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PRESENTATION ON

“opportunities & challenges in indian retail industry”

BY:

Dadhania Ashish s.
092019
INTRODUCTION:

The retail industry is divided into organized and unorganized


sectors.

Organized retailing refers to trading activities undertaken by


licensed retailers, that is, those who are registered for sales tax,
income tax, etc.

These include the corporate-backed hypermarkets and retail


chains, and also the privately owned large retail businesses.

Unorganized retailing refers to the traditional formats of low-cost


retailing.
the local kirana shops, owner managed general stores, paan/beedi
shops, convenience stores, hand cart etc.

Over 12 million outlets operate in the country and only 4% of them


being larger than 500 sq ft in size.

The BMI India Retail Report for the first-quarter of 2011 forecasts
that total retail sales will grow from US$ 392.63 billion in 2011 to
US$ 674.37 billion by 2014.

 India’s retail industry accounts for 10 percent of its GDP and 8


percent of the employment & its $17 billion by 2010.
OBJECTIVE:
To understand the role of Retail industry in India.

Understand the growth & profitability on Retail industry.

To study the opportunities in Retail market in India.

To analyse the prospect & future of Retail Industry in India.

To study impact of recession on retail industry in India.


OPPORTUNITIES:

 increasing income & purchasing power.[$348(01) to $849(10)]

 An increase in urbanization.[% is double in 10 yrs.]

Changing consumer attitudes.[price, product, convenience, value]

Retail sector is the largest contributor to the Indian GDP.[10%]

 Retail Sector provides enough employment.[8%]

Brand consciousness.[60% is > 30 yrs.]


Easy consumer credit. [credit & debit card, other facility]

Strategic Location & Geography.

Many ways to entry.[J.V., franchising, Mgnt. operation]

Government also taking initiative.[union budget]


Size & Position in the current Scenario

The Indian
Retail
Sector,
currently
the Fifth
largest in
the world,
is poised
for
phenomen
al growth
in the
coming ORGANISED RETAIL EXPECTED TO GROW 35-40% CAGR
years
India Shopping Trends, 2009 - Technopak
opulation Median Age (In Years): 2009

50 44
37 38 in india largest population
40 34
is of working age that is
30 25 from 20-59 years.
20
10
The average age is 24
0 years.

So young blood can be


US
India

easily trained & gain.


China

Japn
Rusia
CHALLENGES:

The organized retail industry in India is faced with stiff


Competition from the unorganized sector.

 There is a shortage of quality real estate and


infrastructure requirements in our country.

Opposition to Foreign Direct Investment from small traders


affects retail industry.

 Very high stamp duties on transfer of property affects the


industry.
Shortage of retail space in central and downtown locations also
affect the growth of retail industry.

Shortage of middle management level professionals.

Land-use conversion is time consuming and becoming


complex.

For settling property disputes, it consumes lot of time.

Lack of trained work force.


 Rigid building laws makes procurement of retail space difficult.

 Non residents are not allowed to own property except they are
of Indian origin.

 Prohibition of Foreign investment in real estate business.

 Customs duties are levied on import of goods in India.

Intrinsic complexity of retailing – rapid price changes, constant


threat of substitute product and low margins.
THANK YOU…!!

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