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Introduction
Indian retail industry is going through a transition phase. Most of the retailing in our country is still in the unorganized sector. The spread out of the retails in US and India shows a wide gap between the two countries. Though retailing in India is undergoing an exponential growth, the road ahead is full of challenges.

 What is retailing?
The word "Retail" originates from a French-Italian word. Retailersomeone who cuts off or sheds a small piece from something. Retailing is the set of activities that markets products or services to final consumers for their own personal or household use. It does this by organizing their availability on a relatively large scale and supplying them to customers on a relatively small scale. Retailer is a Person or Agent or Agency or Company or Organization who is instrumental in reaching the Goods or Merchandise or Services to the End User or Ultimate Consumer.

 Scenario of Retailing In India
Retailing is the most active and attractive sector of last decade. While the retailing industry itself has been present since ages in our country, it is only the recent past that it has witnessed so much dynamism. The emergence of retailing in India has more to do with the increased purchasing power of buyers, especially post-liberalization, increase in product variety, and increase in economies of scale, with the aid of modern supply and distributions solution. Indian retailing today is at an interesting crossroads. The retail sales are at the highest point in history and new technologies are improving retail productivity. though there are many opportunities to start a new retail business, retailers are facing numerous challenges.

 Present Indian Scenario
• • • • • Unorganized market: Rs. 583,000 crores Organized market: Rs.5, 000 crores 5X growth in organized retailing between 2000-2005 Over 4,000 new modern Outlets in the last 3 years Over 5,000,000 sq. ft. of mall space under development

BRCM College of Business Administration, Surat

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• • • The top 3 modern retailers control over 750,000 sq. ft. of retail space Over 400,000 shoppers walk through their doors every week Growth in organized retailing on par with expectations and projections of the last 5 Years: on course to touch Rs. 35,000 crores (US$ 7 Billion) or more by 2008-09.

 Contribution To GDP The Indian retail market, which is the fifth largest retail destination globally, has been ranked the second most attractive emerging market for investment after Vietnam in the retail sector by AT Kearney's seventh annual Global Retail Development Index (GRDI), in 2008. The share of retail trade in the country's gross domestic product (GDP) was between 8–10 per cent in 2007. It is currently around 12 per cent, and is likely to reach 22 per cent by 2010. According to industry experts, the next phase of growth is expected to come from rural markets, with rural India accounting for almost half of the domestic retail market, valued over US$ 300 billion. Rural India is set to witness an economic boom, with per capita income having grown by 50 per cent over the last 10 years, mainly on account of rising commodity prices and improved productivity.

According to the Investment commission of India, the overall retail market is expected to grow from US$ 262 billion to about US$ 1065 billion by 2016, with organised retail at US$ 165 billion (approximately 15.5 per cent of total retail sales). India is expected to be among the top 5 retail markets in the world in 10 years.

 Types of Retailing In India
Traditional retailing continues to be the backbone of the Indian retail industry, with traditional/unorganized retailing contributing to over 95% of total retail revenues. The quintessential mom-and-pop retailing outlets or the corner- store formats constitute a major part of Indian retail store formats. Over 12 million small and medium retail outlets exist in India, the highest in any country. More than 80 per cent of these are run as small family businesses.

BRCM College of Business Administration, Surat

Surat . It has to act and react to what happens outside the factory and office walls. These will affect the main internal functions of the business and possibly the objectives of the business and its strategies. BRCM College of Business Administration. These factors that happen outside the business are known as external factors or influences.3 Business Environment A business does not function in a vacuum.

economic. BRCM College of Business Administration. employment. price and foreign trade. For making of useful economic policies for the nation macroeconomics is necessary. “Business environment is a set of political. It examines the overall level of nations output.” Retail Sector In other words in macro economics study how these aggregates and averages of economy as whole are determined and what causes fluctuation in them. and that can potentially have both a positive and a negative impact on the business. Macroeconomics is concerned with aggregate and average of entire economy.4 Macro economics is the study of behavior of the economy as a whole. Surat . social and technological (PEST) forces that are largely outside the control and influence of a business.

