1. UNORGANIZE
D RETAIL
SECTOR IN
INDIA.
PRESENTED BY
PRAMITA SHARMA
ARJUN U R
DILEEP M M
AKHILESH HIREMAT
LIVIN P VARGESE
MOUMITA GHOSH
P E S I T . BANGALORE.

2. Indian Retail market at a glance




The contribution of retail industry to India’s GDP is
more than 13%.
The retail industry in India is of late often being
hailed as one of the sunrise sectors in the economy.
India's retail sector is on its way of modernization.
Traditional markets are making way for new formats
such as departmental stores, supermarkets and
specialty stores.
India's retail sector is estimated to touch US$ 833
billion by 2013 and US$ 1.3 trillion by 2018.

3. Unorganized Retail sector



The unorganized sector consists
of all private enterprise, having
less than ten total workers,
operating in proprietary or
partnership basis.
It takes a majority of Indian food
processing market as opposed to
the organized sector, which only
holds a share of 48%.
Unorganized sector includes lowcost retailing such as the local
kirana shops, owner-manned
general stores, paan/beedi
shops, convenience stores,
handcart and pavement vendors

4. Characteristics of unorganized
retail market

The traditional formats of low-
cost retailing

Small-store (kirana) the easiest
ways
to
generate
self-
employment

Generally family run business

Purchase from kirana store in
credit

The convenience store for the
customer.

5. Sectors with high growth
potential





Food and Grocery (91 per
cent)
Clothing (55 per cent)
Furniture and Fixtures (27 per
cent)
Pharmacy (27 per cent)
Durables, Footwear & Leather,
Watch & Jewellery (18 per cent).

6. Indian Consumer Categories
Indian consumers
Destitutes
Aspirants
Climbers
2006-07
Consuming class
2001-02
Very rich
1995-96
0
20
40
60
80
million households
100

7. Components of Unorganized Retail
sector

8. Share of Organized and
Unorganized Retail sector.
PAKISTAN 1
99
INDIA 3
CHINA
INDONESIA
BRAZIL
THAILAND
97
20
80
30
70
36
40
ORGANISED
UNORGANISED
60
55
MALASIA
45
81
TAIWAN
19
85
USA
0%
64
20%
40%
15
60%
80%
100%

9. Competition with the organized retail
sector





It is estimated that over 95% of retail in India is done
through the unorganized channel.
But as the disposable income levels have
risen, consumers has been a shift towards branded
products and the organized retail channel.
The entry of multinational companies is impacting the
structure of the retail industry in the country.
There are various extremes of retail outlet with small
local kirana stores being located in convenient
locations, offering local produce and merchandise and
a personalized service.
At the other end of the spectrum there are large
hypermarkets offering a range of products, often at a
lower price, with a less personalized service.

10. Contribution to National product
and Net Domestic Product




92% of the total workforce in a country were
employed in the unorganized sector.
370 million workforce constitute of
unorganized sector
Over 60% share as per current price in NDP
Contribute significantly to National Product.

11. Recent trends

Unorganized to organized

Amplifying
cost(rent,
labor,
operational)

Deployment
of
advance
technologies (computer, CC TV
camera, software)

Healthy competition

Change in consumer preference

12. Advantages







Distance from home
Traditional mindset of Indian customer
Customer relationship and behavior
Bargaining
Market size
Bada bazaar , particular day market
Wholesale market

13. Some facts

Huge size of market.

Expanding
and
rapidly
line
in
modernizing
with
India’s
economic growth.

Having many number of options
to cut their costs like labor cost,
operational cost etc.

Major
industry.
contributor
of
retail

14. Impact of FDI.,

15. 





Unemployment.
Less middlemen
Competition
Change in consumer Focus
Free Home Delivery services etc.,
Technology