COMPREHENSIVE AREA SEMINARTOPIC:- Potential of Organised Retail In IndiaPRESENTED BY :-MD. GILMAN4th SEMSIDDAGANGA INSTITUTE OF TECHNOLOGY (TUMKUR)PGDMS&RC
Evolution of Retail : Barter System was known as the first form of retail. As time passed currency was exchanged with goods andservices. Hawkers carried out the first Retailing in Push Carts Followed by Kirana Stores …….. Mom and Pop Stores Finally Manufacturing era necessitated the small stores andSpecialty stores It was a seller market still than this point of time with thelimited no of brands available Barter chain Single brand franchise chain Standalonelarge store <Chain of large stores And Finally Malls Economist says that Boom Has Started of Retail due tomore spending Capacity of Indians Emerging of retail started in brief in patterns like changingface of the Indian retail sector Provide customers with 3 V’s i.e.(. Value, Variety and
What is Retail? “A retail is one who stocks the producers goods and isinvolved in the act of it to the individual consumer, at theMargin of Profit As such retailing is the last link that connects the individualconsumer with the manufacturing and distribution chain. Selling Directly to consumer selling in smaller units /quantities the bulk. Very high numbers near to neighborhood Reorganized by the service levels Retail Sector today is worth of US $ 394 Billion
ORGANISED RETAILINGrefers to trading activities undertaken by licensedretailers, that is, those who are registered for salestax, income tax, etc. These include the corporate-backedhypermarkets and retail chains, and also the privately ownedlarge retail businesses.
Retailing formats in India Malls Specialty Stores Discount Stores Department Stores Hyper marts / Supermarkets Convenience Store
Challenges: Taxation laws that favor small retailers. Different structure of sales tax in different states. Multi-point octroi collection. Lack of trained workforce. Problems of supply chain and logistics. High cost of real estate. Limited land available at prime locations
ADAVANTAGES: Largest and fastest growing sector inIndia. Modern retailing forms one point stop forall shopping. Consumer gets a large product variety ofbrands to choose from one roof. First it was a sellers market and now itschanging to buyers market.
DISADVANTAGES : Margins are low High property cost Poor Infrastructure Expertise in logistics Couple of firms in retail sector have turnover more than Rs 100 cr
Analysis Organized retail growing at estimated 25% It is expected that retail in India could be worth 175-200 billion by2016. 2008 – Retail Growth rate – 25-28%, Unorganized and organizedretail size – 300 billion Opening 10 to 15 outlets by 2015, it plans to employ about 5,000people selling groceries, consumer goods, fruits and vegetables.Indias retail industry is worth 300bnE.g : Bharti has invested 60 Billion with the largest retail Wal-Mart (last year)
OPPORTUNITIES FOR THE ORGANIZEDRETAIL SECTOR IN INDIA India’s booming economy is a major source ofopportunity. It is the third largest in the world interms of purchasing power. India is the secondfastest growing major economy in the world. Indias huge population has a per capitaincome of Rs 44,345. The proportionate increase in spending withearnings is another source of opportunity. Increasing instances of Double Incomes inmost families coupled with the rise in spendingpower.
CONCLUSION There is very huge potential for the growth of organized Retailing in India. By following some of the strategies it can rise tremendously and canreach each and every nock and corner. Open communication should be established between functionaldepartments. A balance should be maintained between brand building and promotion.Non-marketing factors like gas prices, weather etc. Huge Scope forDevelopment Competitive Market Organized retail is fast growing at a rate of 30% Per Year Greater opportunity for employment
BIBLIOGRAPHY Business world www.businessworld.in www.google.com