attitudes towards global warming.  Legal Trends: The macro legal environment analysis is closely linked to the political environment (politicians tend to make the laws).  Demographic Trends: The macro demographic analysis will identify trends in population growth at relevant ages for your industry (There maybe zero population growth in general but high growth in the number of people over 65). behaviours. however you may like to do some research before starting.  Political Trends: The macro political environment analysis will identify changes in the position politicians take on issues. Surat . Such as the number of part time workers.  Economic Trends: The macro economic environment analysis will identify trends such as changes in personal disposable income. BRCM College of Business Administration. inflation and unemployment rates.5 A macro environmental analysis can be completed alone or in a brainstorming session. To simplify the Macro Environment Analysis the following 6 broad heading will provide some structure. the population location. interest rates. but also includes trends in court decisions – such as liability compensation. make up of the family structure. values and norms. A current example is a shift towards greener policies in the developed world. a good start is to list all of the trends you can think of or can find and indicate whether they will have a positive impact or negative impact on the size of your industry.  Social/Cultural Trends: The macro social/cultural environment analysis will identify trends in societies beliefs.  Technological Trends: The macro technological environment analysis will identify changes in the application of technology. A current example is a shift towards online transactions and in some areas a shift away from online transactions.

Surat . rising costs and up and down business cycles. savings and credit availability. These changes in economic conditions provide marketers with new challenges and threats. Marketers should be cognizant of major trends in the economic environment. next only to United States. economic policies and the economic system are the important external factors that constitute the economics of a business.Japan and China. the young Indian consumer is buying big to look good and feel good. The changes in economic conditions can have destructive impacts on business plans of a firm. prices.  India ranking as the fourth largest economy in terms of Purchasing Power Parity (PPP). Total purchasing power is a function of current income. How effectively these challenges could be converted into opportunities depend on well-thought-out marketing programmes and strategies. with the Indian consumers confident about their earnings and are spending a large portion of their high disposable incomes. India is expected to outpace Japan by the year 2010 to become world’s third largest economy. Economic forecasters looking ahead through the next decade are likely to find their predictions clouded by the recurrent themes of shortages. BRCM College of Business Administration.  The Government is progressively undertaking reforms and liberalizing the retail sector by give 49% FDI(Foreign Direct Investment). Economic conditions. With 54 per cent of the Indians aged below 25.  Performance of a retail sector in India indicates the bright future.  The fast and furious pace of growth of the Indian economy is the driving force for Indian consumerism. Projections by analysts suggest that India has the potential to be labeled the fastest-growing economy and outpace the developed economies by 2050.6 Economic Environment Retail markets consist of purchasing power as well as people.

comparable to most of the leading economies around the world. Japan and China. In India unorganized sector have grab 95% retail market. with the Indian consumers confident about their earnings and are spending a large portion of their high disposable incomes. Retail industry contributed around 13% to the GDP. next only to United States.1 per cent. GDP shows the tendency to grow bigger & bigger in future. India is expected to outpace Japan by the year 2010 to become world’s third largest economy. With 54 per cent of the Indians aged below 25. ➢ Economic growth The fast and furious pace of growth of the Indian economy is the driving force for Indian consumerism. second only to China. So it shows that there is a big opportunity to grab the market opportunities. BRCM College of Business Administration. It is expected to grow more than 27& in next 5-6 years. promise a continued robust growth story. So there is an opportunity for organized market to grab those 95% market share. India ranking as the fourth largest economy in terms of Purchasing Power Parity (PPP). with organised retail sector estimated to grow by 400 per cent of its current size. The more recent growth rates of over 9 per cent posted for India. Analysts predict India to sustain an average GDP growth rate of 5 per cent till the mid of this century.4% in 2006-07. Private consumption accounted for 62 per cent of India’s GDP in 2004-05. the young Indian consumer is buying big to look good and feel good. with India projected to outpace the other developed economy markets by 2050. The average annual growth rate for 1994-2004 was pegged at 6. Surat .7 Following economic factors affecting Retail Industry in India : ➢ GNP or GDP per capita As we have already seen in above discussion that India`s GDP growth rate was 9. Projections by analysts suggest that India has the potential to be labeled the fastest-growing economy and outpace the developed economies by 2050. Indian retail business promises to be one of the core sectors of the Indian economy.

