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Prof:- Prema B.
RETAIL SECTORS
Retail Sector
Evolution of Retail
It was a seller market still than this point of time with the limited no of brands available
Barter chain Single brand franchise chain Standalone large store Chain of large stores And Finally Malls
<_
EVOLUTION OF RETAIL
Economist says that Boom Has Started of Retail due to more spending Capacity of Indians Emerging of retail started in brief in patterns like changing face of the Indian retail sector Provide customers with 3 Vs i.e. Value, Variety and Volume.
What is Retail?
A retail is one who stocks the producers goods and is
involved in the act of it to the individual consumer, at the Margin of Profit . consumer with the manufacturing and distribution chain. quantities the bulk.
As such retailing is the last link that connects the individual Selling Directly to consumer selling in smaller units / Very high numbers near to neighborhood
Contd
Food Books & Magazines Fashion & Clothing Personal Care Optical Consumer Electronics Sport & Leisure Home Ware Footwear & Leather Toys & Games Jewellery & Watches Furniture Petrol
Manufacturers
Whole seller
Organized Sector
Distributor
Retailer
Unorganized Retailing Hawkers (Kirana) Weekly Markets Organized retailing Convenient / Departmental stores Factory outlets and discounts Market Supermarkets Wholesalers market Company and Franchises showroom
Importance
Largest and fastest growing sector in India.
Unorganized 97 %
Organized 3%
by 2016.
would further jump up to nearly 12% in next few years. By 2010, retails contribution to national GDP in totality is likely to be 22%.
people selling groceries, consumer goods, fruits and vegetables. India's retail industry is worth $300bn (148bn) Eg: Bharti is expected to invest 60 Billion with the largest retail Walmart
Price
Demand
Government Policies
The retail industry in India is growing at a significant pace. However,
there are several problems faced by the industry. The major challenges for the organized sector include:
Taxation laws that favor small retailers.
need to emulate worldwide retail practices such as accuracy in financial reporting, increased levels of corporate governance and greater accountability among employees.
Foreign Equity does not go beyond 51 percent. Additions to the product categories to be sold under single
3% 8%
2%
9% 38%
13% 27%
USA India
EU Russia
Japan Others
China
Key Players
UK = US$ 406 Bn
Highly evolved US market has WalMart taking only 8% market share UK market has Tesco with only 13.4% market share China market still does not have a clear leader
SWOT Analysis
Strength
Increasing demand driven by the countrys young working
population
household consumption
Weakness
Lack of expertise in Supply Chain Management
Inadequate Infrastructure
Stringent Labour Laws Lack of specialized professionals in Industry Lack of industry status. Government Restrictions on FDI Non-Availability of Government Land.
Opportunities
Change in consumer behavior pattern and increase in disposable income. It is estimated that 15 million people would be engaged in Retail and Retail support activities by 2010
Indian rural markets offer a sea of an opportunity for the retail sector.
Upcoming international Players Healthy prospect for the fashion industry.
Threats
Indian taxation system favors small retail business.
Competition from unorganized Sector to the organized
Sector.
Middle class Psychology.
Conclusion
Huge Scope for Development
Competitive Market Organized retail is fast growing at a rate of
30% YOY
Greater opportunity for employment
Suggestions
Need to explore PPP (Public Private Partnership) More exports bring more foreign direct investments There would remain future scope for improvements
in agriculture, small, and medium scaled with the help of the Indian retail sector More investment in supply-chain infrastructure. Sole focus on front-end with minimal back-end linkages (Logistics, cold chain, vendor & farmer development, etc.) Transactional approach, minimal focus on customer service over the life-cycle
Recession Strategy
Offering more & more special discounts.
The Great Indian Shopping Festival.
Case Study