Presented by:

Ravi Verma

Mba 1st year

RETAIL INDUSTRY IN INDIA

MBA :-104

CONTENTS Serial no:-

Topic Slide no:-

3 Introduction 3

4 Retail Marketing 4

5 Retail scenario in India 5

6 Centre to over turn Delhi govt’s rejection of FDI in retail?

6

7 FDI in retail: investment up to 49% through automatic route.

7

8 Types of Retailers 8,11

9 Types of wholesalers 9,14

10 Top 10 Retailers Worldwide Comp. 15,16

11 COUNTRY RETAIL SECTORE’S SHARE IN GDP (IN %)

18

12 Top Largest Shopping Malls in India 19,2o

13 Major players of Retailing 21

14 Key drivers of the Indian Retail Industry 22

15 Vision, Mission and Values 23,26

16 Porter’s Five Forces model 27,30

17 SWOT Analysis for Retail 31,34

18 Retailing Sector Analysis Report 35,

INTRODUCTION The word ‘retail’ means to sell or be sold

directly to individuals. Retail is India’s largest industry, and arguably the one with the most impact on the population. It is the country’s largest source of employment after agriculture, has the deepest penetration to rural India, and generates more than 10 percent of India’s GDP. However, retailing in India has so far, been mostly in the hand of small disorganized entrepreneurs

RETAIL MARKETING INCLUDES ALL THE ACTIVITIES INVOLVED IN SELLING GOODS OR

SERVICES DIRECTLY TO FINAL CONSUMES FOR PERSONAL, NON-BUSINESS USE. ANY

ORGANIZATION SELLING TO FINAL CONSUMERS -- WHETHER A

MANUFACTURER, WHOLESALER, OR RETAILER – IS DOING RETAILING. IT DOES

NOT MATTER HOW THE GOODS OR SERVICES ARE SOLD (BY PERSON, MAIL, TELEPHONE,

VENDING MACHINE, OR INTERNET) OR WHERE THEY ARE SOLD (IN A STORE, ON

THE STREET, OR IN THE CONSUMER’S HOME).

Retail Marketing

RETAIL SCENARIO IN INDIA

The Indian retail market is poised to reach USD 1.3 trillion by 2020 and therefore it

will provide a tremendous growth opportunity for retail and FMCG players a like. With all multinational brands coming to India, there is going to be explosion of

jobs in the retail sector .

 

CENTRE TO OVERTURN DELHI GOVT’S REJECTION OF FDI IN RETAIL?

Earlier this month, the Aam Aadmi Party government had written to the Department of Industrial Policy and Promotion about its decision to reverse the Sheila Dikshit government’s approval of FDI in Delhi. However, as per an article in Hindu, the Centre has claimed the power to reject the Delhi government’s proposed de-notification of FDI in the State. The article quotes sources in the Industry Ministry as saying that after FDI in retail is notified by the government in a State, the powers to de-notify it are with the Centre, and not with the State government. The Ministry, however, is yet to communicate this to the Delhi government.

http://www.retailangle.com/Newsdetail.asp?Newsid=5068&Newstitle=Centre_to_overturn_Delhi_govt%92s_rejection_of_FDI_in_retail?

 

.

FDI IN RETAIL: INVESTMENT UPTO 49% THROUGH AUTOMATIC ROUTE

The Government has so far received 63 applications for starting single brand retail operations since it permitted100 % FDI in single brand retail. Now the government has made the norms easier. Single-brand retailers, keen to enter India, need not seek any regulatory approvals if their investment is up to 49 %. In this case they can come in through automatic route. Any investment over and above this will need an approval

 http://www.retailangle.com/Newsdetail.asp?Newsid=4934&Newstitle=FDI_in_retail:_Investment_upto_49%_through_automatic_route

TYPES OF RETAILERS

Department Store – This type of retailer is often the most complex offering a wide range of products and can appear as a collection of smaller retail stores managed by one company.

Supermarkets – Generally this type of retailer concentrates in supplying a range of food and beverage products.

Warehouse retailers – This type of retailer is usually situated in retail or Business Park and where premises rents are lower.

Speciality Retailers – Specialising in specific industries or products, this type of retailer is able to offer the customer expert knowledge and a high level of service.

E-tailer – This type of retailer enables customers to shop on-line via the internet and buy products which are then delivered.

Convenience Retailer – Usually located in residential areas this type of retailer offers a limited range of products at premium prices due to the added value of convenience.

Discount Retailer – This type of retailer offers a variety of discounted products.

http://www.the-reseller-network.com/content/88/types-of-retailers/

TYPES OF WHOLESALERS Merchant Wholesalers – These

wholesale suppliers own and produce a product or service and resell their products to resellers, retailers, distributors and other wholesalers.

General Wholesalers - Wholesalers that fall into this category will usually buy large quantities of products from one or more suppliers

Speciality Wholesalers - This type of wholesaler will resell products in a specific industry or product category, but may have products from multiple suppliers.

Specific Product Wholesalers - These are wholesalers who only supply 1 type of product for example footwear or computers.

Discount Wholesalers – This type of wholesaler will supply significantly discounted stock.

Drop Ship Wholesalers - This type of wholesaler will complete the sale of a product

On-line Wholesaler - Wholesalers who sell their products on-line offer discounted prices as they can reduce their overheads such as rent and rates of physical premises.

http://www.the-reseller-network.com/content/84/types-of-wholesalers/

TOP 10 RETAILERS WORLDWIDE COMP.

