This document provides an overview of the evolution and growth of retailing in India. It discusses the traditional and modern formats of retailing in India, and outlines key trends such as the increasing market share of organized retailing compared to unorganized formats. The document also examines factors driving the growth of the retail sector in India such as rising incomes, changing consumer preferences, and the entry of foreign retailers. It analyzes opportunities and challenges for the future development of retailing across India.

1. 1

2. Adviser
Prof.D.D.Ghoniya
Date:7/5/2016
Speaker
Hirapara Priyanka R.
Enrollment no:2072115013
Roll no:13
P.G.INSTITUTE OF AGRI BUSINESS MANAGEMENT
RETAILING:AN EMERGING TREND IN INDIA
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3. CONTENT
Introduction
Evaluation Pattern Of Retailing
Time Line Of Retailing
Types Of Retailing
Emerging Trend In Retailing
Prospect Of Retailing
FDI In Retailing
Opportunity of Retailing
Expected future trend in Retailing
Conclusion
3

4. INTRODUCTION
According to Philip Kotler, retailing includes all the activities involve
in selling goods or services directly to customer for personal, non-
business use”.
apparel,
movie tickets,
services,
hair cutting,
e-ticketing,
A retailer may be define as a, dealer or trader who sell goods in small
quantities.
Any organization selling goods to customer is retailing.
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5. CONT........
Whether they are,
A manufacturer
A wholesaler
A retailer
• India’s largest industry
• The biggest sources of employment,
• Generates more than 10% of India’s GDP
• Providing an ideal shopping experience
• Emerging trend in retailing
• Life style are changing
5Source: Malliswari 2007

6. CONT.…..
• Concept of organized retailing
• The retail sector is the fastest growing sector in India
• Indian retail seems set to grow exponential .
• Global giants are waiting for entry in Indian retailing.
• The government policy are obstacle for international retailers.
• The most dynamic and fast paced industries.
• India is expected to account for the third largest share of retail
investment at US$2.7 billion.
6Source: Amtaul and Prabha 2007

7. EVOLUTION PATTERN OF RETAILING IN
INDIA
Rural
Approach
Traditional
Approach
Government
Approach
Modern
Approach
Source: Deloitte. 2011. 7

8. TIMELINE OF RETAILING IN INDIA
8
• Heats and melasPre 1947
• Organized retail sector emerged1970 s
• Emerging branded retail outlets1980 s
1990 s •Modern Malls
2000-2005 •Expansion of retail chain
2005 •High street shopping centres
2006 •51% for single branded retail
2005-2010 •Rapid Modern malls
Present Expansion of modern malls with FDI
in multi Brand
Source: Pavithra 2012

9. CLASSIFICATION OF RETAIL FORMATS
9
Classification of Retail Store
Store Based
Form of ownership
Independent retailer
Chain retailer
Franchies
Leased department
Consumer Co-operative
Merchandise offered
Supermarkets
Convenience store
Hypermarkets
Speciality store
Departmental store
Off- price
Factory outlates
Non-Store based
Direct selling
Mail order
Tele marketing
Automated vending
E-retailing

10. TYPES OF RETAIL SECTOR IN
INDIA
10

11. TYPES OF RETAILING SECTOR
Organized
Hypermarket
Supermarket
Department store
Specialty store
Convenience store
Unorganized
Kirana's: traditional mom and pop
stores
Street markets
Exclusive /multiple brand outlets
Medicinal stores
Subzi mandi
11

12. ORGANIZED VS UNORGANIZED RETAIL
SECTOR
Factor Organized Retail Sector Unorganized Retail Sector
Definition Modern form of retailing Traditional form of retailing
Examples Hypermarket, Super market
Mom n Pop stores, pavement
vendors etc
Market Share 3% 97%
Challenges
Poor supply chain
management, aggressive
expansion etc.
Use of labour intensive
technology, lack of
government support etc.
12Source: Anonyms 2015

13. CATEGORIES OF TRADITIONAL RETAILERS
Fruit & vegetable sellers
Food stores
Non-vegetable store
Kirana store
Apparel
Footwear
Customer durables & IT
Furnishing
Hardware
General mechanize
Source: Handa and Grover 2012 13

14. FORCES AFFECTING MODERN RETAIL
FORMATES
14
Dynamic
consumer’s
behaviour
Consumer’s
Demography
Retail
attributes Retail
marketing
strategies
Modern retail formats
Source: Jhamb D and Kiran R 2012

15. COMPARATIVE PENETRATION OF
ORGANIZED RETAIL(2010)
Source: Biswas.2010 15
85
81
55
40
30
20
3
15
19
45
60
70
80
97
US Taiwan Malaysia Thailand Indonesia china India
organized unorganized

