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Retail Industry
Introduction
 Retail is the process of selling consumer goods or services to customers
through multiple channels of distribution to earn a profit. Retailers satisfy
demand identified through a supply chain.
 Retailing in India is one of the pillars of its economy and accounts for about
10 percent of its GDP
 Retail is the sale of goods to end users, not for resale, but for use and
consumption by the purchaser.
 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.
Growth
 India’s retail market is expected to increase by 60 per cent to reach US$ 1.1
trillion by 2020, on the back of factors like rising incomes and lifestyle changes
by middle class and increased digital connectivity. Online retail sales are
forecasted to grow at the rate of 31 per cent year-on-year to reach US$ 32.70
billion in 2018.
 Luxury market of India is expected to grow to US$ 30 billion by the end of 2018
from US$ 23.8 billion 2017 supported by growing exposure of international
brands amongst Indian youth and higher purchasing power of the upper class in
tier 2 and 3 cities, according to Assocham.
Evolution of Indian retail
Organized and unorganized
retail
 Organized retailing, in India, refers to trading activities undertaken by
licensed retailers, that is, those who are registered for sales tax, income tax,
etc. These include the publicly traded supermarkets, corporate-backed
hypermarkets and retail chains, and also the privately owned
large retail businesses.
 Unorganized retailing refers to the traditional formats of low
cost retailing for example, the local kirana shops, owner manned
general stores, paan-bidi shops, convenience store, hand cart and pavement
vendors. ... These shop owners in order to retain their customer can even go
their customer's house to get orders.
Some examples
 Organized Retail = D-Mart
Future Retail
Shopper Stop
Big bazar
shopping malls
 Unorganized retail = Convenience
store
Kirana store
Investment scenario
 The Indian retail trading has received Foreign Direct Investment (FDI) equity
inflows totalling US$ 1.42 billion during April 2000–June 2018, according to the
Department of Industrial Policies and Promotion (DIPP).
 With the rising need for consumer goods in different sectors including consumer
electronics and home appliances, many companies have invested in the Indian
retail space in the past few months.
• Beccos, a South Korean designer brand is set to enter the Indian market with
an investment of about Rs 1.00 billion (US$ 14.25 million) and open 50 stores
by June 2019.
• Walmart Investments Cooperative U.A has invested Rs 2.75 billion (US$ 37.68
million) in Wal-Mart India Pvt Ltd.
Government Initiatives
 The Government of India has taken various initiatives to improve the retail
industry in India. Some of them are listed below:
 The Government of India may change the Foreign Direct Investment (FDI)
rules in food processing, in a bid to permit e-commerce companies and
foreign retailers to sell Made in India consumer products.
 Government of India has allowed 100 per cent Foreign Direct Investment (FDI)
in online retail of goods and services through the automatic route, thereby
providing clarity on the existing businesses of e-commerce companies
operating in India.
SWOT
 Strengths– Great financial banking is one of the vital strengths to look at.
This means that the retailer has ample capital and can even access bank
loans. Retailer’s cheaper wholesale prices can also open many retailing doors.
Quality of the retail products can also increase a company’s rank in the
market. Other strengths include increasing number of Indian consumers,
increasing in India’s working population and an aspiring middle class will to
purchase anything.
 Weakness– When analyzing the weakness of a retail company, it is wise to
look at the most palpable weaknesses. For instance, a retailer may lack an
identity, weak brand image, lack good customer services, hence, it has no
competitive edge that set its apart from other retailers.
 Opportunities– There are heaps of opportunities within the retail market.
And they include consumer needs, attractive and supple jobs, high standards
demand from suppliers, great innovations, digital plan and customer-centric
approach among others.
 Threats– Some of the common threats in the retail industry include a
decrease in consumer needs, price wars with competitor, recession, poor
human capital management, underdeveloped shopping culture and
unorganized retailers.
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Retail industry

  • 2. Introduction  Retail is the process of selling consumer goods or services to customers through multiple channels of distribution to earn a profit. Retailers satisfy demand identified through a supply chain.  Retailing in India is one of the pillars of its economy and accounts for about 10 percent of its GDP  Retail is the sale of goods to end users, not for resale, but for use and consumption by the purchaser.  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.
  • 3. Growth  India’s retail market is expected to increase by 60 per cent to reach US$ 1.1 trillion by 2020, on the back of factors like rising incomes and lifestyle changes by middle class and increased digital connectivity. Online retail sales are forecasted to grow at the rate of 31 per cent year-on-year to reach US$ 32.70 billion in 2018.  Luxury market of India is expected to grow to US$ 30 billion by the end of 2018 from US$ 23.8 billion 2017 supported by growing exposure of international brands amongst Indian youth and higher purchasing power of the upper class in tier 2 and 3 cities, according to Assocham.
  • 5. Organized and unorganized retail  Organized retailing, in India, refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. These include the publicly traded supermarkets, corporate-backed hypermarkets and retail chains, and also the privately owned large retail businesses.  Unorganized retailing refers to the traditional formats of low cost retailing for example, the local kirana shops, owner manned general stores, paan-bidi shops, convenience store, hand cart and pavement vendors. ... These shop owners in order to retain their customer can even go their customer's house to get orders.
  • 6. Some examples  Organized Retail = D-Mart Future Retail Shopper Stop Big bazar shopping malls  Unorganized retail = Convenience store Kirana store
  • 7. Investment scenario  The Indian retail trading has received Foreign Direct Investment (FDI) equity inflows totalling US$ 1.42 billion during April 2000–June 2018, according to the Department of Industrial Policies and Promotion (DIPP).  With the rising need for consumer goods in different sectors including consumer electronics and home appliances, many companies have invested in the Indian retail space in the past few months. • Beccos, a South Korean designer brand is set to enter the Indian market with an investment of about Rs 1.00 billion (US$ 14.25 million) and open 50 stores by June 2019. • Walmart Investments Cooperative U.A has invested Rs 2.75 billion (US$ 37.68 million) in Wal-Mart India Pvt Ltd.
  • 8. Government Initiatives  The Government of India has taken various initiatives to improve the retail industry in India. Some of them are listed below:  The Government of India may change the Foreign Direct Investment (FDI) rules in food processing, in a bid to permit e-commerce companies and foreign retailers to sell Made in India consumer products.  Government of India has allowed 100 per cent Foreign Direct Investment (FDI) in online retail of goods and services through the automatic route, thereby providing clarity on the existing businesses of e-commerce companies operating in India.
  • 9. SWOT  Strengths– Great financial banking is one of the vital strengths to look at. This means that the retailer has ample capital and can even access bank loans. Retailer’s cheaper wholesale prices can also open many retailing doors. Quality of the retail products can also increase a company’s rank in the market. Other strengths include increasing number of Indian consumers, increasing in India’s working population and an aspiring middle class will to purchase anything.  Weakness– When analyzing the weakness of a retail company, it is wise to look at the most palpable weaknesses. For instance, a retailer may lack an identity, weak brand image, lack good customer services, hence, it has no competitive edge that set its apart from other retailers.
  • 10.  Opportunities– There are heaps of opportunities within the retail market. And they include consumer needs, attractive and supple jobs, high standards demand from suppliers, great innovations, digital plan and customer-centric approach among others.  Threats– Some of the common threats in the retail industry include a decrease in consumer needs, price wars with competitor, recession, poor human capital management, underdeveloped shopping culture and unorganized retailers.