The Hindu Business Line : `Indian retail has huge growth potential'

BIG SCOPE: (From left) Ms Geetha Krishnan, Head in charge of Commerce Department (Evening); Dr Jyothi Kumaravel, Head of the Department of Commerce and Co-ordinator, Evening College; Mr Gibson G. Vedamani, CEO, Retailers Association of India, Mumbai, and Dr M. Thavamani, Principal, Ethiraj College for Women

Chennai May 17 The Indian retail scenario presents huge potential for growth and could attract billions in investments.

According to Mr Gibson G. Vedamani, CEO, Retailers' Association of India, the Indian retail market is worth Rs 10,00,000 crore ($235 billion).

Organised retailing, estimated to be worth Rs 90,000 crore ($21 billion), has the potential to record 20 per cent growth in the next two years, he said. According to him, the domestic market has more than 12 million outlets.

Mr Vedamani was addressing students of the Ethiraj College for Women at a seminar on retailing.

Speaking on the topic, `Modern retailing: What's in store for you?' Mr Vedamani added that the classic structure or model of distribution was changing.

Earlier, consumers shopped at several stores; they are now shopping in a single store. Today, retail stores are sourcing from chain retail distribution centres rather than purchasing materials from different wholesalers. Further, retail chains are seeking exclusivity from suppliers. The growth drivers of organised retail in the country are growing consumerism, the Government stance to boost organised retail, and the availability of quality manpower, infrastructure and technology.

The growing consumerism in the country is a boon for retailers, Mr Vedamani said. "India will be among the top five economies in the world by 2025 and no marketer can afford to miss out on the India opportunity."

Modern retail would create up to 2 million direct jobs in the next two years. This growth would also offer local employment opportunities to millions of others. It would generate `first-time' employment and 20 per cent of organised retail employees would become tax-payers in the country.

In addition, more than 50 per cent of the total employees in modern retail would be women.

Mr T.R. Kesavan, Vice-President (Marketing), TAFE, Chennai, spoke about `customer relationship management' in the retail sector. According to him, satisfying the consumer could be compared to eating an elephant.

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`Indian retail has huge growth potential'