CURRENT RETAIL SCENARIO IN INDIA

By:Nitin Makkar (2K14G060)Onkar Singh Thakur (2K14G062)Parikshit Shome (2K14G063)Partho Protim Bora (2K14G064)

The Indian Retail sector has come off age and has gone through major transformation over the last decade with a noticeable shift towards organized retailing.

A T Kearney, a US Based global management consulting firm has ranked India as the fourth most attractive nation for retail investment among 30 flourishing markets.

India has 5th largest retail market in the world.

Earlier (2011-12):

Organized retail: Rs. 23 lakh crore. According to the study, organized retail, that comprised just 7% of the overall retail market.

Expected growth (2016-17):

Organized retail: Till Rs. 47 lakh crores

Note: It is expanding at a compounded annual growth rate of 15 %, accordingly to the ‘Yes Bank - Assocham’ study

INTRODUCTION

ORGANIZED AND UNORGANIZED RETAIL.

ORGANIZED RETAIL - ORGANIZED TRADERS/RETAILERS, WHO ARE LICENSED FOR TRADING ACTIVITIES AND

REGISTERED TO PAY TAXES TO THE GOVERNMENT.

UNORGANIZED RETAIL – IT CONSISTS OF UNAUTHORIZED SMALL SHOPS -

CONVENTIONAL KIRANA SHOPS, GENERAL STORES, CORNER SHOPS AMONG VARIOUS

OTHER SMALL RETAIL OUTLETS - BUT REMAIN AS THE RADIATING FORCE OF INDIAN RETAIL INDUSTRY.

RETAIL CLASSIFICATION

Unorganized market: Rs. 583,000 crore Organized market: Rs. 5,000 crores Retailing in India is one of the pillars of its economy and accounts for

14 to 15 percent of its GDP. The Indian retail market is estimated to be US$ 500 billion and one of

the top five retail markets in the world by economic value. The Indian retail sector accounts for over 20% of the country’s

gross domestic product (GDP) and contributes 8% to total employment.(12-13) 

PRESENT INDIAN SCENARIO

Source: http://rajeshthambala.blogspot.in/2013/02/indian-retail-industry-2012-2013.html

KEY DRIVERS Emergence of nuclear families.

An increase in the double-income households trend.

Large working population.

Reasonable real estate prices.

Increase in disposable income and customer aspiration.

Demand as well as increase in expenditure for luxury items.

Growing preference for branded products and higher aspirations.

Growing liberalization of the FDI policy in the past decade.

Increasing urbanization.

Rising affluence amid consumers.

According to DS Rawat, Assocham Secretary General.

A long way to meet international standards

Lack of efficient supply-chain management

Lack of required retail space

No fixed consumption pattern

Shortage of trained manpower

Lack of proper infrastructure and distribution

channel

BARRIERS

• Within retail, the emerging sectors would be:food and grocery, apparel,electronics,e-commerce,fashion and lifestyle.

• Incorporation of technology in the organized retail segment.

• Use of computers for merchandise planning and management,

control of inventory costs and supplies and replenishment of goods done electronically, internal store billing, etc. has changed the face of product retailing.

• Online retail business is the next gen format which has high potential for growth in the near future. After conquering physical stores, retailers are now foraying into the domain of e-retailing.

EMERGING SECTORS/TRENDS IN INDIAN RETAILING

1) LOCATION:"Right Place, Right choice“ Where to locate?

2) MERCHANDISE:Merchandising consists of activities involved in acquiring

particular goods and services and making them available at a place, time and quantity that enable the retailer to reach its goals. Merchandising it decides what finally goes on shelf of the store.

3) PRICING:Today's customers are looking for good value when they

buy merchandise and services. Price is the easiest and quickest variable to change.

4) TARGET AUDIENCE:"Consumer the prime mover“

5)  SCALE OF OPERATIONS:Scale of operations includes all the supply chain activities.

KEY CHALLENGES