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ABSTRACT Retailing consists of all business activities involving the sale of goods and services to ultimate consumers. Retailing involves a retailers traditionally a store or a service establishment, dealing with consumers who are acquiring goods and services for their own use rather than for resale. Wal-Mart, The Limited, Best Buy and other familiar organizations are retailers. Retailing is based more on whether the business deals directly with public. Retail banking, service stations local coffee shops are also retailers with the emergence of online retailing, retailers are no longer concerned about location of stores. E-retailing has emerged. Consumers are always hungry for modern ways of shopping. Indian retail sector is growing fast and its employment potential is growing fast. The retail scene is changing really fast. Retailers are rethinking their approaches towards the suppliers so that they can get the best pricing strategies for them. Retail sector in India is also catalyst for the growth of staling tactics of below the line marketing used by major retail players like Spencer, big bazaar, reliance fresh etc. For tapping customers by creating points of sales displays. So we can say that India is a rising star and going to be one of the fastest growing regions of the future.
* Bhatia, Raminder M.Com, M.Phil Lecturer in P.G. Department of Commerce & Business Management Lyallpur Khalsa College, Jalandhar ,firstname.lastname@example.org ** Kaur, Baljinder, M.Com, M.Phil, Lecturer in P.G. Department of Commerce & Business Management Lyallpur Khalsa College, Jalandhar E-mail address email@example.com,
0 7738 716 416 300 214 104 87 9990 .SWOT ANALYSIS OF INDIAN RETAIL INDUSTRY “With around 13% contribution to GDP and 7% employment of the national workforce.8 7.8 100. India has moved into 21st century and is showing marked changes to push the organized retail development even further. retailing no doubt is a strong pillar of the Indian economy. Indian retail industry has been broadly divided into organized and unorganized sectors accounted for Rs. Indian retail industry. Wal-Mart.1 4.com ORGANIZED RETAIL Market size RS. retailers are no longer concerned about location of stores. Retailing involves a retailers traditionally a store or a service establishment. (crores) Food & beverages Clothing & textiles Consumer durables Jewellery & watches Furniture & Home deco Beauty items &Footwear Book &gifts TOTAL Source: www.piramyd. dealing with consumers who are acquiring goods and services for their own use rather than for resale. India is on the threshold of a revolution in its retail industry.0 Market share % 75. which stands second in terms of employment generation after agriculture. KSA Technopak Retailing consists of all business activities involving the sale of goods and services to ultimate consumers. Retail banking. (crores) 65 141 25 25 7 32 11 349 Market share % 19 40 13 13 7 9 3 100. What it requires is more corporate backed retail operations that have started to emerge over the past couple of years.1 2. E-retailing has emerged. The Limited. Retailing is based more on whether the business deals directly with public. TABLE -1: Share of Organised Retail TOTAL RETAIL Market size RS.8 4. Best Buy and other familiar organizations are retailers. chief executive.9 1.” -Arvind Singhal.350 million of the total revenues.0 0. India is rated as the fifth most striking emerging retail market. service stations local coffee shops are also retailers with the emergence of online retailing.
Retail Trade. At Kearney’s global retail development index shows India on the top of emerging retail market. So consumers get value for their money. Finance should also be made easily available to facilitate expansion and restructuring plans undertaken by retailers. department stores are increasing. consumption patterns and demographics. The business sectors of banking and retail have always had close links. To name the few are RPG Spencer. A report by KPMG predicts that organized retail is expected to grow stronger than organized retail is expected to grow stronger than GDP growth in the next 5 years and this is expected to be a result of changing lifestyles. Farmers get better prices for their products though improvement of value added food chain. requires the current marketing environment needs to be improved. Retailing through non-traditional channels is becoming more popular. In this analysis. supermarkets and specially stores. 40% in Thailand and 20% in China approx. compared to 80% in USA. STRENGTH OF MODERN RETAIL The benefits of larger organized retail segments are several. International players like Tesco and Carryfour are expected to enter India very soon. books. . It is observed that the share of organized retailing in India is around 2%. a study can be made regarding the strength. Organized retailing is concentrated only in the cities. hypermarkets. but people still prefer to buy their goods from them. hypermarkets.SWOT ANALYSIS SWOT analysis is a tool for analyzing modern retailing. Tata. Retail sector is the fastest growing sector in the Indian economy. weaknesses. Top business houses like Reliance. Traditional markets are making way for few formats such as department stores. Organized retailing has been attacking the average middle class consumers in large cities. Employment opportunities both direct and indirect have been increased. Food Bazaar. The retail sectors also employ over 10% of national workforce.CURRENT SCENARIO OF INDIAN RETAIL INDUSTRY Marketers need to understand the existing scene in India before they invest in organized retailing local kiryanas are incorporating changes with time. Future group. which is currently the largest contributor to our GDP. The face of grocery retailing in India is seeing the change because of the huge investments by the corporate. and Rahejas are investing in this sector. Reliance. The consumers get a better product at cheaper price. Retailing through supermarkets. Subhiksha etc. opportunities and threats of retail industry. MODERN RETAIL.
