Retailin India

8/8/2019 Retailin India

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Retail scenario of India


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Retailing in India

India is the fifth largest retail destinationin the World.

Retailing is the largest employer afteragriculture(employs more than 8% ofthe population).

About 7% of the population of India isinvolved in retailing unlike 20% in USA.


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Retailing in India

Trading volume in retail industry isaround 10000 billion INR.

Organised retail industry is only 3.5% ofthe total retail industry.

Organised retail industry is expected to

grow at 25% to 30% p.a.


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Evolution of retail in India

Historic/rural reach: Weekly markets,village fairs and melas.

Traditional reach: Convenience stores,mom and pop/Kiranas.


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Evolution of retail in India

Government supported: PDSoutlets,khadi stores and co-operatives.

Modern formats: Exclusive brandoutlets,super/hypermarkets,depar----

tmental stores and shopping malls.


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Sectorwise breakup of retail

industry Textiles and Fashion = 39%

Footwear = 9%

jewellery and watches= 7%

Mobile handsets and = 3%

accesories.

health and beauty = 2%

Food and groceries = 18%


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Sectorwise breakup of retail

industry Durables = 13%

Books, music and gifts = 3%

Home = 3%

Pharma = 2%

Entertainment = 1%


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Structure of retailing in India

Rural retailers.

Small traditional retailers:

Organised modern retailers and

Malls.


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Structure of organised apparel

retailing Single brand outlets.

Multibrand clothing stores.

Departmental stores.


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Rural retailers

Chaupal sagar - owned by ITC India ltd.

Hariyali bazaar owned by DCM group.


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Small traditional retailers

Kiranas: Traditional mom and popstores.

Kiosks

Street markets.


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Organised modern retailers

Corporate houses:

Tatas - trent,

RPG group food world,

health and glow etc.,ITC wills lifestyle,

Rahejas Shoppers stop,Future group bigbazaar,

Hiranandhini haiko,

DLF Dt cinemas.


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Organised modern retailers

Dedicated brand outlets:

Nike, reebok, Zodiac etc.

Multibrand outlets:Vijay sales, Viveks etc.

Manufacturers/exporters:

Pantaloons, Bata, Weekender etc.


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Organised apparel retailers

Arvind mills.

Madura garments.

Raymonds.

Royal classic polo Planet fashion.

Wills lifestyle.

Westside.

S.kumar's.


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Foreign retailers

Single brand outlets:Nike, Mango, Addidas, Rolex, Louis

vuitton, versace. Multi-brand retailers:

Marks and spencer.


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Large Indian retailers

Hypermarkets:Big bazaar, Giants, star and shoprite.

Departmental stores:Lifestyle, Piramals, Trent, Pantaloonsand Shopper's stop.


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Factors responsible for the

development of retail sector Rising incomes and improvements in

infrastructure are enlarging consumer

markets and converging consumertastes.

Shift in comsumer demands to foreign

brands like Mcdonalds, pansonic etc. Growth ofE - tailing.


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Challenges of retailing in India

Regulations affecting real estatepurchases.

Taxation which favours small retailers.

Lack of trained workforce.

Instrinsic complexity of retailing rapid

price changes, constant treat of productobsolescence and low margins.


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FDI in retailing

GOI allows only single brand outlets tobe set in India, with not more than 51%

foriegn shareholding. Multibrand outlets can have franchises in

India.


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Foreign retailers in India

Single brand outlets:Rolex, Nike, Addidas, Louis vuitton,

Versace, Gucci and Giorgio Armani etc. Tie-ups:Escada S-kumar's, Bombay dyeing

Carrefour, Moja-tana Nike, Dairy farm Foodworld, Pantaloons Lee cooper,galaxy, gini and jony, liberty.


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Challenges faced by foreign

retailers Premium brands derive their aspirational

value from their exclusivity and

inaccessibility, they tend to lose theirfranchise when they become easilyaccessible.

51%-49% ratio does not give foreignpartners sufficient control over Indianoperations.


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Conclusion

The demanding assertive Indian consumer

is now sowing the seeds for an exciting

retail transformation that has alreadystarted bringing in larger interest from

International Brands / formats.

With

the advent of t

hese players, t

he race ison to please the Indian consumer and its

time for the Indian Consumer to sit back

and enjoy the hospitality of being treated

like a King.

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Retailin India