Indian Retail Scenario The retail scenario is one of the fastest growing industries in India over the last

couple of years. India retail sector comprises of organized retail and unorganized retail sector. Traditionally the retail market in India was largely unorganized; however with changing consumer preferences, organized retail is gradually becoming popular. Unorganized retailing consists of small and medium grocery store, medicine stores, subzi mandi, kirana stores, paan shops etc. More than 90% of retailing in India fall into the unorganized sector, the organized sector is largely concentrated in big cities. Organized retail in India is expected to grow 25-30 per cent yearly and is expected to increase from Rs35, 000 crore in 2004-05 to Rs109, 000 crore ($24 billion) by 2010. Quick facts on Indian Retail sector * Indian Retail sector is the fifth largest global retail destination. * India retail market is dominated by the unorganized sector. * The top five companies in retail hold a combined market share of less than 2%. * The Indian retail market has been ranked by AT Kearney's eighth annual Global Retail Development Index (GRDI), in 2009 as the most attractive emerging market for investment in the retail sector. * Currently the share of retail trade in India's GDP is around 12 per cent, and is estimated to reach 22 per cent by 2010. * According to Government of India estimate the retail sector is likely to grow to a value of Rs. 2,00,000 crore (US$45 billion) and could yield 10 to 15 million retail jobs in the coming five years; currently this industry employs 8% of the working population. * India continues to be among the most attractive countries for global retailers. According to the Department of Industrial Policy and Promotion, approximately US$ 47.43 million was the amount of Foreign Direct Investment (FDI) inflow as on September 2009, in single-brand retail trading. More than 80% of the retail sector in the country is concentrated in the large cities. A study reveals that among the more than 20 locations, for organized retail in India, Mumbai was found to be the most preferred location followed closely by Bengaluru in the second position.

Key Players in Indian Retail Sector * AV Birla Group has a strong presence in apparel retail and owns renowned brands like Allen Solly, Louis Phillipe, Trouser Town, Van Heusen and Peter England. The company has investment plans to the tune of Rs 8000 – 9000 crores till 2010. * Trent is a subsidiary of the Tata group; it operates lifestyle retail chain, book and music retail chain, consumer electronic chain etc. Westside, the lifestyle retail chain registered a turnover of Rs 3.58 mn in 2006 * Landmark Group invested Rs. 300 crores to expand Max chain, and Rs 100 crores on Citymax 3 star hotel chain. Lifestyle International is their international brand business. * K Raheja Corp Group has a turnover of Rs 6.75 billion which is expected to cross US$100 million mark by 2010. Segments include books, music and gifts, apparel, entertainment etc. * Reliance has more than 300 Reliance Fresh stores; they have multiple formats and their sale is expected to be Rs 90,000 crores ($20 billion) by 2009-10. * Pantaloon Retail has 450 stores across the country and revenue of over Rs. 20 billion and is expected to touch 30 million by 2010. Segments include Food & grocery, e-tailing, home solutions, consumer electronics, entertainment, shoes, books, music & gifts, health & beauty care services. Retail and recession The global economic slump has had its impact on the India retail sector. One of the earliest players in the Indian retail scenario Subhiksha's operations came to a near standstill and required liquidity injection. Vishal Retail secured corporate debt restructuring (CDR) plan from its lenders while other players like the Reliance Retail run by Mukesh Ambani and Pantaloon led Kishore Biyani by went slow on expansion plans and even scaled down operations. However, during the last quarter a bit of confidence was restored as the economy showed signs of growth.

* Shoppers Stop has plans to invest Rs250 crore to open 15 new supermarkets in the coming three years. * Australia's Retail Food Group is planning to enter the Indian market in 2010. The total number of shopping malls is expected to expand at a compound annual growth rate of over 18.2 million. According to market research report by RNCOS the Indian organized retail market is estimated to reach US$ 50 billion by 2011. * Timex India will open another 52 stores by March 2011 at an investment of US$ 1.88 million this fiscal to add up to existing 2. a division of Landmark Group. In 20 years they expect the India operations to be larger than the Australia operations. plans to have more than 50 stores across India by 2012–13. the company has recorded a net profit of US$ 1.Future Trends * Lifestyle International. By 2012 the rural retail market is projected to have a total of more than 50 per cent market share. The Road Ahead Industry experts predict that the next phase of growth in the retail sector will emerge from the rural markets. 2009. PRIL intends to set up 155 Big Bazaar stores by 2014. * Pantaloon Retail India (PRIL) plans to invest US$ 77. In the first six months of the current fiscal ending September 30.3 million taking its total store count to 120. raising its total network to 275 stores.4 million sq ft retail space. It has plans to clock US$ 87 million revenue in five years.9 per cent by 2015. India Industry * Hotel Industry in India * Retail Industry * Software Industry * Indian Manufacturing * Confederation of Indian Industry * India Industry Sector * IT Industry * Banking Industry * Indian pharmaceutical industry * Indian Telecom Industry * Industries in India .

