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impact of globalization in indian retail industry


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It describes about the indian retail scenario & FDI & retail types

It describes about the indian retail scenario & FDI & retail types

Published in: Business, News & Politics

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  • 1. Impact of Globalization in Indian Retail IndustryM.BHUVANESWARI* MUTHUKUMAR.M**Author CO-AUTHORA P/ Hindusthan college of I MBA/ Hindusthan college ofEngineering & Technology Engineering & Technology
  • 2. ABSTRACTRetailing & present status in Indianscenario Contribution in Indian economy Reasons of increasing trend in retail Future of retail
  • 3. Retailing Distribution channel function passing from supplying firms or manufactures themselves, and then sells these directly to consumers Makes the utility of the product Emphasize on the convenience of consumer Exists in various format like Super markets, Hypermarkets, Departmental stores, and Specialty stores
  • 4. Ways undergone by retail sector inIndia  could be categorised into organised(3%) & unorganised(97%)  After 1991 LPG, organised sector come to light  Now purchasing trend changes as per capita increases
  • 5. Organised various retailstoresCauses Changing life style Globalization effect on consumers Modern retailing in the form of shopping center, multi-stored malls Younger population target
  • 6. Growth in India Mostly unorganized retail market Huge potential market for Organized sector focusing on urban customer Accounts for 14% of GDP in india Expected to grow at 25% annually Mobile & food industry dominating in retail
  • 7. Why such a fast growthMiddle classes with an increased purchasing power Rise of IT & engineering firms Changes in taste & preferences Effect of globalization Demography Dynamics-60% indian below 30 years Plastic revolution Urbanisation
  • 8. FDI Scenario- Next India’sstep Government policy in retail sector allows 100% foreign investment in wholesale cash-and-carry and single- brand retailing prohibits investments in retail trading In1997, the government imposed restrictions on FDI in retail sector In 2006, these were lifted and opened in single-brand retailing and in cash- and-carry formats UPA-II taken steps but opposition
  • 9. Players entered Metro and Shoprite Tesco entered India through an alliance with Trent (Tata Group) Jv entrant-Louis Vuitton, Marks & Spencer Plc, GAS, Armani Franchise entrant-McDonald’s, KFC, Domino’s
  • 10. REGULATORY FRAMEWORK FOR INDIANRETAIL INDUSTRY Still there is no specific rules & regulation some related Laws Shop and Establishment Act Standards of Weights and Measures Act Provisions of the Contract Labour (Regulations and Abolition) Act Customs Act The Companies Act The retail also have to follow certain regionalrules and regulations on the basis of the stores’location
  • 11. Conclusion Consumer’s expectations are changing along with the economic pursuit what they possess Conventional type of kirana shops without any ambience will not go in the near future Bureaucratic people may give importance to this factor and help the retail sector to achieve its expected boom like the service sector
  • 12. ….ContdAlso helps customer to get better information bounded products at lesser price FDI permission in retail will expand the market into globalization as more competitive
  • 13. ….Thank you