Retail Industry In Dynamic Business Environment

Indian Retail Industry

Presented By:Deepti Mahra Amar Kanti

RETAIL INDUSTRY IN DYNAMIC BUSINESS ENVIRONMENT

What is Retail??

Retail Philosophy — “By The People, For The People and Of The People” Retailing involves selling products and services to consumers for their individual or family use. As the final link between consumers and manufacturers, retailers are a vital part of the business world. Retailers add value to products by making it easier for manufactures to sell and consumers to buy.  The Indian Retail Sector can be broadly classified into—

Categories of Indian retail 

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Corporate Houses  Tatas: Tata Trent, Croma  RPG group: Food World, Health and Glow, etc  ITC: Wills Life Style  Rahejas: ShoppersStop Dedicated brand outlets  Nike, Reebok, Zodiac etc Multi-brand outlets  Vijay Sales, Viveks etc Manufacturers/ Exporters  Pantaloons, Bata, Weekender

Large Indian retailers         

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Big Bazaar Giants Shoprite Star Lifestyle Pantaloons Piramyds Shoppers Stop Trent

Entertainment    

Fame Adlabs Fun Republic Inox PVR

Major players

Source:www.Naukrihub.com & Economic Times

Tremendous Opportunities

Changed behavior pattern of Indian consumers. Now the Indian consumer gets more hefty paypackages; 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 Indian300 organized retail1500 sector an There are about new malls, opportunity to grow. supermarkets and 325 departmental stores

currently under construction.

Attributes driving Indian Retail Industry The certain points which can be taken under consideration: • Economic prosperity • Rising incomes • increased per capita spending • rapid urbanization • Improved infrastructure • liberalization of the Indian economy • Flourishing manufacturing and services sectors

• Market is larger than ever and drawing both global and local retailers. • Foreign direct investment (FDI) inflows as on January 2009, in single-brand retail trading, stood at approx. US$ 25.18 million, according to the Department of Industrial Policy and Promotion (DIPP).

The Indian advantage 

India is ranked 5th in the A.T Kearney Global Retail Development Index  Second only to China in Asia

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India ranked 3rd in the Global A T Kearney FDI Confidence Index in 2004  Least saturated of all global markets studied  The least competitive of all global markets studied  Implies lower barriers of entry for global players  Considering tremendous market size, excellent potential for foreign players

Demographic Factor Started a month earlier Onam,Ganesh Chaturthi in August It’ll be followed by Dashahra and Divali(when corporate and personal gifting will be on top along with apparels)  & The year is going to be wrapped up with Christmas and New Year celebration

Demographic Factor Income in rural households comes twice a year when the crops are harvested but the expenditure is spread across the year. And if along with this cruel picture monsoon also plays with them the situation has to be ponder over. And the same happened when India faced draught this year. The agriculture witnessed a growth of mere 1.2% as compared to 4.1% in 2008.

Economic Factor The first half of 2008-09 was quite okay. But then global meltdown coupled with stock crash brought growth to a halt from the third quarter last year. Shoppers Stop alone witnessed a drop of 20% in footfalls last year. This average for whole retail industry was 15-25%

Source:- Economic Times

Political Environment

ndrances from government Some political parties want the government to amend laws and improve curbs so that the mega players can't openly decimate the unorganized retail sector. This is a conclusion based on a myopic outlook and must be amended for a long term strategy. The fear is baseless . The mega stores will no doubt provide employment51 to the less educated masses. Also taking business away especially from small food vendors is more easily said than done. Instead the limiting move will send wrong signals to the investors and will ward off investments when the states need it most. Allowing percent retail FDI in this sector is a welcome move in this direction,but again this should move ahead. It is expected that the government will create further opportunities for the organized retail to come up.

Political Envirnment (National Rural Employment Guarantee Scheeme)

Narega and high support prices for key crops had improved the purchasing power of rural consumers. many such schemes will improve the penetration power of rural market. And government is going for it. (Investment of Rs.20,000crore & 150 workdays)

(PM announcement of 20km road per day)

Future Prospects of retail Industry • The next phase of growth is expected to come from rural markets, with rural India accounting for almost half of the domestic retail market, valued over US$ 300 billion. • Rural India is set to witness an economic boom, with per capita income having grown by 50 per cent over the last 10 years, mainly on account of rising commodity prices and improved productivity.

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