This document provides a PESTEL and risk analysis of the retail industry in India. It begins with an overview of the Indian retail industry, including key statistics on organized and unorganized retail revenue. It then analyzes the political, economic, social, technological, environmental, and legal factors impacting the industry. The top five risks are identified as corruption, strikes/unrest, political instability, crime, and cybersecurity issues. Opportunities in the industry include the large number of retail outlets, rural market potential, private labels, and sourcing. Challenges include lack of retail space, talent shortage, economic issues, inefficient supply chains, and labor regulations. Ahmedabad and Amarawati are recommended as preferred locations for
Impact of Goods and Services Tax on Indian Economyijtsrd
The Goods and Services Tax, also known as GST Goods and Service Tax , came into force in India on 01 July 2017. Now there is a free flow of goods in the country and the concern of tax rates of businessmen have ended. The Goods and Services Tax rate in India is the highest at 28 percent, which frustrates businessmen. GST replaced very complex and many indirect taxes such as production duty, sales tax, entry tax, VAT etc. The objective of the Government of India to implement this was to encourage development by adopting the system of “one nation, one tax, one market†by exempting the country from the different tax rates of different states. Goods and services have become expensive with GST. But it will have to wait for its positive and negative results, and see which side is to turn. Finally, how does the Goods and Services Tax affect consumers Dr. Sumit Trivedi "Impact of Goods and Services Tax on Indian Economy" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-4 , June 2021, URL: https://www.ijtsrd.compapers/ijtsrd41316.pdf Paper URL: https://www.ijtsrd.commanagement/accounting-and-finance/41316/impact-of-goods-and-services-tax-on-indian-economy/dr-sumit-trivedi
Wealth creation the invisible hand supported by the hand of trustDVSResearchFoundatio
OBJECTIVE
National Economic Survey (NES) is the flagship annual document of the Ministry of Finance of the Government of India. It reviews the developments in the Indian economy over the past financial year, summarizes the performance on major development programs, and highlights initiatives of the government and the prospects of the economy in the short to medium term.
Impact of Goods and Services Tax on Indian Economyijtsrd
The Goods and Services Tax, also known as GST Goods and Service Tax , came into force in India on 01 July 2017. Now there is a free flow of goods in the country and the concern of tax rates of businessmen have ended. The Goods and Services Tax rate in India is the highest at 28 percent, which frustrates businessmen. GST replaced very complex and many indirect taxes such as production duty, sales tax, entry tax, VAT etc. The objective of the Government of India to implement this was to encourage development by adopting the system of “one nation, one tax, one market†by exempting the country from the different tax rates of different states. Goods and services have become expensive with GST. But it will have to wait for its positive and negative results, and see which side is to turn. Finally, how does the Goods and Services Tax affect consumers Dr. Sumit Trivedi "Impact of Goods and Services Tax on Indian Economy" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-4 , June 2021, URL: https://www.ijtsrd.compapers/ijtsrd41316.pdf Paper URL: https://www.ijtsrd.commanagement/accounting-and-finance/41316/impact-of-goods-and-services-tax-on-indian-economy/dr-sumit-trivedi
Wealth creation the invisible hand supported by the hand of trustDVSResearchFoundatio
OBJECTIVE
National Economic Survey (NES) is the flagship annual document of the Ministry of Finance of the Government of India. It reviews the developments in the Indian economy over the past financial year, summarizes the performance on major development programs, and highlights initiatives of the government and the prospects of the economy in the short to medium term.
Micro Small and Medium Enterprise Funding - Opportunities and ChallengesResurgent India
What are MSMEs, Why are they Important, What is their role in the Economy and What are the Opportunities and Challenges related to Funding in the Sector? This Research Report from Resurgent India highlights the Opportunities and Challenges along with Suggestions for MSME Funding.
Recently, IMF said that India will grew at 7.5% overtaking China as the fastest growing economy in 2015-16 due to recent policy initiatives made by government of India.But the prospects could change depending on the implementation of the reforms of the new Modi government.
