I. INTRODUCTION:

Indian retail industry is changing in a rapid speed from traditional formats to modern formats, from unorganized to organize. The industry is experiencing exponential growth, with retail development taking place not just in major cities and metros, but also in Tier-II and Tier-III cities. Since liberalization in early 1990s, many Indian players like Shoppers Stop, Pantaloon Retail India Ltd (PRIL), Spencer Retail ventured into the organized retail sector and have grown by many folds since then. These were the pioneers of the organized Indian retail formats. With the opening up of foreign direct investment in single-brand retail and cash–and-carry formats, a new chapter unfolded in the retail space. The cash-and-carry format has proved to be an entry route for global multichannel retailing giants like Metro, Wal-Mart and Tesco, GAP.

The cash-and-carry business is the easiest mode of entry for foreign retailers into India. The recent approval of governments, 51 percent FDI in multi brand have attracted many global players like Metro, Wal-Mart, Tesco, GAP and Shoprite for joint venture with Indian companies in front end retail. The upcoming changes in FDI will change the Indian retail growth scenario, employment opportunities, challenging competition to Indian retailers, farmers may benefit from it but on the other hand small traders feel they will not be able to withstand the competition.

OBJECTIVES OF PAPER:

1. To study the evolution, growth trends of Indian retail sector.

2. To study the trends in consumer shopping behavior and consumption pattern in India

3. To study the FDI and the future joint ventures in retail sector in India.

4. To analyze the key challenges in retail sector in India.

REVIEW OF LITERATURE:

Review of literature was done to gather the updated information on changing trends in Indian retail industry, consumer shopping behavior, FDI in retail in India and future estimation on Indian retail sector by international research consultancies, research journals, marketing textbook and reports from news agencies.

NABARD, (January, 2011) revealed the story of historical origin and classification of organised retail evolution in India. Rituparna Basu (Nov2013), the Indian market is flooded with formats labeled as multi brand stores and exclusive or single brand stores. The study also revealed different retail formats in Indian retail sector. Deloitte ((Jan 2013, 2010) Indian retail markets changing with changing times revealed historical evolution , changes in amendments and discussions on FDI year by year. Whereas, Anirban Sengupta, (2007) Focused on Emergence of modern retail in India, and role of consumer buying power – manufacturers and unorganized retailers at the macro-level. Sharma (2011) revealed the customers are spending high amount on shopping not only in regular items category but also in luxury categories. Deloitte (2011) revealed about the new elements of consumers behavior in shopping – connected consumer and discussed the model of consumer expectations of the shopping journey in store. Technopak (2011) revealed the growth of Indian retail market- percentage share in all categories and changing consumption pattern and changing consumer shopping behavior especially role of women. And Economic Times (7 Jun, 2013), revealed that the government had allowed 51% FDI in multi-brand retail but with couple of restrictions. main issues were that foreign retail companies won’t be allowed to acquire existing retailers, a mandatory 30% sourcing from small industry and at least 50% investment in back-end infrastructure. The present study intends at the changes, trends and the challenges of Indian retail sector.

EVOLUTION OF INDIAN RETAIL SECTOR

The retail industry in India is highly fragmented and unorganized. Indian retail has its foot prints from Weekly Markets, Villages and Rural Melas, which was the Source of entertainment and commercial exchange. Further retailing in India was mostly done through family-owned small stores with limited merchandise, popularly known as kirana or mom-and-pop stores. The government set up the public distribution system (PDS) outlets to sell subsidized food and started the Khadi Gram Udyog to sell clothes made of cotton fabric. During this time, high streets like Linking Road and Fashion Street emerged in Mumbai. Some manufacturers like Bombay Dyeing started forward integrating to sell their own merchandise. Shopping centers or complex came into existence, which was a primitive form of today’s malls. In the twentieth century, infusion of western concepts brought about changes in the structure of retailing.

ORGANIZED AND UNORGANIZED RETAILING

The Indian retail industry is divided into organized and unorganized sectors. Organized retailing refers to trading activities undertaken by licensed retailers, those who are registered for sales tax, income tax, etc. These include the corporate-backed hypermarkets and retail chains, and also the privately owned large retail businesses. Unorganized retailing, on the other hand, refers to the traditional formats of low-cost retailing, for example, the local kirana shops, owner manned general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc.

