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inShare2 Retail Industry, Retail Sector, Retail Trade

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The retail industry is responsible for the distribution of finished products to the public. The retail sector comprises of general retailers (managed by individuals/families), departmental stores, specialty stores and discount stores.
The activities of the retail industry can be broadly classified into: Personal goods store retailing

Hard goods: This covers deals in goods such as electronics, electrical appliances, furniture and sporting goods. Soft goods: This includes apparel retailing.
Non-store retailing This includes infomercials, catalogue sales, vending machines and ecommerce. Food retailing (restaurants) Automotive services and retailing

Retail Industry: History

The retail industry emerged in the US in the eighteenth century, restricted to general stores. Specialty stores were developed only in those areas that had a population of above 5,000. Supermarkets flourished in the US and Canada with the growth of suburbs after World War II. The modern retail industry is booming across the world. Revenues from retail sales in the US alone stood at $4.48 trillion in 2007, according to a report by the US Census Bureau.

Retail Industry: Demand and Supply Drivers

The major demand drivers of the retail industry are:

Interest rates Population Employment Personal disposable income

 Individual debt
The supply drivers include:

Competitors in the industry Size of the market Cost of the factors of production

Retail Industry: Major Players

Of the worlds top ten retail companies in terms of total sales, six are American. Combined sales of the top ten companies, computed by Delloite, were $978.5 billion in 2007. Major retail giants include WalMart, Target, Home Depot and Tesco.

Retail Industry: Statistics

The total sales from store retailers stood at 108,449.8 million in 2007 and the sales value of nonstore retailers was 469.9 million. The percent composition of store and non-store retailers in 2007 was: Store Retailers Non-Store Retailers Supermarkets 32.83 Vending 26.60 Small grocery retailers 24.46 Internet retailing 25.93 Hypermarkets 19.09 Home shopping 24.04 Food/beverage/tobacco specialists 15.68 Direct selling 23.43 Discounters 7.57 Others 0.36 Total 100 Total 100

Source: World Retail Data and Statistics 2008/2009 The retail sector is vital to the world economy, as it provides large scale employment to skilled and unskilled labor, minors and casual and part-time workers. Employment in the retail sector in the US and Europe surpassed 32 million in 2007.

Evolution of Indian retail Industry: Indian Retail Industry is standing at its point of inflexion, waiting for the boom to take place. The inception of the retail industry dates back to times where retail stores were found in the village fairs , Melas or in the weekly markets. These stores were highly unorganized. The maturity of the retail sector took place with the establishment of retail stores in the locality for convenience. With the government

intervention the retail industry in India took a new shape. Outlets for Public Distribution System, Cooperative stores and Khadi stores were set up. These retail Stores demanded low investments for its establishment. The retail industry in India gathered a new dimension with the setting up of the different International Brand Outlets, Hyper or Super markets, shopping malls and departmental stores. Key Players in the Indian Retail Sector: The untapped scope of retailing has attracted superstores like Wal-Mart into India, leaving behind the kiranas that served us for years. Such companies are basically IT based. The other important participants in the Indian Retail sector are Bata, Big Bazaar, Pantaloons, Archies, Cafe Coffee Day, landmark, Khadims, Crossword, to name a few. Retailing in India: a forecast: Future of organized retail in India looks bright. According to recent researches it is projected to grow at a rate of about 37% in 2007 and at a rate of 42% in 2008. It will capture a share of 10% of the total retailing by the end of 2010. According to the Union Minister of Commerce & Industry, Shri Kamal Nath, the organized retail sector is expected to grow to a value of Rs. 2,00,000 crore (US$45 billion) and may generate 10 to15 million jobs in next 5 years. This can happen in two forms- 2.5 million of these people may be associated directly with retailing and the rest 10 million people may be gainfully employed in related sectors that will be pulled up through the strong forward and backward linkage effects. However to compete in this sector one needs to have up-to-date market information for planing and decision making. The second most important requirement is to manage costs widely in order to earn at least normal profits in face of stiff competition.

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Industries & Business The Student Loan Debt Time Bomb Date: 30 Mar 2012 Student debt is growing at an alarming rate. At the end of 2011, total student loan debt crossed the $1 trillion mark, a level that is higher than the sum of all credit card debt in the United States. Already, this category of debt has been likened to the subprime crisis, raising worries that a potential delinquency crisis could find its way into the wider economy. Read more News Desk PetroChina Usurps Exxon Mobil As Worlds Largest Oil Producing Company Fuel Strike Fears Spark Panic Buying Across UK Tax Evaders Set Themselves On Fire In Italy Foreign Investors Dump $24 Billion Of Japanese Debt In Two Weeks Pope Calls For The End of 50-Year-Old US Trade Embargo On Cuba Brics Nations To Explore Possibility Of A Common Development Bank More

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Contribution of Retail:
What, How and In this report we have analyzed in detail the retail industry in India. We had initially started with the evolution of the retail sector in India, then moved onto its size, distribution and the growth of the retail sector. We have also covered issues like the Foreign Direct Investment in the retail sector, the untapped opportunities that exist in the retail industry in India. We have also discussed about the bottlenecks that the retail industry is facing in India, online retailing in India and the role of Information Technology in the retail sector in India. In this section we have coined down the major findings of our research. Major Findings 1. The Retail Sector in India can be split up into two, the organised and the unorganized. The organized sector whose size is expected to triple by 2010 can be further split up into departmental stores, supermarkets, shopping malls etc. 2. In terms of value the size of the retail sector in India is $300 billion. The organised sector contributes about 4.6% to the total trade.

