Presented by Arshdeep soni 112261003 Pankaj ranwa 112261009 Rohit goyal 112261012Abhilash maheshwari 112261014
What is Retailing Most common form of doing business It consists of selling merchandise from a permanent location (a retail store) in small quantities directly to the consumers. These consumers may be individual buyers or corporate. Retailer purchases goods or merchandise in bulk from manufacturers directly and then sells in small quantities Shops may be located in residential areas, colony streets, community centers or in modern shopping arcades/ malls.
Retailing Defined According to Kotler: ´Retailing includes all the activities involved in selling goods or services to the final consumers for personal, non business uses. The Indian retail is dotted by traditionally market place called bazaars or haats comprises of numerous small and large shops, selling different or similar merchandise.
Retailing in India The Indian retail industry is broadly divided into two segments:1. Organized retailing2. Unorganized retailing.
Organized Retail Organized retail is nothing but a retail place where all the items are segregated and brought under one roof. 4-9% of the total volume Licensed/registered retailers These include the corporate-backed hypermarkets and retail chains, and also the privately owned large retail businesses. Examples: Pantaloon Retail, K Raheja Group, Tata group, RPG group, Piramal Group, Bharti-Walmart, Reliance, AV Birla Group
Unorganized Retail It refers to the traditional formats of low-cost retailing The unorganized retailing comprises of ‘mom and pop’ stores or ‘kirana’ stores. These are very small shops located near the residential areas, popularly known as ‘baniya shops’.
Percentage of organized &unorganized retail across the Globe
Retail in future According to a study the size of the Indian Retail market is currently estimated at Rs. 704 cr which accounts for a meager 3 % of the total retail market. As the market becomes more and more organized the Indian retail industry will gain greater worth. The Retail sector in the small towns and cities will increase by 50 to 60 % pertaining to easy and inexpensive availability of land and demand among consumers.
Contd… According to a report, from the year 2003 to 2008 the retail sales are growing at a rate of 8.3% per annum. With this the organized retail which currently has only 3% of the total market share will acquire 15-20 % of the market share by the year 2010.
Factors for the bright future of retail The income of an average Indian is increasing and thus there is a proportional increase in the purchasing power. Indian economy and its policies are also becoming more and more liberal making way for a wide range of companies to enter Indian market. Indian population has learnt to become a good consumer and all national and international brands are benefiting with this new awareness
Contd.. Another great factor is the internet revolution, which is allowing foreign brands to understand Indian consumers and influence them before entering the market. Due to the reach of media in the remotest of the markets, consumers are now aware of the global products and it helps brands to build themselves faster in a new region