As India’s middle class grows and disposable incomes rise, “modern” retail is becoming the next hot sector of the Indian economy. Hundreds of millions of new consumers will join this retail revolution, venturing into supermarkets, department stores and air-conditioned shopping malls for the first time. But instead of just window shopping, many of them will be serious buyers with money to spend. To cater for their needs, established players in the modern retail sector such as Biyani, Raheja and Goenka are being joined by the big names of Indian business – Reliance, Birla, Bharti, Tata etc – who plan to spend billions over the next few years rolling out supermarkets, big-box outlets and specialty stores. At the same time, property developers are getting on with the “malling” of India, and looking for high profile anchor tenants to lure customers. On the sidelines of this Indian retail revolution are big overseas players such as Wal-Mart, which already has a tie-up with Bharti to provide much-needed back office support. But what Wal-Mart really wants is the right to set up its own stores in India. The same goes for Tesco, Carrefour, Metro and other international players. While the macro outlook appears bright, the problems are astronomical for India’s retail industry. There is no reliable cold chain, transport logistics are appalling, there is a huge lack of managerial talent, there is no consistency for quality and quantity of supply, there is political opposition from groups such as market middlemen, the mom and pop “kirana” corner stores have to be catered for, as do the farmers who grow the produce that is integral to a successful retail revolution. How well will these disparate players cope with the various pressures of a dynamic and fast-moving industry?
Book Details:
- Author: Geoff Hiscock
- ISBN: 9781118580370
- Year Published: 2008
- Pages: 304
- BISAC: BUS057000, BUSINESS & ECONOMICS/Industries / Retailing
About the Book and Topic:
As India’s middle class grows and disposable incomes rise, “modern” retail is becoming the next hot sector of the Indian economy. Hundreds of millions of new consumers will join this retail revolution, venturing into supermarkets, department stores and air-conditioned shopping malls for the first time. But instead of just window shopping, many of them will be serious buyers with money to spend. To cater for their needs, established players in the modern retail sector such as Biyani, Raheja and Goenka are being joined by the big names of Indian business – Reliance, Birla, Bharti, Tata etc – who plan to spend billions over the next few years rolling out supermarkets, big-box outlets and specialty stores. At the same time, property developers are getting on with the “malling” of India, and looking for high profile anchor tenants to lure customers. On the sidelines of this Indian retail revolution are big overseas players such as Wal-Mart, which already has a tie-up with Bharti to provide much-needed back office support. But what Wal-Mart really wants is the right to set up its own stores in India. The same goes for Tesco, Carrefour, Metro and other international players. While the macro outlook appears bright, the problems are astronomical for India’s retail industry. There is no reliable cold chain, transport logistics are appalling, there is a huge lack of managerial talent, there is no consistency for quality and quantity of supply, there is political opposition from groups such as market middlemen, the mom and pop “kirana” corner stores have to be catered for, as do the farmers who grow the produce that is integral to a successful retail revolution. How well will these disparate players cope with the various pressures of a dynamic and fast-moving industry?
With a population of 1.2 billion and an economy that will likely double in size by 2015, India is destined to become one of the largest consumer markets in the world over the next decade. How and where these emerging consumers spend their money will determine the fortunes of countless businesses, both within India and among overseas investors. This book explores the opportunities and challenges that confront India as its “organized” or “modern” retail sector seeks to win a much greater share of consumers’ disposable incomes.
– As India’s economy takes off and the government loosens its market restrictions, there are tremendous investment opportunities for outside investors. Geoff Hiscock’s penetrating analysis highlights key areas of change and the challenges facing those entering this complex market. – An extremely readable and entertaining analysis of the latest emerging market to welcome the world. India has huge potential, but equally large domestic challenges. Geoff Hiscock’s book guides the reader through this complex market. – The author’s excellent international contacts in the media will ensure that this book is widely reviewed.
About the Author
During a 35-year media career, Geoff Hiscock has reported extensively on Asian business, politics and society for a variety of major media organizations, including CNN and News Corp. He has lived and worked in some of Asia’s key cities, including Tokyo, Hong Kong, Bangkok and Sydney. His current position is Asia Business Editor and Sydney bureau chief for CNN.com International. Before that, he was International Business Editor, The Australian newspaper; and Executive Editor, The Australian Business Asia. He was a board member of the Australia-Japan Foundation 1998-2004 and has been a member of the Foreign Correspondents Association of Australia since 1993.