Today we spent most of the day with a market researcher who is with a large international company involved in retail in India.  He helped us learn how retail works in India.  About 90% of retail is “unorganized”, meaning very small vendors or shops, with a relatively inefficient supply chain and with many of the transaction not reported for tax purposes.  The remaining 10% is “organized”, meaning “regular” stores (like in the USA) with set prices, more efficient supply chains and tax paying.  However in coming years the organized part of retail is expected to grow significantly as government regulations are now friendlier to organized retail, and as India’s large young population grows up into a large middle class over the coming decades.  We learned a lot about India demographics and economic growth.  After out time in our host companies offices we took a tour of some retail areas, which allowed us to compare and contrast the two retail formats.  The unorganized sector is very convenient for the customer, since there are many small shops within a short walk or ride from most homes. Many of the small shops will also deliver.  Our host think that as the organized sector rises, the unorganized sector will remain import in the economy and society.   After we looked at some unorganized retail, we went to a large mall (Ambience Mall) in Gurguan which is on the  south edge of Delhi.  It has all the usual high-end stores from the USA and Europe and was pretty busy with shoppers.  Our host treated us to a nice Punjabi Indian buffet lunch.

Anne, Kari and Stephanie enjoying unorganized retail.

DSC07965

John, Bret and Jeff

DSC07966

Our host teaching is in the mall.

DSC07967

Group shot with our host in the mall.

DSC07969

Tomorrow we fly to Hyderabad so we can start our two week engagement with some companies there.

Advertisements