16. TRADITIONAL V/S MODERN RETAIL IN INDIA
Source: kalpana 2014 16
3.6 4.1 5
8
21
24
96.4 95.9 95
92
79
76
2005 2007 2010 2012 2015 2020E
Percentage Share
Organized Traditional

17. ORGANIZED RETAIL IN SELECTED COUNTRIES, 2010
Country Total Retail Sales
(US$ bn)
Share of Organized
Retail (%)
USA 2,983 85
Japan 1,182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Brazil 284 36
Russia 276 33
Korea, South 201 15
Indonesia 150 30
Poland 120 20
Thailand 68 40
Pakistan 67 1
Argentina 53 40
Philippines 51 35
Source:Kalpana2014 17

18. MAJOR INDIAN RETAIL PLAYERS IN MARKET
1. Future group
2. Big bazaar
3. Pantaloons
4. Tata group
5. RPG group
6. Reliance 18

19. 7. Aditya Birla group
8. K Raheja group
9. Easy day
10. Landmark group
11. Piramal group
12. Subhiksha
19

20. The organized players
• Foreign Players
– Nike (Single brand)
– Levis (Single brand)
– Wal-mart (JV)
– Metro (Cash & Carry)
20

21. KEY STRATEGIES OF INDIAN RETAILERS
Multiple franchisee model
Rural retailing
Collaboration for back-end
resource sharing
Collaborative model for
international products
Vertical integration
Increasing market reach
Innovation in new retail
formats
Direct sourcing
arrangements
Direct sourcing
arrangements
Focus on private labels
Source: KPMG International 2011 21

22. Top 10 World Wide Retailers according to their
rank
1) Wal-Mart Store, Inc. USA
2) Carrefour Group, Franc
3) METRO AG., Germany
4) The Home Depot, Inc. USA
5) The Kroger Co., USA
6) Royal Ahold, Netherlands
7) Target Corporation, USA
8) Albertson’s, Inc. USA
9) Sears, Roebuck and Co. USA
10) Kmart Corporation USA
22

23. GROWTH DRIVERS OF RETAIL IN INDIA
23
Increase in
Consumer Class
Rise in Income &
Purchasing power
Change in
Consumer mind set
Brand
Consciousness
Easy consumer
credit
Source: IBEF 2011

24. FACTOR CONTRIBUTING TO THE GROWTH
OF RETAIL INDUSTRY
Increasing disposable income
Changing lifestyle and consumer behaviour
Rising affluence among the middle class
Convenience of shopping
Reasonable pricing
An International hub
MNC’s opening up their offices
Changing attitude towards consumption
Source: Gupta and Chaturvedi 2007 24

25. EMERGING TRENDS
 Consumer have accept the mall culture
 Shopping mall has become a favourite pass time for the consumers.
 New idea generate
 Concept mall save time with various brand positioning
 Pleasant experience for the consumer
 Competition building up
Source: Roy 2007 25

26. 26

27. CONT.….
JEWELRY MALL WEDDING MALL
27

28. CONT.….
Interior and exterior mall Electronic mall
28

29. CONT.….
• Auto mall Theme based mall
29

30. GROWTH IN INDIAN ORGANIZED RETAILING
Source:Gugnani A. Barmha .k 2014 30
Categories
Organized
Retail share(2008)
Organized
Retail share
(2013)
Food & Grocery 1% 3%
Apparel 14% 19%
Consumer Durable 10% 20%
Jewellery and watches 6% 10%
Pharmacy & wellness 3% 4%
Furniture 6% 8%
Footwear 21% 27%

31. A COMPARATIVE PICTURE OF GDP
CONTRIBUTION BY RETAIL SECTOR OF YEAR
2010
Sr no. Country Contribution of retail
sector to GDP
1 USA 12%
2 India 12%
3 China 8%-10%
4 Brazil 6%
31Source: Handa and Grover 2010

32. PURPOSE OF VISIT TO MALLS
32
55%
30%
25%
30%
40%
45%
70%
50%
28%
8%
30%
Shopping Entertaiment Windows shopping Eating out
Always Sometimes Never
Source: Somwanshi and Das 2014

33. PROSPECTS IN RETAILING
India has a large middle class society of 350 million and an educated
workforce.
India possesses IT skill in the area of supply chain management.
A number of drivers are aiding the growth of the industry
It enhance levels of income and increasing purchasing power
Indian retailing coming up with the application of smart cards and
credit cards.
Retailing is tremendously growing in small chain stores founds in
metros
Source: Amatul and Prabha.2007 33

34. NUMBER OF SHOPPING MALLS IN MAJOR
METROS IN INDIA
CITY NUMBER OF SHOPPING MALLS
Delhi 96
Mumbai 55
Bangalore 14
Chennai 6
Kolkata 10
Hyderabad 12
Pune 19
Ahmedabad 7
Source: Biswas 2012. 34

