The Great Indian Retail Sector

A PROMOSING FUTURE

Jo Dikhta Hai Vo Bikta Hai

The Great Indian Retail Sector-

"A PROMISING FUTURE"

Group Members
Krishan

Kumar Sharma Mayur Malani Mayank Kumar Panchori Sandeep Mishra Monica Motivarsha

The Great Indian Retail Sector-

"A PROMISING FUTURE"

Contents
Objective Research

methodology Introduction Retail in India FDI in India Segment analysis Customer loyalty Comparative analysis of retailers Recommendations / Suggestions Conclusion Bibliography
The Great Indian Retail Sector- "A PROMISING FUTURE" 4

Objective

To understand the segmentation in retail sector To study about the loyalty scheme run by mall Comparative analysis of all retailers To understand the consumer behaviour Recommendations / Suggestions
The Great Indian Retail Sector"A PROMISING FUTURE" 5

Research methodology

Primary Source

Survey

Questionnaire

Secondary Source

Company profile and product profile Data is collected from various sites, books, journals, etc.

The Great Indian Retail Sector-

"A PROMISING FUTURE"

Introduction

Meaning:

Retailing consists of the business activities involved in selling goods and services to consumers for their personal, family, or household use.

The Great Indian Retail Sector-

"A PROMISING FUTURE"

Introduction

(cont.)

Retail is the worlds largest private industry with annual sales over $ 6600 billion There are 9 retailers in Fortunate 100 companies Wal-Mart annual sales over $ 250 billion
The Great Indian Retail Sector"A PROMISING FUTURE" 8

Retail in India

Market size of Indian retail sector is approximately $ 200 billion The Indian retail sector is highly fragmented with 97% of its business being run by the unorganized retailers like the traditional family run stores and corner stores
The Great Indian Retail Sector"A PROMISING FUTURE" 9

Retail in India

(Cont.)

The sector is the largest source of employment after agriculture Over the past few years, the retail sales in India are hovering around 3335% of GDP as compared to around 20% in the US

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"A PROMISING FUTURE"

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Retail in India

(Cont.)

Source: Ernst & Young, The Great Indian Retail Story The Great Indian Retail Sector"A PROMISING FUTURE" 11

Retail in India

(Cont.)

Current Scenario

Present Value of Indian retail market is estimated is around Rs. 12,00,000 crore Annual growth rate is 5.7% Retail market for food and grocery with a worth of Rs. 7,43,900 crore Around 15 million retail outlets help India win the crown of having the highest retail outlet density in the world
The Great Indian Retail Sector"A PROMISING FUTURE" 12

FDI in India

The only opening in the retail sector so far has been to allow 51% foreign stakes in single brand outlet FDI will bring in technology, quality standards and marketing thereby, leading to new economic opportunities and creating more employment generation.

The Great Indian Retail Sector-

"A PROMISING FUTURE"

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FDI in retail

Inflow of investment and funds. Improvement in the quality of employment. Generating more employment. Increased local sourcing. Provide better value to end consumers. Franchising opportunities for local entrepreneurs.
The Great Indian Retail Sector"A PROMISING FUTURE" 14

Segment Analysis

Food and grocery retail

Largely unorganized All India Food consumption is Rs.900000 Crore Revenue from unorganized Rs.40000 Crore(approx.5%)

Apparel retail

Readymade & western outfit are growing 4045% annually Estimated to grow Rs.300 Crore next 3 years
The Great Indian Retail Sector"A PROMISING FUTURE" 15

Segment Analysis

(Cont.)

Gems and jewellery retail

India is largest consumption of gold in the world (est. 1000 tones) Market value is approx.Rs.65000 crore

Pharma retail

Market value is approx. Rs.30000 Crore More of organized pattern Eg. Apollo Pharmacies

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"A PROMISING FUTURE"

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Segment Analysis

(Cont.)

Music retail

Market value is approx. Rs.1100 crore Organized retail is round 14%(Rs150 crore) 36% is consumed by pirated market

Book retail

Market value over Rs.3000 Crore Organized is around 7%(Rs.210 crore) 50% is text and curriculum of total sales

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"A PROMISING FUTURE"

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Segment Analysis

(Cont.)

Consumer durables retail

Market value is estimated USD 4.5 billion Organized sector is 5% Consumer electronics like TV sets, audio systems, VCD players, and other appliances

The Great Indian Retail Sector-

"A PROMISING FUTURE"

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Customer loyalty
Strong

Weak

Strong

Loyalty

Talent Loyalty

Weak

Spurious Loyalty

No Loyalty

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"A PROMISING FUTURE"

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Comparative analysis of some retailers

RETAILERS CURRENT TURNOVERTARGET TURNOVEROUT LETS IN Rs. Crore IN Rs. crore PROJECTED LETS OUT

Pantaloon RPG Shoppers Stop

700 550 400

1200 1600 TO 1700 N.A

31 1 13

74 12 40

Life Style West Side EBOMY Pyramid GLOBUS

230 120 85 72 N.A

650 N.A 150 190 N.A

7 13 8 3 7

15 21 TO 23 14 19 15 TO 17

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"A PROMISING FUTURE"

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Recommendation/Suggestions

Recommendation for Government Grant industry status to retail sector Establish minimum quality assurance standards Reformulate the small scale industrial policy Amends labor laws Improve logistics and utilities infrastructure Develop IT infrastructure Recommendation for retail industry Invest in human resource development Develop mechanisms for understanding consumer behavior and satisfying consumer needs Improve supply chain infrastructure
The Great Indian Retail Sector"A PROMISING FUTURE" 21

Conclusion

Need to continuously focus on generating more value for consumer The future of organized retail in India is bright one Investing in organized retail sector in India is a beneficial scheme for an investor The Retail Industry is going to be the next boom industry after I.T.
The Great Indian Retail Sector"A PROMISING FUTURE" 22

Bibliography

Book/magazines references

Business world magazine www.businessworld.com www.bharatbook.com www.retailbiz.com www.timesofindia.com www.economics.com www.indiainfoline.com www.valuenotes.com www.researchandmarkets.com
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Internet references

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"A PROMISING FUTURE"

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