Indian retail sector

Aloysious Raju Dasari

Raghavendran.R.S
ICFAI Business School, Kochi
 The Indian Retail Industry
• Seen as “THE GOLD MINE”
• It’s mouth-watering figures:
– Total retail market : 350 billion US$
– Organized RM : 8 billion US$
• Highly fragmented / Unorganized
– 12 million Kirana stores
– Over 80% of them operates in less than
500 sq.ft

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MILESTONES Weekly Markets, Village fairs and Melas

Convenience Stores, Kirana Stores II

III Department Stores,

Super Markets and
discount stores

IV

Hyper Markets and Shopping Malls

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 • Private Labels
TRENDS IN RETAILING
• Focus on Small cities and towns
• Store design
• Multiple formats / New segments
• Bringing in Technology
• Farm to Fridge
• 24 hr retailing
• Shoppertainment:
– Changes in the lifestyle
– Variety
– Fun & Entertainment
– One Stop Shopping

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 COMPETITIVE ADVANTAGE
“ in Size but Big in Deeds”
• Key Success factors of Conventional retail:
– Reach
– Credit facilities
– Home delivery
– Intangible factors
• Is it viable for Organized retail to emulate
these factors?
• Probable opportunities for Conventional
retailers:
– Renovation of the existing formats
– Entry of B2B companies
– Consortium

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 •Lack Of Infrastructure •Variety : Customer Pull

•FDI •More for Less

•The refashioned •Technology

convenience store
+ •Increasing Disposable
Income

- T S
+
W O
•Rural Retailing
•Increasing Population
•Limited Reach - of Working Women

•Lack of Trained & •Steady Indian

Professional Workforce Economic Growth
•Increasing Margins by
removing Middle men
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 Who will the beneficiaries?

You & Me

Thank You…
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 Which seg. is taking the lead?

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 Who’s taking the pole ?

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 Tapping the rural Market

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 Tapping the rural Market

• ITC rural initiative : Choupal Saagar

near Aligarh in UP
- spread over 4.28 acres
- It’s shelves are covered with
groceries, toys, apparel, video and
audio systems, computers and mobile
phones

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