Distribution Networks in India
Types of Outlet
- Department stores
- Large scale retail establishments comprising of a number of departments in the same building: clothes, electronic items, home appliances, cosmetics, jewelry, food items. Located in central places of big cities.
Big Bazaar, Vishal Mega Mart, Reliance Retail stores.
- Supermarkets or self service store
- Large scale retail shops operating at lower costs, selling at lower price.
HyperCITY, Apna Bazar, Spencer's, Subhiksha.
- Convenience stores or General stores or Variety stores
- All types of goods of regular use. They provide services like goods on credit and home delivery to their customers. Some of them may remain open 24/7.
- Super Bazaars
- These are large retail stores organized by cooperative societies.
They sell a variety of products under a single roof and at reasonable prices.
A1 Super Bazaar, Superbazaars.
- Multiple Shops or chain stores
- These are a group of retail stores of the same type under one common ownership and centralized management but are located at various locations.
- Specialized stores
- These are the shops that deal in only one or two special types of goods. They are generally located in shopping centers.
Shoppers' Stop, Globus, Fabindia, Westside.
- Street stalls
- These are the small shops on the roadside, street-crossing, bus stops, etc.
Evolution of the Retail Sector
- Growth and Regulation
- There has been a significant expansion in distribution channels in India. The total number of retail distribution outlets in the country is estimated at over 12 million.
Most Indian manufacturers use the traditional three-tier selling and distribution structure: redistribution stockists, wholesalers and retailers. However, with the advent of shopping malls in the retail sector, manufacturers are now ready to supply directly to large retail outlets at discounted prices.
India still does not allow foreign direct investment in retailing, so foreign companies need to partner with local companies to enter the market. For more information on FDI & Retail sector, visit the site: Ministry of Commerce.
- Market Shares
- Indian retail market size is estimated at USD180 billion and organized retailing is likely to grow rapidly: 30-50% annually during the next five years. Currently, the volume of organized retailing is very small compared to the size of the market.
- Organizations in the Retail Sector
Retailers Association of India
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