Beruflich Dokumente
Kultur Dokumente
RETAILING IN INDIA
IN INDIA
Presentation by
Shahnas A
Syama K S
Sobymol Devasia
Sabitha Z.B
Retailing
Person
Mail
Telephone
Vending Machine or
Internet
Or
Characteristics of retailing
Retailers Types
Department stores
Specialty stores
Convenience store
Discount store
Off-price retailer
Super store
Functions of Retailing
Sorting
Breaking Bulk
Holding stock
Communications
Assist small suppliers
Customer service
INDIAN RETAIL-BRIEF
OVERVIEW
RETAIL-MARKET SIZE
The total retail sales in India will grow
from US$ 395.96 billion in 2011 to
US$ 785.12 billion by 2015
Indian retail sector accounts for 22 per
cent of the country's gross domestic
product (GDP) and contributes to 8
per cent of the total employment.
Traditional/Pervasive
Reach
Government
Supported
Modern Formats/
International
PDS Outlets
Khadi Stores
Cooperatives
Convenience Stores
Mom and Pop/Kiranas
Weekly Markets
Village Fairs
Melas
Source of
Entertainment
Neighborhood
Stores/Convenience
Availability/ Low
Costs /
Distribution
Shopping
Experience/Efficiency
10%
9.2%
8.90%
9%
6.4%
8%
6.6%
7%
6%
5.4%
5.2%
5.6%
6.0%
6.0%
6.8%
5%
4%
3%
2%
1%
0%
12.00%
10.7%
10.00%
9.4%
10,000
8.00%
8,000
6.7%
6.00%
6,000
4,367
3.7%
4,000
2,630
2,000
916
979
2.8%
2,374
2.3%
4.00%
2.0%
2.00%
1,068
0.00%
China
India
Russia
Brazil
UK
Japan
US
12,000
13,245
120%
107%
100%
80%
55%
60%
2005-06
40%
2006-07
21%
21%
20%
41%
37%
13% 14%
6%
7%
0%
Tourist Arrivals
Passenger Cars
Sales
Commercial
Vehicle Sales
Domestic Air
Passengers
5-7 million
Super Rich
70 80 million
Afford Cars, Private Healthcare &
Foreign travel
250 - 300 million
Afford goods like Refrigerators , Scooters
& Colour TVs
Source: McKinsey,
GDP
US$ 935 billion
Food
Apparel
Beverages
Private Consumption
US$ 580 Billion
(62%)
Footwear
Consumer
durables
Appliances
Transport
Retail
US$ 342 Billion
(59%)
Non Retail
US$ 238 Billion
(41%)
Communication
Recreation
Cultural
Services
Stationery
Kitchen utensils
Furniture
Furnishings
Personal Care
Jewellery
Rent
Utilities
Sports goods
Health & Beauty
Education
Other Services
Rural (6,27,000 villages)
US$ 188 Billion
(55%)
Modern retail
Negligible
Timing
Source: Central Statistical Organization (CS0) and Technopak Analysis
Conversion rate: 1 US$ = 40.86 Rs.
Private Consumption
US$ 870 Billion
(60%)
Retail
US$ 530 Billion
(61%)
Non Retail
US$ 340 Billion
(39%)
Urban
US$ 252 Billion
(47.5%)
Rural
US$ 278 Billion
(52.5%)
*All figures are in nominal terms after taking into account inflation
ORGANISED v/s
UNORGANISED
39%
Durables
Books, Music & Gifts
Home
9%
7%
3%
2%
18%
13%
3%
3%
100%
80%
40%
36%
30%
Thailand
Brazil
Indonesia
20%
20%
3%
Poland
China
India
55%
60%
85%
81%
US
Taiwan
40%
20%
0%
Malaysia
Traditional Channel
Modern Channel
17 November 2014
US$ Billion
900
800
700
600
500
400
300
200
100
0
800
342
445
408
373
530
486
200
12
2007
18
2008
26
2009
Total Retail
39
2010
59
2011
87
2012
2017
Organized Retail
RECENT TRENDS
17 November 2014
17 November 2014
Recent Trends
Traditionally three factors have plagued
the retail industry:
Recent changes:
17 November 2014
Ludhiana
New Delhi
Lucknow
Varanasi Patna
Jaipur
Kanpur
Indore
Bhopal
Nagpur
Surat
Pune
Mumbai
Hyderabad
Bangalore
Chennai
Kochin
Coimbatore
Madurai
Kolkata
Visakhapatnam
Above 10 Mn inhabitants
Above 4 Mn inhabitants
Above 2 Mn inhabitants
Above 1 Mn inhabitants
17 November 2014
RURAL RETAILING
AADHAR
OTHER VENTURES
Product Range
Retail Formats
Carrefour-Landmark
Hypermarkets
Tata-Woolworths
Reliance
Birla
FDI in Retail
At present, the government allows 51%
foreign direct investment in a singlebrand retail venture while 100% is
permitted in wholesale cash-and-carry.
Under single-brand retailing a store can
stock goods that have the same brand.
In the wholesale cash-and-carry route,
which most foreign retailers use, there is
restriction on sale to individuals. These
stores are only permitted to sell to outfits
such as restaurants and kirana stores
FDI in Retail
KEY CHALLENGES
THE KIRANA
CRM practice
Known about the customers families
Credit and home delivery
Consumer familiarity runs from
generation to generation
Open longer hours and stock most of the
goods
Consequently, a large number of
customers are not willing to pay a
premium for the shopping experience
promised by large format retailers.
Heterogeneous market
Product offerings in different stores across the country will be
very different
Retail Challenges
Barriers to Entry
High taxes, bureaucratic clearance process and labour laws
Processes
Consumer
Infrastructure
Supplier/
Vendor
Current IT
Challenges contd..
Weakness of Player
Retail not being recognized as an industry in india.
The lack of recognition as an industry hampers the availability of
finance to the existing and new players. This affects growth and
expansion plans
The high cost of real estate:
Real estate price in some cities in India are amongst the highest in
the
world.
The lease or rent of the property is one of the major areas of
expenditure, high lease rentals eat into the profitability of a
project.
Lack of adequate infrastructure
Poor roads , lack of a cold chain infrastructure, etc , hamper the
development of food and fresh grocery retail in india.
The existing supermarkets and food retailers have to invest a
substantial amout of money and time in building a cold chain
network.
Improved Infrastructure
In view of a compressed
evolution cycle, retailers need to
simultaneously address issues of speed,
Execution and efficiency
Key Challenges
Key Challenges
to overcome
Internal
External
Key Opportunities
Supply Chain Investments
Import of know how and logistics techniques from developed retail countries
IT Infrastructure
Manpower