Development of Modern Retailing in India: It’s Impacts on Distribution and Procurement Networks and Changing Consumption Pattern

Abstract

The Indian retail industry is estimated to be $470 billion. The organized or modern retailing with 6% share stands at $26 billion. It is projected to reach US$ 1.3 trillion by 2018 with the organized retail market estimated to grow at the compounded annual growth rate of 40% and reach US$107 billion by the year 2013. Entry of these retailers in different formats, including online, has affected an irreversible change in consumer buying habits and businesses related to serving these retailers. However, unlike many other countries, India has its own unique character of size, geographical spread, cultural diversity, and multiplicity of formats being introduced at quick succession. Retailers also face the challenge of developing infrastructure, on their own or in cooperation with the government. This paper attempts to explore the industry and evaluate the extent of its impact on distribution and procurement networks and changing consumption pattern in India.