COMPREHENSIVE AREA SEMINARTOPIC:- Potential of Organised Retail In India

PRESENTED BY :-MD. GILMAN

4th SEMSIDDAGANGA INSTITUTE OF TECHNOLOGY (TUMKUR)

PGDMS&RC

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 Pop Stores

Finally Manufacturing era necessitated the small stores and Specialty stores

It was a seller market still than this point of time with the limited no of brands available

Barter chain Single brand franchise chain Standalone large store <Chain of large stores And Finally Malls

Economist says that Boom Has Started of Retail due to more spending Capacity of Indians

Emerging of retail started in brief in patterns like changing face of the Indian retail sector

Provide customers with 3 V’s i.e.(. Value, Variety and Volume.)

What is Retail?

“A retail is one who stocks the producers goods and is involved in the act of it to the individual consumer, 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

Retail Sector today is worth of US $ 394 Billion

ORGANISED RETAILING

refers to trading activities undertaken by licensed retailers,

that is, those who are registered for sales tax, income tax,

etc. These include the corporate-backed hypermarkets and

retail chains, and also the privately owned large retail

businesses.

Retailing formats in India

MallsSpecialty StoresDiscount StoresDepartment StoresHyper marts / Supermarkets Convenience Store

Some of the Key Players in Organised Retail

Challenges:

Taxation laws that favor small retailers.   Different structure of sales tax in different states. Multi-point octroi collection.   Lack of trained workforce.   Problems of supply chain and logistics.   High cost of real estate.   Limited land available at prime locations

ADAVANTAGES:

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.

DISADVANTAGES :

Margins are lowHigh property costPoor InfrastructureExpertise in logisticsCouple of firms in retail sector have

turn over more than Rs 100 cr

Analysis Organized retail growing at estimated 25%

It is expected that retail in India could be worth 175-200 billion by

2016.

2008 – Retail Growth rate – 25-28%, Unorganized and organized retail size – 300 billion

Opening 10 to 15 outlets by 2015, it plans to employ about 5,000 people selling groceries, consumer goods, fruits and vegetables. India's retail industry is worth 300bn

E.g : Bharti has invested 60 Billion with the largest retail Wal- Mart (last year)

OPPORTUNITIES FOR THE ORGANIZED RETAIL SECTOR IN INDIA

India’s booming economy is a major source of opportunity. It is the third largest in the world in terms of purchasing power. India is the second fastest growing major economy in the world.

India's huge population has a per capita income of Rs 44,345.

The proportionate increase in spending with earnings is another source of opportunity.

Increasing instances of Double Incomes in most families coupled with the rise in spending power.

CONCLUSION There is very huge potential for the growth of organized Retailing

in India.

By following some of the strategies it can rise tremendously and can reach each and every nock and corner.

Open communication should be established between functional departments.

A balance should be maintained between brand building and promotion. Non-marketing factors like gas prices, weather etc. Huge Scope for Development

Competitive Market

Organized retail is fast growing at a rate of 30% Per Year

Greater opportunity for employment

BIBLIOGRAPHY

Business worldwww.businessworld.in www.google.com

Thank you …