Retail is the sale of goods and services from individuals or businesses to the end-user.It explains about Retail sector growth and how it will help in increasing GDPA of a country,Explain how it will grow in Future.. .
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An overview on Indian retail industry. Included information like evolution of retail in India, retail formats in India, key players, competitive landscape, key strategies, industry growth, etc.
Market Research Report : Retail Market in India 2012Netscribes, Inc.
For the complete report, get in touch with us at : info@netscribes.com
Retail market in India was valued at INR 16.94 tr in 2010 and is expected to grow at a CAGR of 11%. It accounts for 22% of the country's GDP and is the second largest employer with 35.06 mn people. Traditional retail formats are fast getting replaced by modern organised retail formats. Due to growing retail space and changing consumer behaviour, retail market in India is poised for strong growth in the near future.
The report begins with the market overview section that gives an insight into the retail market in India, its market size and growth, along with the share of major retail segments. Low organised retail penetration indicates huge growth potential of this market. This is followed by the major segments in the retail market, where food and grocery occupies the largest share. The various market entry strategies available for foreign retailers, franchising, cash and carry wholesale trading, strategic license agreements, joint ventures, manufacturing, distribution, have also been highlighted. A comparison of the traditional retail supply chain with the modern retail supply chain has also been given. The section also includes an overview of the various organised retail formats, hypermarkets, cash-and-carry, department stores, supermarkets, shop-in-shop, specialty stores, category killers, discount stores and convenience stores. Additionally, an analysis of Porter’s Five Forces provides an insight into the competitive intensity and attractiveness of the market.
An analysis of the drivers and challenges explains the factors leading to the growth of the market including low organised retail penetration, rising income levels and consumerism, growing retail space and mall boom, increasing availability of credit and changing demographics and consumer behaviour. Strong opportunity exists in the market due to low organised retail penetration in India. This coupled with the fact that income level and consumerism are rising, will drive the retail market. The key challenges identified are insufficiencies in supply chain, shortage of skilled manpower and real estate issues.
Key trends in the market have also been analysed which includes emergence of innovative retail formats, online and rural retailing and integration of various business strategies. This is followed by a section on the FDI scenario of the retail market in India which includes evolution of retail FDI policy, current FDI scenario in retail, single brand retailing and multi brand retailing in India. A section on the investment scenario of this market is also highlighted, including investment and expansion plans, mergers and acquisitions, and partnership agreements in the retail sector.
The competition section provides an overview of the competitive landscape in the market and includes a detailed profile of the major players. It begins with a matrix showing the various retail formats under which the playe
An overview on Indian retail industry. Included information like evolution of retail in India, retail formats in India, key players, competitive landscape, key strategies, industry growth, etc.
Market Research Report : Retail Market in India 2012Netscribes, Inc.
For the complete report, get in touch with us at : info@netscribes.com
Retail market in India was valued at INR 16.94 tr in 2010 and is expected to grow at a CAGR of 11%. It accounts for 22% of the country's GDP and is the second largest employer with 35.06 mn people. Traditional retail formats are fast getting replaced by modern organised retail formats. Due to growing retail space and changing consumer behaviour, retail market in India is poised for strong growth in the near future.
The report begins with the market overview section that gives an insight into the retail market in India, its market size and growth, along with the share of major retail segments. Low organised retail penetration indicates huge growth potential of this market. This is followed by the major segments in the retail market, where food and grocery occupies the largest share. The various market entry strategies available for foreign retailers, franchising, cash and carry wholesale trading, strategic license agreements, joint ventures, manufacturing, distribution, have also been highlighted. A comparison of the traditional retail supply chain with the modern retail supply chain has also been given. The section also includes an overview of the various organised retail formats, hypermarkets, cash-and-carry, department stores, supermarkets, shop-in-shop, specialty stores, category killers, discount stores and convenience stores. Additionally, an analysis of Porter’s Five Forces provides an insight into the competitive intensity and attractiveness of the market.
An analysis of the drivers and challenges explains the factors leading to the growth of the market including low organised retail penetration, rising income levels and consumerism, growing retail space and mall boom, increasing availability of credit and changing demographics and consumer behaviour. Strong opportunity exists in the market due to low organised retail penetration in India. This coupled with the fact that income level and consumerism are rising, will drive the retail market. The key challenges identified are insufficiencies in supply chain, shortage of skilled manpower and real estate issues.
