1. JCE, MBA BELGAUM

2. IntroductionIntroduction
 Indian retail Industry is Fifth largest in the world.
 One of the sunrise sectors with huge growth potential
and accounts for 14-15% of the country’s GDP.
 The Indian retail industry is estimated to be worth
around US$ 500 billion currently.
 The Indian retail industry has expanded by 10.6 per
cent between 2010 and 2012 and is expected to increase
to US$ 750-850 billion by 2015

3. Cont….Cont….
The recent announcement by the Indian government
with Foreign Direct Investment (FDI) in retail,
especially allowing 100% FDI in single brand and
51% FDI in multi-brand has created positive
sentiments in the retail sector.
The next wave of the retail boom is upon us.

5. Retail formats in IndiaRetail formats in India
Hyper marts/supermarkets
Mom-and-pop stores
Departmental stores
Shopping malls
E-tailers
Vending
Category killers

6. ClassificationClassification
Retail industry can be classified into two broad categories –
organized retail and unorganized retail.
Organized retail
 Those traders/retailers who are licensed for trading activities
and registered to pay taxes to the government.
 Constitutes 3-5% segment of the market
 Eg: Big Bazaar, More, Reliance Fresh, etc.
Unorganized retail
 It consists of unauthorized small shops –
 Constitutes more than 97-95% segment of the market
 But remain to be the radiating force of Indian retail industry
 Eg: conventional Kirana shops, general stores, corner shops
among various other small retail outlets

8. Emerging AreasEmerging Areas
Some sectors that occupy a prominent position with
the retail industry are:
◦ Apparel and fashion – Everybody understands the
impact of fashion and textiles on the environment.
Almost $19.5 billion were spent on online apparel
shopping in the year 2009 and increasing since then.
◦ Fashion & Lifestyle - In India the vast middle class
and its almost untapped retail industry are the key
attractive forces for global retail giants wanting to
enter into newer markets, which in turn will help the
retail to grow faster.

9. Cont…Cont…
• Pharmaceutical Retail – Driven by therapies like anti-
diabetic, vitamin, anti-infectives and dermatology, it
accounted for a robust 15% growth in 2011, in India.
• Food & Beverage retail - Backed by huge potential
and changing lifestyles, the food and beverage retail
market is growing at a robust 30-35% per year.
• E-commerce – The next big revolution, with the
advent of e-commerce in the retail industry, retail
stores are facing stiff competition from e-stores. The
rising demand for e-shopping has lead to a new debate
cropping up in the world.

12. Factors driving growthFactors driving growth
Emergence of nuclear families
Growing trend of double-income households
Increase in disposable income and customer
aspiration
Increase in expenditure for luxury items
Large working population
Low share of organized retailing
Growing liberalization of the FDI policy in the past
decade

13. BottlenecksBottlenecks
A long way to meet international standards
Lack of efficient supply-chain management
Lack of required retail space
No fixed consumption pattern
Shortage of trained manpower
Lack of proper infrastructure and distribution
channels

14. Skill sets requiredSkill sets required
Conceptual understanding
Analytical skills
Detail-orientation
Fair understanding of customer’s psychology
Observations skills
Project Management
Operational Skills
In-depth product knowledge

15. ConclusionConclusion
The Indian retail industry is witnessing far reaching
changes.
 The change is riding on an overall growth in income
and consumption across the country, including the rural
areas
 The Indian retail industry will, however, take a long
time and would require a sustained effort before the
benefits reach the target due to its own characteristics
 The trade practices and policies change with every state
and even within the state. But these have not deterred
the TNC retailers in entering India due to the huge
potential it offers

16. THANK YOU!!!