Moreover. a shopkeeper of such kind of shops is usually known as a dukandar.[1] The retail industry is divided into organised and unorganised sectors. convenience stores.[3] . Unorganised retailing. those who are registered for sales tax. income tax. Over 12 million outlets operate in the country and only 4% of them being larger than 500 sq ft (46 m2) in size.* Reliance Industries India * Basic Metals Industry * Biscuits Industry * Bus Industry * Fertilizer Industry * Handicraft Industry * Heavy Chemical Industry * Machinery Industry * Metallurgical Industry * Steel Industry * Textile Industry * Truck Industry Retailing in India Retailing is one of the pillars of the economy in India and accounts for 35% of GDP. over thirty regulations such as "signboard licences" and "anti-hoarding measures" may have to be complied before a store can open doors.[2] In India. on the other hand. paan/beedi shops. refers to the traditional formats of low-cost retailing. Organized retail such supermarkets accounts for just 4% of the market as of 2008. owner manned general stores.[3] Regulations prevent most foreign investment in retailing. and even within states. There are taxes for moving goods to states. that is. and also the privately owned large retail businesses. from states. etc. for example. the local kirana shops. Organised retailing refers to trading activities undertaken by licensed retailers. These include the corporate-backed hypermarkets and retail chains. etc. Most Indian shopping takes place in open markets and millions of independent grocery shops called kirana. hand cart and pavement vendors.

8 million households in India have an annual income of over 45 lakh (US$ 102.9%. camcorders.000. It is a huge industry in terms of size and according to management consulting firm Technopak Advisors Pvt.000 m2) that needs to be filled.000 m2) as compared to today. The Indian economy has registered a growth of 8% for 2007. state-of-the-art home theatre systems. washing machines.000. CTVs/LCDs. and gaming consoles.[5] The enormous growth of the retail industry has created a huge demand for real estate. India will need additional retail space of 700. maintaining its position as the most attractive market for retail investment.000 sq ft (46. Consumers in the status . iPods.Growth An increasing number of people in India are turning to the services sector for employment due to the relative low compensation offered by the traditional agriculture and manufacturing sectors.000 sq ft (65.[4] The Retail Business in India is currently at the point of inflection. The organized retail market is growing at 35 percent annually while growth of unorganized retail sector is pegged at 6 percent.000 supermarkets projected to come up by 2011.000. the retail business in India is estimated to grow at 13% from $322 billion in 2006-07 to $590 billion in 2011-12. 300 malls are estimated to be operational in the country. at a cost of US$15–18 billion.000. Kearney’s annual Global Retail Development Index (GRDI) for the third consecutive year. refrigerators.000 hypermarkets and 3.[9] 1. Current projections on construction point to a supply of just 200. Indulgence-oriented products include plasma TVs.000 m2).[7] According to the Icrier report. microwave ovens and DVD players fall in the status category. Property developers are creating retail real estate at an aggressive pace and by 2010. The predictions for 2008 is 7. Delving further into consumer buying habits.000. India has topped the A. purchase decisions can be separated into two categories: status-oriented and indulgence-oriented. it is valued at about US $ 350 billion.. Rapid change with investments to the tune of US $ 25 billion is being planned by several Indian and multinational companies in the next 5 years. high-end digital cameras. India has highest number of outlets per person (7 per thousand) Indian retail space per capita at 2 sq ft (0. Organised retail is expected to garner about 16-18 percent of the total retail market (US $ 65-75 billion) in the next 5 years.000.000 sq ft (19. Ltd.T.19 m2)/ person is lowest in the world Indian retail density of 6 percent is highest in the world.150)[10].[6] With over 1. The unorganized retail sector is expected to grow at about 10% per annum with sales expected to rise from $ 309 billion in 2006-07 to $ 496 billion in 2011-12.[8] [edit] The Indian Retail Market Indian market has high complexities in terms of a wide geographic spread and distinct consumer preferences varying by each region necessitating a need for localization even within the geographic zones. dishwashers. leaving a gap of 500.

or a range of products. Food Bazaar. Arvind Brands. the Aditya Birla Group.Formats: Fabmall supermarket chain and Fabcity hypermarket chain . Indulgenceoriented buying happens with those who want to enjoy life better with products that meet their requirements. some majors are also looking at the US and Europe. It plans to open three stores in London by 2008-end. Daily & Fresh Pantaloon Retail-Formats: Big Bazaar.category buy because they need to maintain a position in their social group. REI AGRO LTD Retail-Formats:6TEN Hyper & 6TEN Super RPG Retail-Formats: Music World.. Trinethra. Max. Home Centre. small ticket sizes. Brand Factory. Tanishq outlets. K Raheja Corp Group-Formats: Shoppers Stop. The Mahindra Group is the fourth large Indian business group to enter the business of retail after Reliance Industries Ltd. Spykar. Spykar Lifestyle and Royal Classic Polo are busy chalking out foreign expansion plans through the distribution route and standalone stores as well.co. has launched its store in Melbourne recently. aLL.[11] While India presents a large market opportunity given the number and increasing purchasing power of consumers.[13] The low-intensity entry of the diversified Mahindra Group into retail is unique because it plans to focus on lifestyle products. • • • • • • • • • • • • • Next retail India Ltd (Consumer Electronics)(www.[12] [edit] Major Indian Retailers Indian apparel retailers are increasing their brand presence overseas.next. Challenges include: Geographically dispersed population. Jainsons. Madura Garments. Titan Industries with World of Titans showrooms. When it comes to the festival shopping season. Hyper City. or both. there are significant challenges as well given that over 90% of trade is conducted through independent local stores. Depot. it is primarily the statusoriented segment that contributes largely to the retailer’s cash register. Pyramid Retail-Formats: Pyramid Megastore. Books & Beyond. Landmark. Fashion Station. and Bharti Enterprises Ltd. Spencer’s Hyper. E-Zone etc. Central. Viveks Service Centre. The Tata Group-Formats: Westside. TruMart Nilgiri’s-Formats: Nilgiris’ supermarket chain Subhiksha-Formats: Subhiksha supermarket pharmacy and telecom discount chain. Star India Bazaar. Inorbit Mall Lifestyle International-Lifestyle. Crossword. Respect India . Fun City and International Franchise brand stores. Another denim wear brand. which is now moving towards becoming a casualwear lifestyle brand. Steeljunction. little use of IT systems. While most have identified a gap in countries in West Asia and Africa. Viveks Safe Deposit Lockers PGC Retail -T-Mart India[1]. limitations of mass media and existence of counterfeit goods. Pantaloons. Chroma.in) Vivek Limited Retail Formats: Viveks. particularly in developed markets.etc. complex distribution network. Grand India Bazaar . The other three groups are focusing either on perishables and groceries. Switcher . Spencer’s Super.

consumer appliances and fruits and vegetables to retailers and small businesses.[16] Opposition to the retailers' plans have argued that livelihoods of small scale and rural vendors would be threatened. The first of the stores. which favours small retail businesses.[15] The world’s fifth largest retailer by sales..(19) [edit] Challenges To become a truly flourishing industry. and cumbersome local laws. technical services and know how to an Indian company for direct-to-consumer retail. studies have found that only a limited number of small vendors will be affected and that the benefits of market expansion far outweigh the impact of the new stores. However. Wal-Mart Stores Inc and Sunil Mittal's Bharti Enterprises have entered into a joint venture agreement and they are planning to open 10 to 15 cash-and-carry facilities over seven years. Absence of developed supply chain and integrated IT management. Regulations restricting real estate purchases.• • • • • • • • • Vishal Retail Group-Formats: Vishal Mega Mart BPCL-Formats: In & Out Reliance Retail-Formats: Reliance Fresh Reliance ADAG Retail-Format: Reliance World German Metro Cash & Carry Shoprite Holdings-Formats: Shoprite Hyper Paritala stores bazar: honey shine stores Aditya Birla Group .Cotton garment outlets [edit] Entry of MNCs The world's largest retailer by sales. Taxation. Costco Wholesale Corp (Costco) known for its warehouse club model is also interested in coming to India and waiting for the right opportunity. is slated to open in north India by the end of 2008.[17] Tesco Plc. is planning to setup two business entities in the country one for its cash-and-carry business and the other a master franchisee which will lend its banner. retailing needs to cross the following hurdles:[18] • • • • • • • Automatic approval is not allowed for foreign investment in retail.more Outlets Kapas.[14] Carrefour. Lack of Retailing Courses and study options . Lack of trained work force. Low skill level for retailing management. plans to set up shop in India with a wholesale cash-and-carry business and will help Indian conglomerate Tata group to grow its hypermarket business. the world’s second largest retailer by sales. which will sell groceries.

distribution channels. mergers and acquisitions and huge investments. constant threat of product obsolescence and low margins. improving retail of handicraft and local produce. TKWs Retail School is also associated with government projects like enhancing retail experience of foreign tourists. Eventually hypermarkets and supermarkets emerged. Evolution of the Indian Retail Sector The origins of retailing in India can be traced back to the emergence of Kirana stores and mom-and-pop stores. S Kumar's. technology. The evolution of the sector includes the continuous improvement in the supply chain management. the country is developing a support infrastructure in form of specialised retail schools. Its TKWs Retail School has already training over a thousand students and retail professionals for different retail skills. Crossword in books entered the market before 1995. etc.• Intrinsic complexity of retailing – rapid price changes. With the passage of time new entrants moved on from manufacturing to pure retailing. this would finally lead to more of consolidation. skill development of village youth. To overcome some of the challenges faced by modern retail. Retail outlets such as Foodworld in FMCG. Later Titan launched retail showrooms in the organized retail sector. One such skill development initiative has been taken by TKWs Group. Planet M and Musicworld in Music. for example. The economy began to open up in the 1980s resulting in the change of retailing. back-end operations. These stores used to cater to the local people. Village and Rural Melas  Source of entertainment and commercial exchange . The first few companies to come up with retail chains were in textile sector. Phases in the evolution of retail sector Weekly Markets. etc. Eventually the government supported the rural retail and many indigenous franchise stores came up with the help of Khadi & Village Industries Commission. Shopping malls emerged in the urban areas giving a world-class experience to the customers. Bombay Dyeing. Raymonds.

Mom-and-pop / Kirana shops  Neighborhood stores/convenience  Traditional and pervasive reach PDS outlets. hypermarkets and supermarkets. Khadi stores. department stores and shopping malls  Shopping experience/ efficiency  Modern formats/ international Percentage of Organised Retail across the world . Cooperatives  Government supported  Availability/low costs/distribution Exclusive brand outlets.Convenience stores.

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But it does not provide a feel of the product and is sometimes not authentic. K Raheja's Shoppers Stop is a good example of department stores.com. Specialty Stores: The retail chains. E-tailers: These are retailers that provide online facility of buying and selling products and services via Internet. Mumbai's bookstore Crossword. individually run and handled retail outlets. They are open for an extended period of the day and have a limited variety of stock and convenience products. A lot of such retailers are booming in the industry. etc. Prices are slightly higher due to the convenience given to the customers. These do not offer full service category products and some carry a selective product line. food and entertainment under one roof. such as electronics (Best Buy) and sporting goods (Sport Authority). Examples are Amazon. Other examples are Lifestyle and Westside. • • • • • . Convenience stores: They are comparatively smaller stores located near residential areas. They provide a picture and description of the product. • • Malls: These are the largest form of retail formats. etc. TDI Mall in Delhi. offering a variety of categories with deep assortments. groceries. They are small. which deal in specific categories and provide deep assortment in them are specialty stores. etc. Examples are Sahara Mall. Department stores: These are the general merchandise retailers offering various kinds of quality products and services.com. Ebay. Examples are RPG's Music World. toys. such as home and décor. Discount stores: These are the stores or factory outlets that provide discount on the MRP items. They provide an ideal shopping experience by providing a mix of all kinds of products and services. clothing. Hypermarkets/ Supermarkets: These are generally large self-service outlets. They have widened their vision in terms of the number of categories. as this method provides convenience and a wide variety for customer. These stores contribute 30% of all food and grocery organized retail sales.Retail Formats The following kinds of retail formats are found in India: • • Mom-and-pop stores: These are generally family-owned businesses catering to small sections of society. They are called category killers as they specialize in their fields. They focus on mass selling and reaching economies of scale or selling the stock left after the season is over. Category killers: Small specialty stores have expanded to offer a range of categories. Example: Big Bazaar. These stores have further categories.

Smaller products such as beverages. This is a challenge being faced by the Indian organized retail sector. With Indian retailers having to shell out more for retail space it is effecting there overall profitability in retail. shop. . As a result discounting is becoming an accepted practice. The biggest challenge facing the Indian organized retail sector is the lack of retail space. and Metro AG are entering the organized retail sector in India indirectly through franchisee agreement and cash and carry wholesale trading.• Vending: This kind of retailing is making incursions into the industry. But they are facing stiff competition from these global retail giants. All these have lead the Indian organized retail sector to give more in order to satisfy the Indian customer. At present. and Bharti Telecoms. The challenges facing the Indian organized retail sector are there but it will have to be dealt with and only then this sector can prosper. Many Indian companies are also entering the Indian organized retail sector like Reliance Industries Limited. All these are posing as challenges facing the Indian organized retail sector. This again brings down the Indian retailers profit levels. it is not very common in India. The Indian retailers have difficultly in finding trained person and also have to pay more in order to retain them. The Indian government have allowed 51% foreign direct investment (FDI) in the India retail sector to one brand shops only. But the global retail giants like Tesco. Challenges facing the Indian Organized Retail sector The challenges facing the Indian organized retail sector are various and these are stopping the Indian retail industry from reaching its full potential. western influences. it is posing a challenge to its growth. With real estate prices escalating due to increase in demand from the Indian organized retail sector. desire for luxury items and better quality. women working force is increasing. snacks are some the items that can be bought through vending machines. Pantaloons. This have made the entry of global retail giants to organized retail sector in India difficult. This too bring down the profit of the Indian retailers. He now wants to eat. The behavior pattern of the Indian consumer have undergone a major change. and get entertained under the same roof. Wal-Mart. This have happened for the Indian consumer is earning more now. Trained manpower shortage is a challenge facing the organized retail sector in India.

Retailing is one of the biggest sectors and it is witnessing revolution in India. retailers should monitor and performing high-level assessments. India ranks first in 2005. in 2005 and 2006.urban population .credit ratings. India in the late 1990's is a good example in the opening stage. Shoppers Stop. while in 2006. Growth: In growth stage.. The new entrant in retailing in India signifies the beginning of retail revolution. India shows US$330 billion retail market that is expected to grow 10% a year. because now India is in peaking stage. they should plan for their entry strategies. the four stages or the lifecycle of this industry is as as follows: Introduction: An introduction is the opening phase of a market and is one that is just entering the GRDI. as more and more payers are Vying for the same set of customers. Retailer is any person/organization instrumental in reaching the goods or merchandise oer services to the end users. Retailers at this stage should enter through local representations. Ukraine and Vietnam. It does this by organizing their availability on a relatively large scale and supplying them to a customers on arelatively smallscale. India's retail market is expected to grow tremendously in next few years. sourcing offices and new stores.The market attractiveness covers reail sales per capita .access bank finance and business risk. Iin this stage all. Stategy suggested:A rapid penetration strategy is suggested at this stage i>e low price and high promotion. According to AT Kearney. Wal-Mart success in china in the late 1990's and early 2000's gives us the importance of committing to a promising high-growth market at right time. Reliance. This window of opportunity is useful for executives who plan their market-specific strategies. The Windows of Opportunity shows that Retailing in India was at opening stage in 1995 and now it is in peaking stage in 2006.. are India. with modern retailing just beginning. . Retailers entering this stage have the best chance for long-term success. which are outside the top 30 markets. India is the most compelling opportunity for retailers.Retail Industry in India:challenges Opportunties and Strategies Introduction Retailing involves all activities incidental to selling to ultimate consumer for their personnel family and household use. The major retail players are Pantaloon Retail. In fact.for instance .etc.debt indicators. falls in this stage.the country risk includes parameters like political risk.Retailer is a must and cannot be eliminated. The Indian retailing industry is becoming intensely competitive. the market is developing quickly and also ready for modern retailing.laws and regulations and business efficiency. which are in Peaking stage. Kazakhstan is the country in introduction stage. India's retail market is expected to grow tremendously in next few years. Countries. Global Retail Development Index This index is based on more than 25 macro-economic and retail –specific variables. At this stage.economic performance.

