Un organized retail sector in India


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A presentation on features and advantages of unorganized retail sector in india.

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  • For the next ten minutes, I will talk about unorganized retail sector - the specialties and the challenges faced by the sector and in the end I will discuss the recommendations of ICRIER i.e. Indian Council for Research on International Economic Relations. Indian Retail is the fifth largest retail industry in the world…
  • ….traditional retail dominates the sector… is it by virtue or by chance… let us take a look..
  • TraditionallyRamu kaka knows his customers by name. He knows that Patel sahib prefers spinach on a daily basis. He knows that Gita memsahib keeps fast on Saturdays and so he brings her fruits.
  • “Koi anti-dandrupt shampoo dijiye” or else “Koisastaauraccha detergent powder dijiye”… Many a times customers buy brands endorsed by the retailer…
  • Lower income groups and lower middle class prefer buying goods in small quantities and making payments at the end of the months.. These help traditional retailers gain customer loyalty and hence the growth in the sector…
  • Lack of cold chain…
  • Un organized retail sector in India

    1. 1. Unorganized Retail<br />Sayantan Chattopadhyay<br />DoMS IIT Roorkee<br />
    2. 2. Retail in India<br />In 2010, around 94% of the Rs 18,673 billion retail market was un-organized according to Booz and Co (India) Pvt Ltd<br />With growing market demand, the industry is expected to grow at a pace of 25-30% annually <br />Accounts for over 10% of India's GDP and around 8% of the employment<br />
    3. 3. Unorganized or Traditional Retail<br />Kirana stores, local mom and pop shops, convenience stores, hand cart and pavement vendor<br />large complex network of independently owned retailers and distributors carrying primarily local or regional brands<br />
    4. 4. Unorganized Retail Spécialité<br />Marketing Intelligence<br />Product promotion <br />Customer service<br />
    5. 5. Marketing Intelligence <br /><ul><li> Knows each customer by name
    6. 6. Knows customer’s likes and dislikes
    7. 7. Gets to know about special occasions before hand </li></li></ul><li>Product Promotion<br />Speaks for brands<br />Informal customer feedback<br />
    8. 8. Customer Service<br />Order on phone and home delivery in towns and cities<br />Convenient location<br />Goods on credit and bargaining<br />Loose items<br />
    9. 9. Challenges faced by Unorganized Retail sector<br />Lack of best practices in inventory management and supply chain management<br />Lack of standardization<br />
    10. 10. ICRIER Recommendation<br />Assist the formation of co-operatives or associations of kirana stores, which in turn can undertake direct procurement of products from manufacturers and farmers. By eliminating intermediaries, kirana stores can obtain their supplies at lower prices, while farmers get better prices for their produce.<br />
    11. 11. Thank you<br />