Retail in India

1. RETAIL MANAGEMNT IN INDIA
By- Debajyoti Panda

2. RETAIL SECTOR
 According to Philip Kotler “retailing
includes all the activities involved in
selling goods or Services directly to
final consumers for personal , Non
business use”.
 “Every sale of Goods and Services to
final consumer” – Food products,
apparel, movie tickets; services from
hair cutting to e-ticketing.

3. THE LARGEST PRIVATE INDUSTRY
IN WORLD ECONOMY
0.3
0.8
1
1.1
1.2
1.4
2
3.2
5.1
6.6
Pharmaceuticals; diagnostice
telecom
Automotive
Electronics
Energy
Chenmicals
Packaged goods
Construction / Engineering
Financial services
Retail

4. HIGH PRIVATE CONSUMPTION
GDP
US$ 935 billion
Private Consumption
US$ 580 Billion
(62%)
Public Spending and Capital
Formation
US$ 355 Billion (38%)
Retail
US$ 342 Billion
(59%)
Non Retail
US$ 238 Billion
(41%)
Urban (5,100 towns)
US$ 154 Billion
(45%)
Rural (6,27,000 villages)
US$ 188 Billion
(55%)
Modern retail – US$ 12 billion
8% of urban retail spends
Modern retail
Negligible
Food
Apparel
Beverages
Footwear
Consumer durables
Appliances
Stationery
Kitchen utensils
Furniture
Furnishings
Sports goods
Health & Beauty
Personal Care
Jewellery
Timing
Transport
Communication
Recreation
Cultural Services
Education
Rent
Utilities
Other Services

5. ORGANIZED RETAIL , REVENUE
AND VOLUME GROWTH
Total size of retail $300bln
Size of organized retail $8bln
% share of Organized retail 3%

6. CHALLENGES
Retail
Skilled
workers
Competiti
on
Real estate
Problem
Market
Power
Supply
Chain
Manageme
nt
Problem in
Raising
Fund
Inflation

7. TIMELINE OF RETAILING IN INDIA
India is the third-most
attractive retail market
for global retailers
among the 30 largest
emerging markets,
according to US
consulting group AT
Kearney’s report
published in June
2010

8. RAPID TRANSFORMATION
Current Size & Future Projections for Indian Retail Market
342 373 408
445
486
530
800
12 18 26 39 59 87
200
0
100
200
300
400
500
600
700
800
900
2007 2008 2009 2010 2011 2012 2017
US$Billion
Total Retail Organized Retail

9. • Current GDP ~ $1 trillion
• 4th largest in terms of GDP (PPP) terms
• Target customer base 405 mn.
• Growth rate likely to be sustained above
8%
• Changing consumer behavior -
consumerism
• Growth in availability of infrastructure
and mall space
New Delhi
Bangalore
Mumbai
Chennai
Kolkata
Ahamabad
HyderabadPune
Above 10 Mn inhabitants
Above 4 Mn inhabitants
Above 2 Mn inhabitants
Above 1 Mn inhabitants
Kanpur
Lucknow
Jaipur
Nagpur
Coimbatore
Bhopal
Madurai
Kochin
Varanasi
Visakhapatnam
Patna
Indore
Surat
Vadodara
Ludhiana
WIDELY SPREAD RETAIL INDIA

10. RECENT TRENDS
Experimentation with formats: Retailing in
India is still evolving and the sector is witnessing a series
of experiments across the country with new formats
being tested out. Ex. Quasi-mall, sub-urban discount
stores, Cash and carry etc.
Store design : Biggest challenge for organized
retailing to create a “customer-pull” environment that
increases the amount of impulse shopping. Research
shows that the chances of senses dictating sales are
upto 10-15%. Retail chains like MusicWorld, Baristas,
Piramyd and Globus are laying major emphasis &
investing heavily in store design.
Emergence of discount stores: They are
expected to spearhead the organized retailing
revolution. Stores trying to emulate the model of Wal-
Mart. Ex. Big Bazaar, Bombay Bazaar, RPGs.
Unorganized retailing is getting
organized: To meet the challenges of organized
retailing such as large Cineplex's, and malls, which are
backed by the corporate house such as 'Ansals' and
'PVR‘ the unorganized sector is getting organized. 25
stores in Delhi under the banner of Provision mart are
joining hands to combine monthly buying. Bombay
Bazaar and Efoodmart formed which are aggregations
of Kiranas.
Recent changes
Unorganized : Vast majority of the twelve million
stores are small "father and son" outlets
Fragmented : Mostly small individually owned
businesses, average size of outlet equals 50 s.q. ft. Though
India has the highest number of retail outlets per capita in
the world, the retail space per capita at 2 s.q. ft per person
is amongst the lowest.
Rural bias: Nearly two thirds of the stores are
located in rural areas. Rural retail industry has typically two
forms: "Haats" and “Melas". Haats are the weekly markets :
serve groups of 10-50 villages and sell day-to-day
necessities. Melas are larger in size and more sophisticated
in terms of the goods sold (like TVs)
Traditionally three factors have plagued
the retail industry

11. PROS AND CONS PF ALLOWING FDI
IN RETAIL

12. THANK YOU RETAIL