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Rural retailing in India
Rural retailing in India
Rural retailing in India
Rural retailing in India
Rural retailing in India
Rural retailing in India
Rural retailing in India
Rural retailing in India
Rural retailing in India
Rural retailing in India
Rural retailing in India
Rural retailing in India
Rural retailing in India
Rural retailing in India
Rural retailing in India
Rural retailing in India
Rural retailing in India
Rural retailing in India
Rural retailing in India
Rural retailing in India
Rural retailing in India
Rural retailing in India
Rural retailing in India
Rural retailing in India
Rural retailing in India
Rural retailing in India
Rural retailing in India
Rural retailing in India
Rural retailing in India
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Rural retailing in India

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  • 1. Rural Retailing
  • 2. Contents
    • Rural Markets.
    • Retail – Supply chain in India.
    • Major Players in rural retailing.
    • Retail – A boon for farmers.
    • Horticulture Revolution.
    • Public Private Partnership.
    • Challenges in retailing.
    • Trends in retialing.
    • Scope in retailing.
  • 3. Rural Markets.
    • Overview
      • 70% population lives in villages
      • About 66,000 villages are in India
      • Efforts by players to bridge the urban-rural gap
  • 4. Retail- Supply Chain in India
    • India is a leading destination for retail investment
    • Expected to grow at a rate higher than GDP.
    • Efficient logistics and supply chain is one of the
    • key factors for success.
    • Retail sector proves to be a backbone to a host of allied sectors (eg.: agriculture, logistics etc).
    • Source:
    • -Kearney’s 2006 Global retail development index position.
    • -KPMG report
  • 5. Contd…
    • Perspective of Rural Markets
      • Consumer market point of view
      • Economic market point of view
      • Social market point of view
  • 6. Importance of Rural Markets.
    • Rural per capita consumption expenditure grew by 11.5%
    • Household having income between 90,000 to 2,00,000 are increasing by 5.7%
    • Projected growth rate of such household is 11% by 2009-10
  • 7. Contd…
    • 22% population having income more than 10,00,000 are in rural areas
    • Rural employment has gradually shifting from Agriculture
  • 8. Contd…
    • Logistics industry contributes to 3% GDP in India as compared to 53% contribution in China.
    • Outsourcing logistics can be one of the options.
    • Effective SCM and Inventory Management enables:
      • Realistic ordering lead times.
      • Averting problems.
      • Facilitating efficient planning and allocations.
  • 9. Contd.
    • Effective SCM is based on 4 “R’s”
      • Right time.
      • Right place.
      • Right price.
      • Right quantity.
  • 10. Contd…
    • Advantages of effective SCM & Inventory Management:
      • Sustained inventory reduction by 60%
      • Improved forecast by 30%
      • Enhanced store shelf stock by 8%
      • Increased sales by 20%
      • Reduced logistics as much as by 4%
  • 11. Contd…
    • Key players in logistics have started focusing on enhanced services.
    • Cold chain:
      • Is one of the core requirements especially when it comes to food retailing.
      • Industry growing at a rate of 20-25%.
  • 12. Major Players
    • Godrej –
      • Adhaar – Initiative of Godrej Agrovet Ltd.
      • One stop solution for all needs of rural populace.
      • Positioned as `Godrej Aadhaar – ‘Khushiyon Ka, Khushhali Ka’.
      • Multi category retail outlet.
      • Tie up with Apollo Hospitals.
  • 13. Condt.
    • Objective:
      • Improve the productivity.
      • Higher returns & improved cost benefit ratio.
      • Crop advisory benefits.
      • Soil and water testing services.
      • Crop finance.
      • Supply of agri-inputs & Animal feeds.
      • Information services.
  • 14. Contd…
    • Reliance Industries Ltd.-
    • Rural Retail Hubs (RRHs).
    • Procuring fresh fruits and vegetables, their handling, storage and processing.
    • Back-end support.
    • Tie ups with northern states of India.
  • 15. Contd…
    • MAX New York Life-
      • Triveni Khushali Bazar (TKB).
      • TKB has now 45 rural malls.
      • Expansion of sugar production capacity.
        • Children’s education.
        • Daughter’s marriage.
        • Other customised policies.
        • Flexible premium payment options.
  • 16. Contd…
    • Sold approx. 2.3 lack policies.
    • 25% of policies received from rural areas.
  • 17. Contd…
    • Indian Oil-
      • Kisan Seva Kendra (KSK).
      • IOC plans to set up 5,000 KSKs across India by 2012. Currently, 738 KSKs have been established.
      • Selling agro-inputs.
      • Banking, communication and Internet facilities, also offer financial services.
  • 18. Retail- A boon for Indian farmers.
    • F&G items account for 74% of total retail sales for un-organized and 18% for organized retailers.
    • Companies aiding farmers.
    • Modernized farming practices.
    • Retail chains are sourcing produce through three routes
      • Village markets or mandis
      • APMC yards.
      • Directly linking with farmers.
  • 19. Contd…
    • Bharti Telecom launched its field fresh foods with ELRO
    • Reliance is investing about Rs. 50,000 crores in farm-to-farm linkage
    • Major players investing to introduce modernized practices in agriculture
    • Introduction of “Aadhar” by Godrej
  • 20. Horticulture: A Revolution
    • Retail boom.
    • Horticulture growth is estimated to be 4% in India as compared to 56% globally.
    • Huge investment – World Bank.
    • 2% growth in production
  • 21. Public Private Partnership
    • Operations run jointly with the private sector
    • Roads and transportation has been improved through PPP
    • Warehousing and supply chain has been improved through PPP
  • 22. Challenges in Retailing.
    • Changing consumer buying behavior:
      • Increase in disposable income.
      • Western Influences.
      • Increase in women work force.
      • Desire for luxury items.
      • Demand for better Quality.
  • 23. Contd…
    • Retail space constraints:
      • Increase in realty prices.
      • Concentration of other retailers in the same locality.
      • Non-availability of required space.
  • 24. Contd…
    • Human resource, a major challenge:
      • Lack of trained professionals.
      • High attrition rate.
      • Low-salary/ wages.
  • 25. Contd…
    • Other Issues
      • Infrastructure.
      • Political Opposition.
      • Entry of global giants.
  • 26. Trends in retailing.
    • Entry of new retail formats:
      • Large supermarkets (3,500-5,000 sq.ft).
      • Mini supermarkets (1,000-2,000 sq.ft).
      • Convenience stores (750-1000 sq.ft).
  • 27. Contd.
    • A potential goldmine:
      • Estimated to be US$ 200 billion, of which organized retailing makes up 3 percent or US$ 6.4 billion.
      • Growth of department stores is estimated at 24%.
      • Ranked second in a Global Retail.
  • 28. Contd…
    • Entry of corporate groups
    • I.T in Retail
  • 29. Scope in retailing.
    • The future of retail will be driven by the following factors:
      • Higher level of working women
      • Increase in nuclear families
      • Expected to grow to 25-30% by the year 2010 .
      • Expected growth to USD 280 billion by 2010-11 .

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