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VOL. 5, ISSUE 2 (2023)
Consumer perception- A comparative study on organised Vs unorganised retail business methodology in Chennai
Authors
Dr. S Damodaran
Abstract
The market after 2021 has been an eye-opening
time for the Indian retail sector. The industry saw a decline of 8.5% in FY
2021, but it recovered in 2022 to reach $836 billion with 81.5% contribution
from traditional retail. However, the COVID-19 disruptions led to a rapid
increase in e-commerce and digital adoption. Now, brands across segments are
concentrating on increased online presence and direct sales as customers
continue to shop online. Quite interestingly, shoppers from Tier II and
Tier III cities make up over 61 percent of the total market share in FY 2022 in
comparison to 53.8 percent in FY 2021. While Tier I cities have a lesser growth
rate for e-commerce at 47.2 percent, tier II and III cities showcased growth of
92.2 percent and 85.2 percent, respectively. In 2023, tier II and III cities
dominance is likely to continue. Looking at the way Indian retail industry is
moving, 2023 will be the year to watch. Encouragingly, India has had a
boom in attracting international companies over the past few years; it is now
the fifth-largest global destination for retail. The industry growth is riding
on several factors, including rising disposable incomes, exposure of Gen Z to
international brands, and ease of doing business. Even if we only consider the
government’s initiatives from 2021, the retail sector is in for fascinating
times as we enter the new year. These actions would soon show their benefits;
the transformation has already begun, paving the way for a more noticeable
impact. The adoption of digital payments pushed by the new framework for retail
digital payments in offline mode has created a more accurate and efficient
environment making it easier for customers to make purchases or complete
transactions. Time is money, as they say, and the digital transformation has
ensured that the time saved is compounded by allocating additional resources to
other parts of business improvement. The central government has allowed 100
percent FDI in the online retail of products and services via the automatic
route. Additionally, we have news on the inclusion of retail and wholesale
trades as MSMEs, which would give these trades access to loans for the priority
sector. The government’s promotion of digital transformation on the war front
has been the best thing to happen, and the retail industry is just one of the
many sectors that have benefited from this revolutionary innovation. However,
the industry’s long-term prospects are promising, supported by rising
affluence, favourable demographics, the entry of foreign competitors, and
increased urbanization.
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Pages:27-32
How to cite this article:
Dr. S Damodaran "Consumer perception- A comparative study on organised Vs unorganised retail business methodology in Chennai". International Journal of Management and Commerce, Vol 5, Issue 2, 2023, Pages 27-32
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