The Indian retail market, over the last decade, has been increasingly leaning towards organized retailing formats. Rapid urbanization, changes in shopping pattern, demographic dividend and pro-active measures by the Government are abetting the growth of the retail sector in India. Driven by the growth of organized retail coupled with changing consumer habits, food retail sector in India is set to be more than double to US$ 150 billion by 2025.

Classification of organised retail evolution in India

The retail sector in India gone through a tremendous change from traditional to modern format of retailing which is coined as organized retailing. Like retailing in general has different growth phases, organized retail also grown step by step from 1990 to 2010.

Organized sector in India is a highly potential sector for investment, employment and innovation. From the post liberalization era of the 1990s, the modern retail formats started gaining mind share and market share from the traditional retailing. The sector has wittiness a slow growth science 2005. As per AT- Kearney survey 2005 the organized retail sector in India is having very negligible share in total retail business which was at 3.5% and there left a large share in to unorganized retailing. It is assumed that India is having highest number of retail outlets as much as 15million outlets.

The above Figure 1: shows the share of organized sector in total retail trade of India. In 2005, according to AT Kearney Indian organized retail sector was mere 3.5% compared to unorganized sector which was 96.5%. Organized retail gained momentum in 2006 with the announcement of relaxation in retail sector FDI policy of 51percentage in single brand retail, as a result According to MC Kinsey in their 2008 report, revealed a 5% share of organized retailing in India, a very small change has seen in comparison to 2005. According to AT Kearney in 2010 organized retail sector grown to 8% and in 2013 it grown to 10%, the main reason was changes in FDI, but still the Indian organized retail sector is having very small share when compared to unorganized retail sector.

A huge scope of business in this sector brought International brands and stores, added a notable dimension to the retail landscape shaping the lifestyle of transforming India. The 20 years of organized retail growth have been predominantly urban, owing to the opportunities of urban consumers in terms of their purchasing power and comparably global lifestyle preferences. A high speed in organized retail is expected as the government of India relaxed its FDI policy in multiband retailing to 51 percentage and 100% in single brand and wholesale formats as a result new modern retailing are emerging in joint venture formats. This foray of foreign retail giants in collaboration of Indian retail companies and rural market penetration of Indian companies will boost the organized retail sector in the coming years.

GROWTH AND CHANGING MARKET SCENARIO

India’s economy witnessed a GDP growth rate of 7.4% during the fiscal year 2009-10 and is further expected to grow at 8.5% in 2010-11. But In 2011, growth rate went down to 6.2 per cent and in 2012-13 to 5 per cent. According to Planning Commission of India, The problem consists of one third from domestic factors and two-third from global factors, further it is seen that the global economy was turning around and in 2014 it will be better, this shows a potential sign for growth.

Table 2: Share of Retail Trade in Gross Domestic Product (G.D.P.)

Year	% Share of retail sector
2007	8%
2009	12%
2011	22%

Source: AT Kearney

Depicts the retail trade share in GDP. In 2007 retail trade share was 8% which increased to 12% in 2009 further a high increase of 22% has seen in 2011. This shows retail sector share in GDP in 2009 increased by 4% and in 2011 its share has doubled. This trend is a very positive sign to the big retail players and also for the overall economic growth ahead.

The retail sector has been at the helm of India’s growth story. The sector has evolved dramatically from traditional village fairs, street hawkers to resplendent malls and plush outlets, growing from strength to strength. In FY07 retail sales reached Rs 13,300 bn and amounting to around 33% of India’s GDP at current market prices. The total domestic trade (both retail and wholesale) constituted 13.0% of country’s GDP in 1999-2000, which has gone up to 15.1% in FY07. In 2008, the share of organized retail was 7.5 per cent or US$ 300 million of the total retail market. The Indian consumer market is likely to grow four times by 2025. Foreign direct investment (FDI) inflows as on September 2009, in single-brand retail trading, stood at approximately US$ 47.43 million. India’s overall retail sector is expected to rise to US$ 833 billion by 2013 and to US$ 1.3 trillion by 2018, at a compound annual growth rate (CAGR) of 10 per cent. As a democratic country with high growth rates, consumer spending has risen sharply as the youth population (more than 33 percent of the country is below the age of 15) has seen a significant increase in its disposable income. Consumer spending rose an impressive 75 per cent in the past four years alone. Tier II cities like Noida,