Kegler Brown and the Ohio Development Services Agency presented "Succeeding in India: Business and Legal Insights" on Tuesday, October 14, with Dr. Manoj Kumar Mohapatra, Deputy Consul General, Consulate of India, New York, as the keynote speaker.
Topics included legal intelligence when conducting business in India, how the Ohio Development Services Agency can help Ohio businesses and a panel of local business leaders provided insight and practical advice from their experiences in India.
Attract your audiences towards the service and explore the vibrant beauty of Singapore, the land of irresistible sightseeing, well known for its nightlife and relaxing environment. For more details, check out templates at: http://www.powerpointmapsonline.com/powerpointmaps.aspx/Map-of-Singapore-51
Micro Small and Medium Enterprise Funding - Opportunities and ChallengesResurgent India
What are MSMEs, Why are they Important, What is their role in the Economy and What are the Opportunities and Challenges related to Funding in the Sector? This Research Report from Resurgent India highlights the Opportunities and Challenges along with Suggestions for MSME Funding.
Recently, IMF said that India will grew at 7.5% overtaking China as the fastest growing economy in 2015-16 due to recent policy initiatives made by government of India.But the prospects could change depending on the implementation of the reforms of the new Modi government.
Kegler Brown and the Ohio Development Services Agency presented "Succeeding in India: Business and Legal Insights" on Tuesday, October 14, with Dr. Manoj Kumar Mohapatra, Deputy Consul General, Consulate of India, New York, as the keynote speaker.
Topics included legal intelligence when conducting business in India, how the Ohio Development Services Agency can help Ohio businesses and a panel of local business leaders provided insight and practical advice from their experiences in India.
Attract your audiences towards the service and explore the vibrant beauty of Singapore, the land of irresistible sightseeing, well known for its nightlife and relaxing environment. For more details, check out templates at: http://www.powerpointmapsonline.com/powerpointmaps.aspx/Map-of-Singapore-51
Information regarding Pestel has been part of market analysis for any industrial sectors especially in countries such as Indonesia of where some industrial data is quite often unavailable. Analyst is compelled to do guesstimation by using limited information.
This condition has quite often placed Pestel data and analysis as one of important information for business analist to do market estimation especially in term of future projection.
Canvassco as one of the regional B2B research agency presents a pestel analysis in an interactive design as market analysis does not have to be boring.
Indonesia: Country Analysis (International Marketing)Rahul Wane
A thorough country analysis of Indonesia with International Marketing point of view. Consists of latest statistics, facts and figures as of 2013-14. Covers points such as Market Potential Index, Hofstede Model, GCI Index, PESTEL and SWOT analysis.
Ethical, Social, and Political Issues in E-commerceNor Ayuzi Deraman
Internet, like other technologies, can:
Enable new crimes
Affect environment
Threaten social values
Costs and benefits must be carefully considered, especially when there are no clear-cut legal or cultural guidelines
This presentation gives detailed and in depth Analysis of E-Commerce Industry in India. It has been made by integrating latest available data regarding this industry on various websites which are trustworthy. This is for educational purpose only. Hope you will find it helpful.
Making India a global hub an Artical writen by Raghuram G RajanSubin Suresh
this ia the study on how India can become a global hub what measures it is required to be taken for becoming a global hub. major pillars, India has to focus on.
India’s strong consumption story relies on its demographic structure, which, at this
point in time, is highly favourable compared to most other emerging nations. As per
the UN population statistics, this favourable demographic dividend will last for another
25–30 years. Before that, most other emerging nations would have already begun to
witness a slowdown in the growth of young (working-age) population.
The ensuing benefits with regard to the rising income and household spending would
provide a significant boost to the consumption-driven growth story of India. A glimpse
of the changing pattern of India’s consumption is already visible in the breakdown
of private final consumption spending data provided by the government. There is
a marked increase in spending on lifestyle products and services such as hotels,
mobiles, transportation and other miscellaneous goods. As against that, spending on
essentials has only remained stable.
International retailers are well aware of these benefits that the Indian economy offers.
