Question
Explain various challenges faced by Indian retailers. Discuss how technology adoption is a costlier affair for small retail players.
Answer :
Word Count : 601
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Skip in 10
Indian retailing is one of the largest and most diverse sectors of the Indian economy. It includes traditional kirana stores, street vendors, small family-owned shops, supermarkets, shopping malls, departmental stores and rapidly growing e-commerce businesses. Despite its enormous market potential, Indian retailers face several challenges arising from intense competition, changing consumer preferences, rising operating costs and technological developments. One major challenge is intense competition. Small retailers compete not only with other local shops but also with supermarkets, large retail chains and online platforms. Large retailers can purchase goods in bulk and negotiate better prices with suppliers, whereas small retailers generally have limited bargaining power. E-commerce companies also attract customers through discounts, convenience, home delivery and wider product choices. Another important challenge is changing consumer behaviour. Indian consumers are becoming more informed and quality-conscious. They increasingly compare prices, brands, product features and reviews before purchasing.
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