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Indian & Global Scenario of

Retail

Presented By:

Harmeet SinghMBA 4th Sem

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Retailing in India

Retail is the new buzzword in India.

The global Retail development Index has ranked India

first, among the top 30 emerging markets in the world.

It is believed that India has the potential to deliver thefastest growth over the next 50 years.

While barter would be considered to be oldest form ofretail trade, since independence , retail in India hasevolved to support the unique needs of country, given itssize and complexity

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Second largest sector after Agriculture. Contributes about 10

11 % of the GDP

The estimated size of the organized retail industry in India is Rs.

55,000 crores.

India's first true shopping mallcomplete with food courts,

recreation facilities and large car parking spacewas inaugurated

as lately as in 1999 in Mumbai. (this mall is called "Crossroads").

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The Evolution of Retail in India

Retail in India has evolved to support the unique needs of our

country, given its size and complexityHaats, Mandis andMelas

have always been a part of the Indian landscape. They still continue

to be present in most parts of the country and form an essential partof life and trade in Various areas.

The PDS (Public Distribution System) would easily as the single

largest retail chain existing in the country. the evolution of the PDS

of Grains in India has its origin in the rationing system

introduced by the British during world war II

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The system was started in 1939 in Bombay and subsequently

extended to other cities and towns. the system was abolished postwar but however attaining independence India was forced to

reintroduce it in 1950.

There was rapid increase in the ration shops ( being

increasingly called the Fair Price Shop or FPSs)

The Canteen Stores Department and the Post Offices in India

are also among the largest network of outlets in the country

reaching population across the country.

The Khadi & Village industries (KVIC) was also set up post

independence. The cooperative movement was again championed

by the government.

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The first attempts at organized retailing were noticed in the

textiles sector. One of the pioneers in this field was Raymonds

which set up stores to retail fabric.

Raymonds distribution network today comprises 20,000 retailers

and over 256 exclusive showrooms in over 120 cities of the country

Other textile manufacturing who set up their own retail chains

wee Reliance- which set up Vimal showrooms.

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The Evolution of retail in India

Traditional

FormatsItinerant Salesman

Haats

Melas

Mandis etc.

Established

formats

Kirana shopsConvenience/

department stores

PDS/

fair price shops

Pan/ Beedi shops

Emerging

Formats

Exclusive retail outletsHypermarket

Internal retailMalls / Specialty Malls

Multiplexes

Fast food outlets

Service galleries

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Drivers of Retail change in India

1. Changing Income Profiles: Steady economic growth fuelledthe increase in disposable income in India. The average middle

class family's disposable income rose by more than 40%

between 2001-2010.

2. The Changing Role of Women & the Evolving FamilyStructure

3. Changes in Consumption patterns: Occupational changes andexpansion of media have caused a significant change in theway the consumer lives and spends his money.

The changes in income brought about changes in theaspirations and the spending patterns of the consumers. thebuying basket of the consumer changed

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4. The Age Factor: Nearly 70% of the Indian population is belowthe age of 34. taking advantages of employment opportunity inthe booming service sector these young Indians are redefining

service and consumption patterns5. Geographical Dispersion of Market Potential.

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Prominent sector in Indian retail

1. Clothing, textiles and fashion Accessories:

2. Food & food Services:

3. Consumer Durables:

4. Books & Music:

Other emerging sectors5. Jewellery retail

6. Footwear retail

7. Time Wear Retail

8. Fuel Retail/ petro retail

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Challenges to retail Development in India

Retail not being recognized as an industry in India.

The high costs of real estate.

Lack of Adequate infrastructure.

Multiple and complex taxation system.

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Internationalization of Retail

The process of a retailer transferring its retail operations,

concept, management expertise, technology and / or

buying function across national borders.

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Determining The Market of

Entry Proximity to the Domestic Market: retailer considers

markets which are close to the domestic market as it

enables the retailer to build on efficiencies in terms of

supply chain & logistics.

Similarity in Culture: to build on the efficiencies in the

brand & the similarities in lifestyles.

Size of the Market.

Laws & Regulations of the Land

Strength of the Local Players in the Market.