The document discusses trends in the retail industry in India. It begins by defining retailing and the key functions of retailers like sorting products, breaking bulk, holding stock, and providing additional services. It then discusses the evolution of the Indian retail industry and provides statistics on the growth of organized retail. Some of the trends covered include the rise of department stores, discount stores, category killers, and e-tailers. Challenges facing the industry such as availability of retail space, high costs, and regulatory issues are also summarized. The document concludes that organized retail has huge potential in India and adds convenience for consumers.

1. LOGOwww.themegallery.com
GIVING THE BEST AND THE NEW UNDER ONE ROOF
RETAIL MANAGEMENT
5/24/2016 1

2. LOGO
Contents
Conclusion5
Functions2
Retail Industry - India3
Trends in Retail Formats4
R Retail – An Intro1
5/24/20162

3. LOGO
Let us start with a question
Is there any thing common our local Jagadamaba’s
store and Big bazar?
What is it ?????
Think for while before we start.
5/24/20163

4. LOGO
RETAILING
It is defined as a activities or steps used to sell a product or
service to consumers for their household, personal or domestic
consumption.
Retail derived from French word Retaillier meaning ‘ to cut a
piece off or to break bulk’
A retailer is a person, agency or institution which is in the
business of reaching the goods, merchandise or services to the
ultimate consumers.
5/24/20164

5. LOGO
Functions
1. Sorting
2. Breaking Bulk
3. Holding stock
4. Additional Services.
5. Communication Channel
6. Advertising and Distribution
5/24/20165

6. LOGO
Sorting
Manufacturers usually make one or a variety of products and
would like to sell their entire inventory to a few buyers to reduce
costs.
Consumers prefer variety of goods and services and buy in
required quantities.
So retailers has to buy goods in reasonable quantities and selling
them to consumers in small units
5/24/20166

7. LOGO
Breaking Bulk
To reduce transportation costs, manufacturers and whole
sellers typically ship large cartons of the product.
Retailers then divided into small units for individual
consumption needs.
Ex : Groceries and Fruits.
5/24/20167

8. LOGO
Holding Stock
They offer the service holding stock for the manufacturers.
It allows availability of products to consumers.
It helps to keep prices stable and enables the manufacture to
regulate production.
5/24/20168

9. LOGO
Additional services
They ease the change in ownership of merchandise by
providing services that make it convenient to buy and
use products.
They provide product guarantees, after sales services
and dealing with consumer complaints.
They also provide credit and hire- purchase facilities.
5/24/20169

10. LOGO
Channel of Communication
They act as communication channel between
producers, whole sellers and the consumers.
Manufacturers learn sales forecasts, delivery delays
and customer complaints.
5/24/201610

11. LOGO
Advertising and Transport Functions
Small manufacturers can use retailers for advertising and pre-
payment of merchandise.
This in turn can lead to image and brand building of goods and
services offered by any firm.
5/24/201611

12. LOGO
Activities of Retailers
Arranging
assortment of
offerings
Breaking Bulk
Providing services Holding stock
RETAILERS
5/24/201612

13. LOGO
Arranging Assortment
An assortment is a retailer’s selection of merchandise.
Retailers have to select the combination of assortments of various
categories.
It must include substitutable items of multiple brands, SKUs and
price points.
Ex : MORE is a grocery chain has an assortment of fast moving
brands.
The assortment plan is governed by location, size and store
image
5/24/201613

14. LOGO5/24/201614

15. LOGO
S
5/24/201615

16. LOGO
RETAIL INDUSTRY IN INDIA
A Curtain raiser
5/24/201616

17. LOGO
Evolution of Indian retail
5/24/201617 17
Weekly Markets
Village Fairs
Melas
Convenience Stores
Mom and Pop/Kiranas
PDS Outlets
Khadi Stores
Cooperatives
Exclusive Brand Outlets
Hyper/Super Markets
Department Stores
Shopping Malls
Traditional/Perv
asive Reach
Government
Supported
Historic/Rural
Reach
Modern Formats/
International
Source of
Entertainment
Neighborhood
Stores/Convenienc
e
Availability/ Low
Costs /
Distribution
Shopping
Experience/Efficienc
y

18. LOGO
Indian retail Industry
5/24/201618
 Organized retail consists of 8 % and expected to reach by
20 % by 2020.
Indian retail market will be USD 750-850 Billion by
2015.
100 % FDI in Single brand retailing and 51% in Multi
brand retailing.