Barring few legislative challenges that could be tackled through the policy reforms and
opening up of the retail sector, retailers have often expressed their intention to enter
and invest in India’s attractive retail sector. This is very well reflected in AT Kearney’s
Global Retail Development Index 2012, where India ranks as the fifth most attractive
retail market for international retailers. The retail sector is a significant contributor to India’s economic activity. Though a
direct measurement of the retail sector is difficult to derive through government
statistics, the trade, hotels and restaurant sectors come close to giving us an
estimate of its contribution. That component, in which retail (both organised and
unorganised) is the dominant activity, accounts for around 18% of India’s GDP.
Within the services sector of India, this component is the largest contributor
to the economy. Many institutions, however, may not agree with this possibly
understated measurement of the retail sector, as it may not accurately account
for the unorganised sector. For instance, as per the estimates of the Associated
Chamber of Commerce and Industry (ASSOCHAM) presented in one of its retail
reports of 2012, the contribution of both organised and unorganised retail stood
at 22% of GDP. This would mean that Indian retail sector size should measure
closer to INR 19.2 trillion in 2012. Leading research institutions such as AT
Kearney and ASSOCHAM estimate this sector to grow at around 15% y-o-y over
the next three–five years as against a 12%–13% nominal growth of India’s GDP
estimated by the International Monetary Fund (IMF). Going by that logic, the retail
sector should reach a size of INR 34 trillion by 2016. This is a significant growth.
The sector is also an important contributor towards the socioeconomic well-being
of the economy as it employs close to 9.4% of India’s labour force, as per the
association.
FMCG Industry Analysis PESTLE Analysis, SWOT Analysis, Dabur, ITC and Colgate ratios and Industrial analysis.
Fast-Moving Consumer Goods (FMCG) or Consumer Packaged Goods (CPG) are products that are sold quickly
and at a relatively low cost. Examples include non-durable goods such as packaged foods, beverages,
toiletries, over-the-counter drugs, and other consumables
Unit: 1 Introduction to Indian Economy : Alternative Development Strategies – Trends in
National Income, Growth and Structure since 1991 - New Industrial Policy 1991 – Recent changes
in Trade Policy - Competition Policy - Public Sector Reform - Privatization and Disinvestments –
Progress of Human Development in India
Unit: 2 Planning and Economic Development : Redefining the Role of the State – Human Capital
Formation in India – Problem of Foreign Aid – Economic Reforms and Reduction of Poverty –
Measures to Remove Regional Disparities
Unit: 3 Indian Industries : Review of Industrial Growth under 10th and 11th Five year plan -
Growth and present state of IT industry in India – Outsourcing, Nationalism and Globalization –
Small Sector Industrial Policy
Unit: 4 a) Foreign Trade: Trends of Exports and Imports of India – Composition of India’s
Foreign Trade - Direction of India’s Foreign Trade – Growth and Structure of India’s Foreign
Trade since 1991 – Balance of Payments since the New Economic Reforms of 1991.
b) Foreign Capital : Need for Foreign Capital – Foreign Investment Inflows – Role of Special
Economic Zones (SEZ)
Unit: 5 India in the Global Setting : India in Global Trade – Liberalization and Integration with
the Global Economy – Globalization Strategies – India’s Foreign Exchange Reserves –
Convertibility of the Rupee – WTO and India.
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdfthesiliconleaders
In the recent edition, The 10 Most Influential Leaders Guiding Corporate Evolution, 2024, The Silicon Leaders magazine gladly features Dejan Štancer, President of the Global Chamber of Business Leaders (GCBL), along with other leaders.
Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challengesHolger Mueller
Holger Mueller of Constellation Research shares his key takeaways from SAP's Sapphire confernece, held in Orlando, June 3rd till 5th 2024, in the Orange Convention Center.
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
In the Adani-Hindenburg case, what is SEBI investigating.pptxAdani case
Adani SEBI investigation revealed that the latter had sought information from five foreign jurisdictions concerning the holdings of the firm’s foreign portfolio investors (FPIs) in relation to the alleged violations of the MPS Regulations. Nevertheless, the economic interest of the twelve FPIs based in tax haven jurisdictions still needs to be determined. The Adani Group firms classed these FPIs as public shareholders. According to Hindenburg, FPIs were used to get around regulatory standards.
