Organized Retail

The Opportunities Ahead

1 3.2 1. Chemical market Reporter.8 0.4 1.2 2 1.1 1 0. Global Vantage . Wall Street Journal. European Chemical Industry Council: Automotive News.6 5.3 Financial services Construction / Engineering Packaged goods Chenmicals Energy Electronics Automotive telecom Pharmaceuticals.Retail – the largest private industry in world economy Sales (USD Trillion) 1999 Retail 6. diagnostice Source : Euromonitor. IDATE.

Retailing – the largest private industry in the world • Over 50 of the Fortune 500 companies are retail companies.091. The world’s largest company is a retail company. (Wal-Mart – last valued at Rs 1. 25 of the Asian top 200 companies are retail companies.250 crore) • • .

000 cr) in 2004.Current Retail scenario in India • Retail industry accounts for 35% of our GDP • Estimated industry size .12 million outlets • Lowest per capita retail space . largely disorganized and primarily owner managed Source: KSA Technopak .USD 205 bn (INR 230. • Highest number of outlets per capita .2 sft per person as compared to 16 sft per person in USA • Only 4% of the country’s outlets are larger than 500 sft India’s retail setup is therefore crowded with small outlets.

000 Crore • 2002 • 2004 • 2005 Rs 28.Organized Retail Organized Retail arrived in India in the 90’s • 1999 Rs 550 Crore Rs 4.000 Crore Rs 35.000 Crore .

Organised Retail Penetration .

Examples of Growth in Emerging Markets Years taken for organized retail to grow from <5% to over 20% INDIA IS STILL AT 2. team analysis .5% Source : MG1.

000 cr) by end of 2010 Source: KSA Technopak.000 cr) by 2010 • Organized Retail Penetration (ORP) will increase from less than 3% in 2005 to 8% by 2010 • FDI in real estate will accelerate pace of development of retail infrastructure • Investments in organized retailing are estimated to touch USD 4. HSBC Report .35% p.a.Forecast 2010 • Organized retail is expected to grow at 30% . to become USD 24 bn (INR 100.000 Mn (INR 20.

Development Curve of Organised Retail .

Growth Drivers .Young & rapidly evolving consumers India is one of the most youthful countries in the world with 53% of the population less than 25 yrs of age Within a decade the number of people in age group of 20 – 49 would increase 30% from 395mn in 2000 to 510 mn in 2010 .

00.000 – 10.Growth Drivers – Middle Class Population Currently estimated at 92 Mn the middle class (family income between INR 200.) is expected to be around 153 Mn by 2010 .000 p.a.

Growth Drivers – Retail Infrastructure • India will have 225 malls by 2007 spread over 50 cities • Relaxation in FDI in Real Estate to give further impetus • Real Estate Mutual Funds ( REMFs) & Real Estate Investment Trusts ( REITs) comes to India .

Organized Retail Emerging Opportunities .

18% of the US workforce is employed in retail .The annual employee turnover of WalMart is more than the entire workforce of General Motors .Retail – Largest Employer in the World Increased employment opportunities .

5 % of the US workforce has worked for McDonalds 1 out of 15 American got his/her 1st Job at McDonalds Nations largest Job Training Organisation -Bigger than the US Army – teaching the future US workforce “ work routines.Socioeconomic Impact of McDonalds on the US Job Market McDonalds captures 1 out of every 6 restaurant visits in the US market • • • • • Employs more than 5.00.job discipline and organisational teamwork .000 people Largest employer of High School Students 12.

Kite. Candy. immense !! - opportunities are .Retail – Opportunities for Entrepreneurs - World of Franchising - Specialized retail formats Bangles.

Sign up to vote on this title
UsefulNot useful