Organized retail the opportunities ahead
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Organized retail in India is growing rapidly and is expected to increase from less than 3% market share in 2005 to 8% by 2010. This represents a significant opportunity for growth. India's retail sector is currently dominated by small, disorganized shops but is shifting towards larger organized retailers. The growth of organized retail will be driven by India's growing middle class population, increased retail infrastructure like malls, and a young, evolving consumer base. Retail also provides major employment and entrepreneurship opportunities globally and in India.
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Organized+retail+ +the+opportunities+ahead
The organized retail sector in India has grown significantly in recent decades. It accounted for an estimated Rs. 28,000 crore in 2004 and Rs. 35,000 crore in 2005. However, organized retail still only makes up a small fraction of the overall retail industry, as most retail in India is conducted through millions of small, owner-managed shops and outlets. Major drivers for future growth of organized retail include a rapidly expanding middle class, a young and evolving consumer base, improving retail infrastructure like new malls, and its potential for employment.
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2) Cultural differences between countries create challenges for global collaboration. Models by Hofstede and Trompenaars/Hampden-Turner provide frameworks to understand differences in areas like power distance, individualism, and views of time.
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Multinational corporations have significant economic power and influence on developing countries and their populations. They can affect women's health by employing them in large numbers under certain conditions. Some pharmaceutical multinationals have also acted unethically in developing world contexts, such as testing unapproved drugs on children or pressuring governments over intellectual property. However, multinational investment can also generate jobs and skills training, as well as technology and knowledge transfers to host countries.
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Organized+retail+ +the+opportunities+ahead
The organized retail sector in India has grown significantly in recent decades. It accounted for an estimated Rs. 28,000 crore in 2004 and Rs. 35,000 crore in 2005. However, organized retail still only makes up a small fraction of the overall retail industry, as most retail in India is conducted through millions of small, owner-managed shops and outlets. Major drivers for future growth of organized retail include a rapidly expanding middle class, a young and evolving consumer base, improving retail infrastructure like new malls, and its potential for employment.
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2) Cultural differences between countries create challenges for global collaboration. Models by Hofstede and Trompenaars/Hampden-Turner provide frameworks to understand differences in areas like power distance, individualism, and views of time.
3) Indian managers typically come from a culture with clear hierarchies and structures,
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Presentation reports show data and opportunities about the emerging opportunities , challenges and growth story in India organised retail sector. This Presentation is delivered by the Founder and Chief Executive of SCS universal Mr. Gajendra Khare at JIMS New Delhi
Fdi in retail sector
The document discusses foreign direct investment (FDI) in India's retail sector. It provides an overview of the retail sector and FDI policy in India, including opportunities and challenges. It also examines emerging human resource issues and what the future may hold for FDI in Indian retail. Key points include that organized retail accounts for only 7% of the sector but is growing, and FDI could help address issues like post-harvest losses, supply chain inefficiencies, and rural market development. However, challenges include competition from small retailers and the need for improved infrastructure and skills training.
Global competitivebusinessnov04
Globalization has impacted Indian industry in several ways. Economic reforms in 1991 opened India's markets, reducing import duties and removing restrictions. This allowed many multinational corporations to enter the Indian market. While this has led to benefits like increased investment and economic growth, it has also increased competition and pressure on Indian companies to improve efficiency. Many companies have responded successfully by restructuring their resources, focusing on innovation, and better meeting customer needs. Overall, globalization has presented both opportunities and challenges for Indian industry.
Indian Retail Presentation Sd
- India is projected to become the 3rd largest economy in the world by 2032, behind only the US and China, with an expected annual GDP growth rate of 8%.
- Retail in India is rapidly growing and modernizing, with organized retail expected to cross $100 billion by 2012. Over 700 new shopping centers and malls are planned over the next few years.
- Factors driving retail growth include a large young population, a burgeoning middle class, rising incomes, international exposure, and India's role as a global sourcing hub. However, challenges remain around regulations, infrastructure, real estate costs and a lack of skilled labor.
FMCG
The document provides an overview of the Indian FMCG sector. Some key points:
- The Indian FMCG sector has a market size of US$25 billion and is poised to grow 10-12% annually. It has a well-established distribution network across 6 million retail outlets.
- Organized retail is growing and expected to increase its share of the market to 14-18% by 2015, creating new channels for FMCG players.
- Rural India accounts for one-third of total consumption and is an important growth area as FMCG companies develop rural marketing strategies.
