Post on 29-May-2018
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After a long spell of shortages, which shackledconsumer buying for decades, retail is becomingIndia's new mantra.
The Sanskrit word "mantra" is not just "hymn" or"slogan"; it embraces aspiration and encompassesnew India's way of life.
The more-than-expected success clocked by the
country's retailing pioneers confirms that retailinghas finally arrived. The world has started takingnote of this in this country of one billion.
INTRODUCTION
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WHAT IS RETAIL?
Retail is the concept of providing solutions to consumer problems. from a fixed location, in small or
individual lots for direct consumption by the purchaser.
Retailing may include subordinated services such as delivery. Purchasers can be both individuals and
businesses.
A retail is one who stocks the producers goods and is involved in the act of it to the individualconsumer, at the Margin of Profit .
As such retailing is the last link that connects the individual consumer with the manufacturing and
distribution chain.
Selling Directly to consumer selling in smaller units / quantities the bulk.
Very high numbers near to neighborhood
Reorganized by the service levels
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RETAIL CONTD..
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Types of Retail Sectors
Unorganized Retailing Hawkers (Kirana)
Weekly Markets
Organized retailing Convenient/ Departmentalstores
Factory outlets and discounts Market
Supermarkets Wholesalersmarket
Companyand Franchisesshowroom
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RETAIL CONTD..
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Evolution of Retail Barter System was known as the first form of retail.
As time passed currency was exchanged with goods and services.
Hawkers carried out the first Retailing in Push Carts
Followed by Kirana Stores .. Mom and Popup Stores
Finally Manufacturing era necessitated the small stores andSpecialty stores
It was a seller market still than this point of time with thelimited no of brands available
Barter chain Single brand franchise chain Standalone largestores
Chain of large stores And Finally Malls
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EVOLUTION OF RETAIL CONTD..
Economist says that Boom Has StartedofRetail due tomore spending Capacityof
people.
Emergingof retail started in briefinpatterns like changingfaceoftheindustrial sector.
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Different products involved in
Retailing
Food
Books & Magazines
Fashion & Clothing
Personal Care
Optical Consumer
Electronics
Sport & Leisure
Home Ware
Footwear & Leather
Toys & Games
Jewellery & Watches
Furniture
Petrol
Banking
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RETAIL BANKING
Retail Banking is a service that is usually made available by commercial
banks.as well as smaller community banks
Retail Banking is the BANKING SERVICES for individual customers
Retail Banking is a typical mass-market banking that is very different from
wholesale banking.
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FUNCTIONS OF RETAIL BANKING
DEPOSITS
PAYMENT AND REMITTANCE SYSTEMS
COLLECTION SERVICES
CASH HANDLING AT A BRANCH
MUTUAL FUND DISTRIBUTION
BANCASSURANCE DISTRIBUTION
DEMAT SERVICES
ANCILLARY SERVICES
RETAIL LOANS
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Retail Loan - 2010
Auto
28%
Other personal
Loans
16%
Home
49%
Consumer
Durables
7%
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Present Scenario
Indian retail banking has been showing phenomenal growth
In 2005-10, 42% of credit growth came from retail
Over the last 5 years CAGR has been over 35%
Retail credit levelcrossed Rs.189K Crore in 2005-10
Market has transformed into a buyers market from asellers market
Comprises of multiple products, channels of distribution and
multiple customer groups
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Drivers Of Retail Growth
CHANGING CONSUMER DEMOGRAPHICS
Growing disposable incomes
Youngest population in the world
Increasing literacy levels Higher adaptability to technology
Growing consumerism
Fiscal incentives for home loans
Changing mindsets-willingness to borrow/lend Desire to improve lifestyles
Banks vying for higher market share
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Industrys response to the change
Any where, Any time Banking
Improved processes/Bundled product offerings
Faster service/Reduced TATs
Customer specific products/offerings on a regular basis
Bank customer has replaced Branch customer
Focus on understanding customer needs/ preferences
Segmentation/Differentiation of customers
Customer driven strategies
Building relationships
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Future Of Retail Banking
The accelerated retail growth has been on a historically low
base
Penetration continues to be significantly low compared to
global bench marks
Share of retail credit expected to grow from 22% to 36%
Retail credit expected to grow to Rs.575,000 crs by 2015 at
an annual growth rate of 25%
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Future of Retail Banking Contd.
Dramatic changes expected in the credit portfolio
of Banks in the next 5 years
Housing will continue to be the biggest growthsegment, followed by Auto loans
Banks need to expand and diversify by focussing
on non urban segment as well as varied incomeand demographic groups
Rural areas offer tremendous potential too which
needs to be exploited
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Strategic prerequisites.
Performance oriented leadership
Sophisticated marketing and sales
Efficient distribution channels
Process efficiency and ease of scalability
Superior credit policy, procedures and skills
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Challenges
Sustaining Customer loyalty
NPA reduction & Fraud prevention
Avoiding Debt Trap for customers
Bringing Rural masses into mainstream
banking
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Strategies for Future
Reaching to masses : Need to customize
Customer segmentation/differentiation
Data mining/CRM based campaigns
Products per customer/loyalty
Promoting low risk retail lending products
Offer an array of products and financial advisory.
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Strategies for Future Contd.
Cost effective expansion
Renewed emphasis on superior execution by front-lineemployees
Grow through Alliances:1.Hospitality
2.Education
3.Retailers
4.Automobiles
5.ConsumerDurables
6.Housing/Construction
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Winning Strategy
The bank that best addresses and anticipates
customers needs, delivers consistently higher
quality service and connects to the customer
via their channel of choice wins
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Presented By
DEBARATI DUTTASHAKAMBHARI MAZUMDAR
&
RATUL DASGUPTA