Premium MEAN Stack Development Solutions for Modern BusinessesSynapseIndia
Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
Know more: https://www.synapseindia.com/technology/mean-stack-development-company.html
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
Company Valuation webinar series - Tuesday, 4 June 2024FelixPerez547899
This session provided an update as to the latest valuation data in the UK and then delved into a discussion on the upcoming election and the impacts on valuation. We finished, as always with a Q&A
Navigating the world of forex trading can be challenging, especially for beginners. To help you make an informed decision, we have comprehensively compared the best forex brokers in India for 2024. This article, reviewed by Top Forex Brokers Review, will cover featured award winners, the best forex brokers, featured offers, the best copy trading platforms, the best forex brokers for beginners, the best MetaTrader brokers, and recently updated reviews. We will focus on FP Markets, Black Bull, EightCap, IC Markets, and Octa.
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
1. How to capture video testimonials that convert from your audience 🎥
2. How to leverage your testimonials to boost your sales 💲
3. How you can capture more CRM data to understand your audience better through video testimonials. 📊
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
buy old yahoo accounts buy yahoo accountsSusan Laney
As a business owner, I understand the importance of having a strong online presence and leveraging various digital platforms to reach and engage with your target audience. One often overlooked yet highly valuable asset in this regard is the humble Yahoo account. While many may perceive Yahoo as a relic of the past, the truth is that these accounts still hold immense potential for businesses of all sizes.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.AnnySerafinaLove
This letter, written by Kellen Harkins, Course Director at Full Sail University, commends Anny Love's exemplary performance in the Video Sharing Platforms class. It highlights her dedication, willingness to challenge herself, and exceptional skills in production, editing, and marketing across various video platforms like YouTube, TikTok, and Instagram.
Understanding User Needs and Satisfying ThemAggregage
https://www.productmanagementtoday.com/frs/26903918/understanding-user-needs-and-satisfying-them
We know we want to create products which our customers find to be valuable. Whether we label it as customer-centric or product-led depends on how long we've been doing product management. There are three challenges we face when doing this. The obvious challenge is figuring out what our users need; the non-obvious challenges are in creating a shared understanding of those needs and in sensing if what we're doing is meeting those needs.
In this webinar, we won't focus on the research methods for discovering user-needs. We will focus on synthesis of the needs we discover, communication and alignment tools, and how we operationalize addressing those needs.
Industry expert Scott Sehlhorst will:
• Introduce a taxonomy for user goals with real world examples
• Present the Onion Diagram, a tool for contextualizing task-level goals
• Illustrate how customer journey maps capture activity-level and task-level goals
• Demonstrate the best approach to selection and prioritization of user-goals to address
• Highlight the crucial benchmarks, observable changes, in ensuring fulfillment of customer needs
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isn’t just any project; it’s a potential game changer for India’s chipmaking aspirations and a boon for investors seeking promising residential projects in dholera sir.
Visit : https://www.avirahi.com/blog/tata-group-dials-taiwan-for-its-chipmaking-ambition-in-gujarats-dholera/
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s Dholera
PESTEL and Risk Profiling of India
1. PESTEL AND RISK
PROFILING OF INDIA
Prepared By:-
Deepak Varghese (M-14-02)
Dixon D. Palett (M-14-04)
Ishan Parashar (M-14-06)
Soham Das (M-14-16)
11/16/2015 1
Course:- International Business
Course Facilitator:- Dr. S.K. Kar
2. Indian Retail Industry
■ The Indian retail industry is driven by twin-growth engines - Economic growth &
demographic profile.
■ The biggest challenge and opportunity : unique structure.
■ 92% - unorganized sector - Huge potential for growth and consolidation.
■ Revenue - organized retail – INR 2.4 trillion (2013)
INR 5.5 trillion (2019-E)
■ Remarkable position in global retail rankings; often remarked to have high
market potential, low economic risk, and moderate political risk.
