Varied window displat : now a days retailers know that if your product is dosplayed properly acc. to the culture of the state you are operating in , will definaltey help you
Count the country and then speak on the 4 things showed here
This is not all there is still more
In 2881, India had the highest shop density in the world, with 11 outlets for every 1,888people.. The high density restricts their scope of expansion, and thereby ofupgrading. This also means that, except in the case of severely segmented markets, thissector stands little chance of competing against large retailing corporations operatingwith economies of scale.
It will bring out many positive changes i.e. improvement in supply chain management. It is noticed that 35-40% of the agriculture produce perishes every year due to poor infrastructure in India and there are only 6522 cold storages in India mainly used for potatoes.Investment in technologies and infrastructure by the retail corporations will act as a boon for our economy.These org will come in with technical know how and expertise and will train indian manpower and hone their skills as suitable for the industry.Moreover small players who have already been working with Internationalchains like Wal-Mart/Carrefour in India have benefitted a lot by manufacturing their private label products & also showcasing ourproducts in their stores by reaching end consumer directly at competitiveprices which would otherwise launching and building a new brand is a task in itself.It is understood that MNC that invest in retail in india would also source indian goods to their international outlets in a big way, thus provide a boost to indian exports. Indian retail chains would get integrated with global supply chain since Fdi will bring in technology, quality standards and marketing.
technological know how, soil quality improvement, pesticide and fertilizer usage,grading, sorting, capabilities and increasing availability of low interest credit forfarmers.
After observing the opportunities and challenges, the views of different org. and the benefits that are likely to take place in indian economy..the panel recommends that fdi in multi brand retail should be allowed but a cap of 49% should be imposed to protect the interest of small and medium size retailers and give them a breathing space to adjust themselves to the new environment and also work to bring in their competitive advantage. China opened the fdi 49% in 1992 and has been immensely benefitted due transfer of technical know how and increased exports there are currently appx 40 foreign players contributing to org retail sector. Now, its time for india to open the borders and be benefitted by the retail growth.A major proportion of initial FDI should be invested in developing back endinfrastructure. For e.g. the foreign partners need to tell the total amount thatthey will be investing in next five years. Out of these atleast 80% of the FDIhas to be made in initial three years.We talked of large percentage of agriculture produce getting wasted annually. Well investment in technology and supply chain will surely prevent such wastages consequently curb the supply caused inflation which is currently hovering around 15.46%.
It is well noted that urban migration has created a significant excess of labour in India's largeand medium-sized cities. Retail jobs can offer a viable career opportunity for the urbanunemployed who may lack in formal education and training, just as they can for those inrural areas. Rather than stipulating employment conditionalities that may obstructemployment generation in urban areas, alternative incentive structures may be used toencourage companies to train and employ youth in the areas in which retail outlets arelocated - both rural and urban.Additionally, if incentive structures or conditionalities are imposed, they should be mandatedupon both domestic and foreign funded retail chains equally.Furthermore, it is being discussed that retailers should be restricted to larger citiesof 10 lakh or more. This point is in direct conflict with a stipulation requiring the hiring ofrural youth, who will likely be unable to travel to their place of employment in a consistent,cost-effective manner.
And u can well see difference in the share of spending in these 3 categories by rural and urban households.
Retail investments and operations are typically executed with local and regionalconsiderations in mind, so a national legal framework cannot truly be effective. State andlocal licensing requirements are sufficient to protect small retailers, and otherwise regulatethe industry.Implementing new regulations will likely hold back growth in this sector, as well as weaken itsAttendant benefits on SME suppliers, consumers and supply chain investment. Rather thanimpose such regualtion, the government may consider policies and incentives that directlybenefit small retailers. These incentives can include, for example, access to low-cost capital,training on quality and technical standards, and infrastructure investment in their ownbusinesses.
An investment is..<br /> The commitment of money or capital to purchase financial instruments or assets in order to gain profitable returns.<br />
An investment becomes foreign investment when..<br />Foreign Investment through<br /> Investment done by citizens and government of one country (home country) invest in industries of another country (host country).<br />Foreign Direct Investments<br />Foreign Institutional Investors<br />
47 global fortune companies & 25 of Asia's top 200 companies are retailers.
US, EU & Japan constitute 80% of world retail sales.</li></ul>Retail Sector at Global Level<br />
<ul><li> Retailtrade in Europe employs 15% of the Europeanworkforce (3 million firms and 13 million workers).
The world’s population is poised to expand 50% by 2050. The world currently comprises of 78% poor, 11% middle income and 11% rich.</li></li></ul><li>Contribution Of Retail Industry to GDP of Various Economies<br />
Accounts to 45% of GDP.</li></li></ul><li>Fiscal Growth<br /><ul><li>FDI in Retail sector will resolve problems regarding foreign exchange in India.</li></ul>Evergreen Need<br /><ul><li>The life-long basic needs will keep on driving the Retail Industry.</li></li></ul><li>Let the liberalisation be in steps rather than being a leap.<br />
<ul><li>Major challenge faced by Organized retail sector: In Retail, over 70 per cent of the labor force in both sectors combined (organized and unorganized) is either illiterate or educated below the primary level.
