Retail Business today is one of the quickly growing channels & playing an important role in emerging economic growth of the country. In the recent times customers are getting more & more attracted towards Retail Markets. Change in income structure, consumer tastes & preference, demographic & geographic profile are some of the key factors that are driving towards growth in Retail Business.
Some other main factors responsible for the growth in Retail Industry are as follows:
- Growth of Consumers – Nowadays there is tremendous growth in number of consumers in India, especially the middle class. Consumer demand & income structure has also increased further raising their expectations for quality products at reasonable prices. Retail outlets offer a wide variety of products & services to the customers to meet their demands thus resulting into the growth of Retail Sector.
- Working Population – In recent times the graph of working population has seen a steep increase in urban as well as rural areas thus changing their spending habits & income structure. It becomes very difficult for the working people to spend enough time in shopping at different locations. This enables a retailer to provide them various products at one place, creating a platform for development.
- Value for Money – Big & organised retail outlets basically deal in volumes & can offer a good range of products at reasonable price thus attracting customers at a very large scale. This in return also creates a good opportunity for retailers to get more profits & enables new business groups to enter into this sector.
- Rural Market – Today’s Indian Retail market has entered in rural areas creating a big competition, as the rural population has become more literate & quality conscious. These high potential rural populations have thus enabled the retailers to enter rural market & develop new products & strategies to meet their demands. Also it has created employment opportunities for the rural people thus heading towards growth & development.
- Corporate Sector –Corporate sectors have also entered into the retail business to cater the customers demand & provide them better quality products at reasonable price. This is one of the reasons that have brought revolution to the retail sector thus driving it towards the growth.
- Foreign Retailers – Rapid expansion & the race to cater the demand of every customer is catching the interest of foreign retailers to enter the market &provide good quality products & services through joint ventures or franchising. This will further boost the retail sector & will help in developing economy of the country.
- Technological Impact – Advance technology has made it easier for the retailers to handle large scale business & cater the needs of consumers. With the introduction of computerized billing system, electronic media & marketing techniques, barcode system has changed the face of retailing in providing products & services to customers. Also the use of online market has driven the retail sector towards advanced growth structure.
- Income Structure –Increase in the number of working population has resulted in increase in the income structure in cities as well as remote areas. This has further led to increase in the demand for quality products & services. People nowadays tend to try new things & improve their look thus increasing the spending habits & giving an opportunity to grow & expand their business.