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Development of Modern Retailing in India: It’s Impacts on Distribution and Procurement Networks and Changing Consumption Pattern

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  • Sinha, Piyush Kumar
  • Gokhale, Srikant
  • Thomas, Sujo

Abstract

The Indian retail industry is estimated to be $470 billion. The organized or modern retailing with 6% share stands at $26 billion. It is projected to reach US$ 1.3 trillion by 2018 with the organized retail market estimated to grow at the compounded annual growth rate of 40% and reach US$107 billion by the year 2013. Entry of these retailers in different formats, including online, has affected an irreversible change in consumer buying habits and businesses related to serving these retailers. However, unlike many other countries, India has its own unique character of size, geographical spread, cultural diversity, and multiplicity of formats being introduced at quick succession. Retailers also face the challenge of developing infrastructure, on their own or in cooperation with the government. This paper attempts to explore the industry and evaluate the extent of its impact on distribution and procurement networks and changing consumption pattern in India.

Suggested Citation

  • Sinha, Piyush Kumar & Gokhale, Srikant & Thomas, Sujo, 2012. "Development of Modern Retailing in India: It’s Impacts on Distribution and Procurement Networks and Changing Consumption Pattern," IIMA Working Papers WP2012-12-04, Indian Institute of Management Ahmedabad, Research and Publication Department.
    • Handle: RePEc:iim:iimawp:11465
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    References listed on IDEAS

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    1. Bart Minten & Thomas Reardon, 2008. "Food Prices, Quality, and Quality's Pricing in Supermarkets versus Traditional Markets in Developing Countries ," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 30(3), pages 480-490.
    2. Birthal, Pratap S. & Joshi, P. K. & Gulati, Ashok, 2005. "Vertical coordination in high-value commodities," MTID discussion papers 85, International Food Policy Research Institute (IFPRI).
    3. Minten, Bart & Reardon, Thomas & Sutradhar, Rajib, 2010. "Food Prices and Modern Retail: The Case of Delhi," World Development, Elsevier, vol. 38(12), pages 1775-1787, December.
    4. Veeck, Ann & Veeck, Gregory, 2000. "Consumer Segmentation and Changing Food Purchase Patterns in Nanjing, PRC," World Development, Elsevier, vol. 28(3), pages 457-471, March.
    5. Reardon, Thomas & Timmer, C. Peter, 2007. "Transformation of Markets for Agricultural Output in Developing Countries Since 1950: How Has Thinking Changed?," Handbook of Agricultural Economics, in: Robert Evenson & Prabhu Pingali (ed.), Handbook of Agricultural Economics, edition 1, volume 3, chapter 55, pages 2807-2855, Elsevier.
    6. Tandon, Sharad & Landes, Maurice R. & Woolverton, Andrea, 2011. "The Expansion of Modern Grocery Retailing and Trade in Developing Countries," Economic Research Report 262237, United States Department of Agriculture, Economic Research Service.
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    1. Patil, Ashutosh & Borle, Sharad & Singh, Siddharth, 2023. "An empirical investigation of unique traits of retailing industry in emerging economies: The perspective of consumer-packaged goods manufacturers," Journal of Business Research, Elsevier, vol. 154(C).

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