This is the conceptual paper focusing on the Proximity marketing or Bluetooth marketing. “Proximity marketing is a type of mobile marketing that connect businesses to their customers in specific locations. The context specificity allows advertisers to send targeted and personalized mobileadvertisements to consumers on the move, hence an alternative term, location based commerce.’’ The objective of the study is to understand the scope and future of proximity marketing in Indian Retail industry (especially malls in metro cities). Secondary data is used from various journals, news papers and from internet. Very less literature is available in context with India as this technology is implemented in only few select malls. Researcher has thrown some light on technology involved in Proximity marketing, advantages and limitations. Researcher has tried to explain the use of this technology to attract and retain the customers, use of this technology as innovative tool to retailer and scope of it in emerging market like India where Smartphone users are increasing