Rank Retailer No. of store owned

Sales in US$ Millions

1 Wall-Mart Stores Inc. (USA)

3445 $180,787

2 Carrefour Group (France)

8130 $61,047

3 The Kroger Co. (USA)

4178 $49,000

4 The Home Depot, Inc. (USA)

1134 $45,738

5 Royal Ahold (Netherlands)

7150 $45,729

6 Metro AG (Germany)

2169

7 Kmart Corporation (USA)

2105

8 Sears, Roebuck and Co. (USA)

2231

9 Albertson's, Inc. (USA)

2512

10 Target Corporation (USA)

1307

COUNTRY RETAIL SECTORE’S SHARE IN GDP (IN %)

India 10 USA 10 China 8 Brazil 6

http://www.economywatch.com/business-and-economy/indian-retail-industry-size.html

TOP LARGEST SHOPPING MALLS IN INDIA

1st. Lulu International Shopping Mall – Kochi in kerela

http://traveljee.com/top-10/top-10-largest-shopping-malls-in-india-857412

PHOENIX MARKET CITY

MUMBAI PUNE

MAJOR PLAYERS OF RETAILING

- Food and grocery- Fashion - Others- Food world- Shoppers' Stop- Vivek's- Subhiksha- Westside - Planet M- Nilgris - Lifestyle- Music World- Adani- Rajiv's- Pyramid - Crossword - Nirma-Radhey- Globus- Life spring

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

luxury items Growing preference for branded products and

higher aspirations Growing liberalization of the FDI policy in the past

decade Increasing urbanisation, Rising affluence amid consumers

VISION, MISSION AND VALUES

VisionMatrix Business Services will be the most

recognized professional service organization in the verification business. We will achieve a right balance between exceptional client service, and financial success of the firm.

MissionEnabling enterprises to mitigate business risk

and increase business efficiency.

Values

1. Client Focus:- Client comes first: We will offer solutions and services to our clients that create highest level of value and client delight.

2. Quality:- Commitment to Excellence: We will set high standards of excellence with our delivery capabilities and compliance with best-in-class quality practices

3. Integrity:- Ethically driven: We are committed to highest standards of corporate governance and to setting integrity benchmarks for the industry we operate in.

4. People:-People are our assets: We are an equal opportunity employes driven by teamwork and a belief in diversity, providing outstanding growth opportunities for our employees and associates.

5. Growth:- Always moving forward: We will consistently grow our business year after year, ensuring long term value creation for our share Whole.

 

http://www.matrixbsindia.com/missions.html

Porter’s Five Forces model

Risk of entry by potential competitors: Potential competitors refer to the firms which are not currently competing in the industry but have the potential to do so if given a choice.

The various barriers to entry are:-Economies of scaleBrand loyaltyGovernment RegulationCustomer Switching CostsAbsolute Cost AdvantageEase in distribution

Rivalry among current competitors: Rivalry refers to the competitive struggle for market share between firms in an industry.

Extent of exit barriers Amount of fixed cost Competitive structure of industry Presence of global customers Absence of switching costs Growth Rate of industry Demand conditions

Bargaining Power of Buyers: Buyers refer to the customers who finally consume the product or the firms who distribute the industry’s product to the final consumers.

Bargaining Power of Suppliers: Suppliers refer to the firms that provide inputs to the industry. Bargaining power of the suppliers refer to the potential of the suppliers to increase the prices of inputs( labour, raw materials, services, etc)

http://www.managementstudyguide.com/porters-model-of-competetion.htm

SWOT ANALYSIS FOR RETAIL

Threat of Substitute products: Substitute products refer to the products having ability of satisfying customers needs effectively. Substitutes pose a ceiling (upper limit) on the potential returns of an industry .

http://www.managementstudyguide.com/porters-model-of-competetion.htm

SWOT ANALYSIS FOR RETAIL

Strengths:-The first step in doing a SWOT analysis for retail entails identifying certain strengths. One possible strength may be the retailer's financial backing, meaning it has plenty of capital and access to bank loans.

Weaknesses:-When reporting weaknesses, the retail store or company should start with its most palpable weaknesses.

Opportunities:-Another step in a retail SWOT analysis is identifying key opportunities in the market. There are a myriad of opportunities a retailer may discover through both its sales force and ma

Threats:-A retailer can identify certain threats through a SWOT analysis. Threats can include a decrease in consumer demand, a recession, price wars among key competitors, or even an increase in competition.

RETAILING SECTOR ANALYSIS REPORT

India is the 5th largest retail market in the world. The country ranks fourth among the surveyed 30 countries in terms of global retail development. The current market size of Indian retail industry is about US$ 500 bn (Source: IBEF) and is expected to grow at the rate of 15-20% p.a. The retail industry is expected to increase to US$ 750-850 bn by 2015 (according to a report by Deloitte). Retailing has played a major role the world over in increasing productivity across a wide range of consumer goods and services. In the developed countries, the organised retail industry accounts for almost 80% of the total retail trade. In contrast, in India organised retail trade accounts for merely 8-10% of the total retail trade. This highlights a lot of scope for further penetration of organized retail in India.www.equitymaster.com/research-it/sector-info/

retail/Retailing-Sector-Analysis-Report.asp

CONCLUSION:-

For a start, these retailers need to invest much more in capturing more specific market. Intelligence as well as almost real-time customer purchase behavior information. The retailers also need to make substantial investment in understanding/acquiring some advanced expertise in developing more accurate and scientific demand forecasting models

THANK YOU (: