RETAIL IN INDIA

INDEX/KEY WHAT IS RETAIL? RETAIL IN INDIA EVOLUTION OF INDIAN RETAIL CHARACTERISTICS OF RETAIL ORGANISED RETAIL UNORGANISED RETAIL IMPORTANCE OF RETAIL FDI IN RETAIL MERITS AND DEMERITS OF FDI IN RETAIL

WHAT IS RETAIL?

ACCORDING TO PHILIP KOTLER “RETAILING INCLUDES ALL ACTIVITIES IN SELLING GOODS OR SERVICES DIRECTLY TO FINAL CONSUMERS FOR PERSONAL, NON BUISNESS USE.”

THE WORD RETAIL IS DERIVED FROM FRENCH WORD “RETAILLIER” WHICH MEANS “TO CUT A PIECE OFF” OR “TO BREAK BULK”.

RETAILLING INVOLVES A DIRECT INTERFACE WITH THE CUSTOMER AND CO-ORDINATION OF BUISNESS ACTIVITIES.

IN SIMPLE TERMS,IT IMPLIES FIRST HAND TRANSACTION WITH CUSTOMER.

RETAIL IN INDIA Retailing in India is one of the pillars of its

economy and accounts for 14 to 15 percent of its GDP.

The Indian retail market is estimated to be US$ 450 billion and one of the top five retail markets in the world by economic value. India is one of the fastest growing retail markets in the world, with 1.2 billion people.

INDIA RETAIL INDUSTRY IS SECOND LARGEST EMPLOYER IN COUNTRY WITH ALMOST 12 MILLION RETAIL STORES IN INDIA.

EVOLUTION OF INDIAN RETAIL INDUSTRY

BARTER SYSTEM WAS KNOWN AS FIRST FORM OF RETAIL INDUSTRY.

FOLLOWED BY KIRANA STORES AND MOM-POP STORES.

FINALLY MANUFACTURING ERA NECESSIATED SMALL STORES AND SPECIALTY STORES.

FROM 1995 THERE WAS AN EMEGENCE OF SHOPPING CENTERS.

CHARACTERISTICS IT OFFERS DIRECT INTERACTION. SALE VOLUME IS COMPARATIVELY LARGE IN QUANTITIES IN ORGANISED COMPARED TO UNORGANISED SECTOR.

CUSTOMER SERVICE. DIFFERENT FORMS. MORE EMPLOYMENT OPPORTUNITIES.

TWO IMPORTANT RETAILS : 1) ORGANISED RETAIL 2)

UNORGANISED RETAIL

CLOTHES

ORGANIZED RETAIL• ORGANISED RETAILING REFERS TO TRADING ACTIVITIES UNDERTAKEN BY LICENSED RETAILERS,THAT IS, THOSE WHO ARE REGISTERED FOR SALES TAX, INCOME TAX, ETC. THESE INCLUDE CORPORATE-BACKED HYPERMARKETS AND RETAIL CHAINS, AND ALSO THE PRIVATELY OWNED LARGE RETAIL BUISNESSES.• RETAIL CHAINS LIKE WAL MART, McDONALDS BROUGHT RAPID GROWTH AND CONSOLIDATION OF ORGANIZED RETAIL.•RAPID RISE OF INCOME LEVELS AND ACCOMPANYING CHANGES IN LIFESTYLES GREATLY CONTRIBUTED TO GROWTH OF ORGANIZED RETAIL.

CHARACTERISTICS OF ORGANIZED RETAILING

UN-ORGANIZED RETAIL• UNORGANIZED RETAILING ON

OTHER HAND REFERS TO TRADITIONAL FORMATS OF LOW COST RETAILING.

• KIRANA STORES, LOCAL MOM AND POP SHOPS, CONVENIENCE STORES, HAND CART AND PAVEMENT VENDOR ARE SOME OF EXAMPLES OF THESE TYPES OF RETAIL .

• IN 2010, AROUND 94% OF Rs 18,673 BILLION RETAIL MARKET WAS UN –ORGANIZED ACCORDING TO BOOZ AND CO (INDIA) Pvt. Ltd.

CHARACTERISTICS OF UN-ORGANIZED RETAILING

IMPORTANCE OF RETAIL

LARGEST AND FASTEST GROWING SECTOR IN INDIA.

CONSUMER GETS A LARGE PRODUCT VARIETY OF BRANDS TO CHOOSE FROM ONE ROOF.

FIRST IT WAS A SELLERS MARKET AND IT IS CHANGING TO BUYERS MARKET.

FROM 2012, INDIAN RETAIL SECTOR HAD GENERATED 11 MILLION EMPLOYMENT OPPORTUNITIES.

FDI IN RETAIL SECTOR  The full form of FDI is Foreign Direct Investment.   FDI is described as “Investment into the business

of a country by a company in another country”.  Mostly the investment is into production by either

buying a company in the target country. FDI can take place also by expanding operations of an

existing business in that country.    Such investments can take place for many

reasons, including to take advantage of cheaper wages,etc.

  

MERITS OF FDI IN RETAIL SECTOR

1. Competition in the market will rise.2. Consumers will get goods on comparatively low price.3. Modern technology will come to India.4. Rural infrastructure will go improve.5. New employment for the peoples.

6. Consumers will get commodities in the same & low rate and will save from the greedy retailers.7. Consumer will get all the commodities in one roof.8. Consumers will get the bills for all purchases.

DEMERITS OF FDI IN RETAIL SECTOR

1. Small retailers will be affected and business of those retailers who are giving service from a long period will be hardly affected.2. A big amount of money (more than the money which will government get through taxes) will go to the Foreign countries.3. Local brands will be affected and sale of foreign brands will be increase.4. Uneducated and semi-educated will have difficulty to get job or earning money because through these big retail shops only smart and educated people will get job.5. Poor peoples will have difficulty in survive because they will not buy a small pack of biscuit from a air conditioned mall.6. Shopping time of the peoples will increase because they can get commodities from a local retail shop within some minute but in these big retail store it will take big time.7. Consumers will not get commodities on credit basis without any extra tax.8. Consumers will hesitate to buy any single product which will increase the cost of purchase indirectly.

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