India is the country having the most unorganized retail market. The contribution of retail industry to India’s GDP is more than 13%. More than 99% retailer’s function in less than 500 square feet of shopping space. India's retail sector is on its way of modernization. Traditional markets are making way for new formats such as departmental stores, supermarkets and specialty stores. With the growth in income levels, Indians have started spending more on health and beauty products. India's retail sector is estimated to touch US$ 833 billion by 2013 and US$ 1.3 trillion by 2018.

1. “Unorganized
retail sector In
India”

2. The Indian Retail Sector
• India is the country having the most unorganized retail
market.
• The contribution of retail industry to India’s GDP is more
than 13%.
• More than 99% retailer’s function in less than 500 square
feet of shopping space.
• India's retail sector is on its way of modernization.
Traditional markets are making way for new formats such
as departmental stores, supermarkets and specialty stores.
• With the growth in income levels, Indians have started
spending more on health and beauty products.
• India's retail sector is estimated to touch US$ 833 billion by
2013 and US$ 1.3 trillion by 2018.

3. Unorganized Retail sector
• The Indian retail scene has witnessed too many players
in too short a time, crowding several categories without
looking at their core competencies or having a well
thought out branding strategy.
• With rapid urbanization, and changing patterns of
consumer tastes and preferences, it is unlikely that the
traditional outlets will survive the test of time.

4. Share of Organized and
Unorganized Retail sector.
85 15
81 19
55 45
40 60
36 64
30 70
20 80
3 97
1 99
0% 20% 40% 60% 80% 100%
USA
TAIWAN
MALASIA
THAILAND
BRAZIL
INDONESIA
CHINA
INDIA
PAKISTAN
ORGANISED
UNORGANISED

5. Opportunities in Indian retailing
sector
• Food retailing segment
• Retailing of lifestyle products segments
oshoppers shops limited
oCoffee parlors
oVending machines
• Beauty and healthcare retailing segments

6. Some of the Indian retailing
brands

7. Indian retail industry: current
scenario
• The emergence of retailing in India has more to do with
the increased purchasing power of buyers, especially
post-liberalization, increase in product variety, and
increase in economies of scale, with the aid of modern
supply and distributions solution.
• Indian retailing today is at an interesting stage for
investors. The retail sales are at the highest points in
history and new technologies are improving retailing
productivity.
• FDI are increasing for retailing sector. MNC’s are more
interested in retailing sector

8. Challenges in Indian retailing sector
Retail differentiation
Supply chain managements
Merchandising planning
Competition from supplier’s brand
Location
Pricing
Target audience

9. Solution or strategies for problems of
Indian retailing sector
• Right positioning
• Effective visual communication
• Strong supply chain
• Changing the perception
• Systematic pricing

10. Present situation in Indian retailing industry
•Unorganized market 97%
•Organized market 3%
•At present , the industry is estimated to be at more than US$ 400 billion
by a study of McKinsey.
•Expected 5X growth in organized retailing in next 5 years.
•More than 4000 new modern outlets in the last 3 years .
•Over 400000 shoppers walk through their doors every year
Factors for growth of retail industry in India
•Existing Indian middle classes with an increased purchasing power.
•Rise of upcoming business sectors like the it and engineering firms.
•Change in the taste and attitude of the Indians.
•Effect of globalization.
•Heavy influx of FDI in the retail sectors in india.

11. Conclusion
In India the retail sector is the second largest employer after
agriculture, although it is highly fragmented and predominantly
consists of small independent, owner – managed shops.
The country is witnessing a period of boom in retail trade,
mainly on account of a gradual increase in the disposable
incomes of the middle and upper-middle class households. More
and more corporate houses including large real estate
companies are coming into the retail business, directly or
indirectly, in the form of mall and shopping center builders and
managers. New formats like super markets and large discount
and department stores have started influencing the traditional
looks of bookstores, furnishing stores and chemist shops.

12. With the generous use of global and local experiences, Indian
retailers are going to improve their bottom lines with efficient
management of supply chain and logistics. Because of the
FDI, competition is increased this will helps the consumer to
get good quality products and services.