IT - a strategic edge in Indian retailing sector

Abstract

This Contemporary Concerns Study (CCS) is intended towards studying the competitive advantage arising out of the use of Information Technology (IT) in retailing strategies. The study has been kept specific to the larger retailing firms in Bangalore who have been spending substantially on IT for the past few years and hence, can clearly identify the advantages / disadvantages derived from it. 1.1 Indian Retailing Sector The Indian retail sector has witnessed a tremendous growth in the past few years and will continue to grow with the favourable demographics, rising consumer income, real estate developments (especially with the emergence of new shopping malls) and availability of better sourcing options both from within India and overseas. According to a study (Figure 1) conducted by KSA Technopak, India had a median age of 24 years in 2000 for its population and is expected to rise to 32 years by 2025. This is highly favourable as compared to the other countries like USA and China, which had a median age of 36 years and 30 years. The low median age of the population means a higher current consumption spending vs. saving as a younger population has both, the ability and willingness to spend as it enters in the earning phase.