Retail Sector is now in a rise..

1. AN INDIAN PERSPECTIVE
RETAIL REVOLUTION

2. RETAIL
OUTLETS

3. RETAILING
 RETAIL – FRENCH WORD – RETAILLIER
 Meaning- To Cut a Piece Off or To Break a
Bulk
 Retailing encompasses those business
activities involved with the sale of goods and
services to the final consumer for personal,
family, or household use.
 Retailing is the final stage in a channel of
distribution.

4. INDIAN RETAIL MARKET
 India is one of the fastest-growing economies in
the world, with a rapidly expanding middle class
and a population of over 1.3 billion people.
 As a result, the Indian retail market is
experiencing unprecedented growth and
transformation. In this presentation, we will
examine the key players, formats, trends, and
challenges in this dynamic industry.
 According to a recent report, the Indian retail
market is expected to reach $1.75 trillion by 2026,
growing at a CAGR of 10.5% from 2021.

5. SEGMENTS OF ORGANIZED
RETAILING IN INDIA
 Fashion, Fitness and Personal Care (VLCC,
Lakme, Shahnaz Herbals).
 Health and Pharmaceuticals (Apollo pharmacy,
Life Spring).
 Entertainment Retailing (Theme Parks, Resorts,
PVR)
 Food and Grocery (McDonalds, KFC, Subway,
WalMart, Reliance Fresh,Haldirams,MTR)
 Catering Retailing
 Consumer Electronics (NEXT, a unit of Next
Retail India Ltd - 385 outlets across 16 states,
LG, Kenstar, Hitachi)

6. STATISTICS – INDIAN RETAIL
MARKET

7. Factors Contributing Indian Retail
Industry
 Increase in per capita Income –
India has marked growth in per capita income by 10.5%
which shows tremendous increase in GNP (Gross National
Product) of the country.
Increase in per capita income reflects hike in income of
Households which in turn will consume more, thus leading
to growth of retail sector.
Household prefer to shop from big giants as compare to
their Kirana Store.
 Demographical Changes –
India is having huge young age working population which is
generating huge income and high savings.
For any developing country young age group, income,
savings are key factors for its growth

8. Contd…
 High Standard of Living –
Earlier Shopping in India always had an emotional tag
attached to it, along with that people use to have myth that
shopping from shopping complexes or Malls is costlier and it
suits only to rich class. But now things have changed people
have changed their misconception and have adopted Mall
culture.
 Change in Consumption Pattern –
Consumption patterns among various classes have changed
over the years. Earlier customers were brand loyal due to
which they were not allowing new brands to enter the market.
But now customers are showing good response to new
product entering the market because they have realized that
they are paying for quality.

9. Contd..
 Availability of Low – Cost Consumer Credit –
With the change in credit policies, many new
customers have entered the market. Purchasing on
credit basis with good credit worthiness gives both
seller and buyer flexibility to transact.
Earlier due to lack of cash many buyers use to
postpone their purchases, but now with modernization
they are carrying it on credit basis as it is cheaper to
repay.
 Improvements in Infrastructure –
With many infrastructural changes taking place right
from metro rails to road connectivity in the country,
retail is also expanding its wings.

10. Contd..
 Corporate Sector Entry –
Large business tycoon such as Tata’s, Birla’s, &
Reliance etc., has entered the retail sector. They
are in a position to provide quality products and
entertainment.
 Entry to various sources of Financing –
Previously so as to protect small kirana stores
route for FDI in retail was difficult but later on
when it was found that retailing is generating
employment of around 8% in economy FDI route
was also simplified.

11. TYPES OF RETAIL FORMATS
 The three main retail formats are traditional,
modern, and e-commerce.
 Traditional retail includes small mom-and-pop
stores, street markets, and haats. These stores
are often family-owned and operated and offer a
personalized shopping experience.
 Modern retail includes supermarkets,
hypermarkets, and department stores. These
stores are more prominent and offer a wider
variety of products.
 E-commerce is the newest type of retail format
and includes online marketplaces and direct-to-
consumer brands.

12. Traditional Retail Formats
 Kirana stores are small neighborhood shops that
offer a variety of products, from groceries to
household items. They are often run by families
and cater to the daily needs of local residents.
These stores are known for their personalized
service and convenience, as they are located
within walking distance of most homes.
 Street markets, also known as bazaars, are
vibrant and bustling places where vendors sell
everything from fresh produce to clothing and
electronics. These markets are popular among
locals and tourists alike, as they offer a unique
shopping experience and a chance to haggle over
prices.

