ARJUN U R
DILEEP M M
LIVIN P VARGESE
P E S I T . BANGALORE.
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
India's retail sector is estimated to touch US$ 833
billion by 2013 and US$ 1.3 trillion by 2018.
Unorganized Retail sector
The unorganized sector consists
of all private enterprise, having
less than ten total workers,
operating in proprietary or
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
Characteristics of unorganized
The traditional formats of low-
Small-store (kirana) the easiest
Generally family run business
Purchase from kirana store in
The convenience store for the
Sectors with high growth
Food and Grocery (91 per
Clothing (55 per cent)
Furniture and Fixtures (27 per
Pharmacy (27 per cent)
Durables, Footwear & Leather,
Watch & Jewellery (18 per cent).
Indian Consumer Categories
Share of Organized and
Unorganized Retail sector.
Competition with the organized retail
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.
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
Over 60% share as per current price in NDP
Contribute significantly to National Product.
Unorganized to organized
technologies (computer, CC TV
Change in consumer preference
Distance from home
Traditional mindset of Indian customer
Customer relationship and behavior
Bada bazaar , particular day market
Huge size of market.
Having many number of options
to cut their costs like labor cost,
operational cost etc.