The retail industry is one of the most dynamic and rapidly changing industries in our country, contributing to our country’s economic prosperity. In a short period, the Indian retail business has risen to become the world’s most appealing emerging retail market. Healthy economic growth, changing demographic profiles, rising disposable incomes, and shifting customer tastes and preferences are just a few of the primary reasons propelling India’s organized retail business forward.

The following are some of the elements that have contributed to the growth of organized retailing:

1. Increase in middle-class consumers

India’s middle-class population is quickly increasing. The retail industry has had the opportunity to grow and prosper as consumer demand has increased and disposable income has increased Because middle-class working people do not have a lot of spare time to go grocery shopping, they prefer a one-stop-shop for Kirana. What could be more convenient than having your trusted Kirana wala deliver your groceries with a single click? 

Furthermore, many women have begun to work outside the home, indicating that they are much more than just housewives. This click-to-door service is a lifeline for such amazing wonder women who are juggling career and family life. One of the most important factors in the expansion of the organized retail business is this.

2. Value for money

Organized retail deals in huge volumes and can benefit from large-scale production and distribution economies. They cut out the middlemen in the distribution chain. Retailers who are well-organized provide high-quality goods at reasonable prices. Big Bazaar and Subhiksha are good instances. Profitability is attracting an increasing number of new business groups to enter this area. And needless to say, the pandemic was like a catalyst that increased and promoted online shopping without ever having to leave the house. And as you trust your Kirana wala, they never compromise with hygiene and sanitization. 

3. Emerging rural market

India’s rural market is now witnessing fierce competition in the retail industry. In India, the rural market is rapidly growing as rural consumers become more quality concerned. As a result, organized retailers are creating new goods and methods to please and serve rural clients, owing to the vast potential in rural retailing. After agriculture, which has the greatest penetration into rural India, the retail business in India is proving to be the country’s largest source of employment. 

4. Impact of technology

One of the key elements driving the rise of organized retailing is technology. Retailing has evolved dramatically since the introduction of computerization, electronic media, and marketing information systems. Because of the enormous market and the rising customer awareness of product quality and services, organized retailing in India has a lot of potentials. And as everyone is comfortable these days with the internet, the Kirana owners aren’t far behind. Even they felt the need to take their business online to meet the trends and to stay alive in the competition. 

This is major because of globalization where foreign businesses have boomed in the Indian market. To compete with these brands, the local shop owners have taken to the Internet.

5. Rise of consumerism

With the rise of consumerism, retailers are confronted with a more informed and demanding customer. The rising customer expectation has driven retail organizations to modify their retail trade model, as businesses exist to meet consumer demands. Consumer desire, convenience, comfort, time, location, and other considerations all play a role in the expansion of organized commerce in India.

From a social as well as an economic standpoint, it is critical to comprehend how retailing operates in our economy and what function it plays in the lives of its inhabitants. The traditional models of retailing, such as the local Kirana shop, paan/beedi shop, hardware stores, weekly habits, convenience stores, and bazaars, continue to predominate in India

Written by: Aishwarya

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