Retail Market Segment India

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Retail market segment information for India

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Retail Market Segment India

  1. 1. ByRavi Thomas
  2. 2.  Motion seeking withdrawal of the governments decision to allow foreign direct investment in multi- brand retail defeated Strong signal to foreign investors Enable the government to take up further economic reforms A milestone in the economic reforms saga Growing foreign investor confidence
  3. 3.  51% FDI in multi-brand retail sector 100% FDI in single-brand retail sector Very high current account deficit-Foreign Investment critical Retail stores to be set up in states that have agreed to FDI or will agree to rules of FDI At least 50 per cent of total FDI brought in shall be invested in ‘back-end infrastructure’ within three years of the induction of FDI Where ‘back-end infrastructure’ will include capital expenditure on all activities, excluding front-end units
  4. 4.  Retail sales outlets to be set up in cities with a population of more than 10,000,000 people as per 2011 Census May also cover an area of 10 km around the municipal/urban agglomeration limits of such cities In states or Union territories not having cities with population of more than 10,000,000 as per 2011 Census, retail sales outlets may be set up in the cities of their choice, preferably the largest city and may also cover an area of 10 km around the municipal/urban agglomeration limits of such cities Indias first retail sector focused business school is coming up at Hyderabad from Global Retail Education and Training (GREAT), India, in partnership with the Australian Retail College (ARC).
  5. 5.  Indian retail sector are likely to create 10 million jobs over the next 10 years according to Indian Staffing Federation (ISF) Measures will open doors for the less skilled and less educated people Logistics and supply chain companies are also expected to make rapid progress Close integration within the organized retail chains will support the small producers in gaining access to the latest processes, systems and technologies available in the market
  6. 6.  According to A T Kearneys Global Retail Development Index (GRDI) 2012:India has emerged as the fifth most favorable destination for international retailers The Indian retail industry is pegged at US$ 500 billion Indias retail sector is expected to grow to about US$ 900 billion by 2014, according to a report by global consultancy and research firm, PricewaterhouseCoopers (PwC) Retail market is expected to reach US$ 1.3 trillion by 2020 Retail growth of 15-20 per cent expected over the next five years
  7. 7.  Cash and carry represents an opportunity worth around US$149.19 billion of the US$497.29 billion annual retail business in India Indias e-retail industry is likely to touch US$1.26 billion by 2015, up from US$361.66 million currently, as per an industry body report Consumer markets in emerging market economies like India are growing rapidly owing to robust economic growth
  8. 8.  Rural retail chains growing rapidly Indias franchise market is growing at a healthy pace with tier II and tier III cities gradually getting attracted to the network of retailers and franchisers India has witnessed impressive growth of around 30-35 per cent year-after-year over the last 4-5 years with an estimated turnover of US$4 billion according to MrGauravMarya, President, Franchise India Companies focusing on rural markets then going global IKEA plans to set up 25 single-brand retail stores in India through its 100 per cent subsidiary
  9. 9.  Italys Damiani to set up a 51:49 joint venture FMCG Company Procter & Gamble (P&G) is planning to invest more than Rs 1,500 crore (US$279.4 million) over a period of time in its unlisted Indian arm P&G Home Products to ramp up operations in the country US-based accessories manufacturer Fossil Inc has proposed to invest Rs 20 crore (about $4.5 million) in India in a fully owned single brand retail venture Pavers England to invest $20 million in its Indian single brand retail strategy Walmart, Carrefour and Tesco are interested in entering the Indian market in front-end operations French retail giant Auchan Group to open franchise stores in India Brooks Brothers to invest Rs 6.22 crore ( Rs1=0.02 UD$) IKEA proposes to bring in Rs 10,500 crore of foreign direct investment (FDI), the largest in the category so far ( Rs1=0.02 UD$)
  10. 10.  Weak supply chain in India: Lot of losses of fruits and meats and other products Specialized supply line services for optimizing and reducing loss Sound infrastructure Good point of sale and inventory management and other software Medium and small scale manufacturers to keep shelves filled Trained work force Real estate and floor space
  11. 11.  E-mail: ravi@ravipthomas.com

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