RETAIL<br />Definition : Retail is the sale of goods to end users, not for resale, but for use and consumption by the purchaser .The retail transaction is at the end of the supply chain.<br />
IMPORTANCE OF RETAIL MARKET<br />Economic Growth<br />Employment Opportunities<br />Moves the economy into motion<br />Provides the consumer a basic platform to encounter with goods and a shop keeper<br />
SOME STATISTICS OF INDIAN RETAIL MARKET<br /><ul><li>The total retail sales in India will grow from US$ 395.96 billion in 2011 to US$ 785.12 billion in 2015.
<br />SUPERMARKET - A self-service store offering a wide variety of food and household merchandise, organized into departments<br />HYPERMARKET - A hypermarket (from the French hypermarché) is a store which combines a supermarket and a department store<br />
RETAILING SECTORS IN INDIA<br />Food and Grocery<br />Clothing <br />Footwear<br />Gems and Jewellery<br />Pharmaceuticals<br />Music<br />Book<br />Consumer Durables<br />
Poor storage system</li></li></ul><li>FOREIGN DIRECT INVESTMENT (FDI)IN INDIAN RETAIL SECTOR<br />FDI refers to the net inflows of investment to acquire a lasting management interest (10 percent or more of voting stock) in an enterprise operating in an economy other than that of the investor.<br />
INDIAN PERSPECTIVE<br /><ul><li>Indian retail sector is largely closed to outsiders to safeguard the livelihood of nearly 15 million small store owners
96% of the business run by unorganized retailers
Only 51% foreign investment is allowed in single brand retail with prior government permission.
FDI is also allowed in wholesale business. </li></li></ul><li>HOW TO ENTER INDIAN MARKET?<br />
WHY INDIAN MARKET IS SO ATTRACTIVE<br />AT Kearney’s study on global retail trends found that India is least competitive as well as least saturated of all major global markets.<br />Good talent pool, unlimited opportunities, huge markets, availability of quality raw materials at cheaper costs, is expected to make India overtake the world’s best retail economy by 2042.<br />Market share of organized modern retail is just over 5% of the total retail industry, thereby leaving a huge untapped opportunity.<br />
Myth 1<br />Farmers would get higher share of retail income<br />with the entry of global organized retail chains.<br />
FACT<br /><ul><li>In US the farm value share of consumer expenditure for domestically produced farm foods has steadily declined from 33% to 21% from 1970 to 1994.
According to a European study, the real farm producer price index of total farm production fell by 27% over the period 1990-2002 . </li></ul>- From The Economic Times<br />
Myth 2<br />Increase in share of global organized<br />retail would lower prices in food articles.<br />
FACT<br />Trends in the BLS (Bureau of Labour studies) food price index in US from 1950 to 2007 tend to somewhat mirror the general Consumer Price Index, with no steady decrease or increase.<br />- From The Economic Times<br />
Myth 3<br />Global retail chains would procure<br />directly from farmers.<br />
FACT<br />Currently Wal-Mart procures only 20% (mainly non-food category) of goods directly from manufacturers.<br />Most of the organized retailers procure from large wholesalers and other intermediaries. <br />- From The Economic Times<br />
WHY THE BLAME GAME?<br />CHANGE THE GAME!<br />