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A case study of big bazaar The Indian retail industry has strong linkages with the economic growth and development of the economy
A case study of big bazaar
The Indian retail industry has strong linkages with the economic growth and development of the economy. India is one of the largest emerging markets. It is one of the largest economics in the world in terms of purchasing power. Retailing in India is at an emerging stage of its evolution. Organized retailing has become more popular in big cities in India and most of the metropolitan cities and other big cities are flooded by modern organized retail stores. Many semi-rural areas have also witnessed entry of such organized retail outlets.
Indian retail industry is currently estimated at US$ 490 billion. India’s retail market is expected to touch a whopping US$ 782.23 billion by 2016-17, expanding at a compounded annual growth rate of 15 percent, according to a study by a leading industrial body. The total organized retail supply in 2013 stood at approximately 4.7 million square feet (sq.ft), witnessing a strong year-on-year growth of about 78 percent over the total mass supply of 2.5 million sq.ft in 2012. The foreign direct investment (FDI) inflows in single-brand retail trading during the period April 2000-January 2014 stood at US$ 98.66 million. Retailing as a whole contributes almost 14-15% of India’s GDP and employs almost 8% of India’s employable population.
Big Bazaar is credited with bringing organized mega retailing to India. The project was conceived as a uniquely Indian hypermarket in a format that combined the look, touch and feel of Indian bazaars with the comfort, convenience and quality that modern retailing brings. Launched in August 2001, Big Bazaar has now become the iconic destination of modern retailing for all sections of Indian consumers. There are more than hundred Big Bazaar stores in big cities as well as smaller towns like Sangli, Durgapur, Panipat, Palakkad, Ambala, Meerut, Kolhapur and Haldia. Attracting over 100 million customers every year, it has democratized shopping in India and become synonymous with great promotions that offer quality products at affordable prices. This typical Big Bazaar store offers over 1,60,000 products across categories like apparel and general merchandise.
Case Study Questions:
a) What are the entrepreneurial opportunities found in retail sector in India? [5 Marks]
b) Explain the importance of entrepreneurship in the Indian economy.
Expert Solution
Answer
A) Entrepreneurial opportunities found in retail sector in India :
As we know, India is highly populated country and hence it has a great market area with end number of consumers. Also in this fast growing era, everyone wants that everything should available at nearby places.Organized retailing has become more popular in big cities in India and most of the metropolitan cities and other big cities are flooded by modern organized retail stores. Many semi-rural areas have also witnessed entry of such organized retail outlets. Following are the opportunities found in retail sector :
A) Huge Market Area :
In today's world, when there are end number of needs and demands the market area is large . One can earn profit by fulfilling the demands of nearby people. If all things are available at same departmental store, one can earn in huge amount.
B) E- Tailing :
In the age of pandemic , everyone looks for online products. It is safe and easy way of buying and selling. The departmental stores also offers order online and take some minimal delivery charges which is beneficial for all. The trend of e tailing is tremendously growing.
C) Hike in employment opportunities :
More departmental store generate high employment opportunities. These can be set up in form of sole proprietor or partnership. One store can employee multiple employees like store managers, departmental heads, salesperson, accountants etc.
D) Digital Marketing :
With the hike in scope of digital marketing, businesses can get a boost . Specialised persons indulge in digital marketing and hike the scope of entrepreneurship. This stipulates the increment of opportunities for entrepreneurs.
B) Importance of entrepreneurship in Indian economy :
A) Employment generation :
Setting up of huge departmental stores offer more employment opportunities for the public. In above mentioned case, a big departmental store appoints different persons like store manager, departmental head, salesman, accountant etc. So it generates a lot of employment opportunities.
B) Contribution in GDP :
These departmental stores contribute to country's GDP. The national income gets a boost with qualified entrepreneurs . Those businesses which contribute more get more benefits from government.
C) Efficient Supply Chain :
Establisment of departmental stores can control the supply chain and maintains a balance of demand and supply . Those businesses who work efficiently are rewarded by government of India.
D) Helps in achieving developmental goals :
With the increment in business opportunities, it helps in achieving developmental goals. A country can grow if the business is steeping at good level. Consequently, it helps in boosting economy.
E) Source of Government revenue :
Entrepreneurship is the biggest source of government revenue. As the income rises, the amount of tax also increases and government can earn in the form of taxes.
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