It is a low cost structure. Rs 6.Strategy suggested: The strategy of adopting quality and styled products with new models and shift of advertising from product awareness to product preference Eg the big bazaar advt says surf exel is cheaper than the market price. After Dubai. and the remaining share is contributed by the unorganized sector. Out of the total earnings of the Government of Delhi Rs 11. but the space for new entrants will become tighter and retailers should act quickly at this stage because retailers at this stage have limited time to explore. The total in 2005 stood at $225 billion. In India. the pure retailer is starting to emerge now. kolkata. According to A T Kearney. they are mostly operated by owners. In this total market.500 crore is . Banglore and Kanpur. According to Confederation of Indian Industries whose findings have shown that Delhi has the good resources and good conditions for the retail sector. Strategy suggested: Identifying weak segments. Though the opportunity is closing the existing retailers can enter with new formats such as discount models or non-food formats such as consumer electronics and apparel. they should act according to the established rules and should be open to face the competition from international retailers. Maturity: In this stage the market is still big and growing.e.The idea behind adopting strategy is to strengthen against competitors. the retail business contributes around 11 percent of GDP. Window of opportunity ends for about 5 to 10years before a market enters the closing phase and reaches saturation level. The main advantage in unorganized retailing is consumer familiarity that runs from generation to generation. Organized retailing in India In late 1990's the retail sector has witnessed a level of transformation. Delhi. In general . the organized retail accounts for only $8 billion of total revenue. Retailing will show good prospects in cities like Mumbai. has very low real estate and labor costs and has low taxes to pay. This stage generally lasts longer than the previous two stages. maintaining investment level selectively. The main challenge facing the organized sector is the competition from unorganized sector. the most of the retail sector is unorganized. which is expected to be $ 17 billion by 2010-11.000 crore. Unorganized retailing in India In India. Chennai. Retailing is being perceived as a beginner and as an attractive commercial business for organized business i. In organized retailing will grow faster than unorganized sector and the growth speed will be responsible for its high market share. Unorganized retailing has been there in India for centuries. Of this. and also their margin for error is thin. In India Delhi will be the next big retail destination. India for example. accounting for about 11% of GDP. Singapore and Hong Kong. the organized retail sector accounts only for about 3 percent share. theses are named as mom-pop stores. was in the opening stage in 1995 and entered peaking stage in the year 2003 and reached number 1 rank in2005. the organized retailing is expected to be more than $23 billion revenue by 2010. Organized retail business in India is very small but has tremendous scope. Strategy suggested: Enter new market segments that is either enter new geographic areas eg vishal megha mart has opened stores in smaller cities tier II and III cities Decline: The window of opportunity is closing fast and modern retail share is reaching 40 to 60 percent.

Now the company is planning to open 20 stores in 10 cities in six months.000 new modern Outlets in the last 3 years * Over 5.70% 1.5% The organized sector is expected to grow faster than GDP growth in next few years driven by favorable demographic patterns. Reach of satellite T.achieved from the retail sector.000 sq. Spencer network has 69 stores. The top 10 retailers account only for 2% of total market.000 shoppers walk through their doors every week Growth drivers in India for retail sector • Rising incomes and improvements in infrastructure are enlarging consumer markets and accelerating the convergence of consumer tastes.80% 3. 000 crores * 5X growth in organized retailing between 2000-2005 * Over 4. and display the highest propensity to spend. within next five years.000. • About 47% of India's population is under the age of 20. This young population. today modern retailing is expected to enter a boom phase.000 sq. • Shift in consumer demand to foreign brands like McDonalds. Employment opportunities in retail sector in India . ft. • Consumer preference for shopping in new environs • The Internet revolution is making the Indian consumer more accessible to the growing influences of domestic and foreign retail chains. and strong income growth.V. The retail sales in India for future are shown below (data from 20052008 is based on estimates): PRESENT INDIAN SCENARIO * Unorganized market: Rs. ft. of mall space under development * The top 3 modern retailers control over 750. changing lifestyles. • Liberalization of the Indian economy • Increase in spending Percapita Income.Share of Organised Retail 1999 2002 2005 Total Retail (in billion INR) 7000 8250 10000 Organized Retail (in billion INR) 50 150 350 % Share of Organized Retail 0. Sony. three Spencer super markets and 49 Spencer Dailys. which includes seven Spencer hypermarkets. which has major players and these players might capture 10% of total market. of retail space * Over 400. • Advent of dual income families also helps in the growth of retail sector. 583.000 crores * Organized market: Rs. hypermarkets discounted stores and specialty stores. departmental stores. This organized retail sector mix includes supermarkets. watch more than 50 TV satellite channels. For example. etc. and this will increase to 55% by 2015. .5. will immensely contribute to the growth of the retail sector in the country. which is technology-savvy. • Availability of quality real estate and mall management practices • Foreign companies' attraction to India is the billion-plus population. Panasonic. channels is helping in creating awareness about global products for local markets.

