Indian Retail in International Market

8/8/2019 Indian Retail in International Market

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Retailing includes all the activities involved

in selling goods and services to finalconsumers for personal and non business use.

The word is derived from the French word

retailer which means to cut off a piece or tobreak bulk.

Retail may be redefined as the first

point of customer contact.


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INDIAN RETAIL

India is currently the 5th biggestretail market in the world. Witheleven retail shops for every 1000

persons, India has the highest shopdensity in the world.

With a three year compounded

annual growth of 46.64 percent,retail is the fastest growing sector inIndia.


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INDIAN RETAIL

It is estimated that by 2015, organized

retailing in India will cross the US$

21.5-billion mark from the current size

of US$7.5 billion.

Also, it is estimated that 50 million

sq.ft. of area is going to be developed

for retail in the next 5 years. Withcompounded annual growth of 46.64

percent, retail is the fastest growing

sector in India.


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RETAIL SECTOR POISED FOR PHENOMENAL GROWTH

Size & Position in the current Scenario

Current Size & Future growth of Organized Retail in India


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INDIAN RETAIL SECTOR


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KEY PLAYERS

AV Birla Group

Trent (TATA GROUP)

KRaheja Corp GroupReliance

Pantaloon

Landmark Group

Lifestyle


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RETAIL PLAYERS IN INDIA

Cafe Coffee Day

Barista

Pantaloon Group

Provogue

Trent (Westside)

Sho ers Sto

Murjani Group

Escada Group

Arvind Brands

Life Style Group

McDonalds

Titan


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TRADITIONAL RETAIL

FORMAT IN INDIA Haats

Melas

Mandis

PDS (Public Distribution System)

CSD (Canteen Store Department) KVIC(Khadi and Village Industries

Commission)


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ORGANISED RETAIL FORMAT

Convenience Stores

Supermarkets

Hypermarket Specialty Stores

Departmental Stores

Factory Outlets


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DRIVERS OF INDIAN RETAIL BOOM

Population

Changing Income profiles

Diminishing difference betweenRural and Urban India

Rise of Self Employed

The Rise of the woman


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INTERNATIONAL RETAIL

Retailing Worlds largest private

industry

Sales exceeding US$7.2 trillion

47 of the global Fortune companies and

25 of Asias Top 200 companies happen

to be retailers

Top 30 retailers account for 19% of the

global retail sales


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INTERNATIONAL RETAIL

Internationally Retail is a mature sector andorganised players account for more thanthree-fourths of the total retail trade. Large

retailers such as Wal-mart of US, Carrefourof France, Tesco of UK and others nowdominate the global retail market.

Global retailers have adopted multi-

format and multi-product strategies inorder to customize their product offeringsfor distinct target segment.


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KEY PLAYERS IN GLOBAL

MARK

ETWal-Mart USACarrefour France

Metro GermanyTesco UK

Kroger USA

Home Depot USAAeon Japan


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TURNOVER

RANK

2009/10

RETAILER COUNTRY OF ORIGIN NET SALES 09/10 $MNET SALES 09/10DOMESTICCURRENCY MILLIONS

1 Wal-Mart Stores US $404,743 $404,743

2 Carrefour France $163,852 117,513

3 Metro Group Germany $91,412 66,560

4 Tesco UK $90,091 57,528

5 Schwarz Group Germany $77,279 55,420


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BENEFIT OF INTERNATIONAL MARKETING

Generate huge employment

Increased investment in technology

The consumer gains from the wide

variety of choices and a more diversifiedbasket of prices available under one roof

The indirect benefits like better roads,online marketing, expansion of telecom

sector etc. Will give a big push toother sectors like agriculture, small andmedium size enterprises.


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DRAWBACKOF INTERNATIONAL MARKET

Foreign Players would displace theunorganized retailers because of their superior financial strengths.

The entry of large global retailers such asWal-Mart would kill local shops andmillions of jobs.

Induce unfair trade practices likepredatory pricing, in the absence of proper regulatory guidelines.


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CHALLENGES

To become a truly flourishing industry, retailingneeds to cross the following hurdles:

Automatic approval is not allowed for foreign

investment in retail. Absence of developed supply chain and integrated

IT management.

Lack of trained work force. Low skill level for retailing management.

Lack of Retailing Courses and study options


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FUTURE TRENDS Organized retailing is dominated by large GROUPS like

TATA's, ITC, RPG group, Piramals and Rahejas apart from

the various MNC's. This trend is expected to continue in

future.

Textile and Garment companies like Raymond, Madura

Garments and Arvind Denims have achieved forward

integration by opening their own retail outlets for their

branded garments. This gives them a huge advantage by

reducing the role of intermediaries, increase profit margin

and enables them to be close to the end user.


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Inflation and the global meltdown have had aneffect on the growth of retailing in India. Experts

believe the retail industry should focus ondistinction, branding, after sales service andinnovation to tide over the crisis.

The year 2009 is seen as a year of consolidation forIndian retail sector. By best practices andrestructuring business models, the retail industry inIndia is expected to adjust to the changing market

conditions and ensure new opportunities for growth.


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THANKYOU

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Indian Retail in International Market

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