Tuesday, March 1, 2011

Difference between Organised and Unorganised Retail

The Organised retailing refers to the trading activities undertaken by licensed retailers that is those who registered themselves for sales tax ,income tax ,etc.These include the corporate –backed hypermarkets and retail chains and also the privately owned large businesses.The various forms of organized retail are a)Hypermarkets:They store products of multiple brands comprising food items and non-food items.b)Supermarkets:These are self service stores selling food and personal care products.E.g.Subhiksha.c)Departmental Stores:Retails branded goods in non-food categories.E.g. Shoppers stop.d)Speciality Chains:These focus on branded product or product category.E.g.Bata Convenience Stores.e)Malls:A huge enclosure which has different retail formats.E.g.Pantaloon Retail.Whereas,Indian retail is dominated by a large number of small retailers consisting of the local kirana shops, owner-manned general stores, chemists, footwear shops, apparel shops, paan and beedi shops, hand-cart hawkers, pavement vendors, etc. which together make up the so-called “unorganized retail” or traditional retail.Organized retailing is based on the principle of unity and unorganized retailing is based on the principle of singularity.Both organized and unorganized retailing is found in most of the countries throughout the world. India and China are strong examples of countries in which unorganized retailing dominated their markets.Today these countries have a growing economy because of the influx of organized retailers into their markets. The last 3-4 years have witnessed the entry of a number of organized retailers,opening stores in various modern formats in metros and other important cities.The growth in organized retailing in recent years can also be gauged by the rise of shopping malls as well as the rising number of modern retail formats.


  1. Helpful Info thanks

  2. Thank you very much, much needed for the exams.

  3. please update your answer 1st line is wrong...
    unorganised retail is also having license ...
    oragnised retail have licensed with retail chain but unorganised retail dont have chain

    1. That's perfect. The basic difference is registered chain of outlets.

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