India's Retailing Future
-
Upload
sandeep-shrivastava -
Category
Documents
-
view
222 -
download
0
Transcript of India's Retailing Future
-
7/31/2019 India's Retailing Future
1/20
Unlimited Opportunity
Retail Scenario in
India
Prepared by : Raj Kumar Mishra
Guide : Dr. Susheel Pande
-
7/31/2019 India's Retailing Future
2/20
CONTENTS
-
7/31/2019 India's Retailing Future
3/20
-
7/31/2019 India's Retailing Future
4/20
Retail has played a major role world over in increasing
productivity across a wide range of consumer goods
and services. The impact can be seen in countries like
USA, UK, Mexico, Thailand and more recently China.
Economies of countries like Singapore, Malaysia,
Hongkong, Srilanka and Dubai are also heavily assisted
by the retail sector.
Retail is the second largest industry in the US both in
number of establishments and number of employees.
The Global Retail Industry
-
7/31/2019 India's Retailing Future
5/20
Highest shop density in the world Around 12 million shops in the country
Just 0.9 million in the US catering to more
than 13 times of the Indian retail market size
Around 11 shop for every 1000 people
Market
Urban
Rural
% Split
45
55
-
7/31/2019 India's Retailing Future
6/20
Sales through super markets and departmental stores are small
compared with overall retail sales.
Indian Retail - dominated by unorganized
sector
Approximately 2 million Mom and Pop Shops
Share of organized retail sector is only 4.6%
FDI in the retail sector not permitted to protect local retailers
(excepting for single brand & cash and carry formats. In this FDI
is 51%.)
Indian retail sector is one of the least concentrated in the world.
The top five companies hold a combined market share of less
than 2%
India is third largest market in Asia and Oceania, behind Japan
and China.
-
7/31/2019 India's Retailing Future
7/20
-
7/31/2019 India's Retailing Future
8/20
-
7/31/2019 India's Retailing Future
9/20
retailing refers to the individuals standalone retail units in traditional formats, which receive
their supplies through multiple intermediaries.
retail on the other hand refer to the
systematically structure retail trading activities
undertaken by comparatively larger business entities,
which more often operate a chain of stores in multiple
geographic locations, under a brand name appropriate
for the merchandise handle
-
7/31/2019 India's Retailing Future
10/20
-
7/31/2019 India's Retailing Future
11/20
-
7/31/2019 India's Retailing Future
12/20
Percentage of Organized Retail
85 81
5540 36
3020 20
4.6
0
20
40
60
80
100
US
A
Taiwa
n
Malaysia
Thailan
d
Braz
il
Indonesia
Polan
d
Chin
a
India
-
7/31/2019 India's Retailing Future
13/20
Future Group Big Bazaar, Pantaloon, e-zone
Reliance Reliance Fresh
Tata Croma Electronic Retail
Videocon Next Electronic Retail
Mobile Phone Retail
Restaurants McDonalds
RPG Group Foot world, Health and Glow
Rahejas Shoppers Stop Cinema Chains PVR, DT by DLF, Cine Max, Reliance Big
Entertainment.
-
7/31/2019 India's Retailing Future
14/20
India is fast becoming the retaildestination of the world. The retail
market in India is anticipated to grow
427 billion USD by the year 2012.
Reasons
Indias booming Economy Growing Middle Class
Increasing disposable income
-
7/31/2019 India's Retailing Future
15/20
Inspite of global slowdown, there are several
reasons for expecting growth of the organized
retail sector in future in India. Among these the
following reasons stand out quite strongly.
Paradigm shift in consumer life style. Enormous potential for rural retail.
Scope for increased FDI in retail.
Entry of big players
Increased service orientation, quality & convenience
Technology trend (RFID, Tunnel scanning, ERP & GRM
system, Advt. planning & scheduling system (APS)
modern payment methods.
-
7/31/2019 India's Retailing Future
16/20
Increased Female Workforce
The no. of female heads of household grew by 16% from
2000 to 2003.
In type A cities 72% of teenaged girls want to work after
marriage working women from 15% of the total urban female
population & this is expected to rise to over 20% by 2010. Increase in ratio of working women
Apparel : Rs. 2209 Cr., Stationary : Rs. 621 Cr.
Toys : Rs. 389 Cr., Products : Rs. 1978 Cr. Health & Beauty
(not including cosmetic or services) Rs. 415 Cr.
Indian Kid spend nearly Rs. 291 Cr. As pocket money as per
estimate account to an international survey, brand loyalty
starts by 04 yrs. of age.
-
7/31/2019 India's Retailing Future
17/20
-
7/31/2019 India's Retailing Future
18/20
Retailing as an industry has still long way to go, to become
truly flourishing industry, retailing needs to cross the
following hurdles:
Automatic approval is not allowed for foreign investment in retail
Regulations restricting real estate purchases and cumbersome locallaws.
Taxation, which favours small retail businesses
Absence of developed supply chain and integrated IT management.
Lack of trained workforce
Low skill level for retailing management
Intrinsic complexity of retailing viz : low price changes, constant
threat of product, obsolescence and low margins
-
7/31/2019 India's Retailing Future
19/20
In India the retail sector is the second largest employer after agriculture,although it is highly fragmented and predominantly consists of small
independent, owner managed shops.
The country is witnessing a period of boom in retail trade, mainly on account
of a gradual increase in the disposable incomes of the middle and upper-middle class household.
More and more corporate houses including form of mall and shopping center
builders and managers. New formats like super market and large discount
and department store have started influencing traditional looks. For retail sector to achieve further growth, the spread of organized retailing
has to become a national phenomenon.
-
7/31/2019 India's Retailing Future
20/20