Amritsar, Kochi and Gurgaon, are emerging as the favored destinations for the retail sector with their huge growth potential. According to industry experts, the next phase of growth is expected to come from rural markets. Number of shopping malls is expected to increase at a CAGR of more than 18.9 per cent from 2007 to 2015. It is no longer news that Wal-Mart, Tesco and other foreign retail giants will soon be entering the Indian shores.

The news is that a 25 per cent growth in organized Indian retail sector is opening doors for lucrative job opportunities. The Indian retail industry is the largest among all the industries, accounting for over 10 per cent of the country's gross domestic product (GDP) and around eight per cent of the employment. The industry is expected to be worth $175-200 billion by 2016, the food retailing in India dominates the shopping basket. The mobile phone retail industry in India is already a $16.7 billion business, growing at over 20 per cent per year.

Figure 2: Depicts the share of different categories of organized retail sector in India. Food and grocery (60%), apparel (8%) and mobile and telecom (6%) constitute the major portion of organized sector in India. Figure 3: Depicts The Indian retail industry has experienced growth of CARG 10.6% between 2010-12 and expecting CARG of 18.8% by 2015, further the revenue is expected to increase to USD 750-850 billion by 2015. Huge investment is expected in these categories with the foray of foreign retail gain which will increase portion of these categories and overall organized retail. Organized retail is growing much faster than traditional retail in India. It is expected to gain a higher share in the growing pie of the retail market in India. Various estimates put the share of organized retail as 20 per cent by 2020.

RECENT CHANGES AND TREND IN FDI

In 1991, the Indian government introduced the economic policy to attract foreign investments and since then, it has amended the policy from time to time in various sectors to allow higher levels of foreign participation. The government policy in retail sector allows 100% foreign investment in wholesale cash-and-carry and single-brand retailing but prohibits investments in retail trading. In 1997, the government imposed restrictions on FDI in retail sector but in 2006, these were lifted and opened in single-brand retailing and in cash-and-carry formats. Slowly the government has opening up to the idea of permitting FDI in the Indian retail sector; consequently there is greater momentum in the sector. Owing to the global meltdown, investments dropped in all sectors. The government has therefore changed the guidelines for foreign investments to boost investments. This move is certainly likely to improve the investment climate in the Indian retail space.

In India, the flow of FDI into the sector is regulated. While FDI in cash and carry wholesale trading is permitted. FDI in multi-brand retailing is prohibited. FDI in single brand retailing up to 51percent has been allowed since 2006. Discussions were carried out by the government in 2008 to allow 100 percent FDI in single brand and 51 percentages in multi brand retailing, but did not succeeded due to fierce opposition from its then allies and left party and also from the local trade associations. The key points which were discussed are: 1. Entry in cities with population above one million, 2. Local sourcing requirements. 3. Mandatory investment in back-end operations. 4. Cash and carry model to support the local retailers to benefit from large scale sourcing. 5. Employment to rural youth to help spur employment growth for people who may be affected by this move.

TABLE 3: Time line for evolution of FDI in retail sector in India:

YEAR	CHANGES
May 2010	DIPP releases a discussion paper soliciting public views on allowing FDI in retail sector
June 2011	DIPP circulates a draft frame work to COS proposing FDI IN multi brand retail up to 50% in phases
Aug 2011	Committee of secretaries (COS) approves DIPP draft frame work for allowing up to 50% FDI in multi-brand retail.
Nov 2011	Ministry of commerce releases après notre specifying the major tanets of proposed FDI policy in multi-brand retail.
Sep 2012	Union cabinet and enacts the new policy allowing up to 51% percent FDI in multi-brand retail sector.

