Retail Market Presentation

SRI RAM INSTITUTE OF TECHNOLOGY

PRESENTED BY

JOYEETA BANERJEE (1ST SEMESTER)

RETAIL MARKET IS IN BOOM • The word ‘retail’ is derived from the French word ‘retaillier’, meaning ‘to cut a piece off or to ‘break bulk’. •

In simple terms, it implies a first-hand transaction with the customer.

• RETAILING, business activity of selling goods and services directly to consumers. •

MARKETING is the task of creating, promoting, and delivering goods and services to consumers and businesses.

RETAIL INDUSTRY:AN OVERVIEW GLOBAL RETAIL SCENARIO: • Retail has played a major role world over in increasing productivity across a wide range of consumer goods and services. • Retail is the second largest industry in the United States .

WAL-MART: WORLDS LARGEST RETAILER

GLOBAL RETAIL (source: CSO & MGI study)

Total retail(US$ Billion) Organised retail(US$ billion) % share of organised retail

1999

2002

2005

150

180

225

1.1

3.3

7

0.7

1.8

3.2

TOP RETAILRES WORLDWIDE RANK RETAILERS HOME COUNTRY 2. WAL-MART stores, Inc. 3. Carrefour Group France 4. The Kroger Co. 5. The Home Depot, Inc. U.S.A 6. Metro

U.S.A

U.S.A

RETAIL SCENERIO IN INDIA: • 1999-2002:RETAIL SALES INCREASED AT AN ANNUAL RATE OF 7% • 2002:RETAIL SALES-Rs.7400 BILLION • 2003:RETAIL SALES EXPANDED@ 10% • 2003-2008:RETAIL SALES GROWTH IS 8.3% AS COMPARED TO 7.1% FOR CONSUMER EXPENDITURE

Factors Responsible for the Development of Retail Sector in India can be broadly summarized as follows: a. Rising Incomes and Improvements in infrastructure. b. Liberalization of Indian Economy c. Shift in consumer demand d. Creating awareness about global products for local markets

Different Forms of Retailing: Emergence of New Formats of Retailing in India. Popular Formats: :

 Hyper marts  Large Super markets, typically (3500 -5000 sqft.)  Mini Super markets, typically (10002000 sqft.)  Convenience Store, typically (7501000 sqft.)  Discount / Shopping list grocer  Traditional Retailers trying to reinvent by introducing self service formats as well as Value added

The India retail sector can be broadly classified into; Food Retailers Health & Beauty Products Clothing and Foot ware Home Furniture and House hold goods Durable goods Leisure and personal goods

MALLS IN INDIA MALL: • a large enclosed building complex containing stores, restaurants, and other businesses and facilities serving the general public.

CHALLENGES OF RETAILING IN INDIA Unorganized retailing is so called because of the fragmented real estate sector, inefficient up stream processes, poor infrastructure, lack of advance technology, absence of proficient man power and inadequate funding. 2. Rise in fuel prizes 3. Infrastructure constraints 4. Distribution cost 5. Weak Retail Supply Chain 6. Supplier Integration 7. Supplier maturity & Relations 8. Low adoption and Use of Technology 9. Disparities in Culture and Taste 10.Real Estate Cost 11.Regularity aspects 12.Skilled man power

OPPORTUNITIES By 2010, the Indian retail sector is anticipated to become a Rs.12.5 tn market. The share of organized retailing is supposed to jump to about 10% from the existing 3%.

Development of successful and profitable retail formats Expansion beyond geographical boundaries Vertical integration As an employment generator

RETAILING BOOM • With the shopping mall culture catching up in the metros and plans of around 150 new malls stated to be launched by 2008, the retailing sectors is poised to boom in the country. The Indian real estate industry is on a high growth path with a current market size of $ 15 billion approximately. Moving on, it is expected to be over $ 50 billion by 2010. The growth is being propelled by a variety of factors which include :

Political reforms in relation to real estate Economic factors: The lower interest rate and ease of credit availability Demographic factors: Demographic factors like increasing literacy rates,

BIBLIOGRAPHY • • • • • •

Marketing Management – Philip Kotler Retail Management – Berry & Barman Retail Management - Swapna Pradhan www.answer.com www.wikipedia.com www.thinktank.com

THANK YOU