11/16/2015 2
3. Top Retailers
■ Reliance Group
■ TATA Group (Westside, Titan, etc.)
■ AV Birla Group (Pantaloons)
■ K Raheja Group (Shoppers Stop)
■ RPG Group (Spencers)
■ Future Group (Big Bazar)
11/16/2015 3
5. Political
■ Govt. has eased FDI across 15 key sectors, which include single brand retail and e-
Commerce. (Indian Express)
■ For online presence , single brand retail companies should have a brick-and-mortar outlet
in India. ( Flipkart , snapdeal etc. ) (articles.economictimes.indiatimes.com)
■ Indian manufacturers with foreign investment that are controlled by Indians can now sell
their products through online channels (30% of the output should be sourced from locals
– Make In India) – Relaxation ~ high Tech Cos – eg. Apple , Rolex , IKEA
■ According to recent DIPP notification, FDI cap for multi-brand retailing increased to 49%
without Govt. approval.
11/16/2015 5
6. Political
■ Service tax increased from 13.56% to 14%
■ VAT varies as levied by state government.
■ Octroi levied on inter state transport of goods.
■ Current Government is pushing for GST (unified tax regime).
11/16/2015 6
7. Economic
• India’s real GDP stands at $2.1 trillion, ( World Bank )
• The Economic Survey 2014-15 forecasts a growth rate of over 8% for FY16,
as compared to the growth rate of 7.4% in FY15
• Private investment to be the engine of long-run growth
• Inflation likely to remain in the 5~ 5.5% range, creating space for easing of
monetary conditions
• Foreign portfolio flows have stabilized the Rupee.
• Fiscal deficit target of 4.1 % appears achievable
• In FY 2014, services contributed 65 % to GDP followed by industry (18%)
and agriculture (17%).
11/16/2015 7
8. Social
■ Immensely rich cultural heritage including numerous languages, traditions
and people.
■ The 2nd most populous country with over 1.25 billion people, and the most
populous democracy in the world.
■ India has quite a young population with 27.6% of the population (25-44
years)
■ While India's per capita income is low, the average household size and
consequent household incomes are relatively high.
■ India's per capita income (nominal) was $ 1570 in 2013, ranked at 120th
out of 164 countries by the World Bank.
11/16/2015 8
9. Technological
■ The Magic Mirror (Intelligent Photo Booth)
■ CRM - shift from product-centric to customer-centric
■ Mobile Money offers a complimentary mechanism for delivering
benefits to a large proportion of population. (eg. PayTm )
■ New Business Intelligence: Swarm intelligence, Swarm
optimization, BiS intelligence ,etc.
11/16/2015 9
10. Legal
■ All employees earning up to Rs.10,000/- a month are eligible for a minimum bonus
of 8.33% of their annual salary and a maximum of 20%. This ceiling takes into
account any productivity-linked bonus that employers may offer.
■ Labor law recast to add more leave to maternity
■ Gratuity to be made portable
11/16/2015 10
11. Environmental
■ Ban & prohibition on the plastic carry bags thickness of 40microns
and above (Section3,6&5 of the environment Protection Act 1986)
■ Recycling standards for plastic bags used (Recycled Plastics
Manufacture and Usage Rules,1999)
■ Places like Delhi has started to impose GREEN TAXES on commercial
vehicles passing through the city
11/16/2015 11
13. Top 5 Risks
1. Corruption, Bribery and Corporate Frauds
2. Strikes, Closures & Unrest
3. Political & Governance Instability
4. Crime
5. Information and Cyber Insecurity
11/16/2015 13
Source:- FICCI
14. Corruption, Bribery and Corporate Frauds
■ Recognized as major risks that affect businesses
in India
■ Major frauds and scandals have come to light in
the last few years
■ Huge losses happen due to incidents of fraud
■ Government has now made considerable efforts to
investigate these incidents of corporate frauds and
bring the culprits to book (whistle blower programs)
11/16/2015 14
15. Strikes, Closures & Unrest
■ Graded as the second-most disturbing risk that affects
the business environment in India
■ Frequent disruption of business of multinational
companies
■ Affect of strikes is more felt when strikes called by
political parties
■ Disrupt normal life and in turn the functioning of
corporations
11/16/2015 15
16. Political & Governance Instability
■ Made an entry into the top five risks last year
■ Slowing down of decisions in certain key
economic initiatives due to bureaucratic
interferences
