Fdi in indian retail sector0......docx
-
Upload
mohammed-gaus -
Category
Education
-
view
145 -
download
1
Transcript of Fdi in indian retail sector0......docx
FDI IN Indian Retail Sector
Name: Mohammed Gaus
Course Name and Number: EBM640
Date: 16th-Nov-2013
Instructor’s Name. K.R Kaushik
MAII Stratford University
Objective
Foreign direct
investment (FDI)
Retail Sector
SINGLE AND MULTI
BRAND RETAIL
PRESENT SHAPE OF
FDI
Advantages Disadvantag
es
Conclusions &
Suggestions
Foreign direct investment (FDI)
A source of capital and investment involving foreign
control of production A source of exploitation of
Recourse A channel of technology transfer and industrial
development
Retail Sector
According to Philip Kotler “retailing includes all the
activities involved is selling goods or
Service directly to final consumers for
personal.
SINGLE AND MULTI BRAND RETAIL
SINGLE BRAND RETAIL : • It implies that a retail store with foreign investment can only sell
one brand.• Eg: Nokia , Reebok and Adidas Only
MULTI BRAND RETAIL : • Retail store can sell multiple brands under one roof.• Global retailers like Wal– Mart & Tesco can open stores offering a
wide range of household items and grocery directly to consumers in the same way as the “ Kirana” stores.
PRESENT SHAPE OF FDI Retail industry – Second largest employer ( with an estimated 35 million
people engaged by the industry).
New policy will allow multi brand foreign retailers to set up shop only in cities with a population of more than 10 lakhs as per the 2011 census.
( there are 53 such cities)
Foreign retailers will be required to put up 50% of total FDI in infrastructure .
Investor will need to source atleast 30% of manufactured or processed products from small retailers
According to the newspaper MINT– US has said that FDI in retail trade would be beneficial to both India and U.S.
In Jan 2012 SINGLE BRAND FDI hiked to 100 % from 51%.
Advantages
INDIAN FARMERS • Farmers will be the biggest beneficiary of FDI in retail
who will be able to improve their productivity.
PARTERNSHIP OPPORTUNITY • Indian Retailers have reason to be happy as it
involves a lot of learning that could take them to higher profitability.
Disadvantages
The new system will displace the traditional shops and petty retail shops in markets and mohallahs.
There will be greatest possibility for
competition for the small shop keepers in
town or villages
Conclusion and Suggestions.Higher Incomes
Favorable Demographies
Changing Lifestyles and Preferences
Real estate boom
Thanks