NURTURING GREEN RETAILING: AN INSIGHT INTO INDIAN MARKET TRENDS

Abstract

Indian retailing industry has transformed over the years and shaped into organized format. The retailing industry accounts for 14 to 15 percent of country’s GDP. Retailing is one of the most dynamic and fast paced industries in India and contributes around 8 percent of the employment. By 2018, the Indian retail sector is likely to grow at a CAGR of 13 per cent to reach US$ 950 billion. Thus, the competition from within and outside has lead to survival of the fittest realizing the importance of following eco-friendly trends. Being the 5 most preferred location for retailing in the world, Indian corporates had to give lot of importance to Global warming and its adverse effects on green cover. Going environmental friendly is quite challenging as redesigning the product and packaging is the cumbersome job. Also there are considerable efforts by organised retailers to develop green practices in store operations and through the entire supply chain. Large upfront investment and growing concerns of global retail giants entering Indian markets are matters of concern for domestic players .The transition from conventional store to an eco friendly one and building an eco friendly brand are definitely time consuming and calls for lot of brain storming. The transformation might lead to improving India’s current stands, which is now at 133 in terms of carbon emissions. In addition, the modern channels of consumer education have made Indian consumers well aware of eco-friendly practices and ill effects of using non-recyclable products. The consumers are ready to spend more on organic and green products. Corporates have seen this as an opportunity to widen their market offerings. Also the industry has realized the importance of focusing on eco friendly products as part of corporate social responsibility in order to get a favourable attention from the general public and also to keep the other competitors out of race. Building approaches towards environmentally friendly process are of immediate relevance, not just for any manufacturing organisations, but also for the entire retailing industry. This paper attempts to gain a fair understanding about the initiatives and practices by the Indian retail sector towards green retailing.