The organized retail in the last few years has made an impression appearance in Metros, cities and towns across Indian as seen in sprawling shopping centers, Multi stored malls and huge complexes that offer shopping experience, entertainment and food all under one roof. Several well known corporate houses, such as Tata’s, RPG, the Rahejas, Biyani’s Future Group, Reliance, Bharti and Birla’s have entered the Indian retail arena. The evolution of retailing in India can be traced back to the village Haats and small town Markets. The rural retail industry could be categorized into two formats: Weekly Haats and Village Melas, Primarily, Weekly formats catered to the daily necessities of villagers. Village Melas were larger in size with a wide variety of goods sold from food, clothing, cosmetics and small consumer durables.
Scope and importance of food and beverages marketing : The food and beverage industry in India is going through huge growth. Its contribution is increasing every year to world food trade. Within the food processing industry, the food sector of India has emerged as a high-growth and high-profit sector due to its immense potential for value addition. The Indian food industry is expected to a compounded annual growth rate of 11% which means market value will increase from US$ 39.71 billion to US$ 65.4 billion by 2018. Right now Food and grocery market is increased by 31 per cent of India’s consumption basket.
According to AT Kearney Global Retail Development Index total retail sales in India are currently pegged at $925 BN and growth rate has been 5.8%. AT Kearney GRDI expects India’s retail market to grow to $1.3 Trillion by 2020 (Global Retail Exapansion: An Unstoppable Force, 2015). India is on the cusp of growth and it means the same for international retailers in all formats.
Retailers will continue to come across changes in their environment, as these changes, the retail market becomes more complicated to hold. One of the most important tasks of store retailers will be to understand what buyers’ need, where do buyers buy them, and how to attract and retain buyers. The Indian consumption patterns are steadily converging with the global consumption norms in the present era of fashion. Nowadays more is spent on buyer apparel, durables, entertainment, vacations and holidays, and lifestyle related activities. For the last few years there have been extensive changes in the retailing industry, mainly in apparel retailing which has changed to a ready-to-wear
Purchasing pattern too is seeing huge changes pan India. The traditional practice of preferring the trusted neighbourhood jeweller is no more the norm. This is gradually changing due to the mushrooming of numerous regional retail chains as well as countrywide retail chains. The profile of business in India is typical of the country, which are low margins and high volumes. Owing to a steep rise in commodity prices and severe competition, margins continue to be under severe pressure.
During the last one decade, India moved from a position of scarcity to surplus in Food. The Food Processing Industry in India is on an assured track of growth and profitability. It is expected to attract phenomenal investment in capital, human, technological and financial areas. The total food production of India is estimated to double in the next ten years. Hence there is an opportunity for large investments in food and food processing technologies, skills and equipment.
Opportunities in overseas markets India is one of the largest producers of fruits, vegetables, poultry and livestock. Indian prices of food products are substantially lower than the world prices. However India accounts for around 1.5% of the world’s processed food exports. During FY09-13, India's exports of processed food and related products increased at a CAGR of 21.9 per cent to USD36.1 billion. During the FY13 the share of food processing exports in total exports from India stood at 12.0 per cent.