Boom in Retail Ensures Better Tech Adoption

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As Indian economy shines bright not only in big cities but also in small locations of the nation, there is a boom happening in the retail segment.

The Indian retail industry continues to attract both global and local companies. International retail giants such as Debenhums, Marks & Spencer, Zara, Carrefour SA, etc. and domestic companies such as the Reliance, Binani Group, Gitanjali Group and Mahindra Retail are vying to make a foray or expand operations in the industry, which is currently valued at $270 billion according to market estimates.

The Indian retail market is expected to grow considerably in the near future. According to the India Brand Equity Foundation, the value of the retail market is expected to rise to $833 billion by 2013 and to $1.3 trillion by 2018 at a compounded annual growth rate (CAGR) of 10 per cent.

With a continuous business opportunities offered by growth in small and big cities in India, retail companies are pulling out all the stops to beat the competition and establish a stronger position in the market and technology is playing a big role in terms of establishing the retail winners in India. Establishing a secure, reliable and efficient communications driven network is, therefore, high on their priority lists.

Over the past few years, several platforms of connectivity have made their presence felt amongst retail companies in India. Multi-protocol label switching (MPLS) and voice over IP (VOIP), for instance, have proved to be effective in cutting costs and increasing efficiency.

MPLS driven communication offers retail companies a communications network with a high degree of availability through dual points of presence in various cities, differentiated quality of service for voice and data traffic, and bandwidth-on-demand for voice services.

Moving forward, as India’s bigger population gets used to global retail majors, the companies are fast adopting better technology driven communications fabric that is sure to help them move up the value chain and create differentiators for retail segment.