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Prospects and challenges of retail sector in india copy


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Prospects and challenges of retail sector in india copy

  1. 1. PROSPECTS AND CHALLENGES OFRETAIL SECTOR IN INDIASubmitted by : Submitted to : Mr Gaurav AroraPreeti GulatiMalvika didwalVenkatesh
  2. 2. INTERESTING FACTS ON  Every 10th billionaire is a retailer.RETAIL  25 of the top 50 Fortune 500 companies are in Retail.  In India the Retailing Industry provides employment to over 18 million people.  1 out of every 25 families in India are engaged in the business of retailing
  3. 3. Indian Retail Scenario Today Retail amongst the largest industries in India, With over 12% of country’s GDP & about 8% of employment 12th largest economy in the world 4th largest in purchasing-power parity terms Over 65% of Indian population below 24yrs. That is over 564 million people, nearly twice the total population of the United States
  4. 4. Changing Scenario BEFORE AFTER Shift from Unorganized to Organized self service outlets
  5. 5. Brands in India Today
  6. 6. PROSPECTS Ample Scope for the New Players to Enter the Indian Retail Market Sea Changes in the Preferences of the Indian Consumers Scope in Retail Education FDI in Multi brand Retailing taking India to a new level
  7. 7. International Retailers in India International Players Eyeing India Shoprite South Africa (Hypermarkets) Landmark, Dubai (Lifestyle stores) Marks & Spencer’s (Lifestyle stores) Metro Cash & Carry (Wholesale Hypermarket) Tesco Wal Mart (Hypermarkets)
  8. 8. The challenges of Indian retail The Positioning Challenge The Location Challenge The Format Challenge The Manpower Challenge
  9. 9. The Positioning Challenge Positioning Position on price on range Position Position on on convenience store experience
  10. 10. The Location Challenge Lack of availability of stores locations convenient to shopper The infrastructural problems to get to a store The rising cost of leasing Mad rush to open stores contributing to increased cost
  11. 11. The Format Challenge Multiple formats being experimented Convenience versus supermarkets versus hypermarkets
  12. 12. The Manpower Challenge Big disconnect between quality of personnel and customer experience desired Lack of skilled Manpower High cost of retaining Manpower
  13. 13. What does it mean? It means that global retailers such as Wal-Mart, Carrefour, Tesco and others can set up mega deep-discount stores in the country through joint ventures with Indian firms, where the foreign partner can hold up 51% equity. The issue arises that Wal-Mart, Carrefour and Metro already have stores in India but these are wholesale cash-and-carry stores where only institutions or kirana shops can buy — not consumers.Conditions set by government for allowing FDI in India: Minimum investment of $100 million. 50% of the investment is to be in backend infrastructure development. 30% of all raw material has be procured from Indias small and medium industries. contd……
  14. 14. contd…… Permission to set up malls only in cities with a minimum population of 10 lakh. Government has the first right to procure material from the farmers.Why do we need it: We are the second highest producer of fruits and vegetables in the world but still we are not able to utilize is properly because of inadequate infrastructure facilities. It will create 1.5 million more jobs in 5 years. Apart from the huge number of indirect employment. It will increase competition which is always beneficial for the customer. It will remove the middleman from the equation. It will reduce costs which in turn will reduce prices.