Retail Industries

Definition of Retail
• Retailing includes all activities involved in selling
goods or services directly to final consumer for
personal, non- business use.
• Retailer or retail store is any business enterprise
whose sales volume comes primarily from retailing.
• Any organization selling to final consumer whether
it is a manufacturer, wholesaler or retailer is doing
retailing.
 General Services
 Anticipates the wants of the consumers.

 Supplies them the right kind of goods.

 Bulk-Breaking.

 Offers a large assortment (Variety) of merchandise.

 Ease of consumer purchasing by offering convenient shopping

locations

 Provides Market Information to the Supplier of retail stores.

 Types of Retail Stores

In store Non Store

Franchising
Retailing Retailing

1.Direct Selling
1.Department
2.Telemarketing
Stores
3.Online
2.Super Markets
Retailing
3.Discount
4.Automatic
Houses
vending
4. Chain Stores or
5.Direct
5. Multiple Shops
Marketing
 Composition of Organized Retail Market
Food, Grocery, Tobacco Durables Pharmacies Cloth and Textiles
Jewellery and Watches Beauty Footwear Books, music and Gift
Furniture
1%
4%
4%
4%

6% 30%

15%

15% 21%

SOURCE: CII
 Growth Drivers in this
industry…
 Changing social and demographic factors which leads to
Change in Consumer Behavior
 Diminishing difference between Rural and urban India
 Large segment of young population
 Increasing media penetration
 Exposure to international brands
 Entry of Corporate Sector
 Foreign Retailers Looking for Entry Options
 Technological Impact
 Challenges to Retail Development…

 Barriers to FDI
 High cost of Real estate
 Brand the store
 Technology Implementation helping in real time or at least
end of day information transfer
 Shortage of skilled and experienced manpower
 Customer Retention
 External environment analysis

1Political environment
• Restricted FDI in retail
• Multi taxation and licensing
• Low exit barrier

2Economic environment
• Fast emerging as a major destination for global retail giant.
• Huge untapped market and high growth
• Concentration in few pockets

3 social environment
• Secular society
• opposition from small traders
• Changing consumer out look
• Festivals

4 Technological environment
• Integrated supply chain
• Media exposure
• Data security protection
 - Infla
- Less differentia
retailer’s o
Organised Indian
Retail Industry

- High growth p

- Rura
- E-ret
THANK YOU