2. Retailing may be defined as, “The sale of
goods or commodities in small quantities
directly to consumers.”
RETAILING
3. The Indian Retail Industry is the fifth largest in the world.
Comprising of organized and unorganized Sectors.
Indian retail industry is one of the fastest growing industries in
India, especially over the last few years.
Initially the retail industry in India was mostly unorganized,
however with the change of taste and preferences of consumers,
the Industry is getting more popular these days and getting
organized as well.
The Indian Retail Industry is expected to grow from US$330
billion in 2007 to US$640 billion by 2015.
RETAILING IN INDIA
4. Indian Retail Market accounts for 22% of country’s GDP and it
contributes to 8% of the total employment.
According to the 10th Annual Global Retail Development Index
(GRDI) of A.T. Kearney, India is having a very strong growth
fundamental base that’s why it’s the perfect time to enter into Indian
Retail Market.
The total retail spending is estimated to double in the next five years.
Of this, organized retail –currently growing at a CAGR of 22%- is
estimated to be 21% of total expenditure.
The unorganized retail sector is expected to grow at about 10% per
annum with sales expected to rise from $309 billion in 2006-07 to
$496 billion in 2011-12.
7. Hypermarkets - Spencers, Big Bazaar
Cash & Carry- Easy Day, Metro
Department stores- Lifestyle, Shoppers Stop
Supermarkets- Food Bazaar
Shop in Shop- Infinity
Specialty Stores- Brand factory
Category killers- The Loft, Central
Discount Stores- Subhiksha
Convenience Stores-Safal, In& Out
ORGANIZED RETAIL FORMATS
8. Emergence of Multiple franchisee Model
Rural retailing
JV’s for International products
Vertical Integration
Collaboration for back-end resource sharing
Increasing Market Reach
Innovation in new retail formats
Direct Sourcing & Private Labels
KEY TRENDS
11. STRENGTH
Increasing demand driven by the country’s young working
population
Increase in per capita income which in turn increases the
household consumption
Create win-win situation for all links in value chain ( suppliers,
producers, retailers and customers).
Improvement in the standard of living.
Technology intensive industry
12. WEAKNESS
Lack of expertise in Supply Chain Management
Inadequate Infrastructure
Stringent Labor Laws
Lack of specialized professionals in Industry
Lack of industry status.
Non-Availability of Government Land.
13. Change in consumer behavior pattern and increase in
disposable income.
It is estimated that 15 million people would be engaged
in Retail and Retail support activities by 2010
Indian rural markets offer a sea of an opportunity for
the retail sector.
Upcoming international Players
Healthy prospect for the fashion industry.
OPPORTUNITIES
14. Indian taxation system favors small retail business.
Competition from unorganized Sector to the organized Sector.
Middle class Psychology.
Increasing Real Estate prices
THREATS