The Indian organized retail market is estimated at US$202.6 billion as of 2005 and is expected to
grow at a compounded 30% over the next five years. The retail sector in India is witnessing a
huge revamping exercise as traditional markets make way for newer formats such as
departmental stores, hypermarkets, supermarkets and specialty stores. Western-style malls have
also sprouted in the metros and tier-II cities. Moreover, retail formats in India are almost
becoming standardized with the same merchandise all over. Retailers can no longer rely upon the
traditional means of competitive differentiation like lower prices, value for money, variety etc.