Surat . more savings etc. • R – Responsibility BRCM College of Business Administration. Due to high rate of inflation retail Industry may face following problems• • • • • High cost of land. Due to increase in retail industry people get employment. With english being the language for business in india. • Inflation rate In recent times country passes through deflationary period. with over15 premier institutes offering specialised courses in retail management.000. We have seen how the lack of solid ethics can crumble even the largest of companies. • T .Truth Trust and solid relationships are built on telling the truth.700. labour High transportation Reduction in consumption pattern Lesser demand for luxurious product Less profit margin ➢ Consumer & Investor Confidence How did those companies develop and cement that trust? They promised and delivered the following principles of building and maintaining trust. the language skills of the indian workforce score higher than that of emerging economies.8 ➢ Unemployment rate India has a vast resource base of talent and skilled labour. In such a period business have to face many problems like low rate of consumption. Over 37. In India Retail Industry provide employment to 8% of total population. But International retail jiants are increasingly choosing India as the target market of the global retail power house.000 pre-college institutes and over 11. Retail management is a sought after education stream amongst students. Companies must maintain this principle both with internal and external customers.000 in 14.000 students were enrolled in about 150. It is imperative that this value is represented in everything a company does.000 higher education institutions.

• T . unselfishly. or how awful their schedule is. Good lighting in the parking lot and store entrance.ft retail space and achieve Rs.Teamwork Trust is built when everyone within the organization feels a sense of ownership. Customers appreciate the employee who goes out of their way to satisfy the customer.000 crore ($6. • Pantaloon Retail: Will occupy 10 mn sq. RPG: Planning IPO will have 450-plus Music World. 30. fitting rooms with doors that lock. Plans of Large Retailers • Reliance Retail: investing Rs.9 Trust is built when everyone within an organization realizes what their responsibilities are and that they are held accountable for them. Employees want to feel a sense of job security and that they are appreciated for the job the. How well do your employees work together? Are they willing to go out of their way to help each other out? Road Ahead. • BRCM College of Business Administration. employees that handle ringing up a sale with accuracy.ft by 2010.000 crore-plus ($2 bn) sales in 2008. 50-plus Spencer's Hyper covering 4 million sq. • S .67 billion) in setting up multiple retail formats with expected sales of Rs. • U – Unselfishness Trust is built when employees give of their time and talent in the workplace and do it. Take ownership of mistakes and be diligent to find ways to make corrections. or how they didn't get a break. Customers don't appreciate hearing how badly the employee wants to go home. and alarm systems that are visible are all ways to make the customer feel safe in your place of business.9. 90. Choose to schedule reviews quarterly for every member of the company to make sure they are aware of their responsibilities.000 crore plus ($20 billion) by 2009-10. Surat .Security Trust is built on a feeling of security.

Inorbit Mall. • • Political climate . Raheja's: Operates Shoppers' Stop. Political & Government Environment Political systems can be classified based on the party system in the society. and policies of the host government are some factors that can cause social instability. and international politics. they can be classified into parliamentary type or absolutist type.amount of government activity Political stability and risk BRCM College of Business Administration. To understand and assess the political environment of a company it is necessary to identify and evaluate factors that can cause political instability. domestic politics. home and lifestyle centres. The process of establishing a cause-and-effect relationship between political factors and business income is called political risk analysis.10 • LIFESTYLE: Investing Rs. Surat . Some government policies that adversely affect the business environment include . The major political and governmental factors affecting Indian retail sector are .ft retail spaces through 150 stores in next five years.400 crore-plus ($90 million) in next five years on Max Hypermarkets & value retail stores. • • Piramyd Retail: Aiming to occupy 1. Will operate 55 "Hypercity" hypermarkets with US$100 million sales across India by 2015.  Non-convertibility of currency  Preventing the repatriation of profits  Nationalization and inadequacy of compensation  Domestic political violence. Crossword.75 million sq. Companies operating internationally have to deal with foreign politics. Based on the way governments come into power. and 'Home Stop' formats. attitudes of nationals. Social unrest. Political risk refers to political actions that have a negative impact on a firm's value. and mode in which governments attain power.

