2. RETAILER
• A business or person that sells goods to
the consumer, as opposed to
a wholesaler or supplier, who normally sell
their goods to another business.
3. Indian Retail on the Fast-track
•India’s GDP growth of 9.4% for 2006-07, was the highest
ever in 18 years, reflecting the booming economy of the
country.
•India’s retail sector, in tandem with the economy, is on a
high growth trajectory; expected to grow by over 27% in
the next 5 -6 years.
4. Cont……
•Retail contributes to 10% of India’s Gross
Domestic Product and provides employment to
8% of India’s working population.
•Higher disposable incomes, easy availability of
credit and high exposure to media and brands has
increased average propensity to consume
considerably over the years.
5. Indian Retail Revolution
• India’s retail market has more than doubled in size to USD
311.7 billion in 2005-06.
• Sector revenues increased by about 93.5% between 2000
and 2006, translating to an average annual growth rate of
13.3%.
• Market witnessing a migration from traditional retailing to
modern/organized retailing formats, with an explosive
proliferation of malls and branded outlets.
6. Cont….
• Organized retail segment contributes to over USD 12.9
billion of retail revenues, with penetration growing from
3% in 2004-05 to 4.15% in 2005-06.
• Share of organized retail is to grow to USD 43.8 billion out
of the total retail sector revenues at USD 460.6 billion in
2010-11.
• Modern retailing outlets are increasingly matching up to
global standards and witnessing intense competition.
10. Growth Across Segments
• Food and Beverages segment accounts for the largest share, over
74%, of the total retail pie.
• Traditional retail dominates food, grocery and allied products
sector, with grocery and staples largely sourced from the “Kiranas”
and push cart vendors.
• Apparel and Consumer Durables verticals are the fastest growing
verticals.
• Mobile phones, one of the highest growth product categories, with
deep telecom penetration into towns and villages and the sector
adding 5 million new users every month.
• With the reducing average age of Indians buying homes, the Home
Décor sector is growing rapidly.
• Beauty Care, Home Décor, Books, Music and Gifts segments are
gaining traction predominantly in the urban areas and emerging
cities.
11. FDI
• FDI is defined as cross-border investment by a
resident entity in one economy with the
objective of obtaining a lasting interest in an
enterprise resident in another economy. The
lasting interest implies the existence of a long-
term relationship between the direct investor
and the enterprise and a significant degree of
influence by the direct investor on the
management of the enterprise.
12.
13. Impact of FDI in india
Benefits------
1. Capital Infusion
2. Boost Healthy Competition and check inflation
3. Improvement in Supply Chain
4. Improvement in Customer Satisfaction
5. Improved technology and logistics
6. Benefits for the Farmers
7. Creation of More And Better Employment
Opportunities
14. Major threats
1)Domination of Organized Retailers
2) Create Unemployment
3) Loss of Self Competitive Strength
4) Indirectly Leads to Increase in Real Estate
Cost
5) Distortion of Culture
15. Multi-brand
• Marketing of two or more similar
and competing products by the same firm
under different and unrelated brands.
16. Benefits of multi-channel retailing
1) Improved customer perception
2) Increased sales
3) Better data collection
4) Enhanced productivity
17. Benefits of single brand stores
• more freedom and flexibility in pricing
• more control over product attributes and quality
• higher margins (or lower selling price)
• eliminates much of the manufacturer's
promotional costs
The advantages to the manufacturer are:
• reduced promotional costs
• stability of sales volume (at least while the
contract is operative)
18. Controversy of Foreign retailers
• Independent stores will close, leading to massive job
losses. Walmart employs very few people in the United
States. If allowed to expand in India as much as
Walmart has expanded in the United States, few
thousand jobs may be created but millions will be lost.
• Walmart's efficiency at supply chain management
leads to direct procurement of goods from the supplier.
In addition to eliminating the "middle-man", due to its
status as the leading retailer, suppliers of goods are
pressured to drop prices in order to assure consistent
cash flow.
19. Cont….
• India doesn't need foreign retailers, since
homegrown companies and traditional
markets have been able to do the job.
• Work will be done by Indians, profits will go to
foreigners.
• Like the East India Company, Walmart could
enter India as a trader and then take over
politically.
20. Cont……
• There will be sterile homogeneity and Indian
cities will look like cities anywhere else.
• The government hasn't built consensus.
• The government claims modern retail will
create 4 million new jobs. This cannot be true
because Walmart, with over 9000 stores
worldwide, has only 2.1 million employees.