The document discusses the retail sector in India. It notes that the retail sector accounts for about 10% of India's GDP and 8% of employment. India is also the world's fifth largest retail destination globally. It then discusses factors like demand and supply scenarios in retail, production factors in retail like physical assets, labor, capital and enterprise. The document also outlines various costs in retail, market structures, major players and concludes by discussing growth factors and future trends of the retail sector in India.

1. Managerial
economicsSubmitted to:
Prof. Surabhi
Submitted by:
Kanchan Sharma
Kratika Parpayani
Mayank Adhauliya
Shahrukh Khan
Vanshika Khandelwal

2. RETAIL SECTOR IN INDIA
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3. INTRODUCTION
•The Indian retail industry has
emerged as one of the most dynamic
and fast-paced industries due to the
entry of several new players.
•Retail is the process of
selling consumer goods or services to
customers through multiple channels
of distribution to earn a profit.
•Retailing in India is one of the
pillars of its economy and accounts
for about 10 percent of its GDP.
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4. It accounts for over 10 per cent of the country’s Gross
Domestic Product (GDP) and around 8 per cent of the
employment.
India is the world’s fifth-largest global destination in the retail
space.

5. DEMAND SENARIO IN RETAIL
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• What are his customers buying?
• When and how much are they buying?
• Why are they buying and for whom?
• What are they buying from competition and why?
• When will they come back to the store and for what?
• What are their product preferences and how
receptive they are to product modification?
• What is the present and future wallet size of the
customer?
• What are the new customer demographics that can
be targeted?
• What promotions strategies and channels work for
my business

6. SUPPLY SENARIO IN RETAIL
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• How many product lines will he need to
manufacture/source in the upcoming
season/cycle?
• Which are the best vendors for particular
materials or project?
• What should be his pricing strategy and how
best should he plan the mark-downs?
• How much is the old stock and how soon can
it be processed or sold?
• How much is the dead stock and how best to
utilize it?
• Which are the fast moving locations and how
many distributors will suffice?
• When, how, where to restock at store,
warehouse level?

7. PRODUCTION IN RETAIL
INDUSTRY
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In business, factors of production are those
inputs that are essential in the creation of a
good or service to meet a certain need in the
market. Factors of production are more easily
conceived in the manufacturing industry
than they are in retail. Admittedly, a retail
store does not engage in production per se of
the goods it sells. However, in discussing the
factors of production in a retail store, the
focus would be those factors that enable the
store to distribute its merchandise and to run
effectively.

8. PHYSICAL ASSETS
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• The physical store itself is a factor of production as it allows the
retail clothing enterprise to distribute its goods and services,
and to reach its customers.
• Other physical assets that contribute to the functioning of the
clothing store include equipment such as point of sales systems,
which enable the customers to pay for the goods purchased.
The technical infrastructure, which enables a physical store to
reach its online customers, is also an essential factor of
production if the store offers such services.

9. LABOUR
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• Labour in a retail store setting refers to the employees and
personnel who come into contact with the customers to facilitate
in the selling of the clothes.
• Labour is required for sales, marketing, stacking up the clothing
racks, technical support and finance, and customer service.
• Importantly, labour is specialized such that workers focus on
the areas of business where they are most skilled in. The
personnel who offer their services in a retail store are paid
wages.

10. CAPITAL
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• Financial capital is an essential factor of production for a retail
clothing store. This is because financial capital is utilized in the
purchase of the merchandise, which will be sold through the
store for a profit.
• Financial capital also pays for the services provided by the
employees in the store, as well as other workers who provide
services for the store but do not work directly in the store such
as transport providers. Financial capital also aids in the
purchase of physical assets needed for the distribution of the
merchandise.

11. ENTERPRISE
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• Enterprise is the skill used to combine all other factors of
production. This is the skill applied by the owners of the retail
store as well as the top management personnel.
• The enterprising skills of senior management ensure that the
retail store is running efficiently to make a profit. They do so by
providing sound financial management practices and making
decisions in the good interest of the store.
• Enterprise as a factor also facilitates in the effective movement
of goods (clothes) from the point of actual production to the
point of distribution at the retail store.

12. RETAIL COST STRUCTURE
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• Payroll (18%) and rent (15%) are the most
significant retail costs that are location
specific and cannot be effectively mitigated.
A good retail location usually commands a
high rent and labour costs, which are
associated with higher sale volumes.
• Other retail costs mainly involve utilities
and store supplies. Transportation costs
account for 3% of retail costs, depending on
the origins of the goods.

13. MARKET STRUCTURE IN
RETAIL
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• Retail market structure refers to the
number of companies that sell similar or
identical products in the same
geographical area.
• An oligopoly describes a small group of
companies that collude to raise prices on
products because of excess demand.
• Members of an oligopoly receive
temporary benefits from limiting retail
competition at the cost of harming
society on a local or national scale.

14. VARIOUS PLAYERS IN
RETAIL SECTOR
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15. PROS AND CONS
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• Pros of Working in Retail
1. Physical Activity
2. Merchandise Discounts
3. Interpersonal
Communication
4. Development of
Merchandising Skills
5. Basic Math and Counting
Practice
6. Room for Growth
• Cons of Working in Retail
1. Relatively Low Pay (No
Tips)
2. Weekend/Holiday Work
3. Interpersonal
Communication
4. Inventory
5. High Turnover
6. Indoor Environment

16. CONCLUSION
Retail Sector of Indian Economy
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18. • The Retail Sector of Indian Economy is going
through the phase of tremendous transformation.
The retail sector of Indian economy is categorized
into two segments such as organized retail sector
and unorganized retail sector with the latter
holding the larger share of the retail market.
• At present the organized retail sector is catching
up very fast. The impact of the alterations in the
format of the retail sector changed the lifestyle of
the Indian consumers drastically. The evident
increase in consumerist activity is colossal which
has already chipped out a money making recess for
the retail sector of Indian economy.

19. The growth factors of the retail
sector of Indian economy:
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• Increase in per capita income which in turn
increases the household consumption
• Demographical changes and improvements in
the standard of living
• Change in patterns of consumption and
availability of low-cost consumer credit
• Improvements in infrastructure and
enhanced availability of retail space
• Entry to various sources of financing

20. The future trends of the retail
sector of Indian economy:
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• No one single format can be
assumed as there is a huge
difference in cultures regionally.
• The most encouraging format
now would be the hyper marts
• The hyper mart format would
be further encouraged with the
entry of the TNC's
• It is projected that by 2021
traditional retail will hold a
major share of 75 per cent,
organised retail share will reach 18
per cent and e-commerce retail
share will reach 7 per cent of the
total retail market.

21. Thank You!