power generation. water. The increase in Foreign Direct Investments resulted in the Government of India making critical reforms in 1991 and since then. such as: • Project Approval Board (PAB) BRCM College of Business Administration. Surat . In fact. and roads.  The political scenario of India is looking forward to Foreign Direct Investment as a mechanism for development.monopoly laws Municipal licenses  Political impact of larger FDI in Retail Sector The political impact of larger FDI in India has transformed the Indian investment scenario in various areas.  The increase in FDI flow has strengthened the foreign political relations and now foreign companies are trying to persuade the Indian Parliament to increase FDI capital depending on the sector. there has been development in the fields of land use.11 • • • • • • • • • • • • • • Government debt Budget deficit or surplus Corporate and personal tax rates Payroll taxes Import tariffs and quotas Export restrictions Restrictions on international financial flows Minimum wage laws Environmental protection laws Worker safety laws Union laws Copyright and patent laws Anti. The fact that more multinational corporations are investing in India signifies that India is increasingly focusing on the industrial sector. There are some chief bodies and boards that have been set up for the purpose of Foreign Direct Investment. the emphasis on Indian industry has been constantly on the rise. This points towards the great political impact of larger FDI.

practices and traditions for survival and development are passed down from one generation to the next. Thus if several languages are spoken within the borders of a country.12 • • • • Licensing Committee (LC) District Industries Centers Investment Promotion and Infrastructure Development Cell Foreign Investment Promotion Board (1991) Foreign Investment Promotion Council (1996) Foreign Investment Implementation Authority (1999) Investment Commission (2004) • • • Thus. Translations should be undertaken within the country concerned or at least by a native of the country in question. The increasingly competitive international business environment calls upon exporters to tailor or adapt their business approach to the culture and traditions of specific foreign markets. It includes the BRCM College of Business Administration. the political impact of larger FDI has made prospects for India's future relationships with foreign companies really bright and exciting. Surat .  Material Culture: Material culture relates to the way in which a society organises and views its economic activities. In the context of the socio-cultural environment. The inability or unwillingness to do so could become a serious obstacle to success. In this way. Customs. there are a number of factors that you will need to consider. Socio-Cultural Environment Humans essentially create their own cultural and social environment. the members of a particular society become conditioned to accept certain "truths" about life around them. that country is seen to have as many cultures. These are:  Language: A language usually defines the parameters of a particular culture.

 Attitudes: Attitudes are psychological states that predispose people to behave in certain ways. etc. it can also offend prospective customers. one is really referring to a material culture. the role of women in the economy. to work. Stereotypes are sets of attitudes in which one attributes qualities or BRCM College of Business Administration.  Social Organization: Social organization refers to the ways in which people relate to one another. form groups and organize their activities. Insensitivity to aesthetic values can not only lead to ineffective advertising and package design for products. the manner in which the people of the society use their capabilities. Confucianism.  Religious Belief: Religious system refers to the spiritual side of a culture or its approach to the supernatural. educational and political systems of a society. change. and the resulting benefits. Taoism and Hinduism.  Aesthetics: A culture's aesthetics refer to its ideas concerning good taste and beauty as expressed in the fine arts .13 techniques and know-how used in the creation of goods and services. drama and dance . Thus. for example.and in the appreciation of colour and form. Western culture is accepted as having been largely influenced by the Judeo-Christian traditions. as well as on the products they buy. When one refers to an 'industrialised' or a 'developing' nation. while Eastern or Oriental cultures have been strongly influenced by Buddhism. Surat . promotional efforts should be directed at the family rather than the individual. achievement. teach acceptable behavior and govern themselves. art. It thus comprises the social. wealth. Although very few religions influence business activities directly. In a culture where great importance is attached to the family unit. religion exerts a considerable influence on people's actions and outlook on life.music. the impact of religion on human value systems and decision-making is significant. Attitudes may relate.

