PRESENTA TION O N OverView Of The Retail Industry

PRESENTED BY:Anju Talreja Arpit Jain Karamat Ansari Konark Jain Vaibhav Zelawat

4/12/12

Content

Introduction Of Retail Definition Characteristics of retail Facts & Figure Evolution of Indian retail Activities of Retailers Growth drivers Organized Retail & Unorganized Retail Organized Retail V/s Unorganized Retail Formats in Indian Organized Retail Sector Business Model Of Retail Challenges Opportunities
4/12/12

etail:

The word RETAIL Derived from the French word RETAILLIER which means 'to cut a piece off' or 'to break bulk A retailer is one who stocks the producers goods and is involved in the act of it to the individual customer at the margin of profit. It provide customers 3Vs i.e. Value, Variety and Volume.

4/12/12

Cont

It is the final step in the distribution of merchandise, for consumption by the end consumers. Satisfy consumer needs by having the right merchandise, at the right price, at the right place, when the consumer wants it. Retailers are the final business in a distribution channel that links manufacturers to consumers

4/12/12

Definition
Retailing includes all the activities involved in selling goods or services to the final consumers for personal, non business use. A retailer or retail store is any business enterprise whose sale volume comes primarily from retailing. --Philip Kotler

4/12/12

Characteristics of retail

It offers direct interaction Sale volume is comparatively large in quantities Sales promotions are offered at this point only Location and layout are critical factors More employment opportunities Customer service

4/12/12

Indian retail industry is the largest industry in India, with an employment of around 8% and contributing to over 15% of the country's GDP. McKinsey report 'The rise of Indian Consumer Market', estimates that the Indian consumer market is likely to grow four times by 2025. Retail industry in India is expected to rise 25% yearly being driven by strong income growth, changing lifestyles, and favorable demographic patterns.
(From Wikipedia)

Indian retail industry is one of the fastest growing industries with revenue is increasing at a rate of 5% yearly. India's overall retail sector is expected to rise to US$ 833 billion by 2013 and to US$ 1.3 trillion by 2018, at a compound annual growth rate (CAGR) of 10 per cent A further increase of 7-8% is expected in the industry of retail in India by growth in consumerism in urban areas, rising incomes, and a steep rise in rural consumption. CB Richard Ellis' findings state that India's retail market is currently valued at US$ 450 billion.

In India, the retail industry is broadly divided into the organized and unorganized sectors. The organized sector accounted for Rs. 350 billion of the total revenues. Traditionally, the retail industry in India comprised of large, medium and small grocery stores which could be categorized as unorganized retailing. Most of the organized retailing in India had recently started and was mainly concentrated in metropolitan cities.
(From Wikipedia)

Evolution of Indian retail

Historic/Ru ral Reach Traditional/Perv Government asive Reach Supported

Modern Formats/ International

PDS Outlets Khadi Stores Cooperatives Convenience Stores Mom and Pop/Kiranas Weekly Markets Village Fairs Melas
Source of Entertainm ent Neighborhood Stores/Conveni ence Availability/ Low Costs / Distribution

Exclusive Brand Outlets Hyper/Super Markets Department Stores Shopping Malls

Shopping Experience/Effici ency

Growth drivers

Increasing in income Fastest growing economy Demand for global brands Infrastructure Rapid Urbanization

Organized Retail
Owned by a private or Govt. sector based on certain systematic principles. Examples Big bazaar, Wal-Mart etc. They have license to sell the products and abide by the rules and regulation of govt.

Unorganized Retail

Unorganized retailing is defined as an shop run locally by the owner or caretaker. They are owned by a private individual & based on the principles, but not owned by any private company.

4/12/12

Advantages of Organized Enhanced Retail Welfare Gains for Consumers

Gains for farmers Impact on growth and productivity Improvement of Government Revenues Impact on Employment and Prices Boost to Exports

4/12/12

4/12/12

4/12/12

4/12/12

4/12/12

Advantages of Unorganized Retail

Employment Impact Location Advantage for the Unorganized Retailers Credit Facilities Purchase of small quantities

4/12/12

4/12/12

4/12/12

4/12/12

4/12/12

Formats in Indian Organized Retail Sector

Hypermarkets Supermarkets Department Stores Shopping malls Specialty Chains

4/12/12

Retailer

Existing formats
Department store

No.of Brand Names Store s

Pantaloon Big Bazaar Central Shoppers Stop Crosswords Home Stop West side Star India Bazaar Land Mark 1000 214 20 47 15 4 27 6 16

Future Group

Supermarket Seamless Malls Department stores

k Raheja Group

Books & Music Stores Home furnishing Department Stores

The TATA Group 4/12/12

Hypermarkets Books & Music Stores

Retailer
Aditya Birla Group Reliance Group

Existing formats
Hypermarket Department store

No.of Brand Names Store s

More Megastore Reliance fresh 575 560

4/12/12

Future Group
Type Industry Founder(s) Headquarters Products Private Retailing Mr.Kishore Biyani(MD & CEO) Mumbai,Maharashtra,India Discount,groceryand convenience stores,cash and carry,hypermarkets, financial services 35,000 Pantaloon Retail, Future Value Retail Limited

Employees Divisions

4/12/12

K. Raheja Group
Location Mumbai,Navi Mumbai,Delhi, Chennai,Coimbatore, Mysore, Jaipur, Vizag, Hyderabad, Pune,Vijayawada,Kolkat a, Bhopal,LucknowIndore 1991 K. Raheja B.S. Nagesh(Customer Care Associate & Vice Chairman) Govind

Opening date Developer Management

4/12/12

TATA Group

Type Industry Founded Headquarters Parent

Subsidiary Retail 1998 Mumbai, Maharashtra, India Tata Group

4/12/12

Aditya Birla Group

More Store. Type Industry Products Employees Public Retailing Supermarket Hypermarket over 11,000

4/12/12

Reliance Group
Industry Founded Headquarters Key people Retail 30 October 2006 Mumbai,India Mukesh Ambani

4/12/12

Business Model Of Retail

4/12/12

Challenges

Automatic approval is not allowed for foreign investment in retail. Taxation, which favors small retail businesses. Absence of developed supply chain and integrated IT management. Lack of trained work force. Low skill level for retailing management. Intrinsic complexity of retailing rapid price changes, constant threat of product obsolescence and low margins.

4/12/12

Opportunities

Least competitive of all major global market Availability of cheap resources Major employment generator Huge investment
4/12/12

Thank you!!!!!!!!