Source: Department of Industrial Policy and Promotion.

Table 3: Shows the recent changes in the FDI in multi brand retailing in India from 2010 to 2012.

A total of 94 proposals have been received till May 2010, of which 57 were approved. During the period April 2006 to March 2010, FDI inflows valued at US $ 194.69 million have come into this sector, accounting for 0.21 per cent of total FDI inflows during this period. FDI in retail may also help bring in technical know-how to set up efficient supply chains which could act as models of development. According To the Economic Times, government approved 51% FDI in multi-brand retail sector and 100% FDI in single brand with few restrictions. 1. Foreign retails will not be allowed to acquire existing retailers. 2. Imposed a mandatory 30% sourcing from small industry. 3. At least 50% investment in back-end infrastructure. DIPP (Department of Industrial Policy and Promotion: Government of India) given clarification to the policy on few other aspects. The government has also disregarded the retailers' suggestion that purchase of fresh produce from farmers or goods sourced for global operations be counted towards this requirement. Further there is relaxation to the state "If a state does not want FDI, they can deny the multiple permissions that a state has to give. It should not affect the existing investment," this shows the ambiguity in FDI policy in retail sector in India.

CHANGING TRENDS IN CONSUMER SHOPPING BEHAVIOR IN INDIA

Consumer behavior is the understanding of how consumers make decision to use their resources such as time, money, and efforts for buying, using and disposing goods and services. In the retail context, marketers would specifically be more interested to know about consumer shopping behavior, which involves and understanding of decision variables regarding when, where and what to shop. Such decision variables are the factors to be considered by the retailer while taking decisions regarding retailing. The factors influencing consumer shopping behavior changes from time to time, this change depends on demographic, psychological, environmental and life style. In this scenario Indian consumer shopping behavior has been changing in from a decade, these changes are showing a huge potential market for the modern retailers of India and to the foreign retail giants. The whole concept of shopping has altered in terms of format and consumer buying behavior, ushering in a revolution in shopping in India. Key highlights of consumer shopping behavior and consumption pattern: 1.An important and recent development in India’s consumerism is the emergence of the rural market for several basic consumer goods.2. Rapid changes in the consumers’ taste and preferences, radical shift in lifestyles and spending patterns.3.Shift from just price consideration to design and quality, and there is a great focus on looking and feeling good.4.Credit friendliness and easy availability of finance have also changed the mindset of the Indian consumers.5.Indian consumers are spending, which is a shift from the traditional savings mentality to spending mentality.6.Expenditure on food decreased while there was an increase in the expenditure on clothing and footwear, medical and healthcare, transport and communication. 7. Urbanization of rural India is also one of the major factors in changing shopping behavior of Indian consumer. 8. Consumer from tire II and tire III cities are showing interest in shopping in malls and spending time and money on entertainment, this lead a drastic change in shopping behavior.9.Increase in working Women population.10.The major factors fuelling this change are the increase in disposable income of the people.11.India has a large middle class as well as youth population, the youth are perceived as trend setters and decision makers.

CHANGING CONSUMPTION TRENDS:

In the last 10years India has added $ 930 billion to its economy and will almost double of that in the next 10years. The Indian economy in 2020 is poised to become digger than the current size of countries like France, UK or Italy. Share of private consumption is higher in India at 58 percent, compared to china’s 39 percent. This rate of consumption is expected to remain around 60percent over the next decade. At about US$ 470.bn in retail spending, capable of supporting many multi-billion dollar consumer product businesses. During last fifty years the population of India grown two and half times, but urban India grown by nearly five times by 2016, almost 35 percent of the Indian population will be living in the urban centers. Urban areas will contribute 65 percent to GDP from the current 60 percent. By 2020, there may be more than 65 Indian cities having population in excess of 1million and another 200 having population between 500000 and 1 million. Many new centers of consumptions are being created across countries led by new investments in manufacturing and services industries.

