Organized vs. unorganized Organized vs. unorganized retail sector.retail sector.

What is retailing..?What is retailing..?

• The word retail is derived from the The word retail is derived from the French word “retailer” which means French word “retailer” which means “to cut a piece off” or “ to break “to cut a piece off” or “ to break bulk”.bulk”.

• In simple terms , it implies first hand In simple terms , it implies first hand transaction with the customer.transaction with the customer.

Retail sectorsRetail sectors

What is organized retail What is organized retail sector.?sector.?

• Organized retail sector is that retail Organized retail sector is that retail place where all the items are place where all the items are segregated and brought under one segregated and brought under one roof.roof.

What is unorganized retail What is unorganized retail sector.?sector.?

• Unorganized retail sector is that Unorganized retail sector is that where there are different things are where there are different things are sold in different shops. It also aims to sold in different shops. It also aims to bring maximum of different brands bring maximum of different brands making the same type of product making the same type of product together.together.

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Difference b/w Difference b/w organizedorganized and and

unorganized retail unorganized retail sectorsector....• Organized retailing is Organized retailing is

based on the principle of based on the principle of unity.unity.

• In organize retail sector In organize retail sector we will find each and we will find each and every thing under one every thing under one roof.roof.

• In organized sector In organized sector everythingeverything of one item of one item is together.is together.

• Unorganized retailing is Unorganized retailing is based on the principle of based on the principle of singularity.singularity.

• In unorganized retail In unorganized retail sector there are not many sector there are not many thing or may be one thing thing or may be one thing under one roof.under one roof.

• In unorganized store, In unorganized store, everything is everything is everywhere and everywhere and nothing has a place!nothing has a place!

COMPANIES WHO WANT COMPANIES WHO WANT TO ENTER INDIAN TO ENTER INDIAN

RETAIL MARKETRETAIL MARKET• WALMART (world’s largest turnover company) WALMART (world’s largest turnover company)

with BHARTI.with BHARTI.

• 22ndnd biggest retailer France’s CARREFOUR by biggest retailer France’s CARREFOUR by 2009.2009.

• Britain’s MARKS & SPENCER wants to expand in Britain’s MARKS & SPENCER wants to expand in India.India.

Impact of organized Impact of organized retailing on unorganized retailing on unorganized

retailing..retailing..

No negative impact of No negative impact of organised retail on organised retail on

unorganised sectorunorganised sector . . Govt. today said that there is no impact ofGovt. today said that there is no impact of organised retail sector on unorganised retailorganised retail sector on unorganised retail Sector either there are organised retail sectors Sector either there are organised retail sectors

but unorganised retail sectors are growing day but unorganised retail sectors are growing day by day it is increasing 10% per annuam and by day it is increasing 10% per annuam and sales are increasing from $309 billion to $496 sales are increasing from $309 billion to $496 billion.billion.

What is fdi What is fdi • FDI (Foreign direct investment) is a FDI (Foreign direct investment) is a

method of allowing the external method of allowing the external finance into an economy. India is the finance into an economy. India is the second most preferred FDI second most preferred FDI destination after China.destination after China.

FDI in retail sector..FDI in retail sector..

• The decision of permitting FDI in the retail sector The decision of permitting FDI in the retail sector has been a great debate in India. Govt. has has been a great debate in India. Govt. has taken FDI in India and permitted any foreign taken FDI in India and permitted any foreign multinational through FDI to invest in India up multinational through FDI to invest in India up to 51% for multi brand co. And 100% single to 51% for multi brand co. And 100% single brand co.brand co.

Why Govt. bring FDI in Why Govt. bring FDI in India..India..

• To give more and more jobs to peoples.To give more and more jobs to peoples.

• To improve economy of the country.To improve economy of the country.

• To decrease unemployment in the country.To decrease unemployment in the country.

• To make good relations with another To make good relations with another countries.countries.

WHY FDI SHOULD BE WHY FDI SHOULD BE PERMITTED?PERMITTED?

Better lifestyleBetter lifestyleGreater level of wages paid by international Greater level of wages paid by international

players usuallyplayers usuallyMore product varietyMore product varietyNewer product categoriesNewer product categories

Tourism DevelopmentTourism DevelopmentA strong retailing sector boosts tourism as A strong retailing sector boosts tourism as

seen from the experience of Singapore and seen from the experience of Singapore and DubaiDubai

Investment in whole supply chainInvestment in whole supply chain Improved product basket from India for Improved product basket from India for

exportsexports

Cont….Cont….

Long term benefitsLong term benefitsUp-gradation of agricultureUp-gradation of agricultureDevelopment of efficient small and medium Development of efficient small and medium

size industriessize industries

Any Query's..Any Query's..