The growing culture of malls, multiplexes, and money power giving rise to buoyant consumerism have brought the Indian retail sector under the radar of international players.
There are approximately 4.3 million retail outlets spread over the nation, which require about 3.25 million retail personnel at present. More outlets are added every month. It is estimated that the retail, sector will create over 13 million jobs throughout the country by 2012. More than 60% of these jobs will be available in the rural areas.
A more interesting fact that has emerged in the last few years is the growth of the rural market, which consumes 70 per cent of soap market, 38 per cent of two wheelers and 50 per cent of the total market of TV sets, fans, washing powder, pressure cookers, bicycles, tooth powder and so on. The market for FMCG products is growing here at a much faster rate than its urban counterpart.
In order to meet with this rapid growth in demand the government has shown its willingness to give this sector a major boost. It has pumped in more than Rs 300 billion in the rural sector. Multinational companies and Indian corporates are taking interest in setting up rural retail chain. ITC has come with the concept of e-choupal while HLL came up with project SHAKTI and BPCL introduced Rural Marketing vehicles.
Interestingly even FDI restrictions have not deterred the foreign players in India Franchise the way preferred by most foreign players. The Indian consumer wants to shop, eat and get entertainment in one place and these have given the Indian organized retail sector an opportunity to grow.
In 2005 the Indian government allowed foreign direct investment (FDI) in single brand retail to 51%. In the next two to three years retail would be the next big employer after healthcare and education among the organized sector.
Hence it is no wonder that management as a field of study is now getting into super specialization and has started considering retail management as a important branch of study as the career prospects are not just bright but offer great growth in the coming years.
Retail management involves the distribution process of the product from manufacturers to ultimate consumers via more convenient channels that is the retailers. To keep track of the entire marketing process involved in retail, there is the need for trained professionals who could manage the outlets in a more efficient manner.
Innumerable job opportunities are found in supply chain management, warehousing, export houses and departmental stores. Manufacturing companies also recruit retail managers to reach out to the customers directly. Banking, finance and insurance companies also need professional retail, managers to bring their products directly to the customer. IT and IT enabled services companies particularly min the field of telecommunication also requires large numbers of retail managers considering the recent boom in this sector. Besides these education and health care industry also absorb a large number of retail managers.
Various degree and diploma level programs are now being designed in retail management like MBA (Retail Management), post graduate diploma program in retail management (PGPRM) and diploma in retail management (DRM). The eligibility for most of these courses is graduation in any subject. For MBA the students would need to undertake like CAT, XAT, MAT and other such exams.
Some prominent institutes offering courses are Narsee Monjee University Mumbai, K J Somaiya Institute of Management Studies and Research Mumbai, Welingkar Institute of Management, Mumbai and others. There are other reputed institutes in Delhi, Gurgaon, Pune, Hyderabad, Ahmedabad, and other major cities.
Remunerations normally start with a salary of Rs 20,000 to 25,000 per month in private sector. With some quality experiences in retailing one can easily reaches up to 6 figure pay packages. Retail graduates from reputed institutes even touch 7 figure mark with 5 – 7 years of experience. So, if retail is your calling it is a sunrise sector to plan your career.
1) India is rated the fifth most attractive emerging retail market: a potential goldmine.
2) Multiple drivers are leading to a consumption boom
i) favorable demographics
ii) Growth in income
iii) Increasing population of women
iv) Raising aspirations : Value added goods sales
3) Food and apparel retailing are drivers of growth.