OVERVIEW EVOLUTION INTRO TITLE START RETAILING IN INDIA Submitted by: Muzahid Khan Integrated BBA+MBA firstname.lastname@example.org EVOLUTION TITLE START INTRO OVERVIEW
EVOLUTION TRENDS OVERVIEW INTRO TITLE INTRODUCTION India retail industry is the largest industry in India, with an employment of around 8% and contributing to over 10% of the country's GDP. Retail industry in India is expected to rise 25% yearly being driven by strong income growth, changing lifestyles, and favorable demographic patterns. A further increase of 7-8% is expected in the industry of retail in India by growth in consumerism in urban areas, rising incomes, and a steep rise in rural consumption INTRO TITLE OVERVIEW EVOLUTION TRENDS
TRENDS TRENDS EVOLUTION OVERVIEW INTRO AN OVERVIEW
It is the second fastest growing economy of the world
Potential to be the third largest economy in terms of GDP in next few years
It ranks high amongst the top 10 FDI destinations of the world
World bank states, India to be worlds second largest economy after China by the year 2050
Stable and investor friendly Central Government at the helm of affairs
Introduction of Value Added Tax or VAT and tax reforms
High degree of professionalism and corporate ethics
Excellent Investment opportunities in Indian retail sector and in allied sectors; sure and high returns on investments .
OVERVIEW INTRO EVOLUTION TRENDS TRENDS
TRENDS GROWTH TRENDS EVOLUTION OVERVIEW EVOLUTION OF INDIAN RETAIL Traditional family run convenience stores are too well established in India . The retail stores in India are essentially dominated by the unorganized sector or traditional stores. Infact the traditional stores have taken up 98 percent of the Indian retail market. Now stores run by families are primarily food based and the set up is as Kirana or the 'corner grocer' stores. Basically they provide high service with low prices. If the stores are not food based then the type of retail items available are local in nature. The tough competition for convenience stores are coming from organized retail stores dealing in food items. EVOLUTION OVERVIEW TRENDS TRENDS GROWTH
GROWTH OPPORTUNITIES TRENDS TRENDS EVOLUTION EMERGING TRENDS There is a fantastic rise in the Indian organized retail sector in a very short period of time between 2001 and 2006. Eventually, out of the shadows of the unorganized retail sector, India has a chance of tremendous economic growth, both in India and abroad. The relaxation by the government on regulatory controls on foreign direct investments has added to the process of the growth of the Indian organized retail sector. TRENDS EVOLUTION TRENDS GROWTH OPPORTUNITIES
OPPORTUNITIES OPPORTUNITIES GROWTH TRENDS TRENDS EMERGING TRENDS With the arrival of the Transnational Companies (TNC), the Indian retail sector will undergo a transformation. At present the Foreign Direct Investments(FDI) is not encouraged in the Indian organized retail sector but once the TNC'S get in they inevitably try to oust their Indian counterparts. This would be challenging to the retail sector in India. The trends to follow in the future: The Indian Organized retail sector will grow up to 10% of total retailing by 2010. No one single format can be assumed as there is a huge difference in cultures regionally. The most encouraging format now would be the hyper marts. The hyper mart format would be further encouraged with the entry of the TNCs. TRENDS TRENDS GROWTH OPPORTUNITIES OPPORTUNITIES
OPPORTUNITIES CHALLENGES OPPORTUNITIES GROWTH TRENDS GROWTH FACTORS IN INDIAN ORGANISED RETAIL SECTOR The growth factors in Indian organized sector are various but it is mainly due to the fact that India's economy is booming. Also, the rise in the working population which is young, pay- packets which are hefty, more nuclear families in urban areas, rise in the number of women working, more disposable income and customer aspiration, western influences and growth in expenditure for luxury items. All these are the factors for the growth in Indian organized retail sector. Many Indian companies have entered the retail industry in India and this is also a factor in the growth of Indian organized retail sector GROWTH TRENDS OPPORTUNITIES OPPORTUNITIES CHALLENGES
CHALLENGES CHALLENGES OPPORTUNITIES OPPORTUNITIES GROWTH OPPORTUNITIES IN INDIAN ORGANISED RETAIL SECTOR The various opportunities in the organized retail sector in India are mainly there for the Indian consumers behavior pattern has changed. Now the Indian consumer gets more hefty pay- packages, is younger, a large number of women are working, western influences, and more disposable income have opened a lot of opportunities in Indian organized retail sector. The Indian consumer wants to shop, eat and get entertainment in one place and is have also given Indian organized retail sector an opportunity to grow. OPPORTUNITIES GROWTH OPPORTUNITIES CHALLENGES CHALLENGES
