Introduction

Barter System was known as the first form of retail.

As time passed currency was exchanged with

goods and services. The Indian retail industry is the fifth largest industry in the world. With growing market demand, the industry is expected to grow at the rate of 25-30 percent annually.

 Retail has two forms organized and unorganized.

Organized retail in India is expected to grow 25-

30 percent yearly and is expected to increase from Rs 35,000 crores in 2006-07 to Rs 109,000 crores by 2013. Second Largest Employer after Agriculture(8%)

Retail market overview

2012

Continued growth expected to grow market to $ 427bn by 2014

2011

High retail gold bush 2009-10 Grew to $ 33bn

2005-09 Beginning of India retail boom
2007-08 Standing at $230bn

2010

2009

2008

Importance of Retailing
Largest and fastest growing sector in India. Modern retailing forms one point stop for all shopping. Consumer gets a large product variety of brands to choose from one roof. First it was a sellers market and now its changing to buyers market. By 2013 Indian retail sector would be generating 12 million employment opportunities.

Evolution Of The Indian Retail Sector

Inception dated back to times where stores were found in village fares, melas etc.
Emergence of Kirana stores and mom & pop stores.

The first few companies to come up with retail chains were in textile sector.
E.g. Bombay Dyeing, S Kumar's, Raymonds, etc.

Titan, Foodworld in FMCG, Planet M & Music World in music, Crossword in books.

Retailing In India (Present Market Size)

The present value of the Indian retail market is estimated to be around Rs. 12,00,000 crore.
The annual growth rate is 5.7 percent.

Retail market for food and grocery with a worth of Rs. 7,43,900 crore is the largest of the different types of retail industries present in India.
Around 15 million retail outlets help India win the crown of having the highest retail outlet density in the world.

Traditional Retail Scene In India

India has a bigger unorganized retail market than

organized retail market. Mom & Pop Shops. Accounts of trading & home were not maintained separately. Profits accumulated over a period of time. Non moving stocks were generally consumed in-house. Branding was not an issue for majority of consumers. More consumers were price sensitive rather than quality sensitive. But of late this has been changing. Consumers are realizing the importance of quality vis--vis the price.

Bargaining was the unwritten law of the market. Educational qualification of retailers was low. Only one format of retailing prevailed - mass retailing. Almost all purchases were need based (apart from festivals). Impulsive buying or consumption was restricted to food & vegetables. Presently, purchasing power of urban population is on the rise and purchase of branded merchandise such as apparel, shoes, watches, etc. is seeping into the lifeline of Indian City folks.

Evolution Of Organized Retail

3 SUCCESSIVE WAVES:

First wave in the early to mid 1990s( South America) Second wave mid to late 1990s( Mexico, Central America, South-East Asia, South Central Europe). Third wave- late 1990s & early 2000( China, India, Russia, some parts of Africa and continues.

Organized Retail

Some of the Key Players in Organised Retail

Unorganized Retail
Unorganized retail sector accounts for about 8% of

GDP. Has been prevalent in India for centuries. Accounts for 8% out of Retails 11% in GDP. Consists mainly of family-run businesses. Main advantages are consumer familiarity and low cost structure. Operated by owners. Has low real estate and labour costs and comparatively low taxes to pay.

Contribution To GDP
Country Retail Sector's share in GDP (in %)
India 11 %

USA 10%
China 8% Brazil 6%

10 Major Challenges Of The Retail Industry

Global economic slowdown Competition from the unorganised sector Retail sector has no recognition as an industry High real-estate costs Lack of basic infrastructure Supply-chain inefficiencies Challenges with respect to human resources Margin Pressure Fraud in retail Challenges with Infrastructure and Logistics

Latest Trends
The Infrastructure of retail sector will evolve radically. The shopping malls are increasing at fast pace in metros. The growth of organized retail sector is anticipated to be heavier than the growth of GDP. Peoples lifestyle, rising income level and encouraging conventions of demography are proving favorable. More access to credit facilities.

 With Arrival of transnational companies, Indian retail industry will undergo a transformation.
No one single format can be assumed as there is a

huge difference in cultures regionally. The most encouraging format now would be the hyper marts. The hyper mart format would be further encouraged with the entry of the TNCs.

Types Of Retail Outlets

Department stores Discount stores Supermarket Warehouse stores Specialty stores Malls Retailers Dollar stores

Unorganized Retailing Hawkers (Kirana) Weekly Market Organized retailing Factory outlets & discounts Market Wholesalers market Company and Franchises showroom

Factors Leading To Growth Of Retail Sector

Growth Drivers
Organized retail 4%

Increasing in income
Fastest growing economy Customer analysis

Availability of cheap labor

Demand for global brands

SWOT Analysis
Strength
Growing economy Availability of man power Improvement in the standard of living Increase in demand driven by working youth

Weakness

Lack of trained manpower Inadequate infrastructure Lack of expertise in supply chain management Fast changing needs of consumer

Opportunities

Untouched rural market. Investment opportunities Fast evolving shopping mall formats Upcoming international players
The tax structure in India favors small retail business Lack of adequate infrastructure facilities High cost of real estate Low retail management skill

Threats

Key Challenges of A Retail Store

Location
Merchandise Price Target Audience Scale of Operations

Top Players In Indian Retail Sector

Shoppers Stop :Chandru Lachmandas Raheja
Future Group: Kishore Biyani RPG Group: Rama Prasad Goenka

Crossword :R. Sriram and Ms K. Anita

Globus: Vinay Nadkarni Lifestyle: Y.C. Deveshwar

Co-Branding (Pratik)

Case Study (Gaurav Varma)