Sales of high-volume packaged goods in urban China grew 9% from a year
earlier to $13.6 billion in the year ended April 30, while sales of similar
goods in urban India grew just 2.2% to $7.36 billion. ACNielsen tracks retail
sales in most key towns and cities in both countries on a continuing basis.
India's retail sector, which is still dominated by mom-and-pop stores and
has few modern shopping malls, has stifled the industry from keeping pace with
its counterpart in booming China, according to Russell Farmery, ACNielsen's
managing director for India. Modern retail outlets account for 46% of
fast-moving consumer goods sold in Chinese cities, in terms of value. In India,
modern stores account for 7% of urban sales.
The disparity in growth rates
for the consumer items surveyed is notable, in particular, because China and
India both recorded among the world's highest rates of economic growth in the
past year. China's inflation-adjusted gross domestic product expanded 9.1% in
2003, while India's economy grew 8.2% in the year ended March 31.
According to retail business analysts, consumers tend to buy more when they shop at "modern trade channels," such as hypermarkets, supermarkets and retail chains,
which offer a wider selection, slicker marketing, a more pleasant shopping
experience and -- most importantly -- cheaper prices.
But such outlets are few in India.
There is another reason retail receipts in India haven't grown much. Feisty local competitors of foreign-run manufacturers such as Proctor & Gamble Co. of the U.S. and Hindustan Lever Ltd., the Indian unit of Anglo-Dutch company Unilever PLC, have also driven down prices of everyday products such as shampoo and toothpaste in the past few years.
Sep 2, 2004
India lagging behind China in retail
Rajesh Jain quotes from the Wall Street Journal:
Subscribe to:
Post Comments (Atom)
Blogging About
HR Issues
Social Media
Organization Development
consulting
career management
business blogging
recruiting
strategy
talent
learning
innovation
leadership
management
Organizations 2.0
HR2.0
Knowledge Management
Social Business
networking
training
talent work
skills
employment branding
Enterprise social software
Human resources
Social Networking
india
marketing
Enterprise 2.0
Employment
business books
news
Twitter
Business
future
Online Communities
Social network
communication
jobs
Facebook
personal branding
HR professionals network
Interview
Recruitment
Strategic management
LinkedIn
Employee engagement
Job Search
Talent management
personal
Community
Community Management
the imagence partners
Competencies
Social Enterprise
collaboration
Education and Training
Social web
entrepreneurship
salaries
youth
Employee Relations
Virtual community
socialmedia
coaching
lifestreaming
Human resource management
Knowledge base
Sexual harassment
Trial and error
satyam
No comments:
Post a Comment