Key trends in the market have also been analysed which includes emergence of innovative retail formats, online and rural retailing and integration of various business strategies. This is followed by a section on the FDI scenario of the retail market in India which includes evolution of retail FDI policy, current FDI scenario in retail, single brand retailing and multi brand retailing in India. A section on the investment scenario of this market is also highlighted, including investment and expansion plans, mergers and acquisitions, and partnership agreements in the retail sector.
The competition section provides an overview of the competitive landscape in the market and includes a detailed profile of the major players. It begins with a matrix showing the various retail formats under which the playe
The development of the concept of HRD, HRD practice in Indian and Global Context, The Profession of HRD and Implementation, The Challenges of HRD on 21st Century .....
With the emergence of supermarkets, kirana stores have been depleting day by day. Government is in the grave situation to decide whether to allow 50% FDI or not in the retail sector. There are certain retail outlets such as Walmart, Metro which are better in quality, cheaper in rates, and offering a range and variety of products under one roof. These malls have entered in India but they are into cash and carry business only and not in the multi brand retail sector. Many of them have entered through joint ventures. If government allow them to enter in India, it can be said that all the small shops and kirana stores will not be able to stand in the market. They cannot compete with them. Now the question arise how the kirana stores can be saved from these big giants in the market. It is the need of the hour today to save these kirana stores because in a developing country like India where the income of an average man is low, such types of small business can make them able to earn their living. The present research is an attempt to find out the weaknesses of kirana stores as compared to the malls and to find out the solutions for the betterment of the stores. The research is conducted on various kirana stores in Punjab. The study identifies the problems being faced by kirana merchants such as recovery of credit, inventory management, goodwill in terms of quality, low space, and lack of variety etc. But during the research it has been found out that there are certain areas where these kirana stores have an edge over the market such as emotional attachment with the customer, to fulfil the timely need of credit of the customer, easy availability etc. It is concluded that both kirana stores and malls are important to the Indian economy. FDI is important for the growth of the economy but it should come for the rescue of the existing business and not as a threat. Secondly government intervention is seeked to make improvements in the functioning of the kirana stores. If kirana stores starts using their strategic advantages to the optimum level, they can make can make their existence strong in the market.
Flaring Retail Sector: Facets and Challengesdeshwal852
The Indian retail industry flaring day by day. The concept of retail which includes the shopkeeper to customer interaction, has taken many forms and dimensions, from the traditional retail outlet and street
local market shops to upscale multi brand outlets, especially stores or departmental stores. This paper makes an attempt to study features and challenges for retail sector
Retail is a sunrise sector in the Indian business world. In the past few years, Indian has seen a revolution in the retail sector. More and more foreign retailers are now eyeing India as a perfect investment destination for retail ventures. Not only from the investment side , but also from the employment angle as it represents a large employment opportunity for people with diverse skill set
2. Introduction
Barter System was known as the first form of retail.
As time passed currency was exchanged with goods and
services.
The Indian retail industry is the fifth largest industry in the world.
With growing market demand, the industry is expected to grow
at the rate of 25-30 percent annually.
Organized retail in India is expected to grow 25-30 percent
yearly and is expected to increase from Rs 35,000 cores in
2004-05 to Rs 109,000 cores by 2010.
Second Largest Employer after Agriculture(8%)
4. Importance
Largest and fastest growing sector in India.
Modern retailing forms one point stop for all shopping.
Consumer gets a large product variety of brands to choose from
one roof.
First it was a sellers market and now its changing to buyers
market.
By 2012 Indian retail sector would be generating 11 million
employment opportunities.
5. Industry Description
Indian retail Industry is Fifth
largest in the world.
The current penetration
pegged at 5-7 per cent.
Accounts for 24% of
country’s GDP and 8% of the
total employment.
Food is the largest segment
in terms of its.
5
1200 1213
1380
1729
1842
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2008 2009 2010 2011 2012
GDP(in
Billion $)
Retails
Sales(In
Billion $)
6. Tax Impacts and Regulatory Environment
The retail sector has not been conferred an industry status till now. Hence, there
are no specific rules and regulations governing the sector.