social workers. Those with high security needs. status. The implication of socially responsible marketing is that retail firms should take the lead in eliminating socially harmful products such as cigarettes and other harmful drugs etc.  Space: The concept of space is different wherever one goes. values and norms. on the other hand. the pool of Indian skilled professionals are boasting of higher disposable incomes. professional groups and others who impose restrictions on marketing process and its impact may be felt by retailers in doing their business. With the economy opening new vistas of employment and with employers offering attractive compensation packages and perks. The locality and size of an Arab business executive's office. the size and location of an executive's office is usually determined by his level of seniority in the company. In western corporate culture. The society that people grow up in shapes their basic beliefs. money. There are innumerable pressure groups such as consumer activists. mass media. In recent years. From frugal spending to frenzied shopping. Demographic Environment Favorable demographics. shelter and clothing. combined with increasing disposable incomes.14 characteristics to a person on the basis of the group to which that person belongs. and they vary greatly from one culture to another. are a poor indication of the person's importance. People who are operating at a survival level will value food. are progressively changing the face of Indian consumerism. etc. may value job security.  Values: Values are judgements regarding what is valuable or important in life. Surat . BRCM College of Business Administration. the concept of social responsibility has entered into the marketing literature as an alternative to the marketing concept. India’s swelling middle class is redefining lifestyle patterns with adoption of western values and growing brand consciousness. on the other hand.

With a number of domestic and international brands available in stores in metros and smaller cities and with a wide range of product offerings from food and grocery to furniture and fixtures. the Indian consumer is fast embracing modern retail. mobility trends. Some of the Demographic Business Factors are : BRCM College of Business Administration. There has been a marked increase in the number of new entrants in the retail sector with player revenues increasing across all the retail segments  The thriving services sector growth has handed young India a bulging wallet and a penchant for luxury products.15  With the country’s income pyramid changing dramatically. Surat .  The first environmental fact of interest to retailers is population because people make up markets. there has been a definite shift from the“saving” tendency to the “spending” attitude. its geographical distribution. density. Retailers are keenly interested in the size of the population. age distribution and social ethnic and religious structure. The new found freedom to shop at plush malls and stores for expensive gadgets like mobile phones and laptops has fuelled the growth of organised retail in India.  The Indian consumer is gradually moving from the local “kirana” shopping to “Mall Hopping”. Increased consumer exposure to the latest trends and brands driven by the mass media is contributing to the soaring retail revenues.

Retail firms. Further. a retailer must communicate with consumers. these changes influence the behaviour of consumers which. anticipate problems.16 • Population size and distribution Age distribution • Socio demographic factors will lead to faster growth of Organized retail in India: • • • Education levels Income levels Ethnic origins Demographic structure is seldom static for long and changes in its composition often test the residency of a marketing firm.qualitative as well as quantitative .that are taking place in the population structure. Surat . respond to complaints and make sure that the firm operates properly. will have to continuously measure the changes . In short. To avoid negative consequences brought on by active consumer groups. in turn. Technological Environment BRCM College of Business Administration. will have a direct impact in the retailer's business. The ripples of these changes will reach the organisation forcing it to alter or amend the existing marketing practices in vogue.

