Chances are you want to set up your retail businesses in India. This is probably the reason you are reading this post.
Well, things are going to be encouraging here. As per statistics, the retail sector of India, having received beefy FDI (Foreign Direct Investment), is expected to grow by USD 1.75 trillion by 2026.
So, if you are considering retail business setup in India, it is time you treat your thought with more seriousness.
This post might justify your purposes for doing so.
Different Types of Retail Businesses in India
Let’s be honest with the kind of retail businesses India has. You see, the market is a little too intensely varied. However, we can consider this sector into three distinct categories to understand how retail businesses operate in this country.
- ·Merchandise and service retail
- ·Store and Non-Store Retail
- ·Offline and Online Retail
Merchandise retail stores can sell products and services on a large scale by managing them in self-owned inventory. Service retail, on the other hand, can operate without an inventory.
Store retail means you need to own a retail store to sell the products of businesses to customers. If you sell products or goods beyond/ outside the retail facility, then you may want to call it non-store retail.
Offline retail is somewhat similar to the operations of store retail, where the exchange of products and the transaction of money are completely done in the traditional sense. Online retail means you can sell your products on an online-only platform. Transactions are, of course, made online.
You should have a clear idea of these sectors and how they operate for your business setup in the Indian retail sector. It can help you decide the kind of store you can establish. The next point can be discussed.
What Kind of Retail Business Stores Can I Set Up in India?
Well, the choice depends on you if you want to go creative. However, considering the market, the profit margin, and the competition, you might want to take a look at the common store types, which makes the most business.
1. Grocery Stores
Considered the most popular store in India’s retail sector, a grocery store allows you to sell more than one item or product. You can sell foods, serials, meats, dairy products, electronics, cosmetics, and whatnot.
2. Speciality Retail Stores
A specialty retail store, as its name suggests, is a store where you can sell only one type or a category of products. For example, you can sell beauty products or Smartphones.
3. A General Merchandise Store
The name has the meaning in itself. The general merchandise stores sell the products, which you need in a more ‘general’ sense, such as clothing, kitchenware, sporting goods, general food items such as vegetables and fruits etc.
4. Departmental Stores
You have a store, where people get an electronic item, the latest shoes, the best jewelries, stationeries and many more. The store acts as a solution, to get multiple options under the same roof. Call it a departmental store and you can be sure of making way more profits with it.
5. A Discount Store?
Well, they work almost in the same way as departmental stores. But they offer products at discounted rates (obviously). That said, you might want to know that discount stores rely on seasonal sales and may not, therefore, make as much profit as department stores or other retail stores.
Why a Retail Business in India Is Full of Advantages?
For a very long time, the retail world in India has been one of the country’s prominent business spheres. The country’s economy depends significantly on retail businesses. So, if you join this sector as a business, then you are sure to get these facilities mentioned below:
a. Retail businesses may aim at expanding the customer base and relationships without changing the business location.
b. You communicate more with customers in a retail business provided the close connection you make with them. This privilege gives you the scope to study them better and make positive changes to your business.
c. Most retail business has a high probability of profit margins, growth, and expansion because of providing multiple options to customers.
d. If you plan to manufacture your own goods, then you achieve the benefit of reducing supply chain costs and making more profits.
e. By retailing, you increase a product’s reach to customers by marketing and selling, which might aid you in gaining extra perks.
f. According to statistics, retailers make more profits than wholesalers.
Why Do You Need a Financial Accounting Advisory for Your Retail Business?
Whether it’s a small retail business or a large one, you might need professional financial advisory for a number of reasons. A few major reasons for them are:
You, as a retail store owner, may not manage the time to look after your business’s accounting needs all by yourself. You have got a store to run, customers to serve and a business to guide.
With the help of a financial accounting advisory, you can forecast financial performance. You can document your finances by making reports. However, using a financial advisory service can define where your business needs improvement. You then achieve the freedom to plan your business expansion and optimization.
To Conclude
Are you interested in a retail business set up in India very soon? Make sure you have done enough research on the sector. Also, get in touch with a business to gain accurate tax planning, management, and all other financial advisory support. All of this can make your retail business reach astounding heights.
