Indian Retail Environment

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Indian Retail Environment

  1. 1. INDIAN RETAIL ENVIRONMENT By: Jaspreet Singh Siddhatrh Sinha Vinayak Pant
  2. 2. Who Is a Retailer ?• One who sells goods directly to consumers• Purchases a variety of goods from no. of wholesalers, manufacturers etc.• Last link in the chain of distribution. Consumer touch point.
  3. 3. RetailersManufacturers Distributors Consumers
  4. 4. Evolution in India Pre 1947 1947 1970’s 1980’s 1991 Haats, Melas, Emergence of Emergence India opens India typical indian organized of brands doors through becomes Markets were retail through and branded economic Independent formed textile sector retail outlets reforms 2006 2005 2000-05 1995-99 1991-95Govt allows Expansion of Multiple formats51% FDI in High street Multiple Modern and productsSingle brand shop centers Indian Malls are introducedretailing formats introduced 2006-10 Last week Rapid Modern Bill drafted for FDImall and single limits of 51% in multibrand brand, 100% in singlespecialty store brand
  5. 5. Current scenario in India• Organized and unorganized retail – Unorganized (90-95%)• Types of most prevalent retails – Category killers / Product category based – Discount stores – Malls – Supermarkets/hypermarkets – Rural retail – Open format• Counter and deep formats• E-retailing (e-tailing)
  6. 6. Peculiarities in Indian buyers’ behavior • Shopping- for necessity not for experience • Purchasing capacity • Timing of purchase • Buying things as and when needed
  7. 7. Popularity of unorganized sector• Operated from owned premises inside localities• Family members as employees• Time saved factor• Purchase pattern and behavior• Shorter shelf life products• Smaller shopping lists• Population segment without cars• Open from early morning till late everyday ….cont.
  8. 8. Popularity of unorganized sector• Personal relationship with customers• Products are sold on monthly credit to customers• Very low operational costs• No inventory cost, as products are stored in own setting• Supporting infrastructure missing for bigger chains
  9. 9. Future Ahead• Stakeholders – Regulators, Employees, Owners, Customers• India - one of the biggest markets attracting all retailers worldwide• Share of organized retail may increase, not substantially though• Unorganized sector still to remain dominant for the foreseeable future• Own brands will heavily determine profitability of big players• Rural retail is a largely untapped avenue
  10. 10. Thank you

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