Indian retail market Changing with the changing times

Group 3
Priya Dubey Vijay Lodha Mithun Manna Rajesh Sharma Sahil Karwa Anuj Modi Komal Vyas 2012012 2012027 2012029 2012048 2012082 2012087 2012113

We need greater competition and therefore, need to take a firm view on opening up of the retail trade.
Manmohan Singh, Prime Minister of India

Introduction

Barter System was known as the first form of retail.

As time passed currency was exchanged with goods and services.

The Indian retail industry is the fifth largest industry in the world.

With growing market demand, the industry is expected to grow at the rate of 25-30 percent annually.
Retail has two forms organized and unorganized.

Organized retail in India is expected to grow 25-30 percent yearly and is expected to increase from Rs 35,000 crores in 2004-05 to Rs 109,000 crores by 2010.
Second Largest Employer after Agriculture(8%)

Types of retail sectors

Unorganized Retailing Hawkers (Kirana) Weekly Markets Organized retailing Convenient / Departmental stores Factory outlets and discounts Market

Supermarkets
Wholesalers market Company and Franchises showroom

India Spends on

Importance
Largest and fastest growing sector in India. Modern retailing forms one point stop for all shopping. Consumer gets a large product variety of brands to choose from one roof. First it was a sellers market and now its changing to buyers market. By 2012 Indian retail sector would be generating 11 million employment opportunities.

Some of the Key Players in Organised Retail

Future

Projected growth is US $600 billion till 2015

Growth Drivers
Organized retail 4% Increasing in income Fastest growing economy Customer analysis Availability of cheap labor Demand for global brands

Consumption by private and government

SWOT
Strength: Growing economy Availability of man power Improvement in the standard of living Increase in demand driven by working youth Weakness: Lack of trained manpower Inadequate infrastructure Lack of expertise in supply chain management Fast changing needs of consumer

Opportunity: Untouched rural market. Investment opportunities Fast evolving shopping mall formats Upcoming international players

Threat:
The tax structure in India favors small retail business Lack of adequate infrastructure facilities High cost of real estate Low retail management skill

Thank You

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