PRESENTATION ON INDIAN RETAIL SECTOR

FASTEST GROWING SECTOR

 DEFINATION OF RETAILING:IT IS THE INTERFACE BETWEEN PRODUCER AND INDIVIDUAL CONSUMER BUYING FOR PERSONAL CONSUMPTION.. THE RETAIL INDUSTRY IN INDIA IS LATE OFTEN BEING CALLED AS A SUNRISE SECTORS IN THE ECONOMY. AT KEARNY,THE WELL KNOWN MGMT. CONSULTANCY,RECENTLY IDENTIFIED INDIA AS A SECOND MOST ATTRACTIVE RETAIL DESTINATION GLOBALLY. IT HAS A CONTRIBUTION OF 14%TO GDP AND EMMPLOYING 7% OF THE TOTAL WORKFORCE.

RETAIL SECTOR IS DIVIDED INTO TWO PARTS:-

 Food retail trade is very large segment of

total economic activity of our country FICCI has estimated the total retail business to Rs. 11,00,000 crores or 44% of GDP. The govt. figures the retail trade in India in year 2002-03 amounted to Rs. 3,82,000 crores. According to the global consultancy firms AC Nielsen and KSA Technopark,India has the highest shop density in the world. In 2001 they estimated there were 11 outlets for every 1,000 people

WHAT IS THE NEED FOR FDI?????????

 The name that strikes in everyone mind is of

WALMART. It is the largest retailer in the world & has a turnover of $265 billion & is growing annualy at an avg, of 12-13% It has 4806 stores employing 1.4 million people out of which 1355 are out of U.S.A. The avg. size of a WALMART ranges from 85000-150000 sq.ft. The turnover per employee avg.$175.000. In 2004 walmart had a 9% return on assets &21% retuen on equity.

BY CONTRAST The avg. Indian retailer had a turnover of Rs. 186,075. only 4% of the 12 million retail outlets are larger than 500 sq.feet Apart from unorganized sector, no Indian retailer in the organized sector will be able to meet the on slough from a firm like WalMart. With its deep pocket Wal-Mart will be able to sustain losses for many years till its immediate competition is wiped out.

CONCLUSION
In this context, the role that could be played by

organized chains including international ones needs careful attention. The Most Important factor against FDI driven "MODERN RETAILING is that it is labour displacing to the extent that it can only expand by destroying the traditional retail sector & nothing else. Retail sector in India is just like a NEW BORN BABY so it need a proper nutrition till it get young and can compete with anyone

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