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Let liberalization be in steps
rather than being in a leap.




                            By :
                            Aakriti Rohatgi
                            Kunal Relan
Since The Beginning




                                                      Super
                                                      markets
                                         Government   Hyper
                                         Stores       markets
                         Kirana Stores
               Weekly    Convenience
               market    store
               Village
               melas
      Barter
      System
Single Brand
           Retailing        •51%
        Cash and Carry
            Model           •100%

Unorganized Sector   •95%
Organized Sector     •5%
Attractions In India




 FDI inflows crossed   FDI inflows were
    $300 billion        $134.6 billion.
But what global retailers are doing?
Contribution of Retail Sector in GDP




                                     India


                                     Brazil




                                              Countries
                                     Japan
                                                          Contribution to GDP
                                     China


                                     USA


  25%   20%   15%   10%    5%   0%
              Percentage
Porters Model
SWOT Analysis




Strength              Weaknesses            Opportunities          Threats
•Major contribution   •Lack of              •There will be more    •Current
 to GDP                Competitors           organization in the    Independent
•High Growth Rate     •Highly Unorganised    sector                 Stores will be
•High Potential       •Low Productivity     •Healthy                compelled to
                                             Competition will be    close
•High Employment      •Shortage of
 Generator             Talented              boosted and there     •Big players can
                       Professionals         will be a              knock-out
                                            •check on the           competition
                                             prices (inflation)
A new Buzz: E-Tailing

• The word E-tail has its roots in the word ‘retail’. Here the letter
  E stands for ‘electronic’ since the shopping process happens
  through the electronic media (internet). With the use of a
  web-space a virtual shop is created and the products are
  displayed through images in this space with the features
  and price tags. By accessing this shopping site a customer
  can choose his/her products into a cart. The payment to this
  product can be done in various modes as mentioned by the
  shopping site. The product would be delivered to the
  address specified by the customer.
• E- tailers in India:-
• Yebhi.com                                Rs(in crore)
• Flipkart.com                    10000
• Infibeam.com
                                   5000                       Rs(in
• Myntra.com
                                                              crore)
• E-bay.com                           0
• India times shopping                    2012      2015
New FDI policy




             100%    51%

          Single    Multi
          Brand     Brand
          Retail    Retail
Wal-mart and China
Wal-Mart In China

• It is almost two decades that China has opened up
  retail fully, cautiously allowing 26% FDI in 1992.
• Since then the sector has seen enormous growth.
• Now, 20 years from there, it is china retailers who
  dominate the market not the foreign retailers.
• The big retailers are:
        The Shanghai Bailan Group
        Suning
        Gome
        Dashang
• Wal-Mart opened 350 stores in china, but its market
  share appears to decline.
Market Share Of Wal-Mart in China

                      Market Share


 8%
 7%
 6%
 5%
                                     Market Share
 4%
 3%
 2%
 1%
 0%
           2010            2011
Wal-Mart
Wal-Mart and Trade Deficits

• Entry of CHINA in WTO was supposed to improve the US
  trade deficit and create jobs in America, but the
  promises gone unfulfilled.
• US trade deficit in 2006 reached $235 billion, in which
  Wal-Mart contributes $27 billion with China
• The manufacturing sectors and its workers were hardest
  hit due to this.
• Trade deficit with china eliminated 133000 jobs in US,
• China illegally reduces the value of currency, which
  made the goods artificially cheaper and further
  subsidizing the export.
• Wal-Mart accounts for 9.3% of the total US imports from
  china in 2006
In the Meanwhile

• China became dependent on US consumer market for
  its employment
• It suppressed purchasing power of its own middle class
  and weaker sections.
2016 (1)

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2016 (1)

  • 1. Let liberalization be in steps rather than being in a leap. By : Aakriti Rohatgi Kunal Relan
  • 2. Since The Beginning Super markets Government Hyper Stores markets Kirana Stores Weekly Convenience market store Village melas Barter System
  • 3. Single Brand Retailing •51% Cash and Carry Model •100% Unorganized Sector •95% Organized Sector •5%
  • 4. Attractions In India FDI inflows crossed FDI inflows were $300 billion $134.6 billion.
  • 5. But what global retailers are doing?
  • 6. Contribution of Retail Sector in GDP India Brazil Countries Japan Contribution to GDP China USA 25% 20% 15% 10% 5% 0% Percentage
  • 8. SWOT Analysis Strength Weaknesses Opportunities Threats •Major contribution •Lack of •There will be more •Current to GDP Competitors organization in the Independent •High Growth Rate •Highly Unorganised sector Stores will be •High Potential •Low Productivity •Healthy compelled to Competition will be close •High Employment •Shortage of Generator Talented boosted and there •Big players can Professionals will be a knock-out •check on the competition prices (inflation)
  • 9. A new Buzz: E-Tailing • The word E-tail has its roots in the word ‘retail’. Here the letter E stands for ‘electronic’ since the shopping process happens through the electronic media (internet). With the use of a web-space a virtual shop is created and the products are displayed through images in this space with the features and price tags. By accessing this shopping site a customer can choose his/her products into a cart. The payment to this product can be done in various modes as mentioned by the shopping site. The product would be delivered to the address specified by the customer. • E- tailers in India:- • Yebhi.com Rs(in crore) • Flipkart.com 10000 • Infibeam.com 5000 Rs(in • Myntra.com crore) • E-bay.com 0 • India times shopping 2012 2015
  • 10. New FDI policy 100% 51% Single Multi Brand Brand Retail Retail
  • 11.
  • 13. Wal-Mart In China • It is almost two decades that China has opened up retail fully, cautiously allowing 26% FDI in 1992. • Since then the sector has seen enormous growth. • Now, 20 years from there, it is china retailers who dominate the market not the foreign retailers. • The big retailers are: The Shanghai Bailan Group Suning Gome Dashang • Wal-Mart opened 350 stores in china, but its market share appears to decline.
  • 14. Market Share Of Wal-Mart in China Market Share 8% 7% 6% 5% Market Share 4% 3% 2% 1% 0% 2010 2011
  • 16. Wal-Mart and Trade Deficits • Entry of CHINA in WTO was supposed to improve the US trade deficit and create jobs in America, but the promises gone unfulfilled. • US trade deficit in 2006 reached $235 billion, in which Wal-Mart contributes $27 billion with China • The manufacturing sectors and its workers were hardest hit due to this. • Trade deficit with china eliminated 133000 jobs in US, • China illegally reduces the value of currency, which made the goods artificially cheaper and further subsidizing the export. • Wal-Mart accounts for 9.3% of the total US imports from china in 2006
  • 17. In the Meanwhile • China became dependent on US consumer market for its employment • It suppressed purchasing power of its own middle class and weaker sections.