At the same time. Technological innovation. refers to the increase in knowledge. and also includes entrepreneurial expertise and professional know-how. the terms 'method' and 'technique' refer not only to the knowledge but also to the skills and the means for accomplishing a task. Earlier. and may have made major investments in equipment and training only to see a new. Surat . more innovative and costeffective technology emerge. and the serious scarcity of vital natural resources. the transfer of technology has become an important preoccupation of both industrialised and developing countries. it should be remembered that technological progress creates new avenues of opportunity and also poses threat for individual firms. products can be measured with the result customer satisfaction can be enhanced. “Technology is the knowledge or methods that are necessary to carry on or to improve the existing production and distribution of goods. products or processes. Because of the advances of international communication. they are totally unpredictable and secondly. the improvement in skills. or the discovery of a new or improved means that extends people's ability to achieve a given task. services.17 Technology can be defined as the method or technique for converting inputs to outputs in accomplishing a specific task. In the following areas where technology have been extensively used. Advances in technology are an important factor which affects retail marketers in two ways.  The infrastructure of the retail sector will evolve radically in the recent future. First. The emergence of shopping malls are increasing at a steady pace in the metros.With the help of weighing machine. A company may be thoroughly committed to a particular type of technology.” Changes in the technological environment have had some of the most dramatic effects on business. The most dramatic force shaping people's lives is technology. the increasing economic interdependence of nations. they have used balances which could not measure the merchandise correctly. adoption of new technology often is prevented by constraints imposed by internal and external resources.  Packing of the products BRCM College of Business Administration. Thus. Technology has helped retailers to measure the products with modern weighing machines. Technology is a critical factor in economic development. then.

removing the need of a consumer physically visiting the store. processes a cheque electronically by transmitting transaction information to the retailer and consumer's bank. An integrated supply chain helps the retailer in maintaining his stocks. • Payment Payment through credit cards has become quite widespread and this enables a fast and easy payment process. the items in the cart are hit with laser beams and scanned. • ERP System Various ERP vendors have developed retail-specific systems which help in integrating all the functions from warehousing to distribution. BRCM College of Business Administration.18  Printing the name of the shop on the product visibly  Modern refrigerators where merchandise can be used for a long time  Billing Customer Interfacing Systems • Bar Coding and Scanners Point of sale systems use scanners and bar coding to identify an item. Rather than manually process a cheque. Electronic cheque conversion. All that the consumer has to do is to pay for the goods. having digitally captured and stored the image of the cheque. Surat . front and back office store systems and merchandising. getting his supplies on time. which makes the process very fast. a recent development in this area. Tunnel Scanning is a new concept where the consumer pushes the full shopping cart through an electronic gate to the point of sale. preventing stock-outs and thus reducing his costs. In a matter of seconds. • Internet Internet is also rapidly evolving as a customer interface. while servicing the customer better. use pre-stored data to calculate the cost and generate the total bill for a client. the retailer voids it and hands it back to the consumer along with a receipt.

airports. marketing and research activities. etc. hospitals. including: roads. • Efficiency of infrastructure. BRCM College of Business Administration. education. healthcare. To use or adopt new technology in business consist of. There is also a growing consciousness amongst governments of the need to increase technology transfer to the developing countries to help stabilise their economic and social conditions. rolling stock. Customer reviews and retail technology comparisons will help identify the best and most cost-effective solutions for any retail operation. • • • • • • Industrial productivity New manufacturing processes New products and services of competitors New products and services of supply chain partners Any new technology that could impact the company Cost and accessibility of electrical power The transfer of technology is essential for attaining a high level of industrial capability and competitiveness. ports. communication.19 These technology product profiles will help retailers evaluate the latest retail enterprise solutions and keep pace with fast-moving innovations and technological advances. Multinational corporations are playing an increasingly important role in technology transfer because they invest abroad to expand production. Surat .

Global retail industry has been expanding to new markets for a few years now.  How tourism helps the global retail. Surat . and retailing is no exception. It is not a secret that retail business is one of the most actively developing sectors of national economy. An understanding helps you decide what governmental policies to support. Besides territorial extension retail chain now tends to create new formats of retail outlets in order to gain more customers. Organizations are venturing beyond national boundaries in the pursuit of business opportunities. Many retailers are increasingly venturing beyond their traditional territories. Studying international business is important because: • Most companies are either international or compete with international companies.20 Global Environment A major environmental change that has taken place in the last fifteen years is the globalization of business. The best way of conducting business may differ by country. With the increase in the purchasing power of the people the retail business is sure to flourish. identifying expansion opportunities in new countries and regions around the world. Retail business grew between 25% . A strong retailing sector boosts tourism as seen from the experience of Singapore and Dubai. The world has become a global village and business has become global in character. • • • • Modes of operation may differ from those used domestically. An understanding helps you make better career decisions. Investment in whole supply chain Improved product BRCM College of Business Administration. Globalisation is affecting all aspects of social and economic activity.30% percent in India and 13 percent in fast growing economies China and Russia.

