Jasleen Sir Ppt

8/4/2019 Jasleen Sir Ppt

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A study on retial sector.


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What is Retail?

Retailing consists of the businessactivities involved in selling goodsand services to consumers for theirpersonal, family, or household use. Itincludes every sales of goods andservices to the final consumer.

As such retailing is the last link

that connects the individualconsumer with the manufacturingand distribution chain


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Evolution of Retail

Barter chain

Kirana stores

Chain of large stores

Finally malls

Hypermarkets

Supermarkets


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Retail Sector in India

Retail

Unorganized97%

Organized3%


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Current scenario of Indianretial -:

Unorganized market; Rs. 583,000 crores.

Organized market; Rs. 5,000 crores.

High rate of growths in organized retailingbetween 2000-2005.

Over 4000 new modern outlets in last 3years.


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Classifying Indian retail

Modern Format retailers Traditional Retailers

Supermarkets (Foodworld) Kiranas

Hypermarkets (Big Bazaar) Kiosks

Department Stores Street Markets

Companys exclusive outlets weekly markets


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Modern form of retail

Malls

Specialty Stores

Discount Stores

Department Stores

Hypermarkets/Supermarket

MBOsFood retail

Agriculture retail


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Different products involvedin RetailingFood

Books & Magazines

Fashion & Clothing

Personal Care

Optical Consumer Electronics

Sport & LeisureFootwear & Leather

Toys & Games

Jewellery & Watches


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Drivers of Retail Industry

Demography Dynamics:

Double Incomes:

Plastic Revolution:

Urbanization:

Covering distances has becomeeasier:


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Impact of organised sector ?

Effect on small retailers and vendors in theunorganized sector keeping in

mind the likely growth in the overall

market.Effect on employment.

Impact on consumers.

Impact on farmers and manufacturers. Impact on prices.

Overall impact on economic growth.


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Problems faced by indianretailers.

Margins are low

High property cost

Poor InfrastructureExpertise in logistics

Couple of firms in retail sector have turn

over more than Rs 100 crore.


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Importance

Largest and fastest growing sector in India.

Modern retailing forms one point stop forall shopping.

Consumer gets a large product variety ofbrands to choose from one roof.

First it was a sellers market and now its

changing to buyers market. By 2010 Indian retail sector would be

generating 10 million employmentopportunities.


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Analysis of Growth byASSOCHAMOrganized retail growing at estimated 25%

It is expected that retail in India could beworth US$ 175-200 billion by 2016.

2008-09 Total retails contribution to GDP isbetween 8% which would further jump up tonearly 12% in next few years. By 2010,retails contribution to national GDP in

totality is likely to be 22%.

2008 Retail Growth rate 25-28%,Unorganized and organized retail size 300billion US$


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Government Policies

The retail industry in India is growing at asignificant pace. However, there are severalproblems faced by the industry. The majorchallenges for the organized sector include:

Taxation laws that favor small retailers.

Multi-point octroi collection.

According to analysts, for this industry tothrive, Indian retailers need to emulateworldwide retail practices such as accuracyin financial reporting, increased levels ofcorporate governance and greateraccountability among employees.


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Strength

Increasing demand driven by the countrysyoung working population

Increase in per capita income which in turn

increases the household consumption. Improvement in the standard of living.

technology intensive industry.

Consumer spending increasing at 11%annually.

Pattern of consumption changing along withshopping trends


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Weakness

Lack of expertise in Supply Chain.Management.

Inadequate Infrastructure.

Lack of specialized professionals in Industry.

Government Restrictions on FDI.

Lack of huge investments for expansion.

Lack of industry status.

Need to provide Value for Money-squeezingmargins.


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Opportunities

Change in consumer behavior pattern andincrease in disposable income.

Indian rural markets offer a sea of an

opportunity for the retail sector.Upcoming international Players.

Healthy prospect for the fashion industry.

Social factors like dual household incomehas enhanced spending power

Increase in use of credit cards.

Spends moving towards lifestyle products


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Threats

Competition from unorganized Sector tothe organized Sector.

Rising lease/rental costs affecting project

viability. FDI restrictions in the retail sector.

Poor monsoons and low GDP Growth could

affect consumer spending drastically. Differentiate taxation laws hindering

expansion.


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conclusion

The consumers preferences are changingrapidity and becoming highly diversified. It isdifficult for the retail stores to satisfy all theneeds of the customers. The most of theconsumers want to get some attractiveprices, good schemes and offers on everypurchases and a shopping comfort as well .Those who are able to purchase their needs

and want for a month in a bulk prefers to goto the retail chains.


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