However, there are certain laws pertaining to the establishment of stores and
conduct of activities, which retailers need to follow:
The Shop and Establishments Act
The Standards of Weights and Measures Act
The Provisions of the Contract Labor(Regulations and Abolition) Act
The Income Tax Act
The Customs Act
The Companies Act
In addition to the above law: Retail companies have to follow certain regional
rules and regulations on the basis of their stores location; different states have
different laws to regulate the retail trade.
6
Reference: www.retailexecutive.com.au/industry_diversity/retail_industry_areas
7. Regulatory Environment
FDI Policy with regard to Retailing in India:
FDI up to 100% for cash and carry wholesale trading and export trading
allowed under the automatic route.
FDI up to 100 % with prior Government approval (i.e. FIPB) for retail trade of
Single Brand‘ products.
India allowed FDI of up to 51% in ―multi-brand sector.
Single brand retailers such as Apple and Ikea, can own 100% of their Indian
stores, up from previous cap of 51%.
The retailers (both single and multi-brand) will have to source at least 30%
of their goods from small and medium sized Indian suppliers.
9. Porter‘s Five Force Model
Source:http://www.mindtools.com/pages/article/newTMC_08.htm
10. Threat of New Entrants Power of Suppliers
95% of the market is made up of
small, uncomputerised family run stores.
The ability to establish favorable supply
contracts, leases and be competitive is
becoming virtually impossible.
The vertical structure and centralized
buying gives chain stores a competitive
advantage over independent retailers.
On the whole threat from new entrants in
retail industry is high.
Historically, retailers have tried to exploit
relationships with supplier.
In retail industry suppliers tend to have
very little power.
Following example:
Wal mart places strict control on its
suppliers.
11. Power of Buyers Availability of Substitutes
Customers have comparatively high
bargaining power in unorganized sector
than in organized sector.
As the customer will demand products
from organized units he will be more
focused towards quality aspect
The tendency in retail is not to specialize
in one good or service, but to deal in wide
range of products and services.
What one store offers is likely to be same
as that offered by another store.
The threat from substitutes is high.
12. Competitive Rivalry
Retailers always face stiff competition and must fight with each other for market
share and also with unorganized sector.
They have tried to reduce cut throat pricing competition by offering frequent flier
points, memberships and other special services to try and gain the customer‘s loyalty.
Thus retailers give each other stiff but healthy competition which is evident from
their aggressive marketing strategies and segment policies.
13. SWOT Analysis
Strengths
High Employment Generator
Low Labor Cost
Rising disposable income
Shopping convenience
Changing consumer habits and lifestyles
High availability of quality retail space
Weakness
Lack of industry status for retail.
Numerous license, permits and registration requirement.
Lack of detailed region specific customer data.
Lack of Skilled Labor
Underdeveloped supply chain
Underdeveloped logistics infrastructure &absence of national cold chain
networks.
Lack of basic infrastructure like power, transport and communication.
14. Opportunity
Untouched rural market.
Investment opportunities
Fast evolving shopping mall formats
Upcoming international players
Threat
The tax structure in India favors small retail business
Lack of adequate infrastructure facilities
High cost of real estate
Low retail management skill
15. Company Name Net Sales(Billion $)
Pantaloon Ret 0.79
Shoppers Stop 0.37
Trent 0.16
Brandhouse 0.14
REI Six Ten 0.11
Provogue 0.11
Koutons Retail 0.10
Kewal Kiran 0.05
Cantabil Retail 0.03
Arunjyoti Enter 0.01
Prozone Capital 0.00
Reference: Source Moneycontrol.com
EXAMPLE OF RETAIL STORES
16. Major Players
Reference: Source Moneycontrol.com
PantaloonRet
43%
ShoppersStop
18%
Brandhouse
8%
Trent
7%
Others
12%
Provogue
6%
KoutonsRetail
6%
Pantaloons Retail India Ltd. is market leader with 43% of the market share in
terms of turnover
Followed by Shoppers stop, Brandhouse, Trent, Provogue
17. Cost Structure
70.9
1.45
4.56
3.82
17.06
2.22 0
Raw Materials
Power & Fuel Cost
Employee Cost
Other Manufacturing Expenses
Selling and Administration Expenses
Miscellaneous Expenses
Less: Pre-operative Expenses
Capitalised
Reference: Source Moneycontrol.com