The Indian middle class is already 30 Crore & is projected to grow to over 60 Crore by 2010 making India one of the BRCM College of Business Administration. It is technology that will help the organized retailers to score over the unorganized retailers. development of efficient small and medium size industries. reduce inventory holding and ultimately save cost. 2. Successful organized retailers today work closely with their vendors to predict consumer demand. in contrast the retail majors are experiencing a ROI of 810%. Customer Loyalty: Retail chains are yet to settle down with the proper merchandise mix for the mall outlets. a stand-alone store has a ROI (return on investment) of 25-30%. 2.up-gradation of agriculture. They introduced two innovative logistics techniques – cross-docking and EDI (electronic data interchange).21 basket from India for exports. On an average a super market stocks up to 5000 SKU's against a few hundreds stocked with an average unorganized retailer. Long term benefits. a high street store of retail chain has an average conversion of about 50-60%. Example: Wal-Mart pioneered the concept of building competitive advantage through distribution & information systems in the retailing industry.  Weakness: 1. so they have stabilized in terms of footfalls & merchandise mix and thus have a higher customer loyalty base. On the other hand. shorten lead times.  Opportunity: 1. the conversion ratio has been very low in the retail outlets in a mall as compared to the standalone counter parts. Retailing is a " technology-intensive" industry. Less Conversion level : Despite high footfalls. Surat . It is seen that actual conversions of footfall into sales for a mall outlet is approximately 20-25%. SWOT Analysis  Strength: 1. Since the standalone outlets were established long time back. As a result.

BRCM College of Business Administration. 2. Pepsi on the other hand is experimenting with the farmers of Punjab for growing the right quality of tomato for its tomato purees & pastes. The contribution of these tier-II cities to total organized retailing sales is expected to grow to 20-25%. Rural Retailing: India's huge rural population has caught the eye of the retailers looking for new areas of growth.00.000 Crore by 2010. 2. they are parallel to a large supermarket with no or little overheads. high degree of flexibility in merchandise. Even now malls are just a place to hang around with family and friends and largely confined to window-shopping. Shopping Culture: Shopping culture has not developed in India as yet. and reach INR 1. It is estimated to grow at the rate of 25-30% p. Organized retail is only 3% of the total retailing market in India. If the unorganized retailers are put together. India will have over 55 Crore people under the age of 20 . Surat . ITC launched India's first rural mall "Chaupal Saga" offering a diverse range of products from FMCG to electronic goods to automobiles. The 'retail boom'.  Threat: 1.reflecting the enormous opportunities possible in the kids and teens retailing segment. The Godrej group has launched the concept of 'agri-stores' named "Adhaar" which offers agricultural products such as fertilizers & animal feed along with the required knowledge for effective use of the same to the farmers. the focus has now been shifted towards the tier-II cities." Hariyali Bazar" is started by DCM Sriram group which provides farm related inputs & services. prices and turnover. 4. attempting to provide farmers a one-stop destination for all their needs.22 largest consumer markets of the world. The IMAGES-KSA projections indicate that by 2015. While the metros have already been exploited. display. 85% of which has so far been concentrated in the metros is beginning to percolate down to these smaller cities and towns.a. 3. Percolating down : In India it has been found out that the top 6 cities contribute for 66% of total organized retailing.

investopedia. the Indian retail industry is still at its infancy.wikipedia. it can be said that though the global retail industry has reached its maturity.com  Books ○ Capital Budgeting: Theory and Practice by Pamela Parrish Peterson BRCM College of Business Administration.23  Conclusion:- To conclude. Bibliography  Internet ○ ○ ○ www. But with the huge potentiality existing in the Indian market.ril.com www. it is expected to grow in leaps and bounds in the near future. Surat .org www.

24 BRCM College of Business Administration. Surat .

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