3. The retail sector in India contributes 10% to the Gross Domestic Product and 8% to the employment of the country. 4. In terms of growth the FMCG retail sector is the fastest growing unit and the retail relating to household care, confectionery etc, have lagged behind . 5. The foreign retail giants were initially restricted from making investments in India. But now FDI of 51% is permitted in India only through single branded retail outlets. Multi brand outlets are still beyond their reach. Again they can only enter the market through franchisees,. This was how Wal-Mart had entered joining hands with Bharati Enterprises. 6. OE-Retailing

in India

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E-retailing, most commonly known as e-tailing is nothing but shopping through the Internet and other media forms. There are many things that are common between direct retail stores and online retail stores. Both have the process of billing of the customers and have to maintain a relationship with the suppliers.
Bottlenecks Faced By E-Retailing in India Problems with the Payment System People in India are not used to the online shopping system and moreover the online payment system through the credit card is also totally alien to them. Most of them do not avail of the transaction

facilities offered by the credit cards. They are also dubious regarding the online payment system through the credit cards. Hence different payment options should be made available to them like the credit card, cash on delivery and net banking to give them further assurance. Problems with Shipping The customers using the online shopping channel should be assured that the products that they have ordered would reach them in due time. For this the retail companies have resorted to private guaranteed courier services as compared to postal services. Offline presence The customers should be assured that the online retailers are not only available online but offline as well. This gives them the psychological comfort that these companies can be relied upon. Products offered at discounted rates The online retailers save on the cost of building and employee salaries. Some part of this benefit should also be enjoyed by the online customers by a reduction in the price of the product. The customers should be conveyed this message that they are getting the products at a discounted price. Language Problem Most internet retail shops use English as their mode of communication. English may not be comprehensible to the majority of the Indian population . To increase the customer base, content in the online retail shops should be provided in local language. Another reason why the concept of e- retailing or online retailing has not gained prominence in India is that the Indians prefer to touch the products physically before buying them. This facility is provided through the multi-brand outlets, not available online. Studies have revealed the preferences of the customers towards the traditional shopping methods. Hence the retailer online should first make it a point to spot the potential customers and accordingly plan out the product. If the customers are more open to online shopping, then nothing can be more beneficial. They save the time and effort to visit, departmental stores, shopping malls, etc. products can be delivered by a click of the mouse. Another problem is that the retail industry is standing on its point of inflexion and considering its infant stage, it would take time for the new concept of e-retailing to take off. Some online retailing sites in India

E Bay is heading the race of online retailers. In this race it has become very difficult to determine the online retail store that makes the products available at convenient and cheap rates. From this very difficulty has cropped up comparison sites. Comparison is done on the basis of an index which is constructed from the data available from different shopping sites. The bechna.com and the ultop.com are such sites though many more sites are entering this zone. The comparison sites not only help to choose the online sites that would be providing the best deal but also offline as well. Sites like Rediffproductsearch, Compare India.com have constructed the data that is taken from the conventional local retai;ers. These sites help the customer in finding out the local retail store that will best suit his purpose. Future of E-retailing in India There are divergent views on the future of e-retailing in India. Some experts are of the opinion that the giant, big brand retailers would dominate the small ones due to their wider investment capacities. It would be next to impossible for the small retailers and the kiranas to prove their existence in the battlefield of online retailing. Another viewpoint is that there would be an exponential growth in the online retailing business in India.

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+ Follow How To Increase Retail Sales Within Same Footfalls by Alok Sharma on Jan 25, 2010 9,860 views how to improve productivity even if footfalls are same More how to improve productivity even if footfalls are same Less Accessibility View text version Categories

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Downloads 0 Comments 1 Embed Views 3 Views on SlideShare 9,857 Total Views 9,860 1 comment Notes on Slide 1 11 of 1 comment previous next

gururetail With a gusture of smile and greetings to customer by the salesman make the customer a pause to think.Then an approach with providing a carry bag/shopping bag along withcommunicating deal of the day to the customer by the salesman makes him more comfortable in the shop.Helping the customer throughout his/her shopping time in the store 4 months ago Reply Are you sure you want to Yes No Top of Form
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sunilmool 1 year ago More . For any explanation contact: Alok Sharma alok_sharma1@yahoo.com Top of Form
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