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Executive Summary
The Indian retail sector is witnessing tremendous growth with the changing
demographics and an improvement in the quality of life of urban people. The
growing affluence of India's consuming class, the emergence of a new breed
of retail entrepreneurs and a flood of imported products in the food and
grocery space, has driven the current retail boom in the domestic market.
As the foreign direct investment policy expressly forbids FDI in retailing, no
major foreign chain could be contemplating entering this field. Foreign
investors are keen to enter the Indian retail market, which has been ranked
fifth out of 30 such markets for retail investment attractiveness by AT
Kearney. Meanwhile, Indian retailers are still trying to obtain industry status,
which will give them easier access to bank funds and simplify day-to-day
At this moment, it is still premature to say that the Indian retail market will
replicate the success stories of names such as Walt-Mart Stores, Sainsbury
and Tesco but at least the winds are blowing in the direction of growth.
The report analyses the Indian retail industry taking into perspective the
growth of the Indian economy and the sustainability of this sector in this
scenario. PEST and porter’s Five Forces Analysis have been employed to
present a clear picture of the functioning of the retail sector. In this report,
we have analyzed the factors that are driving revolutionary changes in the
retail sector. The business model that works perfectly in the Indian scenario
has been assessed and the mechanics of this business evaluated. Further,
various segments of the retail industry have been individually evaluated. The
competition among the retailers within this industry is a major focus area of
this report.
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