A study on retial sector.

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What is Retail?
Retailing consists of the business activities involved in selling goods and services to consumers for their personal, family, or household use. It includes every sales of goods and services to the final consumer. As such retailing is the last link that connects the individual consumer with the manufacturing and distribution chain

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Evolution of Retail
Barter chain Kirana stores Chain of large stores Finally malls Hypermarkets Supermarkets
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Retail Sector in India

Retail

Unorganized 97%

Organized 3%

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Current scenario of Indian retial -:

Unorganized market; Rs. 583,000 crores. market; Rs. 5,000 crores.

Organized

High

rate of growths in organized retailing between 2000-2005. 4000 new modern outlets in last 3 years.
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Over

Classifying Indian retail

Modern Format retailers Supermarkets (Foodworld) Hypermarkets (Big Bazaar) Department Stores

Traditional Retailers Kiranas Kiosks Street Markets

Companys exclusive outlets weekly markets

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Modern form of retail

Malls Specialty Discount

Stores Stores Stores

Department

Hypermarkets/Supermarket MBOs Food

retail retail
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Agriculture

Different products involved in Retailing

Food Books & Magazines Fashion & Clothing Personal Care Optical Consumer Electronics Sport & Leisure Footwear & Leather Toys & Games Jewellery & Watches
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Drivers of Retail Industry

Demography Dynamics: Incomes: Revolution: distances has become

Double Plastic

Urbanization: Covering

easier:
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Impact of organised sector ?

Effect mind

on small retailers and vendors in the unorganized sector keeping in the likely growth in the overall market. on employment. on consumers. on farmers and manufacturers. on prices. impact on economic growth.
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Effect

Impact Impact Impact Overall

Problems faced by indian retailers.

Margins are low property cost Infrastructure in logistics

High Poor

Expertise Couple

of firms in retail sector have turn over more than Rs 100 crore.

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Importance

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 2010 Indian retail sector would be generating 10 million employment opportunities.
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Analysis of Growth by ASSOCHAM

Organized retail growing at estimated 25% It is expected that retail in India could be worth US$ 175-200 billion by 2016. 2008-09 Total retails contribution to GDP is between 8% which would further jump up to nearly 12% in next few years. By 2010, retails contribution to national GDP in totality is likely to be 22%. 2008 Retail Growth rate 25-28%, Unorganized and organized retail size 300 billion US$
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Government Policies
The retail industry in India is growing at a significant pace. However, there are several problems faced by the industry. The major challenges for the organized sector include:
Taxation

laws that favor small retailers. octroi collection.

Multi-point According

to analysts, for this industry to thrive, Indian retailers need to emulate worldwide retail practices such as accuracy in financial reporting, increased levels of corporate governance and greater accountability among employees. 4/12/12

Strength

Increasing demand driven by the countrys young working population Increase in per capita income which in turn increases the household consumption. Improvement in the standard of living. technology intensive industry. Consumer spending increasing at 11% annually. Pattern of consumption changing along with shopping trends
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Weakness

Lack of expertise in Supply Chain. Management. Inadequate Infrastructure. Lack of specialized professionals in Industry. Government Restrictions on FDI. Lack of huge investments for expansion. Lack of industry status. Need to provide Value for Money-squeezing margins.
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Opportunities
Change Indian

in consumer behavior pattern and increase in disposable income. rural markets offer a sea of an opportunity for the retail sector. international Players. prospect for the fashion industry.

Upcoming Healthy Social

factors like dual household income has enhanced spending power in use of credit cards.
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Increase Spends

moving towards lifestyle products

Threats

Competition from unorganized Sector to the organized Sector. Rising lease/rental costs affecting project viability. FDI restrictions in the retail sector. Poor monsoons and low GDP Growth could affect consumer spending drastically. Differentiate taxation laws hindering expansion.
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conclusion
The consumers preferences are changing rapidity and becoming highly diversified. It is difficult for the retail stores to satisfy all the needs of the customers. The most of the consumers want to get some attractive prices, good schemes and offers on every purchases and a shopping comfort as well . Those who are able to purchase their needs and want for a month in a bulk prefers to go to the retail chains.

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