Financial Ratios

1. IT

2. RFID

3. VMI

IT in Retail

The Indian retailing, which has topped the charts for being the most favoured and attractive destination is yet in its nascent stage. Neither the FMCG retailers are in a position to maintain world class standard, nor one wishes to be an iconoclast. The digitization of the Indian retail sector has captured the minds of retail magnets for quite some time now but has remained the grey area of the Indian story of retail sector. The Indian IT sector is growing at a rate of 31 percent and posted a record revenue of $40 billion in 2006-07. This is indeed a good news but the staggering domestic segment demanded services worth only $8.2 billion. In this study we focus on how e-retail can boost the plans of existing and forthcoming national retail players. We further try to put forth the challenges in computerisation of the organized retail and make an attempt to suggest some prospective solutions.

Traditional retail sector:

Why IT is the need of the hour

The organised retail sector of India will form about 10 percent of the total retailing business in India and is expected to worth US $70 billion by the end of 2010. in the mean time it will grow at a CAGR of around 49.53 percent. But certain speed breakers associated with the primitive form of retailing must be overcome to maintain its tempo.

1. Unorganised retailing in India is ubiquitous and so the communication between the manufacturer and retailer is heavily dependent on the wholesalers, dealers and traders. This is more so because the retailers can't afford costly investments. So they ultimately have to suffer due to low participation market flow of commodities. Nowadays even the organised business houses are facing the problems related to SCM(Supply Chain Management). The SCM's huge emphasize on middlemen rather than on the retailers has aggravated the problem. The introduction of EDI (Electronic Data Interface) can deliver QR (Quick Response) and ECR...