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2 Asst Prof School of Management Studies, Indira Gandhi National Open University, New Delhi, India.
Article Id - IJM_02_01_011, Pages : 91-105, Date of Publication : 12, April 2011
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Abstract
In this section, some of the significant trends that are likely to emerge and gain prominence in the future have been highlighted below. Small towns with a population of 0.5 – 1 million are witnessing a defined increase in disposable income coupled with high inspirational levels leading to enhanced spending on consumer goods along with lesser aversion to credit. With consumption in metros like Mumbai, New Delhi, Bangalore, Hyderabad, Kolkata and Chennai already being exploited, manufacturers and retailers of products such as personal computers, mobile phones, automobiles, consumer durables, financial services etc are increasingly targeting consumers in these Tier-II cities and towns. Retailers are introducing contemporary retail formats such as hypermarkets and supermarkets in these new pockets of growth. Prominent Tier-II cities and towns, which are witnessing a pick-up in activity, include Surat, Lucknow, Dehra Dun, Vijaywada, Bhopal, Indore, Vadodara, Coimbatore, Nasik, Bhubaneswar, Varanasi, and Ludhiana etc. The ‘retail boom’, 85% of which has so far been concentrated in the metros is beginning to percolate to smaller cities and towns. The contribution of these tier-II cities to total organized retailing sales is expected to grow to 20-25%. Mall development activity in these small towns is also picking up at a rapid pace, thereby, creating quality space for retailers to fulfill their aggressive expansion plans. Keeping in view the relatively smaller size of the market, the average size of a retail mall in Tier-II cities ranges between 100,000-120,000 square feet in comparison with the larger metros where a number of malls measure over 500,000 square feet. Social trends of a country have impact on the scheme of growth of food retailing in a country. India is country that is vast geographically and diverse culturally. This has taken its toll on food retailing with retailers having to adapt to the local cultures and palates of the are in which they have established or plan to establish. This is a major reason for many or most retailing chains. Restricting their operations to a certain part of the country. But the trends now are slowly moving towards cultural integration where people of all states and diametrically opposite cultures tend to try out foods and materials of other states and communities. This movement towards social integration would make it very feasible in the near future for retailing chains and erstwhile local chains to spread across the country. Increased income levels and more women willing to make use of their education by joining work has increasingly affected the shopping pattern that is moving towards fulfilling the need of convenience shopping in the form of Supermarkets (now graduating to Hyper format) home deliveries. Indian consumers is quality and price conscious andthis awareness would drive the retailers to rework their supply chain relationships. A recent analysis shows that countries go through a distinct food consumption evolutionary pattern. In the first stage the focus is on obtaining basic dietary inputs, the second stage focuses on improving and building basic foods, before moving to the third stage of adding premium food to the diet. Most of urban India has already moved to the third stage and it is a great avenue for food retailers, if they could slowly introduce the rest of India to it. The future would witness creation of specific models/formats one for the upwardly mobile urbanite and the other for the rural markets.
Keywords
Pick-up In Activity, Now Graduating To Hyper Format
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References
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