Determinants of Effectiveness of Organised Retailing

The Indian retail market has witnessed a proliferation of organised sector players entering or expanding their presence in the past few years. Many big industrial houses of India have entered into organised retailing foreseeing its bright future. A number of large business groups such as Tata, Reliance, ITC, RPG, Raheja and Piramal have setup malls and built businesses within retail. The future forecasts are so attractive that international retailers have also eyed and entered the Indian retail market in various formats. Carrefour, Metro AG, Wal-Mart, etc. have already entered the Indian retail market because of its promising future and some others are planning to enter. Jharkhand also witnessed the entry of some of the retail chains like- Spencer, Reliance, Big Bazaar and Vishal Megamart. Most of these started with multiple numbers of outlets but all of them could not sustain. Spencer closed all its outlets in the early years only. Vishal tried twice but failed in Dhanbad. This closure of some of the retail outlets in Jharkhand sent a warning signal to the existing ones and also to those who were looking to enter in this market.