■ Coalition governments like UPA-2 creates lot of
hindrances in functioning due to varied and
sometimes contradicting interests
■ Regional and caste-based politics also
interfere a lot in the functioning of an
organization
11/16/2015 16
17. Crime
■ Crime has been graded as the 4th risk in India
■ India remains as one of the violence prone nations with violent
crimes registering a 65 % increase
■ Foreign respondents to the survey have also recognized the
increasing percentage of crime as one of the major dampeners
that inhibit prospects of business in India [FICCI, 2014]
11/16/2015 17
18. Information and Cyber Insecurity
■ This is the 5th most important risk in the regard
■ Improvement in the risk rating which in 2012
was the top risk and this year it has been
graded as the No 5 risk (overall awareness of IT
security amongst the IT companies in India)
[FICCI, 2014]
■ International publicity that hackers get and the
opportunity to portray the company in poor light
is the major incentive
11/16/2015 18
25. Opportunities
Large number of retail outlets
■ India is the 6th largest preferred retail destination globally by the prospective
investors, going by the FDI Confidence Index developed by AT Kearney
■ IKEA, the world’s largest furniture retailer, for instance, has announced an
ambitious plan to invest Rs 12,500 crore in the country and set up 25 stores over
the next 10 years
Rural markets offer significant growth potential
■ With increasing investment in infrastructure, retailers would be able to increase
their access to high-growth potential rural markets.
■ Various rural development programs have been introduced by Central and state
governments which have been instrumental for an upsurge of employment
opportunities for the rural poor.
11/16/2015 25
26. Opportunities
Private label opportunities
■ The organized Indian retail industry has begun experiencing an increased level of activity
in the private label space.
■ For product categories like FMCG, fruits, vegetables which may be bought on daily basis, a
good quality can draw a premium price from the consumers at the higher end who are not
very sensitive to price as compared to quality.
Sourcing base
■ India’s price competitiveness attracts large retail players to use it as a sourcing base
■ Global retailers are moving from 3rd-party buying offices to establishing their own wholly-
owned/wholly managed sourcing and buying offices.
11/16/2015 26
27. Opportunities
Luxury retailing
■ The Indian consumer is ready to splurge on luxury items and is increasingly doing
so.
■ This rate of growth has been triggered by accelerating influence of the affluent
class, high net worth individuals, ever growing middle class population,
sophisticated consumers with a desire for exclusive products and several other
related factors.
New Goods and Service Tax (GST) to simplify Tax Structure
■ Elimination of tax cascading is expected to lower input costs and improve
profitability.
■ The application of tax at all points of supply chain is likely to require adjustments to
profit margins for retailers.
■ Distributors are also expected to experience cash flow from collection of GST in their
sales.
11/16/2015 27
28. Challenges
Lack of Retail space
■ One of the biggest challenges facing the Indian organized retail sector is the lack of
retail space.
■ The per capita retail space in India is among the lowest in the world while it boasts
of one of the most attractive retail markets in the world.
Talent shortage & lack of trained manpower
■ There is a limitation of capabilities in the middle and top management due to
inadequate specialized training and depth of experience in the sector.
■ This in turn affects the streamlining of various activities that are essential to ensure
that efficacy of the retail value chain is maintained at an optimum level.
11/16/2015 28
29. Challenges
Economic challenges
■ They plague Indian modern retail on both demand and supply side.
■ On the demand side, throughputs are still not high enough as the average Indian consumer
is just getting used to modern trade practices.
■ Pricing and promotions are often poorly executed because the customer willingness and
ability to pay not leveraged adequately.
Inefficiency of supply chains
■ Supply chains consist of too many intermediaries which in turn driving up the operating
costs of the retailers.
