LITERATURE REVIEW

REVIEWED PAPERS
1) Sunita Sikri and Dipti Wadha. Growth and challenges of retail industry in India : An
analysis. Asia pacific journal of marketing and management review Vol.1 Issue 1,
September 2012, ISSN 2319-2836.

The Indian Retail Industry is the fifth largest in the world. Comprising of organized and
unorganized sectors, Indian retail industry is one of the fastest growing industries in
India, especially over the last few years. Though initially the retail industry in India was
mostly unorganized, however with the change of taste and preferences of consumers, the
Industry is getting more popular these days and getting organized as well. The Indian
Retail Industry is expected to grow from US $330 billion in 2007 to US $1.3 trillion by
2020. According to the 10th Annual Global Retail Development Index (GRDI) of A.T.
Kearney, India is having a very strong growth fundamental base that’s why it’s the
perfect time to enter into Indian Retail Market. Indian Retail Market accounts for 22% of
country’s GDP and it contributes to 8% of the total employment. The total retail spending
is estimated to double in the next five years. Of this, organized retail –currently growing
at a CAGR of 22%- is estimated to be 21% of total expenditure. The unorganized retail
sector is expected to grow at about 10% per annum with sales expected to rise from $309
billion in 2006-07 to $496 billion in 2011-12. This paper focused on changing face of
Retail Industry, organized or unorganized retail industry, major players in retail industry
and also highlights the challenges faced by the industry in near future.

2) Kalpana Singh. Retail Sector in India: Present Scenario, Emerging Opportunities and
Challenges. IOSR Journal of Business Management Vol 16, Issue 4. Ver. 1 (April
2014), PP 72-81.

The Government’s initiative to allow 51 per cent foreign direct investment (FDI) in multi-
brand retail has been a subject for debate for quite some time now. Indian retail sector has
therefore attracted the attention of people from various fields including academia, industry,
research organisations. The present study is undertaken to gain an insight about the present
structure of Indian Retail Sector, the major sub-sectors in organized and traditional retail and
changes in the relative share of various sub-sectors over last few years and penetration of
organized retail in various segments. The analysis also covers the opportunities and emerging
challenges before Indian retail sector in view of recent policy changes by Government of
India. With India's large ‘young’ population and high domestic consumption, the macro
trends for the sector look favourable. The Indian retail sector is highly fragmented with more
than ninety per cent of its business being run by the unorganized retailers like the traditional
family run stores and corner stores. During 2005-07 and 2007-10, the share of organized
retail increased by 13.9 percent and 21.9 percent respectively. However thereafter organized
retail is penetrating the market at a more rapid pace. During the period 2010-12 share of
organized retail rose by 60 percent and is expected to increase by 2.6 times during 2012-15.
Clothing/Apparel segment is the biggest contributor in organised retailing in India in both the
years of study. In 2012 it alone accounted for 33 percent of organized retail followed by Food
& Grocery and Mobile and telecom with each having 11 percent share in organized retail.
Organized retail had highest penetration in Apparel both in 2007 and 2012. Food and Grocery
segment is dominated by traditional retail but in 2012, organized retail penetration in this
sector had more than doubled. In view of the recent policy changes, both the existing
traditional retailers and modern organised domestic and foreign retailers would have
opportunities and face challenges. On one hand, the policy exposes the domestic retailers to
competition from foreign retailers; while on the other hand, it seeks to safeguard them
through a slew of protective measures. The future prospects of Indian retail market are likely
to have some macro-economic impact too. Prospective reduction in supply chain
impediments may help in reducing supply side inflationary pressures. Future growth of
India’s retail sector is also expected to increase employment. The nuances of FDI in retail are
still to be worked out.

3) P.Usha Vaidehi and P.Alkeya. Role of FDI in Retailing. Asia pacific journal of
marketing and management review Vol.1 No. 2, October 2012, ISSN 2319-2836.

Retail modernization: Retail modernization in developing countries and its effect on the
broader food system has been a major focus of research since the early 2000s. The most
visible banner for this work has been the ―supermarket revolution‖. Supermarkets existed in
Latin America from at least the 1960s1, but began to grow much more rapidly in that region
during the economic boom and opening to Foreign Direct Investment (FDI) of the 1990s.
Growth began later in East/Southeast Asia and Central Europe, followed by selected
countries of Africa (Reardon et al, 2004). This growth, together with new procurement
practices that the firms work to apply, has lead to a rash of studies attempting to document
and anticipate the impacts of these firms on existing actors in the food system, and to draw
policy implications for governments and donors
In India, market reform and opening to FDI, along with prospects for 7% yearly growth in
retail sales in a market of 1.2 billion people have generated billions of dollars of planned
investment in supermarkets by local and multi-national firms, including Wal-Mart and
Carrefour. Yet supermarket shares in India are currently very low (around 2%), due to the
country‘s massive and complex small retail sector. Supermarkets there face the 20/20/20
challenge: they must grow their food sales by 20% a year for 20 years just to reach a 20%
market share. Such unprecedented growth would still leave more traditional channels holding
80% of the food market.
4) K.Chini Krishna and V.Bhdari Narayana. Future of Retailing Industry in India.
IRACST- International Journal of Commerce, Business and Management, ISSN:
2319-2828, Vol 5, No. 5, Sep-Oct 2016.

Indian retail sector is highly fragmented as compared to the developed as well as the
other developing countries. This shows a great potential for the organized retail
industry to prosper in India, as the market for the final consumption in India is very
large. At present the Retail industry in India is accelerating. Though India is still not
at an equal pace with other Asian counterparts, India is geared to become a major
player in the Retail Market. The fact that most of the developed nations are saturated
and the developing ones still not prepared, India secures a great position in the
international market.

According to the Global Retail Development Index (GRDI) released by US-based

global management consulting firm, A T Kearney, India has emerged as best
country amongst 30 emerging markets. This reinforces the fact that trade with India
is a golden opportunity to be capitalized upon. Interestingly, Russia clinched the
second position, while China settled for the third spot. The report also stated that
India has become the most attractive destination for retail investment for the fourth
time in five years.

The factor that is presently playing a significant role here is the fact that a large
section of Indian population is in the age group of 20-34 with considerably high
purchasing power which is the reason for increase in demand resulting in consistent
growth in the Retail business.

Though we see lot of promising factors there are challenges which question the
future of retail industry. Foreign direct investment is not allowed in retail sector,
which can be a concern for many brands. But Franchise agreements circumvent this
problem. Along with this regulation, local laws, and real estate purchase restrictions
bring up challenges. Other than this lack of integrated supply chain, management,
and lack of trained workforce and flux of the market in terms of price and product
choice also need to be eliminated.