PRESENT RETAIL SCENARIO AND ITS EVOLUTION

BY AJAY JAISWAL Roll No: 2

MEANING OF RETAIL
The word retailer is derived from the French word retaillier, meaning to cut a piece off or to break bulk

Evolution of retail in india

Historical Reach Traditional Reach Government Supported Modern Format

Exclusive Brand Outlets Hyper/Super market Departmental Stores

P D S O u tl ts e K h a d i S to re s C o o p e ra ti s ve C o n ve n i n ce S to re s e K i n a S to re s ra W e e kl M a rke t y V i l g e Fa i la rs M el s a
Source of Entertainment Neighborhood Stores/ Convenience Availability/low cost/distributio n Shopping Experience/ Efficiency

PRESENT INDIAN RETAIL SCENARIO

As per AT Kearney's Global Retail Development Index (GRDI), Currently ranked at number three as the most attractive retail destination

PRESENT INDIAN RETAIL SCENARIO

Mar ket Capitalization

In 2010 the retail trade accounts for 12 % of the country's GDP. The present value of the Indian retail market is estimated to be around Rs. 12, 00,000 crores ($270 billion) and the annual growth rate is 5.7%.

Output per annum

With growing market demand, the industry is expected to grow at a pace of 25-30% annually.

Per centage in wor ld mar ket

Today India is the fifth largest in the world in terms of Retail Industry

PRESENT INDIAN RETAIL SCENARIO

Organized Retailing consist of 6% only of the total retail sector

COUNTRY USA W. EUROPE MALAYSIA THAILAND BRAZIL ARGENTINA PHILIPPINES INDONESIA CHINA SOUTH KOREA INDIA

ORGANISED REATILING 80% 70% 50% 50% 40% 40% 35% 25% 20% 15% 6%

TRADITIONAL RETAILING 20% 30% 50% 50% 60% 60% 65% 75% 80% 85% 94%

Source: The Retail Story, Businessworld, 2009

PRESENT INDIAN RETAIL SCENARIO

As per Mckinsey study

Note: Figures In Millions

PRESENT INDIAN RETAIL SCENARIO

15 millions retail outlets Almost 96% of these retail outlets are less than 500 sq. ft. in size Per capita retail space in India being 2 sq. ft.

Source: Real State Intelligence services Q 10

PRESENT INDIAN RETAIL SCENARIO

Source: TECHNOPAK ADVISORS PVT LTD, RETAILING REALITY, JANUARY 2010

PRESENT INDIAN RETAIL SCENARIO

About 21 million people in the middle class level which would be about 91 million household by the end of 2030 Per capita income in 2000-01 was USD 348 but now it has become more than the double which stood at USD 849 in 2009-2010. Parameters Malls Main Streets Local Markets

Assortment Retail *** Affordability * Community & Social Hub *** Shopping Experience ***

Convenience & Comfort ***

**

* *

*** ** ** **

*** * *

Source: Cushman & Wakefield resaerch

PRESENT INDIAN RETAIL SCENARIO

Investment of about USD 500 billion is to done in Infrastructure development By 2030, 570 million people will live in cities, nearly twice the population of United States today

CONCLUSION
Restriction in FDI inflow Heterogeneity of Indian Population Real Estates Prices Dependence on metros is to be reduced

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