Recent changes in consumer shopping pattern shows that consumers will optimize their purchases largely on simple attributes of price and convenience in order to release more resources. Technology is also one of the reasons for the changes in shopping behavior of Indian consumers. India has over 600 million active mobile subscribers (as of July 2011) in the India, estimated to cross 800 million by 2016. Mobiles would be the interface for connecting to the internet, financial transactions, shopping and digital entertainment, health care delivery, service on demand, social networking.

TRENDS IN INDIAN RETAIL VENTURES:

JOINT VENTURES IN INDIAN RETAILING

In early 2012, the government relaxed rules on overseas investments in the sector and allowed foreign companies to set up fully owned single brand retail stores. Further allowed a 51 percent FDI in multi-brand retailing, this results to venturing of foreign retail giants with Indian retail companies. The recent and expected joint ventures with Indian retail companies are shown in Table 3:

TESCO AND TATA:

Tesco Plc, the British multinational grocery and general merchandise retailer, announcing its intention to be the first foreign multi-brand chain to enter the Indian market, Extending its back-end and wholesale support franchise agreement with the Tata Group’s Trent. Tesco will invest $110 million in the India market for front-end multi-brand retail stores. For now, Tesco has plans to invest only in Karnataka and Maharashtra. A Tata and Tesco Enterprise (THL) planned to open three to five stores every financial year.

BHARTI ENTERPRISES AND WAL-MART:

These two partners joined hands in 2007 and launched their first Best Price Modern Wholesale cash-and-carry store in Amritsar in May 2009. But at present they are departing to operate retail stores independently in India, The US retail major will buy out its Indian partner in their 50:50 cash-and-carry joint venture Bharti and Wal-Mart, which runs 20 wholesale stores under the Best Price Modern Wholesale brand in India. It will continue to run its "Easyday" retail stores on its own. Wal-Mart plans are to continue to grow its business while working with the government and interested stakeholders to create conditions that enable foreign direct investment in multi-brand retail.

TATA AND WOOLWORTHS:

Woolworths Ltd had entered into a relationship with the Tata group in 2005, under which it provided wholesale support to Infiniti Retail's Croma chain of electronic goods and durables stores in India. In 2012 Tata group subsidiary Infiniti retail took over the Indian subsidiary of Australian supermarket chain Woolworths. Both parties entered into this venture with the intention of merging the wholesale and retail businesses once FDI regulations were relaxed.

ARVIND BRANDS AND GAP INC:

Gap Inc, the largest casual wear retailer in the US, looks set to enter the Indian market next year though a joint venture with Arvind Brands, two people familiar with the development said. The San Francisco-based clothing giant has signed a letter of intent with Arvind Ltd's retail arm to form a JV in India

STAPLES, INC. AND PANTALOON RETAIL LIMITED:

Staples, Inc announced a joint venture with India's leading retailer, Pantaloon Retail Limited, and its new office products business unit, Future Office. The agreement establishes a platform for Staples to enter the $10 billion office products market in India and allows Pantaloon to benefit from the industry expertise and sourcing network of the world's largest office products company.

HOME RETAIL GROUP AND SHOPPER'S STOP LTD:

The UK's leading home and general merchandise retailer, today announces it is investing in two new development opportunities. The company has today signed heads of terms to develop the Argos retail format in India through a franchise arrangement with a joint venture company owned by leading Indian retailers Shopper's Stop Ltd and Hypercity Retail India Private Ltd.

CHANGING VENTURES TO RURAL INDIAN

The retail boom in India is shifting to rural India; rural India is vast untapped market with more than 7lakhs villages. On one hand foreign retailers are going for joint ventures with Indian retail companies, on other hand Indian companies are entering to the rural market. 1. AADHAR of Future Group and Godrej Agrovet's joint venture (JV) in rural retailing, 'Aadhar', is all set for a revamp. The alliance operates stores in Gujarat, Maharashtra, Haryana and Punjab and mainly sells wheat and paddy apart from daily need products. The company also provides farmers with solutions to problems. 2. CHAMPION AGRO LTD, Rajkot based Champion Agro Ltd is planning to come up with single window shopping facility for farmers. The company already has 35 agri-retailing outlets in the Saurashtra region, and is expected to open around 400 outlets at a taluka level across Gujarat by 2016. 3.ACIL COTTON INDUSTRIES, Vadodara based ACIL Cotton Industries is all set to come up with around 40 outlets of 'ACIL Krishi Store' in Gujarat. ACIL has decided to focus on the Gujarat market. ACIL stores will sell all types of seeds, fungicides, fertilizers, micronutrients.4.Hindustan Unilever Ltd (HUL) is experimenting with tablet PCs in its attempt to increase its rural reach. It has been able to reach to 500,000 outlets in a year’s time.5.Marico is using mobile technology innovatively to arm its field representatives in their procurement process. The IT team at Marico developed a mobile-based application for Nokia 5235 series handsets. The company gave these GPS-enabled phones to 120 of its field representatives, with mapped routes.

