The Indian retail industry has now become very vibrant. This is the age when many new players are set to get a good hold in the Indian market. The national as well as international players are introducing new concepts and cultures, thus making retailinga magnum opus. Thus, there are only a few components, which can differentiate a new player from the existing ones. Over and above, all the organized players put in their efforts against the antediluvian unorganized players where most of the Indian shoppers are habituated to buy. But of course, times have changed, and people prefer to be a part of the organized chain to have an exclusive shopping experience. This paper is focused on the buying behavior of Indian shoppers in the organized market, leaving not even the kirana stores against it. However, the days are not too far when the merchandised will have to be considered, and value chain and value delivery be revised.

The Indian retail industry is, and continues to be, extremely fragmented. As per the international consultancy firm A C Neilson, India had the majority of outlets in the world. In 2001, it was estimated that there were 11 outlets for every 1,000 people. Moreover, a report set by McKinsey & Company, global management consultants, and the Confederation of Indian Industry (CII), forecasts that international retail majors such as Tesco, Kingfisher and Carrefour are waiting in the wings to enter the retail arena. It further states that the Indian retail market has the potential of becoming a $300 bn annual market by 2010, provided the sector is opened up considerably.

The potency of retailing in India and inroads by foreign retailers, evidently explains the qualms that fuel public imagination; and why the political leadership in democratic India feels compelled to fabricate consensus and take the people along, on its conduit to totally opening up the retail sector.

The Indian consumer expenditure has grown at a regular rate of more than 11.5 percent a year for more than a decade. As in most developing nations, a large piece of the Indian consumer expenditure is on basic necessities, particularly food-related items. Hence, it is not astounding that food, beverages and tobacco accounted for as much as 50 percent of the consumption expenditure in 2004. The remaining 50 percent associated to non-food stuffs, is expected to increase, due to the increase in per capita income. Consumers today, emphasize more on the `quality of life', and spending on aspiration-driven goods and services (cars, mobile phones, consumer durable, etc.), has grown significantly. Outstanding over the years, are the variances in the spending behavior of patrons. Medical and healthcare expenses have increased from 3.5 percent in 1992-93 to 8.06 percent in 2002-03.

Management Research Journal, Indian Retail Industry, Indian Market, Confederation of Indian Industry, CII, Indian Retail Market, Retail Sectors, Domestic Products, Unorganized Sectors, FMCG Companies, Market Research, Retail Stores.