However, what is remarkable is what Rakesh says in the following section;
Retail in India - Status Check
According to the report, "Retail in India: Getting Organized to Drive Growth," by global consultant A.T. Kearney and the CII, India's retail industry is growing with a 5% compounded annual growth rate (CAGR) and has $ 320 billion in annual revenue. Interestingly, Wal-Mart's $ 315.6 billion in global sales last year is about the same size of the whole Indian retail industry.
Organized retail in India which stands at around 3% of the total retail is showing signs of bigger and better growth of around 30% CAGR.
Source: CEIC, CSO, AC Nielsen, Morgan Stanley Research (FY 2010 and FY 2015 are estimated figures)
(PFCE - Private Final Consumption Expenditure)
He also goes on to say "Sustainable business model for the organized players must include collaboration instead of competition with thesekiranas, as they are the last mile store connection with the consuming class. Age-old strategy of thekiranasfor short-term credits is well-received by the large chunk of buyers, in the value retail segment. A blended model is all set to emerge in the fast-changing business environment."
Every Day Low Price (EDLP) most prevailing strategy of large formats is again cause of worry. This has also given the kiranas a shot in the arm, in terms of improving their own image. The kiranas are getting more organized coupled with more customer friendly environment.
Local Kirana is here to stay for ever, in its new avatar!