it will not recruit any new managers from outside. Pantaloon has the concept of partnership with educational Institute to run retail courses across the entire chain. The Pantaloon Retail India Ltd.000 jobs in next few years. "The apex body of Indian organized retailers.and to become a truly flourishing industry. Welinkars.rapid price changes. Pantaloon. * Organized retail sector has to pay huge taxes. which provides employment. Top players like Pantaloon Retail India Limited. Retailers Association of India( RAI) is also lending help hand to tide over the shortage of employees in organized retail sector. roping in talent from other sectors and developing comprehensive career growth and loyalty plans for existing employees. RPG Group and ebony are virtually on their toes. The one thing that is common amongst these estimates is that Indian organized retail market will be very big in 2010. Sanjoy Jog. * In retail sector. said Mr. threat of product obsolescence and low margins. Retail companies are starting retail manamgent courses in partnership with management institutes. Consider the plans of largest player. the retail sector will create 50. Trent. which is negligible for small retail business. Narsee Monjre and IISWBM. * Lack of trained work force. HR Head at Pantaloon Retail India Ltd. * Developed supply chain and integrated IT management is absent in retail sector. * Intrinsic complexity of retailing. Jog. Automatic approval is not allowed for foreign investment. *Cost of business operations is very high in India. where in it expects that in 2years.India's retail industry is the second largest sector. which favors small retail businesses. "The estimated need is 1 lakh of employees till 2011". the company has developed a comprehensive strategy. * Low skill level for retailing management. "The students joins the course and they are given an appointment letter by Pantaloon to become employees" said Mr. * Taxation. Pantaloon is also planning to tie up with Ahmedabadbased National Institute of Design to start a course in visual merchandising. The company has tied up with 11-B schools including K J Somaiya . Since. The status of the retail industry will depend mostly on . According to Associated Chambers of Commerce and Industry of India (ASSOCHAM). Shopper's Stop. the job market is hugely receptive to this with more and more business schools focusing on the sector and large retailers setting up retail academics. Trent has also started in-house learning programmes and now goes to under graduate colleges to recruit students. Challenges of Retailing in India In India the Retailing industry has a long way to go. after agriculture. retailing needs to cross the following hurdles: * The first challenge facing the organized retail sector is the competition from unorganized sector. Conclusion Many agencies have estimated differently about the size of organized retail market in 2010.

There is an incredible amount of activity in terms of creation of retail-oriented space across India. particularly due to increasing domestic and international competition. Therefore it is important for retailers to secure a distinctive position in the market place based on values relationships or experience. Almost 96% of these retail outlets are less than 500sq.ft. The retail scenario in India is unique. Finally it is important to note that these strategies are not strictly independent of each other. India has the largest number in the world. Most of them are independent and contribute as much as 96% to total retail sales. As per some estimates. With over 12 million retail outlets of various sizes and formats. besides the activities of retailers and demands of the customers also show impact on retail industry. meaning ‘to cut a piece off’ or ‘to break bulk’. INDIAN RETAIL SCENARIO The word retail is derived from the French word ‘retailer’.ft compared to the U. Much of it is in the unorganized sector. As the retail market place changes shape and competition increases.ft. Retailing involves a direct interface with the customers and the coordination of business activities from end to end. value is function of not just price quality and service but can also be enhanced by personalization and offering a memorable experience Read more: http://www.html#ixzz14x2otzmc Under Creative Commons License: Attribution INTRODUCTION: This research is basically done to find out the training needs of the sales people in the retail industry and how they are being fulfilled. With more than 9 outlets per 1000 people.articlesbase.S. In the size and the percapita retail space in India being 2 sq.com/publishing-articles/retail-industry-inindiachallenges-opportunties-and-strategies-158550. Sales people working in this industry play major role in handling the customers effectively. figure of 16sq. India’s percapita retailing space is the lowest in the world. The retail industry in INDIA has changed its face and approach. This study is made to know how well the sales people of retail industry in INDIA are trained to meet the customer expectations and global standards.external factors like Government regulations and policies and real estate prices. This study is done to evaluate the training system used by the retail industry in INDIA and also to understand training aspects which keeps the sales force of retain industry fit and ready to face any kind of challenges. the demands of customers are not just great products but also great shopping experience and to make this possible a retail outlet should have well trained sales people. the potential for improving retail productivity and cutting costs is likely to decrease. there are over 200 retail mall projects under construction or under active planning stage spanning . The retail industry in our country is at boom and getting organized day by day.

the prospects of both the sectors are mutually dependent on each other. of retail space • Over 400. As the contemporary retail sector in India is reflected in sprawling shopping centers. ft. This has also contributed to large scale investments in the real estate sector with major national and global players investing in developing the infrastructure and construction of the retailing business. 35. Retail. of mall space under development • The top 3 modern retailers control over 750. Accounting for over 10 per cent of the country’s GDP and around eight per cent of the employment retailing in India is gradually inching its way toward becoming the next boom industry. one of India’s largest industries.000 shoppers walk through their doors every week • Growth in organized retail on par with expectations and projections of the last 5 Years on course to touch Rs.000 crores • Organized market: Rs.000 sq. 583.000 sq. entertainment and food all under one roof.000. ushering in a revolution in shopping in India.over 25 cities. has presently emerged as one of the most dynamic and fast paced industries of our times with several players entering the market. 000 crores • 5X growth in organized retailing between 2000-2005 • Over 4. the concept of shopping has altered in terms of format and consumer buying behavior. multiplex.malls and huge complexes offer shopping. ft.000 crores (US$ 7 Billion) or more by 2005-06 GROWTH OF RETAIL SECTOR Retail and real estate are the two booming sectors of India in the present times. This may translate into over 25 million sq. And if industry experts are to be believed. f t.000 new modern retail outlets in the last 3 years • Over 5. PRESENT INDIAN SCENARIO • Unorganized market: Rs.5. of new retail space in the market within next 24 months. The trends that are driving the growth of the retail sector in India are · Low share of organized retailing · Falling real estate prices · Increase in disposable income and customer aspiration · Increase in expenditure for luxury items .