KEY CHALLENGES

Indian retail industry is seeking huge potential, more the potential market more the challenges. It is important to be conscious of the challenges in the evolving Indian retail market.

1. Supply chain: Supply chain plays a vital role, in reduction of significant wastage in storage as well as in the operations of the existing food supply chains in the county. 2. Channel conflicts: Globally, retailers maintain a direct relationship with their suppliers. Due to the complex taxation structure and geographic spread of the country. 3. Location and Rental: Finding the right location with the right rental for stores has been a challenge for all retailers. 4. Unique Indian Customer: The Indian consumer experiencing modern retail has now warmed up to this idea. 5. Regulatory: indirect taxation structure is complex in India with varying tax rates, multiplicity of taxes and multiple tax enforcement authorities. 6. Private Labels: Private labels enable retailers to offer products at a better price point attracting footfalls to the store.

ROAD AHEAD:

There is a huge untapped opportunity in the retail sector, 1.the immense scope for new entrants, driving large investments into the country. 2. A good talent pool, huge markets and availability of raw materials at comparatively cheaper costs are expected to make India lead one of the world’s best retail economies by 2042. 3.The industry is also slated to be a major employment generator in future.4.Electronics, Footwear, Furniture and Furnishing etc. are expected to expand and mature in the next few years. 5.However the policy condition on sourcing will continue to be a major bottleneck for FDI in many of these segments.6.Dominance of unorganized retail: Flexible credit options and convenient shopping locations will help traditional retail to continue its dominance in retail sector.7.Growth in small cities and towns: Stiff competition and saturation of urban markets is expected to drive domestic retail players to tap the potential in small cities.8.Huge untapped rural retailing, seeking tremendous opportunities of investment, innovation and employment.

CONCLUSION:

Indian retail sector is transforming with a 10 percent share in total retail market. Even thou a slower growth rate in GDP this FY 2014 with the approval of 51 percent in FDI in multi-brand retail attracted the foreign retailers for joint venture with Indian retailers on other hand Indian retailers penetrated rural market with marketing strategies to tap the huge market potential . The growth of retail markets in India has influenced by the lifestyle, changing consumer behavior and consumption patterns, increase in disposable income of the population. Demographics show high percentage of young population and increase in working women percentage with the increased opportunities in service sector. The consumer trend shifted from saving behavior to spending. Technology in hands also showing a major impact on shopping behavior and consumption trends. On Contrary the retail sector also going to face continuous challenges in area of supply chain, real state, regulatory, private labels and changing consumer behavior. Modern retail growth also seen in tier II and tier III cities of India, where consumers have accepted the new formats of shopping, on other hand Distribution channel intermediaries and farmers seem to be in ambiguity about their opportunities and threats because of this transformation in Indian retailing. Joint venture in Indian retail sector is a big challenge for both the foreign and Indian retail companies as policies as not well structured and protest of society. Protection of all stake holders in retail sector may be done by regulatory policy of government and right implementation of the same. The up-coming changes in FDI should consider the economic interest of all the stakes holders from supplier to consumer and then this would be a welfare growth of Indian retail sector.

REFERENCE:

· Satish K Batra and S H H Kazmi (2004).Consumer behaviour, text and cases New Delhi: Excel Books.

· Rituparna Basu (2013) A review of contemporary retail formats in emerging India, Indian Journal of Marketing .Nov 2013, page .no 30.

