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With the passage of time, the characteristics and the number of activities in retailing as well as approaches to manage customer relationship in retail sector have changed across the globe, including India. CRM has emerged as the latest buzzword in retailing,
especially in organized retail sector, and an important tool to enhance retailer performance. But, before understanding CRM in this sector, one must know the dynamic retailing scenario in India.

Retailing in India

The retailing industry has been present in our country through history and is considered as one of the largest sectors in the Indian economy, contributing to around 14% to the GDP, and employing around 7% of the total population.. For decades, retailing in India has been highly fragmented, i.e., unorganized, due to the presence of huge number of small mom-n-pop stores. As per Images F&R Research 'India Retail Report 2007', organized retailing in India accounts for 4.6% (Rs. 55,000 Crores or $ 12.4 Billion) of Rs. 120,000 Crores or $ 270 Billion retail market with an expected 40% plus annual growth rate, and is expected to grow to Rs. 2,00,000 Crores, i.e., $ 45 Billion by 2010. During the period 2005- 2006, the leading retailers' sales growth was 50-100%.

While retailing industry is present for centuries, it is only in the recent times that it has witnessed so much dynamism and corporate attention. It is the latest bandwagon that has witnessed hordes of big players like TATA, Birla, Reliance, Pantaloon Group, etc., leaping into it. The entry of big players in retailing has caused a major revolution in its marketing strategies and innovations. Now retail sector, being considered as the most dynamic and attractive sector in India, is going through a transition phase. For a long time, the corner grocery store was the only choice available to the consumer. This is slowly giving way to international formats of retailing. The traditional food and grocery segment has seen the emergence of hypermarkets / supermarkets / grocery chains (FoodWorld, Subhiksha, Apna Bazaar, Big Bazaar, etc.) and fast food chains (McDonalds, Dominos, etc.).

However, it is in the non-food segment that the foray has been made into a variety of new areas. These include Lifesyle / Fashion segments (Westside, Shoppers' Stop, Lifestyle, Koutons, etc.), Books / Music / Gifts (Archies', Music World, etc.), Appliance & Consumer Durables (Vivek's, Vasant & Co., etc), Drugs & Pharmacy (Health & Glow, Apollo, etc.).

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Mujib-ur Rahman is currently a faculty member at Department of Management Studies, B. S. Anangpuria Institute of Technology & Management, Faridabad.