35. FDI Policy
1991
• Liberalization - Indian economy opened FDI upto 51% allowed under the automatic route in
select priority sectors
1997
• FDI upto 100% allowed under the automatic route in cash and carry (wholesale)
2006
• FDI upto 51% allowed with prior Government approval in 'Single Brand
Retail'
2008
• Government thought over the idea of allowing 100% FDI in single
Brand Retail and 50% in Multi-brand Retail.
2010
• Government proposed to allow FDI in Multi-Brand Retail
2011
• The union Cabinet decided to allow FDI in Multi-brand retail with a
ceiling of 51% and 100% FDI in single brand retail.
35

36. BENEFITS OF FDI IN RETAIL
 Inflow of investment and funds
Generate more employment
Increased local sourcing
Provide better value to end consumer
Investment and improvement in the supply chains and warehousing.
Franchising opportunities for local entrepreneurs
Growth of infrastructure
Cost reduction
Growth of domestic IT in retail
Stimulate infant industries and other supporting industries
Source: Biswas 2010 36

37. DRAWBACKS OF FDI IN RETAIL
Cutthroat competition.
creating monopoly.
Increase in the real estate prices.
Marginalize domestic entrepreneurs.
The financial strength of foreign players.
Absence of proper regulatory.
It is an intermediate value adding process.
Decrease profit of the country.
Source: Biswas 2010 37

38. OPPORTUNITIES FOR RETAIL SECTOR
1. Unique feature of the store
2. Enhance shopping experience for consumer
3. Promotion
4. Backward integration
5. Creating positive social change
6. Rising emerging market demand and rise for global middle class
7. New market channels and social media
8. Competitive differentiation via CSR and Green Branding
38

39. Cont.......
9. Multichannel approach
10. Private label
11. Enhancing efficiency in the supply chain
12. Demographic change
13. Launching new product and services
14. Global Urbanization
15. Competitive Differentiation via local branding
39Source: Sudame & Sivathanu 2013

40. CHALLENGES OF RETAILING IN INDIA
Lack of skilled manpower.
Inefficiencies in the supply chain.
The quality of produce demanded by the consumer.
The rapid growth of the organized retail segment is checked.
Lack of basic infrastructure.
40

41. CHALLENGES IMPACTING THE RETAIL
SECTOR
64% 80%
60%
89% 78% 81% 79% 91% 81%
36% 20%
40%
11% 22% 19% 21% 9% 19%
yes no
Source: Sudame and Sivathanu.2013 41

42. FUTURE SCOPE IN INDIAN RETAIL SECTOR
42Source: Kamal 2014
Pharmacy
3%
Electronic
Consumer
3%
Jewellery
4%
Food service
5%
Mobile and
Telecom
6%
Apparel
8%
Other
11%
Food &
Grocery
60%
UNORGANIZED
Electroni
c
Consume
r
8%
Jewellery
6%
Food
service
7%
Mobile
and
Telecom
11%
Apparel
33%
Other
24%
Food &
Grocery
11%
ORGANIZED

43. SHARE OF RETAILING IN TOTAL
EMPLOYMENT
43
Country Share of Retailing in Total Employment
India 7%
China 6%
Poland 12%
Brazil 15%
USA 11.7%
Korea 18%
UK 11%
Malaysia 7%
Source: Patel and Mukherjee 2009

44. EXPECTED FUTURE TRENDS IN THE RETAIL
SEGMENT IN INDIA
1. FDI in specialty stores
2. Dominance of unorganized retail
3. Growth in small cities and towns
44Source: Sudame and Sivathanu.2013

45. BENEFITS OF ORGANIZED RETAIL OUTLETS
TO THE INDIAN ECONOMY
45

46. ECONOMIC IMPACT OF ORGANIZED
RETAILING IN INDIA
1.Employment generation
2. Development of small scale units
3. Growth of real estate
4. Economic impact on farmers
Source: Seema 2016
46

47. CONCLUSION
India’s retail industry employs to the 40 million Indians which is 3.3%
of total population of india.
India’s retail market is expected to grow at 7% over the next 10 years,
reaching a size of us$ 850 billion by 2020.
Modern retail sector in india could be worth US$ 175-200 billion by
2016.
The food retail industry in india also growing rapidly.
Online retail business is another format which has high potential for
growth in the near future.
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48. CONT....
The present structure of Indian retail sector, is the major subsector in
organized and traditional retail and changes in the relative share of
various sub sector over last few years.
Food and grocery segment is dominated by traditional retail but in
2012 organized retail penetration in this sector had more than double.
Organized retail whose share in total retail was 8% in 2012 is expected
to assume 24% share of total retail market in india in 2020.
Retail sector is grooming with rapidly and also shifting from
unorganized sector to organized sector retailing .
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