India is one of the fastest-growing retail industries in the world. Presently the overall industry is sized at USD 1050 billion, growing at a CAGR of 10.1% in the past 5 years. The total number of retail units in India has crossed 13 million units in 2022, from 12.7 million in 2017.
Modern retail is still a small part of India’s overall retail landscape and contributes to close to 12% of sales. However, modern retail consisting of new malls, hypermarkets, supermarkets, high street retail etc. is growing at a rapid pace. The supermarket segment alone is growing at a CAGR of 7.4%. After the retreat in business caused during the pandemic, modern retails have largely recovered in present quarters and footfalls have increased drastically.
The Indian retail market will continue to grow at a rapid scale in the foreseeable future. There are numerous factors that will drive the retail market.
In the coming times, Indian retail sector will continue to be a fertile ground for new businesses and investments with a visible jump in demand expected in a wide range of categories such as fashion & apparel, electronic appliances, FMCG, baby foods, footwear, home décor, bakery, packaged drinks, etc.
However, India is also a diverse market and one has to do prior research and examine the trends before starting a new business. Here are the five steps, one can start a retail business with the help of the following steps.
Business Plan- We begin with making a business plan covering aspects like- if it be a physical offline store or online or both, the range of products you tend to offer, inventory cost, product price, analyzing competition, etc.
Market Research- Conducting market research enables you to analyses the consumer profile and demand. It evaluates factors like competitor analysis, demographic, risk, market value, expanding options, etc. This aspect also forms the foundation of a feasibility study and gives a business an idea to start.
Operations & Resources Planning- This step includes the price of operations and other unavoidable costs like staffing, equipment required, real estate costs, etc. It also aids in making important decisions like alternatives you’ll use for delivery or what is the most reliable portal for running your business online, etc.
Prepare Financial Statements- You must have a balance sheet before beginning your business. It enables you to know the finances available, how much you need to lend, etc. The liabilities include cost of leasing/purchasing the land, equipment & building, etc. Financial statements will also help in projecting the revenue and profitability.
Review & Analyses- Reality check is crucial for a business to prosper. And as starting a business includes estimations and uncertain numbers, they must not match one another. For instance, your income statement might be totally different from what your balance sheet says.