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Retail Industry, After Pandemic Situation- Subham & Arka ( PGDM Students at IMIS)

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In India Retail sector is mainly divided into three sub-sectors, namely Organized Retail, Unorganized Retail and E-Commerce. According to IBEF, from the beginning of this century, the organized sector is growing rapidly; it reached US$ 950 billion in 2018 at CAGR of 13 percent and is expected to reach US$ 1.1 trillion by 2020. Online retail sales were forecast to grow 31 percent y-o-y to reach US$ 32.70 billion in 2018. Revenue generated from online retail is projected to reach US$ 60 billion by 2020. Moreover the Indian E-commerce market is expected to grow to US$ 200 billion by 2026 from US$ 38.5 billion as of 2017.

So, in a very good situation for the retail industry the economy is interrupted by the Covid-19 Pandemic. We have tried to forecast future customer traffic in the retail industry across these three sub-sectors. We have conducted study on 100 people of different ages, segments, and geographical locations.

Nowadays, people are very much concerned about health security in shops and are very much afraid of going to supermarkets and shopping malls, so they are mainly shopping from unorganized local retailers and e-commerce companies. Our study reveals that customers are going to carry on this trend, although the trends for different commodities are going to be different.

Among our respondents, 60% are willing to shop electronic gadgets, specially mobile phones, and laptops online because they consider that these products could be bought by only looking at the features and there is no need for personal touch. Some urban respondents are also willing to buy FMCG items from e-commerce. We also 0bserved a trend of increase in buying apparel products online.

Here we could observe a shift of customer traffic from unorganized retail and organized retail sector to e- commerce in the FMCG and apparel products.

Now, coming to the organized retail sector, customers have expressed reluctance to buy FMCG products and electronic gadgets from organized retail stores like Big Bazzer, Pantaloons etc. due to safety issues. For apparel also people are largely considering e-commerce.

In this hard time people who have made profit are local grocery store owners. They along with other unorganized retailers are expected to have more customers in a post-pandemic era. Our respondents have expressed their will to buy, FMCG and apparel products from unorganized retail stores.

Conclusively we can say the organized retail sector may not be able carry on their rate of growth in post pandemic era, whereas the e-commerce sector is promising.    

   


Comments

  1. Unknown18 July 2020 at 18:07

    Nice

    ReplyDelete
  2. Karishma Nayak18 July 2020 at 19:21

    But still some of are preferring the retail sector which shows the power of retail over e-commerce sector..so how could u be so sure abt e-commerce overtake the retail store...jst coz of this pandemic may some of them switched to e-commerce n may be after post pandemic they will again switching to retail only

    ReplyDelete
    Replies
    1. Arka22 July 2020 at 15:00

      You are write... We are just saying the growth rate is going to decrease for Organized sector...

      Delete
  3. Ayusee18 July 2020 at 20:15

    This comment has been removed by the author.

    ReplyDelete
  4. Ayusee18 July 2020 at 20:17

    People these days are tech savvy. They prefer staying home or at workplace and get the necessary or can say desired items to them. E commerce sector is surely promising and even when it helped a lot of mass during pandemic, it successfully gained a lot of customers loyalty. But again there are pros and cons of every aspect but the point is will this sector be able to cope up with the laybacks!!
    Well.... Good piece of work and hope you get into a more detailed research where you will find plethora of instances and reasons for customers dependency to E commerce platform with passing time.

    ReplyDelete
    Replies
    1. Power of Vission18 July 2020 at 21:49

      Sure your input matters us a lot didi thank you

      Delete
  5. INDIA'S STRATEGY18 July 2020 at 22:37

    Nyc

    ReplyDelete
  6. Aditi Chanda19 July 2020 at 12:55

    Keep up your good work👍👍

    ReplyDelete
    Replies
    1. Power of Vission19 July 2020 at 13:45

      Thanks keep supporting and guide us as always didi

      Delete

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