This will lead to job losses since mom-andpop stores provide job opportunities to semi-skilled and unskilled people. local companies and joint ventures are expected to be more advantageously positioned than the purely foreign ones in the evolving India's organized retailing industry Read more: http://www. This will not only favor the retail sector develop in terms of design concept.html#ixzz14x3DENyI Under Creative Commons License: Attribution Retail industry: Changing scenario LARGE RETAILERS. One of the small retailers I interviewed went as far as to claim. it is feared. “it hardly matters whether I am deprived of .articlesbase.CONCLUSION The government is now set to initiate a second wave of reforms in the segment by liberalizing investment norms further. construction quality and providing modern amenities but will also help in creating a consumer-friendly environment. As foreign investors cautiously test the Indian Markets for investments in the retail sector.com/marketing-articles/indian-retail-scenario1109666. And this upsurge in the retail industry has made India a promising destination for retail investors and at the same time has impelled investments in the real estate sector. BE they domestic players like Reliance Retail or MNCs like WalMart (of course in conjunction with the Bharti group). will spell doom for the traditional mom-and-pop stores before long. Retail industry in India is at the crossroads but the future of the consumer markets is promising as the market is growing. government policies are becoming more favorable and emerging technologies are facilitating operations in India.

The jobs that the so-called organised trade will create will be abysmally few. Since everything is available under one roof. As long as parking . I don’t have to encounter such uncertainty here” he says pointing at Subhiksha. the large retailers get the suppliers to mark up the price significantly on which the large retailer offers a huge discount subsequently. the Kiranawallah will continue to be patronised. Many small retailers run sweatshops and either underpay their employees or do not pay them at all. It is only in respect of established brands which are popular at the national level that large retailers are price-competitive. Suraksha and Shruti. the government is administering ‘slow poison’ to the extant small retailers. bulk purchases can be made at monthly intervals. college students. Additionally. The job losses that will arise when the small retailers wind up business will be on the high side. Fortunately for large retailers. the price turns out to be the same as the small retailers quote. You walk away with a very good bargain sometimes and you are practically robbed sometimes. inconsistent in terms of quality and price. they assert. The vegetables you get to buy from the traditional mandi are. the affluent younger generation which puts in 12 hours of work per day does not like to be ‘weighed down’ by ‘shopping responsibility’. thanks to almost total disintermediation. Is this an overreaction or the truth? Remarks Shailendra Prasad. asserts that small retailers sell items like pulse. “They employ semi-skilled and unskilled people too. Bangalore: “where else do you get vegetables and grocery under one roof at reasonable prices? The range of products organised retail offers is something that you do not find in a mom-and-pop store”. “You ask for a Kilogram of rice and I bet the Kiranawallah will weigh out only 950 gm although you do not get to notice it. maintains his wife Harpreet. All the same. he says. a Senior Executive with an IT company in Bangalore whom I interviewed when he emerged out of a Subhiksha outlet in Milk Colony. don’t they? If small retailers wind up business. a working couple (both are from the advertising industry) prefer organised retail for the sheer range of products they can access there. What does the beleaguered Kiranawallah say? Ashwath. maintain that they are spoilt for choice when they shop at a large retailer. Rajiv and Harpreet. if any. in the unorganised small retail trade cannot be as high as projected. they do not mind dumping stale and adulterated stuff on you”. what happens to the livelihood of these people? Prasad begs to differ. sugar and edible oil much cheaper. There is space for both in a country like India. rice. According to him the Kiranawallah can offer customised services which the large retailers cannot. But small retailers create job opportunities for semi-skilled and unskilled people. Job losses. He feels that by encouraging the growth of large retail trade. Thank God. But things are different with a Kiranawallah. for example. “One complements the other”. In respect of regional brands or local brands. “Large retailers create jobs too”. But in net terms.my livelihood by Reliance Retail or Wal-Mart or Subhiksha. A job loss there is made good by a job creation here. who has been running a grocery store hardly 100 feet away from the Subhiksha outlet. The mushrooming of organised retailers need not sound the death knell for small retailers. these days. the fact is I’ll lose my livelihood”. opines Rajiv.

This sector contributes 10% of India's GDP and the current growth rate is 8. as both the present players and new entrants are gearing up to explore the market. This is because with the credit card. Many players are coming up with huge investments. Most predictions say that the sector might reach to US$ 400-600 billion by the year 2010. The present size of the organized retailing sector is approximately 3% and is expected to grow to 25-30% by the year 2010. Germany's Metro AG and many others are ready to enter the retail markets.5%. we bear with him and still keep the credit line open so he need not starve. Tesco.” Scope of the Retail Sector Retail is clearly the sector that is poised to show the highest growth in the next five years. price. There are about 300 new malls. The sector is set for a revolution. due to which the present 12 million mom-and-pop shops and kirana stores fear losing their business. the younger generation will not complain. “We fought not long ago to drive foreigners out of our land. Small retailers empathise with what the customer is going through because of the personal touch. Global retail giants such as Wal-Mart. What do present-day economists and institutions do? They persuade him to take a loan or opt for a credit card and apply usurious rate of interest. The rising demand of branded products and increase in purchasing power have lured these companies to enter the market. if the customer cannot settle the monthly bill owing to a strike in his factory. Factors like quality.lot is available for the car and all household items are available under one roof on the premises of the large retailer. Today. the customer sometimes buys things he does not need with money he does not have. and personalised service take a back seat. 1500 supermarkets and 325 departmental stores currently under construction. they employ ruffians to collect the money if the customer cannot pay the monthly instalment even for reasons beyond his control. Retail Landscape Modern retail development in India is focused on the following cities: West  Mumbai  Pune  Ahmedabad North . we are welcoming them back so they can usurp our economy.