· Ayan Chattopadhyay (2013), Consumer shopping behavior in the new era of retailing: an empirical study on food and grocery and apparel purchase in east India. Indian Journal of Marketing. Dec 2013, page no. 47.

· The Central Statistical Organization (CSO) estimates (http://www.cso.gov.bw/)

· Organized Agri-Food Retailing in India a report by NABARD, January – 2011 referred from (http://www.rasci.in/downloads/ 2011/Organized_Agri_Food_Retailing_India_2011.pdf)

· The Department of Industrial Policy and Promotion (DIPP) (http://dipp.nic.in)

· A McKinsey report, 'The rise of Indian Consumer Market'. (https://www.mckinsey.com)

· Corporate catalyst India: a brief report on retail sector in India august 2013. (http://www.cci.in/cci-knowledge-bank-surveys-reports.asp)

· The IBEF India retail reportaugust2013.(http://www.ibef.org/ industry/retail-india.aspx)

· Technopak - Emerging Trends in Indian Retail and Consumer 2011. (http://www.lemoci.com/media/distributioninde2011.pdf)

· Deloitte- Indian retail market: opening more doors. (https://www.deloitte.com/assets/Dcom-India/Local%20Assets/Documents/Thoughtware/Indian_Retail_Report_Opening_more_doors.pdf)

· Deloitte- Indian retail market: Changing with the changing times. (https://www.deloitte.com/assets/Dcom-India/Local%20Assets/Documents/Retail%20POV_low.pdf)

· Web sources:

· www.ncaer.org

· www.edms.matrade.gov

· http://www.lemoci.com/media/distributioninde2011.pdf

· http://economictimes.indiatimes.com/fullcoverage/fdi-in-retail

· http://www.financialexpress.com/news/indias-gdp-growth-rate-likely-to-touch-7.58-pct-in-2014-montek-singh-ahluwalia/1212528

· http://www.business-standard.com/article/companies/tesco-to-enter-indian-retail-space-through-joint-venture-with-tatas-113121700663_1.html

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· http://timesofindia.indiatimes.com/business/india-business/US-apparel-retailer-Gap-in-joint-venture-talks-with-Arvind-Brands/articleshow/26564270.cms

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· Economic Times, an article published on 7 Jun, 2013.

Received on 20.01.2014 Modified on 22.01.2014

Asian J. Management 5(2): April-June, 2014 page 133-139

Initiation	Conceptulisation	Expansion	Consolidation
PRE 1990: Manufacture opens their own outlets	1990-05: Pure play retailers realized the potential of the market. Most of them in apparel segment	2005-2010: Substantial investment commitments by large Indian corporate entry in food and general merchandise category pan-India expansion to top 100 cities repositioning by existing players.	2010 Onwards: Large scale consolidation movement to smaller cities and rural areas more than 5-6 players with revenues more than USD 700 million.

JOINT VENTURES	PRODUCT RANGE	RETAIL FORMATS
Bharti-Walmart (with $2.5 Billion investment by Bharti)	Food and grocery, electronics and appliances, clothing and footwear, furniture and furnishing, household articles.	Hypermarkets, Supermarkets and Convenience
Carrefour-Landmark- Auchan	Food and groceries, FMCG, apparel and electronics	Hypermarkets
Home Retail Group plc - Shopper's Stop Ltd and Hypercity Retail India Private Ltd	Franchising the Argos concept under the terms of the arrangement, Argos will be providing its brand, catalogue and multi-channel expertise and IT support	Multi Channel propositions
Tata-Woolworths	Sourcing agreement for Consumer durables and Foods under brand name CROMA	Multi brand retail chain
Staples Inc – Pantaloon Retail	Global Sourcing of Office equipments across various businesses	Cash and carry
Reliance	Food and grocery, electronics and appliances, clothing and footwear, furniture and furnishing, household articles.	Multi format and Multi Category
Birla	Food and grocery, electronics and appliances, clothing and footwear, furniture and furnishing, household articles.	Convenience and Supermarket
GAP with Arvind Brands	Casual Wear	Multi brand retail chain/ Lifestyle retail chain