food world is having only 52 outlets where as Carrefour promotes has 8800 stores in 26 countries. . 96% of the outlets are lesser than 500 sq. Small size outlets are also one of the weaknesses in the Indian retailing. Retail companies have to pay high rentals which are blockage in the turn of profits. Increase in disposable income and customer aspirations are important factors. The governments of states like Delhi and National Capital Region (NCR) are very upbeat about permitting the use of land for commercial development thus increase the availability of land for retail space. Ranked second in Global Retail Development Index of 30 developing countries drawn up by AT Kearney. The retail chains are also smaller than those in the developed countries for instance. The volume of sales in Indian retailing is also very low. Increase in expenditure for luxury items is also vital. The trends that are driving the growth of the retail sector in India are low share of organised retailing and falling real estate prices. India has largest population in the world and a fast growing economy.30. The growth of sachet revolution emerges for reaching to the bottom of the pyramid. nuclear families in urban areas. The size of Indian organised retail industry reached at Rs. But the current rally in property prices.A large young working population with median age of 24 years. It has also contributed to large scale investments in the real estate sector with major national and global players investing in devolving the infrastructure and construction of the retailing business. retail real estate rentals have increased remarkably.000 crore in 2006. WEAKNESS OF MODERN RETAIL The rapid development of retail sector is the sharp improvement in the availability of retail space.ft. along with increasing working women population and emerging opportunities in the service sector are going to be the key growth drivers of the organised retail sector in India. the superstore food chain. which may render a few retailing business houses unavailable. The annual growth of departmental stores is estimated at 24%.1.
Lack of uniform tax system for organized retailing is also one of the obstacles. For perishables.OPPORTUNITIES OF MODERN RETAIL Global retail giants take India as key market . increase in income and favourable demographic outline.100% Foreign Direct Investment (FDI) is not permitted in retailing in India. Food and apparel retailing are key drivers of growth. Problem of car parking in urban areas is serious concern.standardization. Difficult to target all segments of society. the sector is deprived of access to foreign technologies and faster growth. Labour rules and regulation are also not followed in the organized retails. The sector is unable to employ retail staff on contract basis. It can become one of the largest industries in terms of numbers of employees and establishments. Rural retailing is still unexploited Indian market. THREATS OF MODERN RETAIL One of the greatest barriers to the growth of modern retail formats are the supply chain management issues. The unorganized sector has dominance over the organized sector in India because of low investment needs. The organised retail sector is expected to grow stronger than GDP growth in the next five years driven by changing lifestyles. Government regulations. lack of adequate infrastructure and inadequate investment are the possible bottlenecks for retail companies. Indian retail industry has come forth as one of the most dynamic and fast paced industry with several players entering the market. The supply chain for staples is less complicated than the net groceries. No major changes are needed in the supply chain for FMCG products. Ownership of retail chain is allowed only to the extent of 49% but without FDI. . Organized retailing in India is yet to get an industry status.It is rated fifth most attractive retail market. these are well developed and efficient. Inadequate infrastructure is likely to be an obstacle in the growth of organized retails. But staples have a unique problem of non. the system is too complex.
