TALE OF RETAIL
Word RETAIL has been taken from the French word “RETAILLIER” which
means “To cut/divide into pieces and sel...
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51% of the outlet. And 9% GDP which is highest growth rate in Indian
historyalso favoured this. And Indian retailing indus...
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Tale Of Retail

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Word RETAIL has been taken from the French word “RETAILLIER” which means “To cut/divide into pieces and sell in a small quantity to a consumer”. The above defination of retail says that retailing means to buy whole or mass from manufacturer, make the segments according to consumer needs and sell to generate profit.

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Tale Of Retail

  1. 1. TALE OF RETAIL Word RETAIL has been taken from the French word “RETAILLIER” which means “To cut/divide into pieces and sell in a small quantity to a consumer”. The above defination of retail says that retailing means to buy whole or mass from manufacturer, make the segments according to consumer needs and sell to generate profit. INDIAN RETAIL MARKET- A decade ago, Indian retail market was completely a unorganized Market. People purchased things from mandi; weekly markets or mom ‘n’ pop shops. But this story take turns with emergence of big bazzar, food bazaar another retail shops. Now a broad segment of middleclass have turned to this organized sector. Upper Class Wants Brand & Standard at any price Middle Class Wants Quality at optimal Rate Lower Class Lower Rate has Main Preference Indian retail market is comprised of three categories. These 3-catagories and their choices are represented in the given figure. Till now a large part of upper class and a small part of the middle class has been entered into retail shopping. A bulk segment (97%) is still left as only 3% market is captured by organized retail in India. WORLD RETAIL MARKET- Retail is world’s largest private industry. Annual sale of retail industry in world is US$6.6 trillion. Wall-Mart is the world’s largest retail player with annual sale of US$250 bn. But till now retail is not success in capturing the whole market in developed countries. Organised retail market in different countries are given below.
  2. 2. 0 10 20 30 40 50 60 70 80 90 US Mal ays ia Tai wan Tha ila nd Bra zil Ind one sia Pol and Chi na Ind ia Pak % Of Org Ret INDIAN RETAIL GAINTS- Top 6 Indian retail giants are- Pantaloons, Titan Indus., Shoppers’ stop, Trent, Piramyd Retail, Provogue. Story of Indian retail is started with Pantaloons in 1997. Founder of this group is Mr. Kishore Biyani, who extend his group with big bazaar and Food bazaar and make his turnover to 25000 crore in 2005. Growth of these 6 giants and Indian retail is clear from the table given below. This data and two new emerging group(Reliance and Wall-Mart) shows the tremendous growth of Indian retail. Company Sales (RS Crore) Growth (%)* Pantaloon Retail 753 59 Titan Inds 529 43 Shoppers’ Stop 263 29 Trent 122 28 Piramyd Retail 41 44 Provogue (India) 72 59 GROWTH STORY- Growth story of Indian retail can be outlined by the statement that India has density of over 12 mn retail outlet, probably the highest density of retail outlet in world. And India is the 8th largest retail market in world with estimated size US$75bn by 2011. Total Indian retail market is US$350bn but organized is only US$8bn which is estimated to be grow at 40%(CAGR) Annual over the last few years. Important growth determining factor of this industry are govt. policies, GDP growth, employee generation and job creation. All these factors favored the Indian retail industry, as new regulations will allow foreign retail to own
  3. 3. 51% of the outlet. And 9% GDP which is highest growth rate in Indian historyalso favoured this. And Indian retailing industry is the largest employer after agriculture –8% of population. With all these factors the anticipated growth rate of retail in India is 8.3% of 03-08. REASON FOR GROWING RETAIL MARKET IN INDIA-main reason for growing retail market in India can be outlined as – • Rising income lavel in youth segment • Nuclear family • Growing literacy • Growing urbanizaton • Increasing medeia penetration • More exposer to international brand and products ADVERSE EFFECT- Adverse effect of this industry is only on small shops as with emerging organized retail will ruin them completely because they can’t survive in front of Reliance and Wall-Mart . No doubt that emerging of this industry will help economic growth but it will give birth to capitalism.

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