OVERVIE

W INTRO TITLE START

RETAILING IN INDIA

Submitted by:

Muzahid Khan
Integrated BBA+MBA
muzahidkhan123@gmail.com

OVERVIE
START TITLE INTRO W
 EVOLUTIO OVERVIE
N W INTRO TITLE

INTRODUCTION
India retail industry is the largest industry in India,
with an employment of around 8% and
contributing to over 10% of the country's GDP.

Retail industry in India is expected to rise 25%

yearly being driven by strong income growth,
changing lifestyles, and favorable demographic
patterns.

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

OVERVIE EVOLUTIO
TITLE INTRO W N
 TREND EVOLUTIO OVERVIE
INTRO
S N W

AN OVERVIEW
Ø It is the second fastest growing economy of the world

Ø Potential to be the third largest economy in terms of GDP in next few years

Ø It ranks high amongst the top 10 FDI destinations of the world

Ø Fastest growing tourist market in Asia

Ø World bank states, India to be worlds second largest economy after China
by the year 2050

Ø Stable and investor friendly Central Government at the helm of affairs

Ø Introduction of Value Added Tax or VAT and tax reforms

Ø High degree of professionalism and corporate ethics

OVERVIE EVOLUTIO TREND
INTRO
Ø W
Excellent Investment opportunities in Indian retail sector and Sin allied
N

sectors; sure and high returns on investments .

 TREND TREND EVOLUTIO OVERVIE
S S N W

EVOLUTION OF INDIAN RETAIL

Traditional family run convenience stores are
too well established in India . The retail stores in
India are essentially dominated by the
unorganized sector or traditional stores.

Infact the traditional stores have taken up 98

percent of the Indian retail market. Now stores run
by families are primarily food based and the set up
is as Kirana or the 'corner grocer' stores. Basically
they provide high service with low prices. If the
stores are not food based then the type of retail
items available are local in nature. The tough
competition for convenience stores are coming
from organized retail stores dealing in food items.

OVERVIE EVOLUTIO TREND TREND

W N S S
 GROWT TREND TREND EVOLUTIO
H S S N

EMERGING TRENDS
There is a fantastic rise in the Indian
organized retail sector in a very short period
of time between 2001 and 2006. Eventually,
out of the shadows of the unorganized retail
sector, India has a chance of tremendous
economic growth, both in India and abroad.

The relaxation by the government on

regulatory controls on foreign direct
investments has added to the process of the
growth of the Indian organized retail sector.

EVOLUTIO TREND TREND GROWT

N S S H
 OPPORTUNITI GROWT TREND TREND
ES
H S S

EMERGING TRENDS
With the arrival of the Transnational Companies (TNC),
the Indian retail sector will undergo a
transformation. At present the Foreign Direct
Investments(FDI) is not encouraged in the Indian
organized retail sector but once the TNC'S get in
they inevitably try to oust their Indian counterparts.
This would be challenging to the retail sector in India.

The trends to follow in the future:

The Indian Organized retail sector will grow up to
10% of total retailing by 2010.
No one single format can be assumed as there is a
huge difference in cultures regionally.
The most encouraging format now would be the hyper
marts.
The hyper mart format would be further encouraged
with the entry of the TNCs.
TREND TREND GROWT OPPORTUNITI

S S H ES
 OPPORTUNITI OPPORTUNITI GROWT TREND
ES ES
H S

OWTH FACTORS IN INDIAN ORGANISED RETAIL SECTOR

The growth factors in Indian organized sector are
various but it is mainly due to the fact that India's
economy is booming.

Also, the rise in the working population which is

young, pay- packets which are hefty, more nuclear
families in urban areas, rise in the number of women
working, more disposable income and customer
aspiration, western influences and growth in
expenditure for luxury items. All these are the factors
for the growth in Indian organized retail sector.
Many Indian companies have entered the retail
industry in India and this is also a factor in the growth
of Indian organized retail sector

TREND GROWT OPPORTUNITI OPPORTUNITI

S H ES ES
 CHALLEN OPPORTUNITI OPPORTUNITI GROWT
GES ES ES
H

PORTUNITIES IN INDIAN ORGANISED RETAIL SECTOR

The various opportunities in the organized
retail sector in India are mainly there for
the Indian consumers behavior pattern
has changed. 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 Indian
organized retail sector an opportunity
to grow.

