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The Great Indian RetailThe Great Indian Retail

Sector Sector ““ A PROMOSING FUTURE” A PROMOSING FUTURE”

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Jo Dikhta Hai Vo Bikta HaiJo Dikhta Hai Vo Bikta Hai

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Group MembersGroup Members

Krishan Kumar SharmaKrishan Kumar Sharma

Mayur MalaniMayur Malani

Mayank Kumar PanchoriMayank Kumar PanchoriSandeep MishraSandeep Mishra

Monica MotivarshaMonica Motivarsha

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ContentsContents

ObjectiveObjective Research methodologyResearch methodology IntroductionIntroduction

Retail in IndiaRetail in India

FDI in IndiaFDI in India Segment analysisSegment analysis Customer loyaltyCustomer loyalty

Comparative analysis of retailersComparative analysis of retailers Recommendations / SuggestionsRecommendations / Suggestions ConclusionConclusion BibliographyBibliography

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Objective

To understand the segmentation inretail sector

To study about the loyalty scheme runby mall

Comparative analysis of all retailers

To understand the consumer behaviour Recommendations / Suggestions

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Research methodology

Primary Source Survey

Questionnaire

Secondary Source Company profile and product profile

Data is collected from various sites,

books, journals, etc.

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Introduction

Meaning: Retailing consists of the business

activities involved in selling goods and

services to consumers for their personal,family, or household use.

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Introduction (cont.)

Retail is the world’s largest privateindustry with annual sales over $ 6600billion

There are 9 retailers in Fortunate 100companies

Wal-Mart annual sales over $ 250billion

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Retail in India

Market size of Indian retail sector isapproximately $ 200 billion

The Indian retail sector is highlyfragmented with 97% of its businessbeing run by the unorganized retailers

like the traditional family run storesand corner stores

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Retail in India (Cont.)

The sector is the largest source of employment after agriculture

Over the past few years, the retailsales in India are hovering around 33-35% of GDP as compared to around

20% in the US

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Retail in India (Cont.)

Source: Ernst & Young, The Great Indian Retail Story

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Retail in India (Cont.)

Current Scenario Present Value of Indian retail market is

estimated is around Rs. 12,00,000 crore

Annual growth rate is 5.7%

Retail market for food and grocery with aworth of Rs. 7,43,900 crore

Around 15 million retail outlets helpIndia win the crown of having thehighest retail outlet density in the world

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FDI in India

The only opening in the retail sector so far hasbeen to allow 51% foreign stakes in single brandoutlet

FDI will bring in technology, quality standards andmarketing thereby, leading to new economicopportunities and creating more employmentgeneration.

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FDI in retail

Inflow of investment and funds.

Improvement in the quality of employment.

Generating more employment.

Increased local sourcing.

Provide better value to end consumers.

Franchising opportunities for local entrepreneurs.

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Segment Analysis

Food and grocery retail Largely unorganized

All India Food consumption is Rs.900000 Crore

Revenue from unorganized Rs.40000Crore(approx.5%)

Apparel retail

Readymade & western outfit are growing 40-45% annually

Estimated to grow Rs.300 Crore next 3 years

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Segment Analysis (Cont.)

Gems and jewellery retail India is largest consumption of gold in the world

(est. 1000 tones)

Market value is approx.Rs.65000 crore

Pharma retail Market value is approx. Rs.30000 Crore

More of organized pattern Eg. Apollo Pharmacies

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Segment Analysis (Cont.)

Music retail Market value is approx. Rs.1100 crore Organized retail is round 14%(Rs150 crore)

36% is consumed by pirated market

Book retail Market value over Rs.3000 Crore

Organized is around 7%(Rs.210 crore) 50% is text and curriculum of total sales

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Segment Analysis (Cont.)

Consumer durables retail Market value is estimated USD 4.5 billion

Organized sector is 5%

Consumer electronics like TV sets, audiosystems, VCD players, and otherappliances

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Customer loyalty

Loyalty

Spurious

LoyaltyNo

Loyalty

Talent

Loyalty

Strong

Strong

Weak

Weak

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RETAILERS CURRENT TURNOVER  IN Rs. Crore

TARGET TURNOVER IN Rs. crore

OUT LETS PROJECTED OUTLETS

Pantaloon 700 1200 31 74

RPG 550 1600 TO 1700 1 12

Shopper’s Stop 400 N.A 13 40

Life Style 230 650 7 15

West Side 120 N.A 13 21 TO 23

EBOMY 85 150 8 14

Pyramid 72 190 3 19

GLOBUS N.A N.A 7 15 TO 17

Comparative analysis of some retailers

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Recommendation/Suggestions

Recommendation for Government Grant industry status to retail sector Establish minimum quality assurance standards Reformulate the small scale industrial policy Amends labor laws Improve logistics and utilities infrastructure Develop IT infrastructure

Recommendation for retail industry

Invest in human resource development Develop mechanisms for understanding consumer

behavior and satisfying consumer needs Improve supply chain infrastructure

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Conclusion

Need to continuously focus ongenerating more value for consumer

The future of organized retail in India

is bright one Investing in organized retail sector in

India is a beneficial scheme for an

investor The Retail Industry is going to be thenext boom industry after I.T.

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Bibliography

Book/magazines references Business world magazine

Internet references

www.businessworld.com www.bharatbook.com www.retailbiz.com www.timesofindia.com www.economics.com www.indiainfoline.com www.valuenotes.com www.researchandmarkets.com

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