A leading global consultancy reports, Indian cities will have several retail malls. It is expected that at least 139 retail malls will open in big cities including metros and 81 in other cities by end 2007.
According to Ranjan Biswas, Partner, Ernst & Young-India, the country is poised towards expansion and mellowness in the retail sector very rapidly.
China and Brazil took 10-15 years to raise share of their organized retail sectors from 5 percent to 20 percent and 38 percent, respectively.
The hypermarkets, provide consumers with a blend of good prices, handiness, overall shopping expediency, variety and worth, and have emerged as a preferred system for international retailers in India.
In the next four to five years, about 67 Indian cities with populations of over half a million can attract many more such markets, as there are fewer than 50 hypermarkets in India currently operated by four to five big retailers.
According to a report, drawing parallel between consumer activities in India and China, majority of hypermarkets in China are located inside cities as consumers do their shopping more than once a week; have low car access and inadequate refrigeration facilities.
Due to high level of franchisee and branding activity, footwear and clothing have seen maximum retail infiltration in the planned sector with a share of 22 and 12 percent, respectively.
On the other hand, small outlet sector consisting food and grocery section, contributes about 41 percent of private consumption expenditure and about 77 percent of total retail sales.
marketing@alchempro.com