- Food products are the largest consumption category, accounting for 21% of India's GDP. Leading players in this segment are mentioned.
Presentation On Future Of Indian Retail Sector
The document discusses trends in the Indian retail sector. It notes that retail currently makes up 8% of employment in India compared to 16% in the US. The rural retail market consists of 720 million consumers across 100,000+ villages. Modern retail is growing and may reach $300 billion by 2010. While large foreign retailers could bring benefits, there are also concerns about their impact on traditional small retailers and domestic jobs.
Not all groups are teams
The document discusses the differences between groups and teams. It notes that while a group may consist of individuals pursuing a common goal through different approaches, a team is a small number of people with complementary skills committed to a shared purpose and set of performance goals. Teams hold themselves mutually accountable and work interdependently toward their common objective.
FDI in India.. Boon or Bane?
This document discusses foreign direct investment (FDI) in India's retail sector. It provides an overview of the retail sector and FDI policy in India. It notes that historically FDI was only allowed up to 51% for single brand retail and 100% for cash and carry wholesale, but the new policy will allow up to 51% for multi-brand retail. The document discusses the opportunities that FDI in retail provides, such as job creation and improvement of supply chain infrastructure, as well as challenges around competition and impact on small retailers. It concludes that FDI in retail will benefit the Indian economy if implemented carefully.
Indian retail ppt
This document provides an overview of the competitive landscape of the retail industry in India. It notes that retail is a growing sector in India, expanding at 20-25% annually. The industry employs over 18 million people. While 97% of the retail market is unorganized, organized retail is growing and includes large Indian retailers like Pantaloon Retail and Future Group as well as international chains like KFC, Nike, and McDonald's. The document discusses the market segmentation in India, competitive environment, positioning of retailers in the Indian market, retail formats, and SWOT analysis of the industry. It concludes that modern retail in India could be worth $175-200 billion by 2016 due to market growth, supportive policies, and
FMCG SECTOR ANALYSIS
The Indian FMCG sector has a market size of US$25 billion and is poised to grow 10-12% annually. It has a well-established distribution network of over 6 million retail outlets across urban and rural areas. Organized retail is growing and expected to increase its share of the market to 14-18% by 2015. Rural India accounts for one-third of total consumption and FMCG companies are devising rural marketing strategies. Food products are the largest consumption category. The export potential for Indian FMCG companies is growing as they focus on international markets.
FDI IN INDIAN RETAIL INDUSTRY
This document discusses foreign direct investment (FDI) in India, particularly in the retail industry. It defines FDI and explains why countries seek it, noting benefits like increased investment, income, employment, tax revenue, and technology transfer. The global retailing scenario and levels of FDI in the US and China are presented. The document then covers the size of India's retail market, the role of organized versus unorganized retailing, and expected future growth in retail sales. Both the advantages, like technology advancement, employment, economic and consumer benefits, and disadvantages, like initial trouble for small retailers, of allowing FDI in Indian retail are outlined before concluding it will be good for development.
finalfdiinretailppt-101011161658-phpapp01 (1).pptx
This document discusses FDI in the Indian retail sector. It provides an overview of the retail sector and outlines opportunities and challenges of FDI in retail. Key points include:
- Retail is a major employer in India, employing over 35 million people, however the organized retail sector only employs around 0.3 million.
- FDI can help address issues like lack of infrastructure and skills in the supply chain. However, there are also concerns about the impact on small retailers and employment.
- The retail sector is expected to grow significantly in coming years due to rising incomes and consumer spending in India. FDI could help accelerate this growth through investments and modernization of the sector. However, some argue it should be introduced
Finalfdiinretailppt 101011161658-phpapp01
- The document discusses FDI (foreign direct investment) in India's retail sector, including the opportunities and challenges.
- It provides an overview of India's retail industry, which employs over 35 million people but is 95% unorganized. organized retail makes up just 5%.
- Allowing FDI could generate additional jobs in retail, improve supply chain infrastructure and efficiency, and benefit farmers through contract farming. However, it may also face challenges around competition with small retailers, availability of skilled workers, and real estate issues. A calibrated approach to FDI liberalization is recommended.
