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Globalisation In Retail Industry

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The Indian retail industry has developed and emerged as one of the most powerful and fast-paced industries due to the entrance of several new players. It represents for over 10 per cent of the country’s Gross Domestic Product (GDP) and around 8 per cent of the employment. India is currently the fifth-largest global destination in the retail space globally. (ibef.org, 2018)
Indian Retail Industry has gigantic potential as India having the second largest population with prosperous middle class, rapid urbanisation and solid growth of internet with fifth largest preferred retail destination globally.

The Indian retail industry is one of the fastest growing in the world. Retail industry in India is expected to grow to US$ 1,100 trillion by 2020 …show more content…

We have also witnessed the rise and globalisation of the idea of a ‘brand’. Large corporations operate across many different countries by developing and marketing products that can be just sold in New Delhi as well as in New York.

Globalisation involves the diffusion of ideas, practices and technologies. “Globalisation can thus be defined as the intensification of worldwide social relations which link distant localities in such a way that local happenings are shaped by events occurring many miles away and vice versa” (Giddens, 1990, p.64). It is something more than internationalisation and universalisation. The phenomenon is not simply modernisation or westernisation. It is not just the liberalisation of markets but involves a change in the way we understand geography and experience localness of a certain region.

For brands to strive and expand their brands to global market, it is essential to understand consumer preference for foreign and domestic brands based upon level of economic development, ethnocentric bias, demographic characteristics of consumers, product type, and product …show more content…

Consumers in India are now becoming more informed, sophisticated and demanding. India is one of the youngest countries in the world, and the attitudes of the Indian consumers are changing at a rapid pace. With Globalization more and more Indians are becoming aware of westernized products and they feel that possession of global brands in front of their social groups (friends and families) gives them a sense of status and prestige. It is therefore proposed that products and possessions seem to have more of symbolic attributes rather than functional attributes. This study therefore focuses on the reasons as to why consumers in emerging markets particularly India prefer foreign brands over local brands and it also proves that consumption is carried out for reasons such as symbolic consumption, materialism and depiction of high status and

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