India has emerged as the fourth largest economy in the world in terms of Purchasing Power Parity It is the twelfth largest consumer market in the world Almost 21 million people are believed to be employed in the retail sector, which is 7% of the total national workforce
But, retail has not yet been accorded the status of an industry
Unorganised sector- units whose activity is not regulated by any statute or legal provision, and/or those which do not maintain regular accounts Unorganised form of retail - those forms of trade which sell an assortment of products and services ranging from fruits and vegetables to shoe repair Organised form of retail- typically a multi-outlet chain of stores or distribution centres run by professional management
Socio-economic factors Changing income profiles The age factor The changing role of women and the evolving family structure The changing consumption basket Increased credit friendliness Geographical dispersion of market potential
Composition
Fresh groceries, branded packaged foods, personal hygiene products and toiletries and dry unprocessed groceries Fast Food, cafes, restaurants, locations offering catering services Fabric manufacturers and readymade garments Televisions, refrigerators, washing machines, air conditioners and microwaves Footwear for men, women and children Mainly, Gold Jewellery & diamonds Various Books, Music and Gifts
Size (Rs.)
Total-1200,000 crore Organised- 5000 crore
Key players
Food Bazaar, Subhiksha, Reliance Fresh
Food Services
Total-57,000 crore Organised- 3,940 crore Total-113,500 crore Organised- 21,400 crores Total-41,500 crore Organised- 4,300 crore Total-13,750 crore Organised- 5200 crore Total-52,000 crore Organised- 1,450 crore Total-11,500 crore Organised- 1,450 crore
McDonalds, KFC, Jumbo King, Barista, Caf Coffee Day Arvind Brands, Madura Garments, Raymonds, Park Avenue Strong regional playersVideocon Plaza, BPL Gallery, Vijay Sales Bata, Metro Shoes, Lakhani, Adidas , Reebok Tanishq, Gili Land Mark, Crossword, Higginbothams, Oxford Bookstore
Consumer Durables
Any habitation where the population density is less than 400 per sq.km Where at least 75 per cent of the male working population is engaged in agriculture Where there isnt any municipality on board
Foreign direct investment reflects the objective of obtaining a lasting interest by a resident entity in one economy (direct investor) in an entity resident in an economy other than that of the investor (direct investment enterprise). The lasting interest implies the existence of a long-term relationship between the direct investor and the enterprise and a significant degree of influence on the management of the enterprise. Direct investment involves both the initial transaction between the two entities and all subsequent capital transactions between them and among affiliated enterprises, both incorporated and unincorporated."
Lack of recognition as an industry High costs of real estate Very high stamp duties on transfer of property Lack of adequate infrastructure Multiple and complex taxation system
Suppliers
Buyers