Employees: 2,100,000
$ millions % change from
Revenues 405,607.0 2007
7.1
Profits 13,400.0 5.3
Assets 163,429.0 —
Stockholders' 65,285.0 —
equity
Introduction
Independent Retailer
Leased Departments
Retail business Models : MERCHANDISE
OFFERED
Convenience Store
Supermarkets
Hypermarkets
Specialty Store
Department Store
Category Killers
Source : India retail report 2005
Source India Retail Real Estate,
The road ahead, ICICI white paper pg26
ORGANISED RETAILING IN DEVELOPED
COUNTRIES
U S A E U & JA P A N 80%
C H IN A 2 0%
S O U TH K O R E A 15%
IN D O N E S IA 25%
P H ILIP P IN E S 35%
B R A ZIL & A R G E N TIN A 40%
M A LA Y S IA & TH A ILA N D 5 0%
W E S TE R N E U R O P E 70%
Major Players
Future Group – PRIL
TATA Group
RPG Group
Reliance Retail
AV Birla Group
Landmark Group
Indian Retail reforms
Current FDI Policy :
brand retail’
carry format
Retail entry options
Strategic License Agreements ( Murjani group)
Cash and Carry (Metro cash and carry)
Distribution (International Cosmetic Brand e.g.
Chanel , Dior etc)
Franchisee route (Pizza hut)
Manufacturing (UCB , Bata)
Joint Venture (Bharti-Walmart)
retail trade in India as share of GDP
2007 : 8-10%
Strengths
cont………….
Changing consumer habits and lifestyles.
21
Swot analysis
weakness……..
Policy related issues
- lack of industry status for retail.
- numerous licence,permits and registration
requirement.
opportunities……..
Potential for investment.
Rural retail.
24
Opportunities
cont………..
Wholesale trading.
E-retailing
Retail franchising
25
Swot analysis
threats…………..
Political issues.
Social issues.
Inflation.
Nostalgia
Lack of differentiation among the malls that are
coming.
Poor inventory turns and stock availability 26
measures.
Problems (organized retail)
Stiff competition from the unorganized sector.
Shortage of quality real estate and
infrastructure
Opposition to Foreign Direct Investment Very
high stamp duties
Issues like Shortage of retail space , Land-use
conversion , Rigid building laws
Pro-tenancy laws , property disputes .
www.money.cnn.com