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India, like Britain, is also a nation of shopkeepers. With over 12 mn retail outlets, India has one of the highest
densities of retail outlets in the world with one retail outlet for 90 persons. Retailers inspired by the Wal-Mart
story of growth in small town America are tempted to focus on smaller towns and villages in India. However, a
careful analysis of the town strata-wise population, population growth, migration trends and consumer spend
analysis reveals a very different picture for India.

After a long spell of shortages, which shackled consumer buying for decades, retail is becoming India's new
mantra. The Sanskrit word "mantra" is not just "hymn" or "slogan"; it embraces aspiration and encompasses
new India's way of life. While the retailing industry itself has been present through history in our country, it is
only the recent past that has witnessed so much dynamism.

We have entered the 21st century at a time when the demography of our population is changing significantly to
drive organized retail growth. India now has a large young working population with a median age of 24. The
number of nuclear families in urban areas is growing fast. Then there is the increase in working women
population. Add to these the emerging opportunities in the service sector. Lifestyle habits are shifting from
austerity to complete self-indulgence and Indians are now unapologetic about spending lavishly on non-
essential goods such as luxury watches, cars, and hi-tech products.

India can be said to have entered the second phase of retail growth when there is high-speed growth. There are
retail chains like Tata's Westside, Pantaloon's Big Bazaar and Rahejas' Shoppers' Stop, to name a few, along
with global players such as McDonald's and Benetton, trying to tap country's vast potential. Bringing all these
under one roof are mega malls such as Lifestyle, Fun Republic and Big Bazaar. Now, top names in international
malls such as Marks and Spencer and Mango are also eying the Indian market. It is only later that the retailing
scene will move to the other phases when the fruits of rapid growth will result in economies of scale and greater
efficiency leading finally to consolidation through mergers and acquisitions. Thus, retailing in India has a very
long haul ahead. Quantum jump in rural retail outlets

In India for a long time a large chunk of retail outlets were grocery shop. This pattern had been changing in
recent years, in urban and rural markets. Of late, India's largely rural population has also caught the eye of
retailers looking for new areas of growth. A slew of supermarket chains, including those of the Tata and ITC,
are set to storm the rural areas of the country as corporate realize the huge potential of the untapped market ITC
launched the country's first rural mall 'Chaupal Sagar', offering a diverse product range from FMCG to
electronic appliances to automobiles, attempting to provide farmers a one-stop destination for all of their needs.
Companies such as Godrej and DCM Shriram Consolidated are launching `one-stop shops' for farmers and their
communities. Godrej Agrovet, for instance, is planning to set up 1,000 Aadhar stores across rural India by 2010.
DCM Shriram plans to set up 35 rural/semi-urban utility marts over 2006-07. Positioned as a one-stop shop, the
Hariyali Kisaan Bazaar Chain will cater to a variety of farmers' needs by providing access to retail banking,
LPG outlets and even a motorcycle showroom.

As clear from the story on Reliance Fresh and Metro, organized retail sector can bring a revolutionary change in
rural India unless it goes for quick short-term gains. With Wal-Mart famous for its 'Always Low Prices' coming
in India with Bharati as equal partner, Indian farmers and rural craftsmen can hope for a better direct deal.
Retailing does not benefit just the consumer. It can give huge benefits to other industries, to government, and to
the entire economy.

The Indian retail scenario is poised for a quantum leap. Not only are newer names set to dot the retail landscape
but also new and emerging retail formats will drive the diversity of the fast-changing retail backdrop. Organized
Retail means 'Big Stores' a common myth«nothing can be further then the truth. In its very essence, organized
retailing is about "aggregating value" and what shape, size and configuration your customer facing entity takes
is largely a function of your offer and proposition. A growing population, a young workforce and zooming
consumer confidence will fuel the expansion of the retail sector. As organized retail in rural India awaits the
arrival of Reliance Retail, current majors like ITC, Godrej and DSCL are expanding their retail operations by
setting up more stores, entering new states and offering newer product categories. A shift from selling agri-
inputs will help these stores target the non-farming segments. It is a little known fact that, while 25% of the
rural population is not engaged in agriculture, it earns 50% of the rural income. The retail market is the next
growth frontier for corporate India. It offers an opportunity for a large player to build a Rs. 40,000 Cr retail
business spanning multiple categories by 2015 (at current prices). However, to capitalize on the opportunity, a
player needs to be aggressive in its outlook and build scale quickly.

