Indian & Global Scenario of Retail

Presented By: Harmeet Singh MBA 4th Sem

Retailing in India
Retail is the new buzzword in India.
The global Retail development Index has ranked India first, among the top 30 emerging markets in the world. It is believed that India has the potential to deliver the fastest growth over the next 50 years. While barter would be considered to be oldest form of retail trade, since independence , retail in India has evolved to support the unique needs of country, given its size and complexity

Second largest sector after Agriculture. Contributes about 10 11 % of the GDP The estimated size of the organized retail industry in India is Rs. 55,000 crores.

India's first true shopping mall complete with food courts, recreation facilities and large car parking space was inaugurated as lately as in 1999 in Mumbai. (this mall is called "Crossroads").

The Evolution of Retail in India

Retail in India has evolved to support the unique needs of our country, given its size and complexity Haats, Mandis and Melas have always been a part of the Indian landscape. They still continue to be present in most parts of the country and form an essential part of life and trade in Various areas.
The PDS (Public Distribution System) would easily as the single largest retail chain existing in the country. the evolution of the PDS of Grains in India has its origin in the rationing system introduced by the British during world war II

The system was started in 1939 in Bombay and subsequently extended to other cities and towns. the system was abolished post war but however attaining independence India was forced to reintroduce it in 1950.
There was rapid increase in the ration shops ( being increasingly called the Fair Price Shop or FPSs)

The Canteen Stores Department and the Post Offices in India are also among the largest network of outlets in the country reaching population across the country. The Khadi & Village industries (KVIC) was also set up post independence. The cooperative movement was again championed by the government.

The first attempts at organized retailing were noticed in the textiles sector. One of the pioneers in this field was Raymonds which set up stores to retail fabric. Raymonds distribution network today comprises 20,000 retailers and over 256 exclusive showrooms in over 120 cities of the country Other textile manufacturing who set up their own retail chains wee Reliance- which set up Vimal showrooms.

The Evolution of retail in India

Traditional Formats Itinerant Salesman Haats Melas Mandis etc.

Established formats Kirana shops Convenience/ department stores PDS/ fair price shops Pan/ Beedi shops

Emerging Formats Exclusive retail outlets Hypermarket Internal retail Malls / Specialty Malls Multiplexes Fast food outlets Service galleries

Drivers of Retail change in India

1. Changing Income Profiles: Steady economic growth fuelled the increase in disposable income in India. The average middle class family's disposable income rose by more than 40% between 2001-2010. The Changing Role of Women & the Evolving Family Structure Changes in Consumption patterns: Occupational changes and expansion of media have caused a significant change in the way the consumer lives and spends his money. The changes in income brought about changes in the aspirations and the spending patterns of the consumers. the buying basket of the consumer changed

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The Age Factor: Nearly 70% of the Indian population is below the age of 34. taking advantages of employment opportunity in the booming service sector these young Indians are redefining service and consumption patterns Geographical Dispersion of Market Potential.

Prominent sector in Indian retail

1. 2. 3. 4. 5. 6. 7. 8. Clothing, textiles and fashion Accessories: Food & food Services: Consumer Durables: Books & Music: Other emerging sectors Jewellery retail Footwear retail Time Wear Retail Fuel Retail/ petro retail

Challenges to retail Development in India

Retail not being recognized as an industry in India.
The high costs of real estate.

Lack of Adequate infrastructure.

Multiple and complex taxation system.

Internationalization of Retail
The process of a retailer transferring its retail operations, concept, management expertise, technology and / or buying function across national borders.

Determining The Market of Entry

Proximity to the Domestic Market: retailer considers markets which are close to the domestic market as it enables the retailer to build on efficiencies in terms of supply chain & logistics. Similarity in Culture: to build on the efficiencies in the brand & the similarities in lifestyles. Size of the Market. Laws & Regulations of the Land Strength of the Local Players in the Market.