Indian Retail

Industry

Presented By:-
Deepti Mahra
Amar Kanti
 RETAIL INDUSTRY
IN
DYNAMIC
BUSINESS
ENVIRONMENT
 What is Retail??

Retail Philosophy — “By The People, For The People and Of The People”

Retailing involves selling products and services to

consumers for their individual or family use. As the final link
between consumers and manufacturers, retailers are a vital
part of the business world. Retailers add value to products
by making it easier for manufactures to sell and consumers
to buy. 
The Indian Retail Sector can be
broadly classified into—
 Categories of Indian
retail
 Corporate Houses
 Tatas: Tata Trent, Croma

 RPG group: Food World, Health and Glow, etc

 ITC: Wills Life Style

 Rahejas: ShoppersStop

 Dedicated brand outlets

 Nike, Reebok, Zodiac etc

 Multi-brand outlets
 Vijay Sales, Viveks etc

 Manufacturers/ Exporters
 Pantaloons, Bata, Weekender
Large Indian retailers

 Big Bazaar
 Giants
 Shoprite
 Star
 Lifestyle
 Pantaloons
 Piramyds
 Shoppers Stop
 Trent
 Entertainment
 Fame Adlabs
 Fun Republic
 Inox
 PVR
Major players
Source:-
www.Naukrihub.com
& Economic Times
 Tremendous Opportunities
Changed behavior pattern of Indian
consumers.
Now the Indian consumer gets more hefty pay-
packages; is younger, a large number of
women are working, western influences, and
more disposable income have opened a lot of
opportunities in Indian organized retail sector.
The Indian consumer wants to shop, eat and
get entertainment in one place and is have
also given
There Indian300
are about organized retail1500
new malls, sector an
opportunity to
supermarkets grow.
and 325 departmental stores
currently under construction.
Attributes driving Indian Retail
Industry

The certain points which can be taken under

consideration:
• Economic prosperity
• Rising incomes
• increased per capita spending
• rapid urbanization
• Improved infrastructure
• liberalization of the Indian economy
• Flourishing manufacturing and services sectors
• Market is larger than ever
and drawing both global and
local retailers.
• Foreign direct investment
(FDI) inflows as on January
2009, in single-brand retail
trading, stood at approx. US$
25.18 million, according to
the Department of Industrial
Policy and Promotion (DIPP).
 The Indian advantage
 India is ranked 5th in the A.T Kearney Global
Retail Development Index
 Second only to China in Asia

 India ranked 3rd in the Global A T Kearney FDI

Confidence Index in 2004
 Least saturated of all global markets
studied
 The least competitive of all global markets

studied
 Implies lower barriers of entry for
global players
 Considering tremendous market size,

excellent potential for foreign players

 Demographic
Factor

Started a month earlier

Onam,Ganesh Chaturthi in August
It’ll be followed by Dashahra and Divali(when corporate
and personal
gifting will be on top along with apparels)
 & The year is going to be wrapped up with Christmas
and New Year celebration
 Demographic
Factor

Income in rural households comes twice a

year when the crops are harvested but the
expenditure is spread across the year. And if
along with this cruel picture monsoon also
plays with them the situation has to be
ponder over.
And the same happened when India faced
draught this year.
The agriculture witnessed a growth of mere
1.2% as compared to 4.1% in 2008.
 Economic
Factor
The first half of 2008-09 was quite
okay. But then global meltdown
coupled with stock crash brought
growth to a halt from the third quarter
last year.
Shoppers Stop alone witnessed a
drop of 20% in footfalls last year.
This average for whole retail
industry was 15-25%

Source:- Economic
Times
 Political Environment
ndrances from government
Some political parties want the government
to amend laws and improve curbs so that the mega players can't
openly
decimate the unorganized retail sector. This is a conclusion based
on a myopic
outlook and must be amended for a long term strategy. The fear is
baseless
. The mega stores will no doubt provide employment51 to the less
educated masses. Also taking business away especially from small
food vendors is more easily said than done. Instead the limiting
move will send wrong signals to the investors and will ward off
investments when the states need it most. Allowing percent
retail FDI in this sector is a welcome move in this direction,but
again this should move ahead. It is expected that the government
will create further opportunities for the organized retail to come up.
 Political Envirnment

(National Rural Employment Guarantee Scheeme)

Narega and high support prices for key crops had

improved the purchasing power of rural consumers.
many such schemes will improve the penetration power
of rural market. And government is going for it.
(Investment of Rs.20,000crore & 150
workdays)

(PM announcement of
20km road per day)
Future Prospects of retail Industry
• The next phase of growth is expected
to come from rural markets, with
rural India accounting for almost half
of the domestic retail market, valued
over US$ 300 billion.
• Rural India is set to witness an
economic boom, with per capita
income having grown by 50 per cent
over the last 10 years, mainly on
account of rising commodity prices
and improved productivity.
Thank You