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Role of fdi in retail brand by bhawani nandan prasad gurgaon india

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Role of FDI in retail brand by bhawani nandan prasad gurgaon india

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Role of fdi in retail brand by bhawani nandan prasad gurgaon india

  1. 1. FDI IN MULTI BRAND RETAIL- A PARADIGM SHIFT TO CONSUMERBHAWANI NANDAN PRASADSMP - IIM Calcutta & MBA - STRATFORD UNIVERSITYUSA, M.TECH. IT
  2. 2. RETAIL IN INDIA IS THE LARGEST CONTRIBUTORTO GDP- ORGANIZED RETAIL IS STILL VERY LOW
  3. 3. INDIA – A VERY DIVERSE COUNTRYThere is cultural and religious diversity like nowhere else in the world,a thriving democracy along with bureaucratic inconveniences andserious infrastructure deficiencies.
  4. 4. CHANGING CONSUMER IN INDIA The growth of Consumerism in India is one of thekey drivers fuelling growth in organized retailing Several demographic trends in India that are factorsin the growth of organized retail.. Growing Young Population Rapid Income Growth Growing Urbanization Higher Propensity to Spend Buy now Save later Seems fairly safe to assume that Organized Retailwill grow rapidly in India and will affect unorganizedtraditional retailers
  5. 5. LOCAL RETAILER – RESTRICTED ABILITY TOCATER FULLY TO INDIAN CONSUMER’SGROWING NEEDSAn outlet run locally bythe owner or a caretakerlacks technical &accountingstandardization, thesupply chain is also runlocally to meet localneeds, therebyrestricting choice for anIndian Consumer
  6. 6. SECTOR WISE REVENUE PENETRATION ININDIAFood & Beverages vertical constitutes to largest contributor to therevenue but has the lowest Organized Retail penetration of lessthan 1% , so is likely targeted sector for FDI
  7. 7. WHAT IS FDI IN MULTI BRAND RETAIL Allowing Foreign Retailers to set up retail storesacross India Foreign Capital Investment Huge Capital Inflow to Boost EconomicActivities Capital for Infrastructure Development Sound financial back up to sustain losses upto long gestation period Investment on technology to drive efficiency
  8. 8. BENEFITS OF FDI Advanced Knowledge to deliver better Productivity Inventory Management Merchandising New Technology Foreign Low-cost Big players will adopt their BestPractices of Integrated Supply chain Lower prices benefit Consumers
  9. 9. BENEFITS OF FDI Foreign Retailer will ensure better governance todeliver Good quality products Improved customer service Better Shopping experience to Consumer Foreign Retailer will also promote links forDomestic suppliers & Farmers to global markets Strict Quality & Safety standards Profitable & Reliable Market to sell the products
  10. 10. BENEFITS OF FDI Foreign Retailer would spread their operationsacross India, then the Indian Domestic Retailerswould Develop their Supply chain Strategies Operations to counter competition Increase employment opportunity in backend sectors Foreign Retailer will bring Development of new retailing formats Modernization in general
  11. 11. Paradigm Shift for Consumer with FDI in Multi Brand RetailMRP driven Pricing Efficiency Driven PricingQuality Compromise Defined Quality StandardIssue of Food Safety Controlled Food Safety StandardsLimited Choice of Products Access to Global ProductsChore Shopping Indulgence ShoppingDusty Noisy Environment Clean, Pleasant AmbienceMultiple visits different shops All under one roof Hyper MartsTrader influenced shopping Self service independent decision
  12. 12. WIN FOR CONSUMER: AMBIENCE, CHOICE,CONVENIENCE, SELF SERVICE, PRODUCTSAFETY, LOWER PRICES
  13. 13. Thank You

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