Economics ppt
Indian retail is one of the fastest growing retail markets in the world. Retail accounts for over 10% of India's GDP and 8% of employment. The retail market is divided into organized retail (9%) and unorganized retail (91%). The overall retail market is expected to grow at 12% annually, with modern trade growing at 20% and traditional trade at 10%. In 2018, retail reached Rs. 66.39 lakh crore and is expected to reach Rs. 76.87 lakh crore by 2020.
Similar to Organized retail the opportunities ahead (20)
Impact of foreign direct investment in retail in copy
Impact of foreign direct investment in retail in copy
Indian Retail – Next Growth Story with Challenges and Opportunities
Indian Retail – Next Growth Story with Challenges and Opportunities
finalfdiinretailppt-101011161658-phpapp01 (1).pptx
finalfdiinretailppt-101011161658-phpapp01 (1).pptx
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Organized retail the opportunities ahead
- 1. Organized Retail The Opportunities Ahead
- 2. Retail – the largest private industry in world economy Sales (USD Trillion) 1999 Retail 6.6 Financial services 5.1 Construction / Engineering 3.2 Packaged goods 2 Chenmicals 1.4 Energy 1.2 Electronics 1.1 Automotive 1 telecom 0.8 Pharmaceuticals; diagnostice 0.3 Source : Euromonitor, European Chemical Industry Council: Automotive News; Wall Street Journal; Chemical market Reporter; IDATE; Global Vantage
- 3. Retailing – the largest private industry in the world • Over 50 of the Fortune 500 companies are retail companies. • 25 of the Asian top 200 companies are retail companies. • The world’s largest company is a retail company. (Wal-Mart – last valued at Rs 1,091,250 crore)
- 4. Current Retail scenario in India • Retail industry accounts for 35% of our GDP • Estimated industry size - USD 205 bn (INR 230,000 cr) in 2004. • Highest number of outlets per capita - 12 million outlets • Lowest per capita retail space - 2 sft per person as compared to 16 sft per person in USA • Only 4% of the country’s outlets are larger than 500 sft India’s retail setup is therefore crowded with small outlets, largely disorganized and primarily owner managed Source: KSA Technopak
- 5. Organized Retail Organized Retail arrived in India in the 90’s • 1999 Rs 550 Crore • 2002 Rs 4,000 Crore • 2004 Rs 28,000 Crore • 2005 Rs 35,000 Crore
- 7. Examples of Growth in Emerging Markets Years taken for organized retail to grow from <5% to over 20% INDIA IS STILL AT 2.5% Source : MG1, team analysis
- 8. Forecast 2010 • Organized retail is expected to grow at 30% - 35% p.a. to become USD 24 bn (INR 100,000 cr) by 2010 • Organized Retail Penetration (ORP) will increase from less than 3% in 2005 to 8% by 2010 • FDI in real estate will accelerate pace of development of retail infrastructure • Investments in organized retailing are estimated to touch USD 4,000 Mn (INR 20,000 cr) by end of 2010 Source: KSA Technopak, HSBC Report
- 9. Development Curve of Organised Retail
- 10. Growth Drivers - Young & rapidly evolving consumers India is one of the most youthful countries in the world with 53% of the population less than 25 yrs of age Within a decade the number of people in age group of 20 – 49 would increase 30% from 395mn in 2000 to 510 mn in 2010
- 11. Growth Drivers – Middle Class Population Currently estimated at 92 Mn the middle class (family income between INR 200,000 – 10,00,000 p.a.) is expected to be around 153 Mn by 2010
- 12. Growth Drivers – Retail Infrastructure • India will have 225 malls by 2007 spread over 50 cities • Relaxation in FDI in Real Estate to give further impetus • Real Estate Mutual Funds ( REMFs) & Real Estate Investment Trusts ( REITs) comes to India
- 14. Retail – Largest Employer in the World Increased employment opportunities - The annual employee turnover of Wal-Mart is more than the entire workforce of General Motors - 18% of the US workforce is employed in retail
- 15. Socioeconomic Impact of McDonalds on the US Job Market McDonalds captures 1 out of every 6 restaurant visits in the US market • Employs more than 5,00,000 people • Largest employer of High School Students • 12.5 % of the US workforce has worked for McDonalds • 1 out of 15 American got his/her 1st Job at McDonalds • Nations largest Job Training Organisation -Bigger than the US Army – teaching the future US workforce “ work routines,job discipline and organisational teamwork
- 16. Retail – Opportunities for Entrepreneurs - World of Franchising - Specialized retail formats Bangles, Candy, Kite, - opportunities are immense !!