Labor Laws</li></ul>Lack of Skilled Workforce<br />
<ul><li>A strong competition from mom and pop shops:-
Shrinkage<br />In India every year there is pilferage of US$ 65 billion whereas in USA it is just 1-2%.<br />Lack of Logistic Infrastructure <br />Due to lack of proper storage infrastructure post-harvest losses of farm produce is Rs. 1 trillion cr. annually.<br />
Corruption<br />In terms of corruption India stands at 85th position. Because of paper work, corruption is present along the entire supply chain. <br />Additional Intermediaries<br />In India, there are additional 2-3 intermediaries as compared to USA. <br />They dominate the value chain.<br />They flout mandi norms & their pricing lacks transparency.<br />
Technology Hurdle<br /> India is still in developing stage in installing and managing an effective IT system especially in rural areas which hampers the overall growth of organized retail sector.<br />
Banks are reluctant to finance retailers because of falling demand of organized retailers in India as it has witnessed failure of many stores like Spencer's, Subhiksha, etc.<br />Problem in Raising Funds<br />
<ul><li>Taxation laws in India favors only small retail businesses.
Implementation of non-uniform VAT across states.
Octroi and entry tax in some states.</li></ul>Taxation & Stringent Approvals<br />
<ul><li>No Automatic Approval for FDI- Only 51% FDI is allowed to one brand shops in Indian retail sector.
Complications in issuance of licenses like a hypermarket in Mumbai must apply for 29 unique licenses & then when it has to come up with second store it has to apply for same 29 licenses all over again.</li></li></ul><li>Inflation Effect on Indian Retail Industry<br />
Factors Leading to Difference in Skill Intensity Across Retail Segments<br />Complexity/Technical Nature of Product<br />Level of Customer Involvement<br />Store Characteristics<br />Nature of Supply Chain<br />Changes in the Product Nature/ Type<br />Price Segment(Luxury, Mass market etc.<br />Intensity of Skill Requirement<br />
Multi Tasking</li></ul>Supply<br /><ul><li>Limited Retail Training Opportunities
Higher Level Skills</li></li></ul><li>Current Training/Education Infrastructure<br /><ul><li> The Retailers Association of India (RAI) </li></ul> - Diploma and Degree Programs in Retailing<br /> - Bharti Retail and Vishal Retail<br /> - 5,000 trained persons<br />
Under-developed organized retail sector.</li></li></ul><li>FDI can be a powerful catalyst to spur competition in the retail industry.<br />It can bring about:<br />Supply Chain Improvement<br />Investment in Technology<br />Manpower and Skill development<br />Efficient Small and Medium Scale Industries<br />Increase in exports<br />‘FDI In Retail- A Policy Perspective’, - FICCI and ICICI<br />
Major Retail Players Entering Into India<br />
Benefits Envisaged To Agriculture Through The Opening Of FDI<br /><ul><li>Investment into warehouse and cold storage chain will result in significant efficiency on supply chain.
Farmers benefited through direct marketing and contract farming programme.
Improves farm production through modern techniques.
Increasing availability of low interest credit for farmers.</li></li></ul><li>Future Predictions<br /><ul><li> In the last four year, the consumer spending in India climbed up to 75%.
By the year 2013, the organized sector is also expected to grow at a CAGR of 40%.
The total number of shopping malls is expected to expand at a CAGR of over 18.9 per cent by 2015. </li></li></ul><li>Recommendations<br />The initial cap on investment could be pegged at 49%.<br />FDI should be leveraged to create back-end infrastructure.<br />FDI will be a powerful driver to curb inflation.<br />
?????<br />To develop our rural sector ,should conditionality’s be put on the FDI funded chains relating to employment?<br />For example, should we stipulate that at least 35% of the jobs in the retail outlets should be reserved for the rural youth? <br />
Urban migration<br />Opportunity to urban and rural unemployed<br />Alternative incentive schemes<br />
Road Map<br /><ul><li>Industry experts predict that the next phase of growth in the retail sector will emerge from the rural markets.
By 2012 the rural retail market is projected to have a total of more than 50 per cent market share.
Apparel, along with food and grocery, will lead organised retailing in India.(RNCOS)</li></li></ul><li>What additional steps should be taken to protect small retailers? <br /> Should an exclusive legal and regulatory framework be established to protect their interests?<br />?????<br />
National legal framework cannot be effective.<br />Hamper growth in retail sector.<br /> Incentives directly to benefit small retailers. <br />
Restrict the number of stores that can be operated in a city. <br />Allow access to the small retailers to the stores through special windows.<br />Recommendations <br />