Retail Sector

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Retail Sector

  1. 1. RETAIL SECTOR Made by-Proton Samridha Pandey
  2. 2. Roadmap <ul><li>Introduction </li></ul><ul><li>Organized retailing </li></ul><ul><li>Unorganized retailing </li></ul><ul><li>Retailing Formats in India </li></ul><ul><li>Growth </li></ul><ul><li>Challenges in India </li></ul><ul><li>Conclusion </li></ul>
  3. 3. Introduction <ul><li>Retailing is one of the pillars of the economy in India and accounts for 35% of GDP. </li></ul><ul><li>In India a large chunk of consumer expenditure is on basic necessities like food items .Therefore food beverages and tobacco account for 71 % of retail sale. </li></ul><ul><li>The retail industry is divided into organized and unorganized sector. </li></ul>
  4. 4. Organized retailing <ul><li>The Organized retail market is growing at 35 percent annually. </li></ul><ul><li>Follow rules and regulations. </li></ul><ul><li>Registered with government. </li></ul><ul><li>Income tax number, sales tax number, vat number. </li></ul>
  5. 5. Unorganized retailing <ul><li>The growth of unorganized retail sector is pegged at 6 percent </li></ul><ul><li>Small and scattered </li></ul><ul><li>Outside government control </li></ul><ul><li>Jobs are low paid and irregular </li></ul><ul><li>Terms are irregular </li></ul>
  6. 6. Retailing formats in India <ul><li>Supermarkets </li></ul><ul><li>Hypermarkets </li></ul><ul><li>Convenient stores </li></ul><ul><li>Discount stores </li></ul><ul><li>Mom and pop shops </li></ul>
  7. 7. Growth <ul><li>Rising incomes and improvements in infrastructure. </li></ul><ul><li>Liberalization of the Indian economy. </li></ul><ul><li>Consumer preference for shopping in of environment. </li></ul><ul><li>Availability of quality real estate and mall management practices. </li></ul><ul><li>Shift in consumer demand to foreign brands. </li></ul>
  8. 8. Challenges <ul><li>Automatic approval is not allowed for foreign investment in retail. </li></ul><ul><li>Regulations restricting real estate purchases and cumbersome local laws. </li></ul><ul><li>Taxation, which favors small retail businesses. </li></ul><ul><li>Absence of developed supply chain and integrated IT management. </li></ul>
  9. 9. <ul><li>Lack of trained work force. </li></ul><ul><li>Low skill level for retailing management. </li></ul><ul><li>Intrinsic complexity of retailing – rapid price changes, constant threat of product obsolescence and low margins. </li></ul>
  10. 10. Conclusion <ul><li>FDI in organized sector. </li></ul><ul><li>Urbanization- consumerism. </li></ul><ul><li>Production in Fast Moving Consumer Goods. </li></ul>
  11. 11. Thank you
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