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INDIAN RETAIL ENVIRONMENT
By:Jaspreet SinghSiddhatrh SinhaVinayak Pant
Who Is a Retailer ?
• One who sells goods directly to consumers
• Purchases a variety of goods from no. of wholesalers, manufacturers etc.
• Last link in the chain of distribution. Consumer touch point.
RetailersManufacturers
A
B
C
Distributors
a
b
c
RETAILERS
Consumers
x
y
z
Pre 1947 1947 1970’s 1980’s 1991
2006 2005 2000-05 1995-99 1991-95
2006-10 Last week
India becomes
Independent
Emergence of organized
retail through textile sector
Emergence of brands
and branded retail outlets
India opens doors through economic reforms
Haats, Melas, typical indian Markets were
formed
Modern Malls are introduced
Multiple formats and products introduced
Expansion of Multiple Indian formats
High street shop centers
Govt allows 51% FDI in Single brand retailing
Rapid Modern mall and single brand specialty store
Bill drafted for FDI limits of 51% in multi brand, 100% in single brand
Evolution in India
Current scenario in India• Organized and unorganized retail– Unorganized (90-95%)
• Types of most prevalent retails – Category killers / Product category based– Discount stores– Malls– Supermarkets/hypermarkets– Rural retail– Open format
• Counter and deep formats• E-retailing (e-tailing)
Peculiarities in Indian buyers’ behavior
• Shopping- for necessity not for experience
• Purchasing capacity
• Timing of purchase
• Buying things as and when needed
Popularity of unorganized sector
• Operated from owned premises inside localities• Family members as employees• Time saved factor• Purchase pattern and behavior • Shorter shelf life products• Smaller shopping lists• Population segment without cars• Open from early morning till late everyday
….cont.
Popularity of unorganized sector• Personal relationship with customers• Products are sold on monthly credit to
customers• Very low operational costs• No inventory cost, as products are stored in
own setting• Supporting infrastructure missing for bigger
chains
Future Ahead
• Stakeholders – Regulators, Employees, Owners, Customers
• India - one of the biggest markets attracting all retailers worldwide
• Share of organized retail may increase, not substantially though
• Unorganized sector still to remain dominant for the foreseeable future
• Own brands will heavily determine profitability of big players
• Rural retail is a largely untapped avenue
Thank you