■ Infrastructure issues like pitiable roads, poor means of transport, unreliable communication
systems, lack of uninterrupted electricity all contribute towards the ineptitude of supply
chains.
11/16/2015 29
30. Challenges
Effect of Labor Regulations
■ A number of studies have shown that burdensome labor regulations can hinder job
creation.
■ A research undertaken by World Bank (Mohammad Amin, 2008) concluded that labor
regulations in India’s retail sector are detrimental to job creation.
Bureaucratic hurdles
■ A plethora of clearances are required for setting up retail outlet which limits the expansion
of retail outlets at a faster pace.
■ Government restrictions on FDI limit are resulting in limited exposure to international best
practices.
11/16/2015 30
32. Where to invest?- future lies here
Based on several factors we recommend the following two cities as preferred locations to start business.
Ahmedabad Amarawati
11/16/2015 32
33. AHMEDABAD – DEMOGRAPHICAL ADVANTAGE
The population of Ahmedabad is 7.2 million
The sex ratio is 904 females per 1000 males.
The literacy rate is 89%
Ahmedabad is a growing cosmopolitan city with several ethnic groups residing there
The GDP per capita of Ahmedabad is among the highest with around $16000
As of 2013 Gujarat had one of the lowest urban unemployment rate.
Unemployment rate of Gujarat is one the lowest which stood at 1% as of 2012
11/16/2015 33
34. WHY INVEST IN AHMEDABAD?
• Gujarat ranked 1st in Economic Freedom Index 2013 among all states
• World Bank raked Gujarat as the best state in India for ease of doing business
• Ahmedabad has a GDP of $119 (7th among metro cities)
• One of the fastest growing Tier 1 City of India
• Political stability is improving and recent huge developments like GIFT City
• Gujarat attracts one of the highest FDI in India
• Infrastructure is very developed in Ahmedabad (e.g: BRTS, Proposed Metro)
• PM Narendra Modi proposed direct air connectivity with London(UK) in his recent UK visit
• Disposable income among its citizens is one of the highest in India
• Huge customer base (market) due to its proximity to state capital Gandhinagar .
• Real Estate sector is growing at a neck break pace.
• Proposed industrial corridor between Mumbai and Ahmedabad is a huge boost.
• Huge coast-line with well developed ports like Kandla Port can boost international trade.
11/16/2015 34
35. AMARAWATI
• The State Government offers attractive land pooling schemes to investors
• Various tax incentives have also been announced for enticing prospects
• Amarawati is proposed to be developed on the lines of Singapore
• There will be an integrated network of 12km of Metro railways, 15km of Bus Rapid Transit systems,
7km of downtown roads, 26km of arterial and sub-arterial roads and 53km of collector roads.
• The capital region is close to Vijayawada and Guntur, two very developed and populous cities
• The Seed Capital Area will be home to about 3 lakh residents.
• Being developed as a vibrant business hub, about 7 lakh jobs are expected to be created in various
sectors, including in the government.
• There will be a thriving, state of the art, Central Business District (CBD) for business and living.
11/16/2015 35
36. Conclusion
■ Rising incomes, urbanization and attitudinal shifts reaffirm an optimistic outlook, pointing to
a certainty of growth in the future in the retail sector.
■ Large international retailers are contemplating to invest in India to leverage the strong
demand potential of the world’s fifth-largest consumer market.
■ They can look beyond the top 20 Indian cities, pro-actively exploring the retail space and
closely following mall developments across the country.
■ Though there are inevitable trade-offs as far as FDI in retail is concerned, its judicious
implementation can bring about unprecedented prosperity to the segment and a world-class
experience for the value-demanding Indian consumer.
11/16/2015 36
38. References
■ India Risk Survey- 2014, Pinkerton and FICCI
■ Crisil Research Estimates-2014
■ Households data for India Census of India 2011, Govt of India (2013)
■ www.trak.in
■ www.dailyo.in
■ articles.economictimes.indiatimes.com
■ http://indianexpress.com/
■ www.economictimes.com
■ www.indiaretailing.com
■ www.indianexpress.com
■ www.pestelanalysis.com
11/16/2015 38