36% Indonesia . Pantaloon Retail India Ltd. Ltd. Music World Entertainment Ltd. Ebony Retail Holdings Ltd. EU & Japan constitute 80% of world retail sales. Carrefour. Tesco. etc..40% Brazil . Biggest player in India is Pantaloon Retail India Limited. Boots Group. Globus Stores Pvt..20% India .. Liberty shoes Ltd.. Delhi and the National Capital Region South  Chennai  Banglore  Hyderabad East  Kolkata Leading Indian Retailers Bata India Ltd. Shoppers' Stop. Many other business houses are planning to enter the retail sector either on their own or through partnerships. Piramyd are expanding to smaller towns and cities. Titan Industries. Percentage of Organized Retail USA . Current Scenario A glimpse of the International Retail      One of the world's largest industries exceeding US$ 9 trillion 47 global fortune companies & 25 of Asia's top 200 companies are retailers Dominated by developed countries US. Wal-Mart Stores. Trent and the new entrants penetrating the market soon will include Reliance Retail Ltd.55% Thailand . Crossword. Shoppers Stop.. New entrants like Reliance Retail Ltd and Wal-Mart . Subhiksha.81% Malaysia .20% China . Food Bazaar.3% Key Trends The existing players like Big Bazaar. Big Bazaar.85% Taiwan .30% Poland .

 Investment in whole supply chain would increase. The already revolutionizing urbanization and growing demand for finished products has necessitated development of new space for retail outlets.  Better lifestyle as better products would be introduced. and distribution channels.  Economies of scale would help lower consumer prices and increase the purchasing power of the consumer. production.9 billion in 2009 from US$394 billion in2005.  The retail sector would generate employment for more than 2. the country has identified new scope for real estate development.  The markets of the sector would flourish and develop. Estimates and Predictions  The industry is estimated to be more than US$ 400 billion by a study of McKinsey.  A KPMG report says that the organized retail would grow at a higher rate than GDP in the next five years.  Technology would be upgraded in terms of logistics.5 million people by the year 2010. Even rural areas will provide a huge opportunity to be explored. .  Employment would increase and skills & manpower will develop.  In the long term it will be beneficial in the up-gradation of agriculture and small scale & medium scale industries. says an analysis by Ma Foi Management Consultants Ltd.  The Economist Intelligence Unit (EIU) estimates the retail market in India to increase to US$608.  Exports would increase due to greater sourcing of major players.  A strong retailing sector would promote tourism. Benefits of FDI in Retail Sector  Higher competition would lead to higher quality in products and services.are going to enter the market soon. Indian Consumerism The Indian consumer behaviour is rapidly changing with a shift in new generation's preference towards luxury commodities Retail Space: A Scope for Real Estate Sector With new boom in the retail industry.

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furniture. it boils down to how much localisation and adaptation the company is willing to do for India. the Indian retail sector itself must seize the initiative to realise the dreams of contributing to a prosperous and booming economy. Ultimately. Only two percent of India’s retail market is organised. Almost all large . In this scenario. There will be more fashion stores for youth. The focus should be on the Indian horizon before looking for retail opportunities in other countries because India itself is a big retail market. global companies have nothing extra or special that the Indian retail business does not have. The future shows tremendous potential for growth in the retail sector. The customer should feel that it is a part of his culture. they have a better understanding of the Indian consumer’s psyche. and does not try to impose alien values or concepts on him. a sense of belonging. his perceived values. Indian customer is not keen to buy something just because it is sold by an international company. watches. a successful retailer is one who understands his customer.We live in exciting times. Ultimately. Speciality retail stores and malls are the future of Indian retail market. Ultimately. and does not try to impose alien values or concepts on him. it boils down to how much localisation and adaptation the company is willing to do for India.The Indian customer is looking for an emotional connection. The Indian retail sector is ready to take on challenges from global retail players such as Wal-mart and Carrefour because unlike them. Hence. a sense of belonging. Almost all large companies worldwide are looking to establish a base or stake in the Indian market.In the near future India will see a phenomenal growth of shopping malls and speciality retail stores. they have a better understanding of the Indian consumer’s psyche. Other than tremendous money power. The future shows tremendous potential for growth in the retail sector. Ultimately. Indian customer is not keen to buy something just because it is sold by an international company. to be successful any retail outlet has to be localised.Retail Future in India The Indian retail sector is ready to take on challenges from global retail players such as Wal-mart and Carrefour because unlike them. electronics. to be successful any retail outlet has to be localised. The customer should feel that it is a part of his culture. Hence.We live in exciting times. sunglasses and assorted items.The Indian customer is looking for an emotional connection. a successful retailer is one who understands his customer. his perceived values. Other than tremendous money power. The speciality stores will cater for home. Only two percent of India’s retail market is organised. global companies have nothing extra or special that the Indian retail business does not have.

electronics. watches. In this scenario. furniture.companies worldwide are looking to establish a base or stake in the Indian market. sunglasses and assorted items. There will be more fashion stores for youth.In the near future India will see a phenomenal growth of shopping malls and speciality retail stores. . The focus should be on the Indian horizon before looking for retail opportunities in other countries because India itself is a big retail market. Speciality retail stores and malls are the future of Indian retail market. The speciality stores will cater for home. the Indian retail sector itself must seize the initiative to realise the dreams of contributing to a prosperous and booming economy.

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