13. Modern Retail Formats
 Supermarkets, hypermarkets, and department
stores
 wide range of products under one roof, making
shopping more convenient for customers.
 Supermarkets are typically smaller than
hypermarkets and offer a limited range of
products, while hypermarkets are larger and offer
a wider range of products. Department stores, on
the other hand, offer a mix of clothing,
accessories, and home goods.
 Popular among Indian consumers due to their
convenience, competitive pricing, and wide
selection of products.

14. https://youtu.be/FRT_n3z3QqA

15. E-commerce Retail Formats
 India's e-commerce market has seen explosive growth in
recent years, with online sales expected to reach $200 billion
by 2026. The two main types of e-commerce retail formats in
India are online marketplaces and direct-to-consumer
brands.
 Online marketplaces like Amazon, Flipkart, and Snapdeal
allow multiple retailers to sell their products on a single
platform, while direct-to-consumer brands like Lenskart and
Zivame sell their products directly to consumers through their
own websites.
 Online marketplaces offer a wide range of products at
competitive prices.
 Direct-to-consumer brands, on the other hand, offer unique
and innovative products that are not available elsewhere.
 Both online marketplaces and direct-to-consumer brands use
digital marketing strategies to attract and retain customers,
such as targeted advertising and personalized
recommendations.

16. https://youtu.be/xTWICJ010NU

17. Challenges
 One of the biggest challenges is infrastructure,
particularly in rural areas where access to
roads, electricity, and water can be limited.
 This can make it difficult to establish and
maintain retail operations in these areas.
 Additionally, regulations can be complex and
vary from state to state, which can add to the
cost and complexity of doing business.
 Finally, competition is fierce, with both
domestic and international players vying for
market share.

18. Opportunities
 Rising incomes and urbanization are driving
demand for higher quality products and
services, providing opportunities for retailers to
differentiate themselves and capture market
share.
 Finally, the government is taking steps to
improve infrastructure and simplify regulations,
which could make it easier and less expensive
for retailers to do business in India.

19. Retail Trends
 Omni-channel retailing has become
increasingly popular in India,.
 This trend involves integrating online and
offline channels to provide a consistent brand
experience.
 For example, a customer can browse products
online and then pick them up in-store or have
them delivered to their doorstep.
 Retailers like Tata Cliq and Shoppers Stop
have adopted this approach to enhance their
customer experience.

20. Retail Trends
 Experiential retail is another trend that is gaining
momentum in India.
 This approach involves creating a memorable
shopping experience for customers by providing
unique and interactive experiences.
 For example, Sephora offers make-up tutorials
and product demonstrations in-store, while Adidas
has set up a running track inside its store in Delhi.
By offering such experiences, retailers aim to
create an emotional connection with their
customers and increase brand loyalty.

21. Retail Trends
 Personalization is also becoming increasingly
important in the Indian retail industry.
 With the rise of e-commerce and data analytics,
retailers can now collect and analyze customer
data to provide personalized recommendations
and offers.
 For example, Myntra uses machine learning
algorithms to suggest products based on a
customer's browsing and purchase history.
 This trend not only enhances the customer
experience but also increases sales and revenue
for retailers.

22. Marketing Strategies
 One common strategy is offering discounts, which
can be targeted at specific products or offered
during special events such as festivals.
 Promotions are also popular, such as buy-one-
get-one-free deals or gift with purchase offers.
 Additionally, many retailers offer loyalty programs
that reward customers for repeat business.
 Tailoring product recommendations to individual
preferences or providing after-sales support.
 Social media and influencer marketing are also
becoming increasingly important for retailers
looking to reach younger consumers.

23. Technology Adoption
 Point-of-sale systems have revolutionized the checkout
process, reducing wait times and improving accuracy.
 Inventory management software has enabled retailers to
track their inventory levels in real-time, minimizing stockouts
and overstocking.
 Customer relationship management tools have helped
retailers to personalize their interactions with customers,
building loyalty and increasing sales.
 One example of technology adoption in the Indian retail
industry is the use of mobile POS systems by small retailers.
(Digital Payment)
 Another example is the use of artificial intelligence and
machine learning to analyze customer data and provide
personalized recommendations. This technology has been
adopted by e-commerce platforms like Flipkart and Amazon,
as well as brick-and-mortar retailers like Reliance Retail.

24. Sustainability
 Sustainability is an increasingly important topic in
the Indian retail industry, as consumers become
more aware of their impact on the environment
and society.
 Using renewable energy sources and reducing
waste.
 In addition to environmental sustainability,
retailers are also focusing on social sustainability,
such as promoting fair labor practices and
supporting local communities.
 By adopting sustainable practices, retailers can
not only improve their reputation and customer
loyalty, but also contribute to a more sustainable

25. REUSE PACKAGING / DUAL
PACKAGES