Academic journal article Journal of Social Welfare and Management

Marketing Challenges Impeding the Growth of Retail Trade in India: A Critical Analysis (with Reference to Vellore District, Tamil Nadu)

Academic journal article Journal of Social Welfare and Management

Marketing Challenges Impeding the Growth of Retail Trade in India: A Critical Analysis (with Reference to Vellore District, Tamil Nadu)

Article excerpt

Introduction

The Indian retailing sector has witnessed an ever growing trend since the past two decades. Even though there are so many developments in retail trade and its structure, the marketing problems of the retailers remain the same. The Indian retail sector comprises of unorganized and organized retail stores with the huge growth difference in marketing methods. Although the unorganized sector is large in proportion it could not dominate over the organized sector in India, and this very little portion of organized retail stores enjoy several benefits relatively.

The opening up of economy enables free flow of foreign direct investment in retail sector and it makes the modern retail formats to adopt and accommodate very advanced marketing systems in India. The giant retailers have ample financial and technical resources to adopt the latest marketing strategies to overcome all the contemporary marketing problems effectively. Furthermore all the big retailers are incorporating various information technologies in all facets of retail business to satisfy the customers. The key to success behind the tremendous development of modern retail formats is innovative marketing methods and strategies, using latest information technology and its applications in key marketing areas, attractive promotional planning, etc.

Virtually all small unorganized retailers are still adapting the same old conventional marketing methods and running in the fear of failure due to several marketing problems in terms of rapid changes in the customers fashion changes, demand and supply conditions, heavy competition, lack of marketing research, domination of big retailers, poor knowledge about the marketing mix, limited customer's satisfaction, sales promotion, packaging, branding, storing, advertising, and transporting etc., and these challenges are hindering the scope for remarkable developments in small unorganized retail stores equal to the big retailers in all perspectives etc., and find it difficult to face the severe competition with the big retailers.

An attempt has been made to study whether the small unorganized retail traders various marketing challenges are slow down their growth in Vellore district, Tamil Nadu.

Study of literature

The structure of a country's retail sector has an enormous influence on the economy and marketing activities of a firm worldwide. The retailers are the last link in the marketing distribution channel and the small retailers can reflect the consumer's wishes and wants. Retailing sector is one of the major revenue and employment generation sectors in India, it has a huge marketing potential that is why since the last decade it has got remarkable attention by more foreign retailers. Retailing today is at a fascinating crossroads. On one hand, retail sales are at their highest point in history, there are lots of opportunities to start a new retail business or work for an existing one and to become a franchise and On the other hand, retailers face numerous challenges. Retailing, as a concept is not new to India. In fact, it dates back to the period of hard-core traditional formats of retailing that prevailed in the form of Haats, Shandis, Painth, Weekly Bazaar and the famous 'Kirana' or 'Baniya ki Dukan.' It is only during recent past that Indian retail sector is witnessing a process of change and is poised to undergo dynamic transformation. India is now developing into a retail power where both organized and unorganized retail sector compete with each other. Presently the Indian retail business employs nearly 21 million people, which is around 8 per cent of the total employment. India as the most attractive retail destination globally from among thirty emerging markets and has got fifth place in amongst the 30 emerging retail markets in the developing countries. The growth and development of organized retailing in India is driven by two main factors, the lower prices and benefits to the consumers. …

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