RETAIL INDUSTRY

PRESENTED BY:RITA PATIL

SHIVAJI

What is Retailing?
Retailing- includes all the activities
involved selling goods or Services directly
to final consumers for personal use, not for
business use.

Evolution of Retail
Industry
Traditionally

retailing in India can be traced to -

Weekly Markets Village Fairs & Melas.

The emergence of the neighborhood Kirana stores

catering to the convenience of the consumers

Era of government support for rural retail:

Indigenous franchise model of store chains run by Khadi
& Village Industries Commission

The latter half of the 1990s saw a fresh wave of entrants

with a shift from Manufactures to Pure Retailers.

Emergence of hyper and super markets trying to provide

customer with 3 Vs - Value, Variety and Volume

Evolution of Indian retail

Historic/Rural
Reach

Traditional/Perva
sive Reach

Government
Supported

Khadi & Village

Stores
Cooperatives

Modern Formats/
International

Exclusive Brand
Outlets
Hyper/Super
Markets
Department Stores
Shopping Malls

Convenience
Stores
/Kiranas
Weekly
Markets
Village Fairs
Melas
Source of
Entertainmen
t

Neighborhood
Stores/Convenie
nce

Availability/
Low Costs /
Distribution

Shopping
Experience/Efficie
ncy

TYPES OF RETAIL MARKET

Organized market
Professionally managed

has a accounting
transparency with proper
usage accounting standards.
These include the corporate

backed hypermarkets and

retail chains.

Unorganized market
Owner lacks technical

& accounting standardization.

For example, owner

manned general stores,

convenience stores, handcart,
Kiranas store.

Unorganized Retail Market

Market size - 92%
It includes owner managed general store, convenience store,

kirana store
Location Residential area, Main roads
Lacks technical and accounting standard
Space limitation

Changing Scenario

BEFORE

AFTER

Shift from Unorganized to Organized

self service outlets

Organized Retail Market

Market size - 8%(rapidly growing)
It includes Larger malls, Retail chain, Supermarket
Professionally managed with accounting standard
Customer are mostly brand conscious and use lifestyle
products
Customer are shifting from buying to shopping
experience
No space limitation

 Reasons for preferring retail:

Customer convenience
Availability of choice (price, product)
Space and design convenience
Long term relationship
Type of products in retail industry :

Retail is classified based on products type:

Food products: cold storage facility is required.
Durable goods : These goods do not get weared out quickly.
( electronic goods, furniture, sporting goods)
Soft goods: These goods consists of limited period of usage.
( clothing, apparel and other fabrics)

KEY PLAYERS IN INDIA

Tata group
Reliance
RPG Retail
Landmark group
Future group

Shoppers' Stop
Westside (Trent)
Pantaloon (Big Bazaar)
RPG Retail (Food world, Music world)
Crossword
Wills Lifestyle
Globus
Piramals ( Pyramid & Crosswords)
Ebony Retail Holdings Ltd.

Global Top 10 Retailers World Wide

Retailer
Wal-Mart Stores
Carrefour Group
The Home Depot, Inc
The Kroger Co.
Royal Ahold
Metro AG
Target Corporation
Albertsons,Inc.
Sears, Roebuck and Co.
Kmart Corporation

Home Country
USA
France
USA
USA
Netherlands
Germany
USA
USA
USA
USA

PEST Analysis
Political analysis

1995- General agreement by world trade organizations on

services in the trade which include the both wholesale and
retailing services.

In 2011, FDI in single brand retail permitted to 100%

In 2012, September , FDI in multi brand retail permitted to

51%
Government argument :

Huge amount of investment will increase employment

opportunities.

Help farmers by eliminating middlemen.

Local players may learn the effective supply chain

efficiencies from foreign retail.

Economic analysis
Indian retail sector cover the 14-15% of the GDP.
Indian retail market stands in the top five retail market in
the world.
Benefits to farmers7-10% higher price as compare to Mandi
3-4% incentive if they produced good quality goods.
Increase the standard of living.

Social analysis
Provide employment on large basis from lower level to
top management.
Prices of good will be much affordable.
Better quality products.
Better service.
Companies should purchase most of its good from local
markets rather than outsourcing.
Increase in Infrastructure
Fulfilment of unemployment gap

Technological analysis
Foreign companies will bring best technologies to increase
their productivity and profit.
They have a direct touch with farmers and trained them for
new technologies
Farmers are getting trained freely with new technologies

SWOT Analysis
STRENGTH

Products are cheaper than

the market price.

Technology intensive
industry
Variety in products
Demographic Presence
Rising disposable income
Urbanization
Shopping convenience
Low skilled labor cost

Weakness
Has not yet trapped the
whole market.
Facing problems due to
political environment
Customer loyalty
Limited consumer insight
Inadequate human
resources
Underdeveloped supply
chain
Lack of adequate facilities

OPPORUNITY
Kids and teens are
moving towards
retailing segment
Rural retailing
Sectors has high
growth potential
Locational
advantage
Falling real estate
cost
E-retailing
Franchising

THREATS
Shopping culture
Political issues
Social issues
Lack of differentiation
among the malls that
are coming
Poor inventory turns
and stock availability
measures

Problems &Challenges for Retail in India

1. The organized retail industry in India is facing
competition from the unorganized sector.
2. Intensifying competition is exerting downward
pressure on prices.
3. The industry is facing a severe shortage of talented
professionals, especially at the middle-management
level.
4. Lack of Supply chain management.
5. Lack of adequate infrastructure like power,
transport, communication
6. Lack of Finance- Due to lack of finance to a existing
and new players. This affects growth and expansion
plans.
7. Requirement of numerous license, permits and
registration

Conclusion
Indian Retail industry has a huge room for

development and very bright future

prospect.
Proper government measure can assure
healthy growth.
Indian Retail Industry helps to grow Indian
economy in terms of income and
employment generation.