GROWT OPPORTUNITI OPPORTUNITI CHALLEN

H ES ES GES
 CHALLEN CHALLEN OPPORTUNITI OPPORTUNITI
GES GES ES ES

PORTUNITIES IN INDIAN ORGANISED RETAIL SECTOR

Many Indian companies seeing the various opportunities in organized retail sector in
India have entered it.

Pantaloons have decided to increase its retail space to 30 million square feet with an
investment of US$ 1 billion.

Reliance Industries Limited is targeting for annual sales of US$ 25 billion by 2011.

The opportunities in the organized retail sector in India have also increased with the
desire of many global retail giants to set up shop here. The global retail giants who are
entering the Indian organized retail sector are:

Tesco
Wal- Mart
Metro AG
Carrefour SA

OPPORT OPPORTUNITI CHALLEN CHALLEN

ES GES GES
UNITIES
 EMPLOYME CHALLEN CHALLEN OPPORTUNITI
NT GES GES ES

LLENGES FACING THE INDIAN ORGANISED RETAIL SECTOR

The behavior pattern of the Indian consumer have
undergone a major change. This have happened for
the Indian consumer is earning more now, western
influences, women working force is increasing, desire
for luxury items and better quality. He now wants to
eat, shop, and get entertained under the same roof.
All these have lead the Indian organized retail sector
to give more in order to satisfy the Indian customer.

The biggest challenge facing the Indian organized

retail sector is the lack of retail space. With real
estate prices escalating due to increase in demand
from the Indian organized retail sector, it is posing a
challenge to its growth

OPPORTUNITI CHALLEN CHALLEN EMPLOYME

ES GES GES NT
 GROWT EMPLOYME CHALLEN CHALLEN
H NT GES GES

LLENGES FACING THE INDIAN ORGANISED RETAIL SECTOR

ØTrained manpower shortage is a challenge facing the organized retail sector in
India. The Indian retailers have difficultly in finding trained person and also have to
pay more in order to retain them. This again brings down the Indian retailers profit
levels.
The Indian government have allowed 51% foreign direct investment (FDI) in the
India retail sector to one brand shops only. This have made the entry of global
retail giants to organized retail sector in India difficult. This is a challenge being
faced by the Indian organized retail sector.

ØBut the global retail giants like Tesco, Wal-Mart, and Metro AG are entering the
organized retail sector in India indirectly through franchisee agreement and cash
and carry wholesale trading.

ØMany Indian companies are also entering the Indian organized retail sector like
Reliance Industries Limited, Pantaloons, and Bharti Telecoms. But they are facing
stiff competition from these global retail giants. As a result discounting is becoming
an accepted
CHALLENG
practice. This too bring down the profit
CHALLEN
of the Indian retailers.
EMPLOYME
All these
GROWT
are posing
ES as challenges facingGESthe Indian organizedNTretail sector. H
 THANK GROWT EMPLOYME CHALLEN
S H NT GES

LOYEMENT GENERATION BY INDIAN ORGANISED RETAIL SECT

Lots of employment generation by Indian Organized Retail Sector in the near future.

India is going through a radical economic change. Though it is very infant stage, people can
feel the climate is changing. The unorganized retailers takes the lion's share in the Indian
retail sector, but the organized retailers are growing at a good pace, and promises an
increase of proportion of 9 - 10% by 2010. This is to be
the largest sector after the agricultural sector.

An economic growth on a monumental scale is offered by

the Indian retail sector, equally in the national and
international market which in turn will generate a huge
source of employment and a variety of options for the
consumers. The Ernst & Young's report 'The Great Indian
Retail Story', anticipates that the Indian retail sector
would come up with 2 million employment opportunities
within the year 2010.

CHALLEN EMPLOYME GROWT THANK

NT H
GES S
 THANK GROWT EMPLOYME
START H NT
S

GROWTH OF RETAIL COMPANIES IN INDIA

Reasons for the fast Growth of Retail
Companies in India:

§The retail companies are found to be rising in

India at a remarkable speed with the years and
this have brought a revolutionary change in the
shopping attitude of the Indian customers. The
Growth of Retail Companies in India is facilitated
by certain factors like -
 
§ existing Indian middle classes with an increased

purchasing power
§ rise of upcoming business sectors like the IT

and engineering firms

§ change in the taste and attitude of the Indians

§ effect of globalization

§ heavy influx of FDI in the retail sectors in India

EMPLOYME GROWT THANK

NT H
START
S
 THANK GROWT
TITLE START H
S

Thank You !

HAPPY SHOPPING

GROWT THANK
H
START TITLE
S