Financial Daily from THE HINDU group of publications
Wednesday, Jan 04, 2006
Financial Daily from THE HINDU group of publications Wednesday, Jan 04, 2006 |
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Marketing
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Retailing Industry & Economy - Employment Retail sector will create 50,000 jobs a year: Study Our Bureau
New Delhi , Jan. 3 THE size of the retail market in the country is projected to more than double by 2008 growing at around 36 per cent every year till 2008. Thus the overall size would be Rs 14,79,000 crore by 2008 from its current size of Rs 5,88,000 crore, according to a Study conducted by The Associated Chambers of Commerce and Industry of India (Assocham). The size of the organised sector retailing will witness about three-fold growth which will balloon to Rs 15,000 crore by end of 2008 from its present estimated size of Rs 5,000 crore, says the study. According to the Chamber, unorganised retailing would continue to have its edge over organised retailing till the time foreign direct investment is allowed in the sector. Initiatives of the Central and State Governments like allocation of land at concessional rates, grants of loans at liberalised interest rates to promoters of shopping malls as also rationalisation of state levies are prime factors that will aggressively inspire entry of organised sector into retailing in the next few years, says the study. According to Chamber estimates, the retail sector will create 50,000 jobs a year in the coming five years. The retail sector is the second largest source of employment and the job market is hugely receptive to this with more and more business schools focusing on the sector and large retailers setting up retail academies. The study points out that franchising will also emerge as a popular mode of retailing in the coming years and will lead to a proliferation of brands with foreign and Indian companies acquiring a strong brand equity for their products. Franchising has been growing at the rate of 14-16 per cent since 1999. In 2003-04, there were over 6,000 franchised outlets. The other major retailing organisation format `chain stores' in India will also multiply in future. In 2003-04, there were about 2,500 chain stores. Among the various organisational formats, sales of chain stores grew at the fastest pace, with sales growth during 1999-2003-04 averaging 28 per cent per year.
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