Indian Retail Indian Retail SectorSector

Submitted By:Submitted By:

Anurag DuaAnurag Dua A0101906052A0101906052

Bharat BhatiaBharat Bhatia A0101906070A0101906070

IndiaIndia: A Nation on the move: A Nation on the move

As per 2005-06 statistics:As per 2005-06 statistics: Largest Democracy in the WorldLargest Democracy in the World Population Population 1.112 billion1.112 billion GDPGDP $ 4.042 trillion$ 4.042 trillion GDP GrowthGDP Growth 8.5%8.5% GDP Per CapitaGDP Per Capita $ 3700$ 3700 InflationInflation 5.3%5.3% Per capita incomePer capita income $ 534$ 534 ForEx reserveForEx reserve $ 133 billion$ 133 billion ExportsExports $112 billion$112 billion ImportsImports $ 188 billion$ 188 billion India’s GDP will exceed Italy’s in 2016, France’s in 2019, India’s GDP will exceed Italy’s in 2016, France’s in 2019,

Germany’s in 2023 and Japan’s in 2032.Germany’s in 2023 and Japan’s in 2032. India will become the 3rd largest Economy in the world by India will become the 3rd largest Economy in the world by

2032 according to BRIC Report.2032 according to BRIC Report. Average real household disposable income – Rs. 113744.Average real household disposable income – Rs. 113744.

Map of India’s Income Class:Map of India’s Income Class:

Highly Fragmented Retail Sector:Highly Fragmented Retail Sector:

12 million retail outlets spread across India.12 million retail outlets spread across India. 80% of these 12 million retail outlets are run 80% of these 12 million retail outlets are run

my small family businesses which use only my small family businesses which use only household labour.household labour.

India has one of the highest retail densities in India has one of the highest retail densities in the world at 6%.the world at 6%.

India ranks 1India ranks 1stst in terms of emerging market in terms of emerging market potential in retail and is deemed a ‘Priority 1’ potential in retail and is deemed a ‘Priority 1’ market for international retail.market for international retail.

Comparative penetration of Organized Comparative penetration of Organized retail:retail:

India has only 3% organized sector and India has only 3% organized sector and rest is unorganized sector.rest is unorganized sector.

India Retail Landscape:India Retail Landscape:

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Worth ($billion)

Indian organized retail JourneyIndian organized retail Journey

Total Retail Sales Pie:Total Retail Sales Pie:

Key drivers of Growth:Key drivers of Growth:

Economic growth: This has meant greater disposable incomes for the booming Indian middle class, which currently comprises 22% of the total population. This figure is expected to increase to 32% by 2010. Disposable incomes are expected to rise at an average of 8.5% p.a. till 2015.

Demographics: More than 50% of the population is less than 25 years of age and strong growth is expected to continue in this age bracket.

Urbanization: The Indian urban population is projected to increase from 28% to 40% of the total population by 2020 and incomes are simultaneously expected to grow in these segment.

Credit availability: Retail loans have doubled in the last

three years to reach USD 38.7 bn by 2005.

Growth in Organized Retail:Growth in Organized Retail:(all figures in US $ million)(all figures in US $ million)

Retail Space in India:Retail Space in India:

Gateway to India:Gateway to India:

Challenges Ahead:Challenges Ahead:

HR:HR: The industry is facing a severe shortage of talented professionals, especially at the middle-management level. The retail industry is expected to create 2 million jobs between now and 2010.

Supply Chain: Most Indian retail players are under serious pressure to make their supply chains more efficient in order to deliver the levels of quality and service that consumers are demanding.

Frauds: Employee pilferage, shoplifting, vendor frauds and inaccuracy in supervision costs the Indian retail industry Rs 550-600 crores per year.

Thank Thank You.You.