so the real estate has also grown over the last years. direct and indirect.Emergence of hyper and super markets trying to provide customer with –value. . Retailing today is not about selling at the shop. Retailing in India support 4 lakh plus medium handcraft manufacturers. Heavy initial investment is required to break even with other companies and compete with them. Retail today has changed from selling a product or a service to selling a hope. It has also patented to generate an additional eight million jobs. but also about researching and surveying the market. Retail chains are yet to settled down with proper merchandise mix for the mall outlets. Contribution of Retail Industry The effects of retail on Indian economy are: Employment Generation Retailing provides employment to making 8% workforce in India. Growth of real estate The requirement of space is one of the biggest demands. In the years to come Indian economy will also see the real estate sector climbing the steps of organized retail estate sector. Development of small scale units. competitive prices and retailing consumers as well. Retailing also helps small scale units to easy access market. an aspiration and above all an experience that a consumer would like to repeat. because it is highly labour intensive. offering choice. variety and volume. They provide a platform for small scale unit’s goods.
feet in the beginning of the year Source: Images Retail Research Increase in disposable income Organised retail has also led to increase the disposable income of Indian Economy.2 6.5 Additions in Sq.7 16. It has been shown in the following table: .6 33.3 100 90 80 70 sq. feet (%) Nil 2.1 21.6 54. feet(%) 60 50 40 30 20 10 0 2002 2003 2004 2005 2006 2007 years additions in sq.7 9. feet.Years 2002 2003 2004 2005 2006 2007 Sq. sq. feet in the beginning of the year(%) 2.5 32.9 16.2 4.
Liberalization of trade and cross border merges and joint ventures have also driving forces. specialization. one is for all and all for one. developing competition and innovation lead to economic growth. societies and domestic players to a closely integrative traditional village i. Division of labour.per capita grow th rate 1800 Per Capita Income Growth(Rs.) 1600 1400 1200 1000 800 600 400 200 0 per capita grow th rate 20 11 E YEARS Source: CEIC. Technology. management. 100 million sq. 20 13 E 20 03 20 05 20 07 20 09 . market intelligence are also some of the opportunities to domestic business.ft of small space is expected to be available. By the end of 2010. Morgarn Stenley Research Future prospect in retail business FDI helps to meet the global economies. expertise.e. A significant size in the organized retail and is expected to grow from 3% to50% in the coming year.
Jalandhar city. Raminder Kaur Bhatia M.com 2.in Baljinder Kaur M.G. Department of Commerce & Business Management Lyallpur Khalsa College.Amritsar Home Address:148/4.Com. Indian retail sector is growing fast and its employment potential is growing fast.D.P. So we can say that India is a rising star and going to be one of the fastest growing regions of the future. Department of Commerce & Business Management Lyallpur Khalsa College.G. Mata Rani Chowk.. M. Apart from above. everybody is ready with them plans to kick start retail revolution in India. There is no surprise why from an Abani to Mittal.co.Central Town. Submitted By:1. For tapping customers by creating points of sales displays. big bazaar.. Jalandhar Affiliated to G. M. Godrej to Birla.Phil Assistant Professor in P. Retailers are rethinking their approaches towards the suppliers so that they can get the best pricing strategies for them.N. The retail scene is changing really fast. . Nagar. Phone no. Jalandhar Affiliated to G.9814089666 e-mail address ramangoldy@yahoo.Conclusion Consumers are always hungry for modern ways of shopping.N. 9876053916 e-mail address baljinder2410@yahoo. Phone no. reliance fresh etc.Com.Phil Assistant Professor in P.Amritsar Home address: 627 J.D. retail sector in India is also catalyst for the growth of staling tactics of below the line marketing used by major retail players Like Spencer.U. Jalandhar city.U.
Grover. March 2007 “ Opening retail trade for FDI on IndiaA progressive measure” 4. 7. ICFAI. R.L. “Marketing – A Strategic Orientation” . M. 3. “Marketing Management –An Indian Perspetive” 9.indianmba.org/casestudies/catalogue/marketing . Sept. S.William G. Matching mastermind.net.L. Matching mastermind. retailindia. www.icfai.com 6.in 8. Tikmund . http://icm. S. www.BIBLIOGRAPHY 1. and Gupta. Ramanjeet “Research in management & technology” Deep & deep publications. ICFAI. A. “Marketing Management” 10. Avneet and Singh. and D`amico Michael “Marketing” West publishing company New York 5. Varshney.typepad.K. 2006 “The route to revolutionary trends in the Indian retail sector”. Shevan. Delhi 2.
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