by law to pay sales tax, income tax etc. Various forms of organized retail are Hyper Market, Super Market, Departmental Stores, Specialty Chains, Malls, etc.
Hyper Market Store Store of many products that include food items and non-food items. Super markets are self-service stores that sell food and personal care products, e.g. All market departmental stores retire branded goods in non-food categories, e.g. Shopper's Stop Specialty Series focuses on a branded product or product category, e.g. Bata, Adidas Mall are large enclosures with different retail formats, e.g. Select City Mall in New Delhi
On the other hand, the unorganized retailer offers traditional low-capital retail sales, such as local grocery stores, small convenience stores, small sidewalk vendors, owners-general general stores, dispensaries, footwear shops, pan and bidi shops, hand-trains, hawkers Etc. The concept of retailing is considered as a contemporary phenomenon only. The government only recognizes organized retail as they are being issued licenses.
The Indian retail market is one of the fastest growing retail markets in the world. With over 12 lakh retail outlets, retailers in India have the highest density in the world, for every 90 people in every retail. It is estimated that the Indian retail market is one of the top five retail markets in the world, based on US $ 600 billion and economic value. Retailing in India is one of the pillars of its economy and accounts for around 10% of its gross domestic product. India is one of the fastest growing retail markets in the world. The development of retail sector in India can be traced that super markets are being set up in neighboring areas.
The government encouraged the Khadi and Village Industries Commission to set up shops. Some Indian brands, Raymond, Titan Bombay Dyeing, started retail chains in India. The rapidly growing retail sector was growing as a result of better supply chain management, inventory management, distribution network, back-end operators etc. Organized Retail Sector However, in a very early stage, due to the availability of foreign direct investment and market availability, there is a very wide scope of development. The rise of middle class consumerism has encouraged and especially organized retail industry. India's retail segments can be analyzed based on the characteristics that offer stores.
The area of food and grocery is the largest area, contributing more than 60% in the retail sector in the unorganized sector and 11% in the organized retail sector. In this area, some organized retailers are 'more' by 'Food Market' (Future Group), Tata etc. Organized retail contribution in Fashion Segment is 38%. This area is responsible for the organized retail revolution in India.
There are some famous fashion retailers in India, Pantaloons, Westside, Lifestyle, Fal India, Shopper's Stop, Reebok, Adidas, Khadim etc. The other section is of office and home improvement retailers in which market share is 6%. There are some prominent names in this area, Home Decor, @ Home, Home Shop 18 etc. Some of the notable names in electronics retail are chroma, reliance electronics store, ezone etc. This segment has 9% market share in retail sales. Similarly, other major areas are pharmaceuticals, beauty and wellness, jewelery, book and music stores, catering service retailers etc.
Popular forms of retail sales in India are local grocery shops. These are the most popular one set-ups in the neighborhood. The speed to choose other popular categories in India is online retail sites, including Flipkart, Amazon, Bigbasket etc. Other formats of retail sale are by franchise; In this format, the mother company provides umbrella of the brand but is done by the operation owner. Catalog is another popular format. Here, the consumer has different options.
Organized retail is a new phenomenon in India, economic development brings more people to India in consumer segments and more and more shopkeepers tend to organize organized retail in their open door. The growing middle class is an important factor in the development of retail sector in India. By 2030, it has been estimated that 91 million families will be middle class. Consumer market in India is growing rapidly due to strong economic growth Online retail business is another format which has greater potential for development in the near future. It has been growing at an annual rate of 35%
FDI in multi-brand retail has been debated in recent times. The government has somehow opposed the proposal to allow 100% FDI in the retail sector. The government has allowed 51% FDI in multi-brand retail and CF. 100% FDI in single brand retail, however, the phrase 'single brand' has not been defined, it means that foreign companies will be allowed to sell the goods ('n' 11W, which will be allowed under the 'single brand' international Levels are being sold, such as Reebok, Nokia, Adidas, to get Adidas permission to retire its flagship brand in India, in those retail outlets, under the Adichlux brand. The product can be sold, not Reebok brand, which require permission from "different.
People who support 100% FDI will say, this will allow better supply chains and reduce wastage in the perishable category. This will bring the consumer an alternative rate at an affordable rate. This will encourage contract farming so that mediators between farmers and retailers can be reduced. Since the competition will be difficult, it will calm prices and inflation.
Those who oppose 100% FDI, they say that by doing this thousands of karaana shops will be closed, which will reduce income and unemployment. With violent values, multinationals will erase the businesses of grocery shops.
It has also been suggested that farmers get initial price but later they will be on the mercy of multinationals. It has also been said that MNCs can remove their cheap products in these markets. Therefore, the advantages of these concerns are very high and in multi brand retail, only 51% FDI has been allowed for time.
Development in the Indian organized retail market is primarily due to changes in consumer behavior. This change has resulted in increased revenue in the consumer, lifestyle changes, patterns of demography etc. Now the consumer wants to shop at a place where he can make food, entertainment and shopping under one roof.
This has given a big boost to the Indian retail market. On the other hand, in traditional shops where different products are available, there is actually a range of products required by the customers. They carefully take care of the customer's choice and come up with the product they are asking for. They try to satisfy them with a wide range and maintain a good relationship to maintain them and convert them into their loyal customer.
But retail outlets lacking communication with customers have failed miserably in building good relationships or loyalty with their customers. Thus, in India it is quite doubtful that the organized sector will be completely away from the unorganized retail.
Customers' values, beliefs and cultures asked them to go to the same retail outlet, where they could find the time to wait at least for the product at a lower cost and billing. No matter how compelling the organized sector is and how beautiful the market is, the organized sector in the retail sector needs a long way to understand the customer's need.