The document summarizes the organized retailing industry in India. It states that India has the fifth largest retail industry in the world, comprising both organized and unorganized sectors. While retail was traditionally unorganized, consumers' changing tastes and preferences have led the industry to grow and become more organized in recent years. Key points covered include growth projections, major retail formats used in India, trends in the industry, strengths, weaknesses, opportunities and threats.

1. Presented By,
Poovanna B S
R&SCM
ORGANIZED RETAILING IN
INDIA

2. Retailing may be defined as, “The sale of
goods or commodities in small quantities
directly to consumers.”
RETAILING

3.  The Indian Retail Industry is the fifth largest in the world.
Comprising of organized and unorganized Sectors.
 Indian retail industry is one of the fastest growing industries in
India, especially over the last few years.
 Initially the retail industry in India was mostly unorganized,
however with the change of taste and preferences of consumers,
the Industry is getting more popular these days and getting
organized as well.
 The Indian Retail Industry is expected to grow from US$330
billion in 2007 to US$640 billion by 2015.
RETAILING IN INDIA

4.  Indian Retail Market accounts for 22% of country’s GDP and it
contributes to 8% of the total employment.
 According to the 10th Annual Global Retail Development Index
(GRDI) of A.T. Kearney, India is having a very strong growth
fundamental base that’s why it’s the perfect time to enter into Indian
Retail Market.
 The total retail spending is estimated to double in the next five years.
Of this, organized retail –currently growing at a CAGR of 22%- is
estimated to be 21% of total expenditure.
 The unorganized retail sector is expected to grow at about 10% per
annum with sales expected to rise from $309 billion in 2006-07 to
$496 billion in 2011-12.

6. MARKET OVERVIEW
REF: IBEF REPORT ON RETAIL ,DATED NOVEMBER 2010

7. Hypermarkets - Spencers, Big Bazaar
Cash & Carry- Easy Day, Metro
Department stores- Lifestyle, Shoppers Stop
Supermarkets- Food Bazaar
Shop in Shop- Infinity
Specialty Stores- Brand factory
Category killers- The Loft, Central
Discount Stores- Subhiksha
Convenience Stores-Safal, In& Out
ORGANIZED RETAIL FORMATS

8. Emergence of Multiple franchisee Model
Rural retailing
JV’s for International products
Vertical Integration
Collaboration for back-end resource sharing
Increasing Market Reach
Innovation in new retail formats
Direct Sourcing & Private Labels
KEY TRENDS

9. Expansion Plans
M&A
Strategic Alliances
Policy and Regulatory Framework
GST
INVESTMENTS IN ORGANIZED RETAIL

11. STRENGTH
 Increasing demand driven by the country’s young working
population
 Increase in per capita income which in turn increases the
household consumption
 Create win-win situation for all links in value chain ( suppliers,
producers, retailers and customers).
 Improvement in the standard of living.
 Technology intensive industry

12. WEAKNESS
 Lack of expertise in Supply Chain Management
 Inadequate Infrastructure
 Stringent Labor Laws
 Lack of specialized professionals in Industry
 Lack of industry status.
 Non-Availability of Government Land.

13.  Change in consumer behavior pattern and increase in
disposable income.
 It is estimated that 15 million people would be engaged
in Retail and Retail support activities by 2010
 Indian rural markets offer a sea of an opportunity for
the retail sector.
 Upcoming international Players
 Healthy prospect for the fashion industry.
OPPORTUNITIES

14. Indian taxation system favors small retail business.
Competition from unorganized Sector to the organized Sector.
Middle class Psychology.
Increasing Real Estate prices
THREATS

15. THANK YOUTHANK YOU 