An Analysis of the Indian

Retail Industry Organised

and Unorganised .
Submitted to:-
Prof. Biswajeet Patnaik
By -: Monica Sharma
BBA-III(2012-2015)
Retailing


Retailing consists of the sale of goods or merchandise,
from a fixed location such as a department store or kiosk,
in small or individual lots for direct consumption by the
purchaser. Retail comes from the French word retaillier
which refers to "cutting off, clip and divide" in terms of
tailoring (1365). It first was recorded as a noun with the
meaning of a "sale in small quantities" in 1433 (French).
Its literal meaning for retail was to "cut off, shred, paring".
Like the French, the word retail in both Dutch and German
(detailhandel and Einzelhandel respectively) also refer to
sale of small quantities or items.
Retail types

There are three major types of retailing.

The first is the market, a physical location
where buyers and sellers converge. Usually
this is done on town squares, sidewalks or
designated streets and may involve the
construction of temporary structures (market
stalls).
The second form is shop or store
trading
Some shops use counter-service, where
goods are out of reach of buyers, and must
be obtained from the seller. This type of
retail is common for small expensive items
(e.g. jewellry) and controlled items like
medicine and liquor. Self-service, where
goods may be handled and examined prior
to purchase, has become more common
since the Twentieth Century.
A third form of retail is virtual retail


where products are ordered via mail,
telephone or online without having been
examined physically but instead in a catalog,
on television or on a website.


FDI in retail Pros and Cons

Pros
-It will cut intermediaries between farmers and the
retailers, thereby helping them get more money for their
produce
- It will help in bringing down prices at retail level and
calm inflation
- Big retail chains will invest in supply chains which will
reduce wastage, estimated at 40 percent in the case of
fruits and vegetables
- Small and medium enterprises will have a bigger market,
along with better technology and branding
- It will bring much-needed foreign investment into the
country, along with technology and global best-practices
- It will actually create employment than displace people
engaged in small stores
- It will induce better competition in the market, thus
benefiting both producers and consumers

Cons

- It will lead to closure of tens of thousands
of mom-and-pop shops across the country and
endanger livelihood of 40 million people
- It may bring down prices initially, but fuel
inflation once multinational companies get a
stronghold in the retail market
- Farmers may be given remunerative prices
initially, but eventually they will be at the
mercy of big retailers
- Small and medium enterprises will become
victims of predatory pricing policies of
multinational retailers
- It will disintegrate established supply chains
by encouraging monopolies of global retailers

Future of Retail in India



The Indian retail market is estimated at US$ 350 billion. But
organised retail is estimated at only US$ 8 billion. However,
the opportunity is hugeby 2010, organised retail is
expected to grow to US$ 22 billion. With the growth of
organised retailing estimated at 40 per cent (CAGR) over
the next few years,
Reasons for Retail Growth:
favourable demographics

rising consumer incomes

real estate developments

especially the emergence of new shopping malls,

availability of better sourcing options - both from
within India and overseas - and changing lifestyle.
Organized versus Unorganized Retailing

Changing Age Profile And Disintegration Of
Joint Family

Growing Disposable Income

Income growth and structural changes will
fuel growth

Organised Retailing Will Expand Sharply

Foreign Investment Will Play a Bigger Role
in Retailing
CONCLUSION:

A further testimony to the fact that the technology is
being taken seriously, is its deployment in strategic
sectors like defense the US Department of Defense
(DoD) has mandated the use of RFID tags at the case
and pallet level amongst all its suppliers so that it can
have complete visibility of all its goods and assets. The
Indian army could benefit hugely from adopting RFID
technology.
Some of the other sectors where RFID is expected to
witness widespread deployment includes food,
pharma, aerospace, automotive, transport and
logistics, and electronics.
EPC/RFID technology has great potential in counterfeit
detection across product categories a killer application for
India which can liberate from the scourge of counterfeiting
in pharma drugs, automotive parts, food products, etc.
For a company, it is imperative first to develop a clear
understanding of how RFID affects supply chain dynamics,
and then be willing to question and change the ways in
which supply chain planning and execution is done.

THANK YOU