India's rural retail market is expected to grow by 29 percent to 1.8 trillion rupees by 2012 helped by rising
incomes and changing consumption patterns, is found in a survey conducted by industry. But poor
infrastructure, supply chain inefficiency, and product pricing must be addressed if its full potential is to be
realized, the report released by the Confederation of Indian Industry and Yes Bank on Thursday said. Rural
retail includes fast moving consumer goods, durables, agricultural inputs and autos like tractors. In India rural
per capita income would double to 14,000 rupees by 2012 as more families switch to commercial from
subsistence farming, a big enough jump to spur demand for a wider range of products. Village households are
expected to rise to 153 million in 2009-10 from 135 million in 2001-02, probably making rural India the largest
potential market in the world. However, there is no organized marketing and distribution in 87 percent of India's
villages, home to 50 percent of the rural population. Corporate are increasingly eyeing rural areas as drivers of
future growth.

Y


1.| To determine the importance of Indian rural market

2.| To know the features of rural retail stores
3.| To analyze the perception of the rural people in the context of retail stores
4.| To know about different between the rural and urban retailing

1.| To determine the importance of Indian rural market

2.| To know the features of rural retail stores
3.| To analyze the perception of the rural people in the context of retail stores
4.| To know about different between the rural and urban retailing

?

   

K| The retailer approach should be more professional like in urban

K| The retailers should try for up selling and cross selling rather to focus on the bulk selling
K| The promotion strategy should be local and easy to grab able for the target audience
K| The quarries and questions should be addressed by retailer
K| The awareness about product quality should be spread between customer so they can shift to these
stores rather to traditional stores
K| Stores should enhance their portfolio so that more and more customers can find their needs.

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K| Researcher has observed that data was not sufficient and not up to the mark as per the expectations.
K| Due to the diversity of the locations and lack of awareness researcher was not able to collect
qualitative data. The stores were not helpful to the researcher.
K| Customer data base are not provided by the retail stores because it is confidential for the stores and
the companies. Stores have provided recorded data on the sales figures
K| The bias opinions¶ of customers and employees
„  

In India for a long time a large chunk of retail outlets were grocery shop. This pattern had been changing in
recent years, in urban and rural markets. Of late, India's largely rural population has also caught the eye of
retailers looking for new areas of growth. A slew of supermarket chains, including those of the Tata and ITC,
are set to storm the rural areas of the country as corporate realize the huge potential of the untapped market ITC
launched the country's first rural mall 'Chaupal Sagar', offering a diverse product range from FMCG to
electronic appliances to automobiles, attempting to provide farmers a one-stop destination for all of their needs.
Companies such as Godrej and DCM Shriram Consolidated are launching `one-stop shops' for farmers and their
communities. Godrej Agrovet, for instance, is planning to set up 1,000 Aadhar stores across rural India by 2010.
DCM Shriram plans to set up 35 rural/semi-urban utility marts over 2006-07. Positioned as a one-stop shop, the
Hariyali Kisaan Bazaar Chain will cater to a variety of farmers' needs by providing access to retail banking,
LPG outlets and even a motorcycle showroom.

Marketers are trying to grab this untapped market but still the reach of those players is mere they should more
focused and rural oriented. There are some points which they should undertaken

K| The retailer approach should be more professional like in urban

K| The retailers should try for up selling and cross selling rather to focus on the bulk selling
K| The promotion strategy should be local and easy to grab able for the target audience
K| The quarries and questions should be addressed by retailer
K| The awareness about product quality should be spread between customer so they can shift to these
stores rather to traditional stores
K| Stores should enhance their portfolio so that more and more customers can find their needs