RETAIL.ppt

5/19/2018 RETAIL.ppt

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GROWTH ANDCHALLENGES OF INDIAN

RETAIL MARKET

ByDR. L. MANNIVANAN


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RETAIL

According to Kotler: Retailing includes all the

activities involved in selling goods or services to

the final consumers for personal, non business

use.

The Indian retail is dotted by traditionally market

place called bazaars or haats comprises of

numerous small and large shops, selling different

or similar merchandise .


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ORGANISED ANDUNORGANISED

Organised retailing refers to trading activities

undertaken by licensed retailers, that is, those

who are registered for sales tax, income tax, etc.

These include the corporate-backed

hypermarkets and retail chains, and also the

privately owned large retail businesses.

Unorganised retailing, on the other hand, refers

to the traditional formats of low-cost retailing,

for example, the localkirana shops, owner

manned general stores, paan/beedi shops,

convenience stores, hand cart, etc


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ORGANISED v/s UNORGANISED


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COMPONENTS OF RETAILSECTOR


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SOME OF THE KEY PLAYERS INORGANIZED RETAIL


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RETAIL IN INDIA, US & CHINA


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GROWTH OF INDIAN RETAILMARKET

The contribution of retail industry to Indias GDP

is more than 13%.

Indian retail industry (organized as well as

unorganized) spreads over more than 6 million

outlets (2.4 million urban and 3.6 million in

rural).The retail industry is expected to grow at a rateof 12% per annum for the next 5 years.

The Indian retail sector has experienced highgrowth rate over the last decade with a visibleshift towards unorganised retailng to organizedretailng formats.


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GROWTH OF INDIAN RETAIL MARKET

The retail sector in India has shown a healthy growth and is fast emerging as

one of the largest sectors in the economy.

The organized Indian retail market is slated to grow at a CAGR of 40%,touching US$ 107 billion by 2013.

The Industry has been growing at a compound annual rate of 6.4% since1998.


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A number of large corporate houses Tatas, Rahejas,

Piramalss, Goenkas have already made their foray into this

arena, with beauty and health stores, supermarkets, self-

service music stores, new age book stores, every-day-low-price stores, computers and peripherals stores, office

equipment stores and home/building construction stores.

Today the organized players have attacked every retail

category.


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MALLS IN INDIA

The total concept and idea of shopping

has undergone change. Modern retailing

has entered into the Retail market in

India as is observed in the form of

bustling shopping centers, multi-storied

malls and the huge complexes that offer

shopping, entertainment and food all

under one roof.


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The BMI India Retail Report for 2010 says that the total retail sector is approximately US$

353 billion.

India's retail sector is estimated to touch US$ 833 billion by 2013 and US$ 1.3 trillion by

2018.

Traditonal retail is probable to grow at 5% and reach a size of US$ 650 bilion while organized

retail is probable to grow at 25% and reach a size of US$ 20 bilion by 2020.

India's retail market is expected to grow at 7% over the next 10 years, reaching a size of US$

850 bilion by 2020.


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Key Drivers Of The Indian

Retail Industry Emergence of nuclear families

An increase in the double-income households trend

Large working population

Reasonable Real estate prices

Increase in disposable income and customer aspiration

Demand as well as increase in expenditure for luxur items

!rowing preference for branded products and higher aspirations

!rowing liberali"ation of the #DI polic in the past decade

Increasing urbanisation$ Rising affluence amid consumers


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ENTRY OF MNCs

The world's largest retailer by sales, Wal-Mart Stores Inc andSunil Mittal's Bharti Enterprises have entered into a joint

venture agreement and they are planning to open 10 to 15cash-and-carry facilities over seven years.

Carrefour, the worlds second largest retailer by sales, is

planning to set up business entities in the country.

The worlds fifth largest retailer by sales, Costco WholesaleCorp (Costco) known for its warehouse club model is alsointerested in coming to India and waiting for the rightopportunity.

Tesco Plc., plans to set up shop in India with a wholesalecash-and-carry business and will help Indian conglomerate

Tata group to grow its hypermarket business.


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BOTTLENECKS

A long way to meet international standards

Lack of efficient supply-chain management

Lack of required retail space

No fixed consumption pattern Shortage of trained manpower

Lack of proper infrastructure and distribution channel

Different structure of sales tax in different states. Taxationlaws that does not favor small retailers.


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CONCLUSION The future of the India Retail Industry shows potential with the growing of

the market, government policies becoming more favorable and the emergingtechnologies make facilitating to retailing.

Young Indians are purchases mobile phones, fashion, accessories, food and

beverages, quick service restaurants, etc. who makes the contribution in

growth of retail sector.

The retail sector is grooming with rapidly and also shifting from

unorganised sector to organised sector retailing.

Online retail business is another format which has high potential for growth

in the near future.

Those who want to enter in the Indian retail market now can learn about

local dynamics, develop market insights and establish leadership positions.


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Thank You!

Documents

RETAIL.ppt