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 According to Kotler: “Retailing includes all the
activities involved in selling goods or services to
the final consumers for personal, non business

 The Indian retail is dotted by traditionally market

place called bazaars or haats comprises of
numerous small and large shops, selling different
or similar merchandise .
 Traditionally retailing in India can be traced to
 The emergence of the neighborhood ‘Kirana’ stores
catering to the convenience of the consumers
 Era of government support for rural retail:
Indigenous franchise model of store chains run by
Khadi & Village Industries Commission
 1980s experienced slow change as India began to open
up economy.
 Textiles sector with companies like Bombay Dyeing,
Raymond's, S Kumar's and Grasim first saw the
emergence of retail chains
 Later Titan successfully created an organized retailing
concept and established a series of showrooms for its
premium watches
 The latter half of the 1990s saw a fresh
wave of entrants with a shift from
Manufactures to Pure Retailers.

 For e.g. Food World, Subhiksha and Nilgiris

in food and FMCG; Planet M and Music
World in music; Crossword and
Fountainhead in books.

 Post 1995 onwards saw an emergence of

shopping centers,
 mainly in urban areas, with facilities like
car parking
 targeted to provide a complete
destination experience for all segments of
 The India Retail Industry is the largest among all
the industries, accounting for over 12 per cent of
the country’s GDP and around 8 per cent of the
employment. The Retail Industry in India has come
forth as one of the most dynamic and fast paced
industries with several players entering the market.
But all of them have not yet tasted success
because of the heavy initial investments that are
required to break even with other companies and
compete with them. The India Retail Industry is
gradually inching its way towards becoming the
next boom industry.
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
sectors in Indian retail
 Food         Footwear & Leather 
Books & Magazines
Toys & Games
Fashion & Clothing  
Jewellery & Watches
Personal Care

Optical Consumer Furniture 


Sport & Leisure

Home Ware
Drivers of Retail change in India

1. Changing Income Profiles: Steady economic

growth fuelled the increase in income in
India. The average middle class family's
income rose by more than 20% between
2. Diminishing difference between Rural and urban India:
Rural India accounts for over 75% of India
population and this in itself offers a
tremendous opportunity for generating
volume driven growth. Tax benefit. In year
2002-03 LIC sold 50% of its policies in rural
India. Same BSNL also sold its 50%
connection in small towns .
3. Changes in Consumption patterns: Occupational
changes and expansion of media have caused a
significant change in the way the consumer lives
and spends his money.
o The changes in income brought about changes in
the aspirations and the spending patterns of the
consumers. the buying basket of the consumer
4. The emergence of a young Earning India : Nearly 70%
of the Indian population is below the age of 34.
taking advantages of employment opportunity in
the booming service sector these young Indians
are redefining service and consumption patterns
Some of the Key Players in
Organized Retail
 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 2010 Indian retail sector would be generating 10

million employment opportunities.
Challenges to retail Development in
 Retail not being recognized as an industry in

 The high costs of real estate.

 Lack of Adequate infrastructure.

 Multiple and complex taxation system.

Size of the organized retail market
(Rs Cr)

2001-02 2007 CAGR (%)

(compound Annual
growth rate)

TOTAL 16,000 37,216 18

Food 1,800 7,473 33
Clothing 4,950 10,423 16
Cons.Durables 1,650 3,787 18

Books & Music 450 1,426 26

Share of organized & unorganized retail
with comparison


INDIA 3 97

CHINA 20 80





TAIWAN 81 19

USA 85 15

0% 20% 40% 60% 80% 100%

Retail Trade- India, US and China

  Trade Employment (%) Shops Organized

($ bn) (million) Sector share
India 180-394 7 12 2-3
China 360 12 2.7 20
US 3800 12.6-16 15.3 80
Analysis of Growth
 Organized retail growing at estimated 25% .
 The Indian retail market, which is the fifth largest retail
destination globally, has been ranked as the most
attractive emerging market for investment in the retail
sector by AT Kearney's eighth annual Global Retail
Development Index (GRDI), in 2009. The share of retail
trade in the country's gross domestic product (GDP) was
between 8–10 per cent in 2007. It is currently around 12
per cent, and is likely to reach 22 per cent by 2010.
 E.g.: Bharti has invested 60 Billion with the largest retail
Wal-Mart (last year).