INDIAN RETAIL INDUSTRYSWOT ANALYSIS1

INTRODUCTION

Retailing includes all the activities involved in selling goods or services directly to final consumers.

Any organization that does this selling is doing retailing.

A retailer or retail store is any business enterprise whose sales volume comes primarily from retailing.

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TYPES OF RETAIL FORMATS IN INDIA

Malls:The largest form of organized retailing today. Located mainly in metro cities, in proximity to urban outskirts.

Discount Stores:As the name suggests, discount stores or factory outlets, offer discounts on the MRP.

Department Stores:it carries several product line, where each line is operated as a separate deptt.

Hyper marts/Supermarkets:Large self-service outlets, catering to varied shopper needs are termed as Supermarkets

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TYPES OF RETAIL FORMATS CONT…….

Convenience Stores:These are relatively small stores 400-2,000 sq. feet located near residential areas.

Wholesale stores: selling goods in bulk quantity only e.g. metro and

Shoprite holding.

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MAJOR PLAYERS IN RETAILING

Future group-Big bazaar, food bazaar, pantaloons, brand factory, e zone, central mall, furniture bazaar,etc.

Reliance industry ltd.-reliance fresh, reliance trend,reliace footprint, reliance mart ,reliance jewels etc.

Tata group- croma, Westside, tanishq stores, titan stores, star India bazaar, landmark.

Aditya Birla group-peter England people stores, more,

Videocon group-Next, Bolld, planet M, Raymond stores.

and many more……...

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GROWTH OF INDIAN RETAIL SECTOR

Retail is the booming sector of India in the present times. Retail, one of India’s largest industries, has presently emerged as one of the most dynamic and fast paced industries with several players entering the market. Accounting for over 10 per cent of the country’s GDP and around 8 per cent of the employment in the country.

India is among 10 largest retail market in the world.

The retail sector in India is worth USD 394 billion and is growing at the rate of 30% annually.

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SWOT ANALYSIS STRENGTH………….

Demographic favor

Rising disposable income

Increase in number of people in earner category.

Urbanization

Shopping convenience

Low labor cost of skilled ones.7

STRENGTHS CONT………….

Changing consumer habits and lifestyles.

Plastic card revolution.

Greater availability of quality retail space.

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SWOT ANALYSIS WEAKNESS……..

Policy related issues - lack of industry status for retail. - numerous licence,permits and registration

requirement. -farmer and retailer unfriendly APMC act. Limited consumer insight -lack of detailed region specific customer

data. -less data on spending pattern. inadequate human resources -lack of trained personnel at all level. -stringent employment and industry laws. -fragment approach to human resources.

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WEAKNESS CONT……….. Taxation hurdle -inconsistent octori and entry tax structure. -vat and multiple taxation issues. -large grey market presence.

Underdeveloped supply chain -underdeveloped logistics infrastructure. -absence of national cold chain networks. -lack of national distribution networks and hubs

Lack of adequate utilities - lack of basic infrastructure like power, transport and

communication creates difficulty in sustaining retail operations across the large geographical spread of country.

.

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SWOT ANALYSIS OPPORTUNITIES……..

Potential for investment.

Locational advantage.

Sectors with high growth potential.

Fastest growing formats.

Rural retail.

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OPPORTUNITIES CONT………..

Wholesale trading.

Falling real estate cost

E-retailing

Retail franchising

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SWOT ANALYSIS THREATS………….. Political issues.

Social issues.

Inflation.

Nostalgia

Lack of differentiation among the malls that are coming.

Poor inventory turns and stock availability measures.

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CONCLUSION

Over the last few years, retail has become one of the fastest growing sectors in the Indian economy. The organized retail however is at a very nascent stage though attempts are being made to increase its proportion to 15-25% by the year 2011 bringing in a huge opportunity for prospective players . The sector is the largest source of employment after agriculture, and has started to penetration into rural India generating more than 10% of India's GDP.

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THANKS

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