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7/31/2019 Report on ion Retail in India
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SUBMITTED TO:
P.G. DEPARTMENT
OF COMMERCE
SUBMITTED BY:
DAVINDER SINGH
M.COM 1STROLL. NO.8310
2010-2011
MATA GUJRI COLLEGE (F.G.S)
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TABLE OF CONTENTSMEANING OF ORGANIZED RETAIL IN INDIAEVOLUTION OF RETAILINGCLASSIFICATION OF RETAIL EVOLUTION IN INDIA
MAJOR INDIAN RETAILOROPENING THE DOOR -51%PERMITTED TO SINGLE BRANDRETAILFEW INTERNATIONAL RETAILORS HAVE SIGNIFICANTPRESENCE IN INDIA
ADVANTAGE AND DISADVANTAGE OF ORGANIZED RETAILCHALENGES FACING BY THE ORGANIZED RATAIL INDUSTRYCONTRIBUTION TOWARDS GDP AND EMPLOYMENTCONCLUSION
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MEANING OF ORGANIZED RETAIL ININDIA
ORGANIZE RETAILING REFERS TO TRADING
ACTIVITIES UNDERTAKEN BY LICENSED
RETAILORS,THAT IS,THOSE WHO ARE
REGISTERED FOR SALES TAX,INCOME TAX,ETC
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EVOLUTION OF RETAILINGTHE EMERGENCE OF RETAILING IN INDIA NOW
HAS MORE TO DO WITH THE INCREASINGPURCHASING POWER OF BUYERS,ESPECIALLYPOST-LIBERALISATION INCREASE IN PRODUCT
VARIETY AND THE INCREASING ECONOMIES OF
SCALE WITH THE AID OF MODERN SUPPLY ANDDISTRIBUTION MANAGEMENT SOLUTIONS
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CLASSIFICATION OF RETAILEVOLUTION IN INDIA
INITIATION
CONCEPTULIZATION
RETAIL EXPANSION
CONSOLIDATION AND
GROWTH
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MAJOR INDIAN RETAILOR
RETAILERS SPACE Sq. Ft. TURNOVER
PENTALOON 5mn 20bn
K.RAHEJA GROUP 75200 6.75bn
TATA GROUP 4lakh 3.58mn
SUBHIKSHA 1mn 3.34bn
R.P.G GROUP 6 lakh 4.5bn
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Opening the door partly 51% FDIpermitted to Single Brand Retail
The most significant development in regulatory aspects
influencing the Indian retail industry is the governmentsdecision to allow foreign direct investment (FDI) up to51% in retail outlets meant exclusively for single brands.Previously single brands had to enter India only through
joint ventures or the franchisee route. Now brands canenter with a majority stake of 51% along with a localpartner. This definitely gives the international brands
more space to play ground.
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FEW INTERNATIONAL RETAILORS HAVESIGNIFICANT PRESENCE IN INDIA
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Advantages:-
Monumental increment in economic growth
Employment generation by the organized retail sector
Good competition means better products & services
Disadvantages:-
The companies with superior resources would muscle out theones inferior to them.
Monopolization of the organized retail sector
ADVANTAGE AND DISADVANTAGE OF
ORGANIZED RETAIL
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CHALENGES FACING BY THE ORGANIZE
RETAIL INDUSTRY
The major constraint of the organized retail market in India is the
competition from the un-organized sector. Traditional retailing hasbeen deep rooted in India for the past few centuries and enjoys the
benefits of low cost structure, mostly owner-operated, therein
resulting in less labor costs and little or no taxes to pay. Consumer
familiarity with the traditional formats for generations is the greatest
advantage to the un-organized sector. On the contrary, organizedsector have big expenses like higher labour costs, social security to
employees, bigger premises, and taxes to meet.
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CONTRIBUTION TOWARDSGDP AND EMPLOYMENT
ORGANIZED retail sector has witnessed a
CAGR of around 35 per cent over the past
five years and currently contributing
around 10 per cent to the countries GDP &
eight percent of the employment.
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CONCLUSIONFinally, it is important to note that value is function of not just
price, quality and service but can also be enhanced by
personalization and offering a memorable experience. In fact,
building relationships with customers can by itself increase the
quality of overall customer experience and thus the perceived
value. But most importantly for winning in this intensely
competitive marketplace, it is critical to understand the target
customer's definition of value and make an offer, which not
only delights the customers but also is difficult for competitors
to replicate.
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