19. LOGO
Global Retail Development Index(2014) & India
5/24/201619
India ranked 20th in world by AT Kearney with a market
attractiveness of 36.8% and a country risk of 39% .
High operating costs, low bargaining power with vendors.
Real estate cost and space availability are important issues
in Indian retail industry.

20. LOGO5/24/201620

21. LOGO5/24/201621

22. LOGO5/24/201622

23. LOGO5/24/201623

24. LOGO5/24/201624

25. LOGO5/24/201625

26. LOGO5/24/201626

27. LOGO5/24/201627

28. LOGO5/24/201628

29. LOGO
Reasons for fragmented retailing
 Poverty
 Low per capita income
 Savings-focused and less indulgent mindset
 Poor infrastructure facilities
 Restriction on intra-state good movement
 High taxes
 Expensive supply chain
5/24/201629

30. LOGO5/24/201630
FDI acceptance among Indian states

31. LOGO5/24/201631

32. LOGO5/24/201632

33. LOGO5/24/201633

34. LOGO5/24/201634

35. LOGO5/24/201635

36. LOGO5/24/201636

37. LOGO
Biggest issues in Indian FDI policy
1) 50 % investment in Back end infrastructure.
2) 30 % sourcing from small industries
5/24/201637

38. LOGO
Challenges for International players
a) Availability of retail spaces.
b) High real estate and rental costs.
c) Clarification on certain policy - back end infrastructure .
d) Governmental procedures and political risk
e) Skilled manpower
f) Infrastructure and currency fluctuations
g) Right set of partners.
5/24/201638

39. LOGO
Constraints in Indian Retail Industry
Policy neglect
Shortage / high cost of real estate
Complex regulatory regime
Inefficiency in supply chain
Paucity of expert management and trained staff
Availability and cost of funds
5/24/201639

40. LOGO
Trends in Retail Outlets
1. Mom and Pop stores and Traditional stores.
2. Department stores
3. Discount stores
4. Category Killers
5. Specialty stores
6. E-tailers
7. E-stores or Virtual stores
5/24/201640

41. LOGO
Mom and pop stores
Traditional stores
Department stores Ex : Big Bazar, More etc
Specialty retailers Ex : Timezone, Tanishq
Discount stores : Ex- Wal-mart, K-mart, Reliance, Bigbazar etc
5/24/201641

42. LOGO
 Category Killers
They are giant retailers that dominate one area of merchandise.
They can purchase other items which are related with their
merchandise
Ex:- Office depot, home depot
Specialty stores
They concentrate on one type of merchandise.
Ex :- Body shop, Ravlon shops
5/24/201642

43. LOGO
E- tailers
They are strictly online retailers.
Ex :- Amazon , Flipkart
E-stores or Virtual stores Ex: Online portals maintained by
different retailing giants ex: Amazon, Wal-mart.
5/24/201643

44. LOGO
Retail - Opportunities
 Indian Consumer is changing
 Changes offer retailing opportunity
 Many opportunities – in Retail & Food Services
 Enabling Conditions Exist for achieving Success.
 Can provide placements for you people
5/24/201644

45. LOGO5/24/201645

46. LOGO5/24/201646

47. LOGO
Conclusion
1. Organised retail has huge potential in India.
2. Retail industry is dynamic nature.
3. It adds convenience and better choice for consumers.
5/24/201647

48. LOGO5/24/201648