It is expected to grow to $482 billion in 2020, with an overall growth rate of 104 per cent.
Food and grocery currently contributes to around 70 per cent of the total retail sales.
The unorganised segment still constitutes 99 per cent of the total food and grocery market, and is characterised by the traditional mom-and-pop kirana stores.
The modern formats account for just 1 per cent of the total food and grocery market and are characterised by cash and carry stores, hypermarkets, supermarkets, discount supermarkets and convenience stores.
Some important expectations of customers shopping at modern formats are staff politeness, freshness of stock and the availability of latest brands.
NUGGETS Selections from management journals
Toyota has become one of the world's greatest companies only because it developed the Toyota Production System (TPS), right? Wrong, say Takeuchi, Osono, and Shimizu of Hitotsubashi University in Tokyo. Another factor, overlooked until now, is just as important to the company's success: Toyota's culture of contradictions.
TPS is a "hard" innovation that allows the company to continuously improve the way it manufactures vehicles. Toyota has also mastered a "soft" innovation that relates to human resource practices and corporate culture.
The company succeeds, say the authors, because it deliberately fosters contradictory viewpoints within the organisation and challenges employees to find solutions by transcending differences rather than resorting to compromises. This culture generates innovative ideas that Toyota implements to pull ahead of competitors, both incrementally and radically.
The authors' research reveals six forces that cause contradictions inside Toyota. Three forces of expansion lead the company to change and improve: impossible goals, local customisation, and experimentation.
To prevent the winds of change from blowing down the organisation, the company also harnesses three forces of integration: the founders' values, "up-and-in" people management, and open communication. These forces stabilise the company, help employees make sense of the environment in which they operate, and perpetuate Toyota's values and culture.
The contradictions that drive Toyota's success
By Hirotaka Takeuchi, Emi Osono and Norihiko Shimizu
Harvard Business Review, June 2008
Read this article at www.hbr.com
When a company finds itself unable to execute strategy, all too often the first reaction is to redraw the organisation chart or tinker with incentives. Far more effective would be to clarify decision rights and improve the flow of information both up the line of command and across the organisation. Then, the right structures and motivators tend to fall into place.
That conclusion is borne out by the authors' decades of experience as Booz & Company consultants and by the survey data that they have been collecting for almost five years from more than 125,000 employees of some 1,000 organisations in more than 50 countries. From this data they have distilled