CHALLENGES EMPLOYMENT CHALLENGES OPPORTUNITIES OPPORTUNITIES OPPORTUNITIES IN INDIAN ORGANISED RETAIL SECTOR Many Indian companies seeing the various opportunities in organized retail sector in India have entered it. Pantaloons have decided to increase its retail space to 30 million square feet with an investment of US$ 1 billion. Reliance Industries Limited is targeting for annual sales of US$ 25 billion by 2011. The opportunities in the organized retail sector in India have also increased with the desire of many global retail giants to set up shop here. The global retail giants who are entering the Indian organized retail sector are: Tesco Wal- Mart Metro AG Carrefour SA OPPORTUNITIES OPPORTUNITIES CHALLENGES CHALLENGES EMPLOYMENT
EMPLOYMENT GROWTH CHALLENGES CHALLENGES OPPORTUNITIES CHALLENGES FACING THE INDIAN ORGANISED RETAIL SECTOR The behavior pattern of the Indian consumer have undergone a major change. This have happened for the Indian consumer is earning more now, western influences, women working force is increasing, desire for luxury items and better quality. He now wants to eat, shop, and get entertained under the same roof. All these have lead the Indian organized retail sector to give more in order to satisfy the Indian customer. The biggest challenge facing the Indian organized retail sector is the lack of retail space. With real estate prices escalating due to increase in demand from the Indian organized retail sector, it is posing a challenge to its growth CHALLENGES OPPORTUNITIES CHALLENGES EMPLOYMENT GROWTH
GROWTH THANKS EMPLOYMENT CHALLENGES CHALLENGES CHALLENGES FACING THE INDIAN ORGANISED RETAIL SECTOR
Trained manpower shortage is a challenge facing the organized retail sector in India. The Indian retailers have difficultly in finding trained person and also have to pay more in order to retain them. This again brings down the Indian retailers profit levels. The Indian government have allowed 51% foreign direct investment (FDI) in the India retail sector to one brand shops only. This have made the entry of global retail giants to organized retail sector in India difficult. This is a challenge being faced by the Indian organized retail sector.
But the global retail giants like Tesco, Wal-Mart, and Metro AG are entering the organized retail sector in India indirectly through franchisee agreement and cash and carry wholesale trading.
Many Indian companies are also entering the Indian organized retail sector like Reliance Industries Limited, Pantaloons, and Bharti Telecoms. But they are facing stiff competition from these global retail giants. As a result discounting is becoming an accepted practice. This too bring down the profit of the Indian retailers. All these are posing as challenges facing the Indian organized retail sector.
CHALLENGES CHALLENGES EMPLOYMENT GROWTH THANKS
THANKS GROWTH EMPLOYMENT CHALLENGES START EMPLOYEMENT GENERATION BY INDIAN ORGANISED RETAIL SECTOR Lots of employment generation by Indian Organized Retail Sector in the near future. India is going through a radical economic change. Though it is very infant stage, people can feel the climate is changing. The unorganized retailers takes the lion's share in the Indian retail sector, but the organized retailers are growing at a good pace, and promises an increase of proportion of 9 - 10% by 2010. This is to be the largest sector after the agricultural sector. An economic growth on a monumental scale is offered by the Indian retail sector, equally in the national and international market which in turn will generate a huge source of employment and a variety of options for the consumers. The Ernst & Young's report 'The Great Indian Retail Story', anticipates that the Indian retail sector would come up with 2 million employment opportunities within the year 2010. START EMPLOYMENT CHALLENGES GROWTH THANKS
THANKS GROWTH EMPLOYMENT TITLE START GROWTH OF RETAIL COMPANIES IN INDIA Reasons for the fast Growth of Retail Companies in India:
The retail companies are found to be rising in India at a remarkable speed with the years and this have brought a revolutionary change in the shopping attitude of the Indian customers. The Growth of Retail Companies in India is facilitated by certain factors like -
existing Indian middle classes with an increased purchasing power
rise of upcoming business sectors like the IT and engineering firms
change in the taste and attitude of the Indians