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    Amardeep Raj
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    The retail industry in India is growing rapidly due to increasing demand and investments. Some of the key growth drivers are the rising disposable incomes of consumers, which is making them more brand conscious. There is also greater availability of consumer financing options and supportive government policies that allow 100% FDI in single-brand and 51% in multi-brand retail. Several international retailers and private equity firms have announced large investments in Indian retail companies, which will help drive further expansion.

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    Retail management

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    The retail industry in India is growing rapidly due to increasing demand and investments. Some of the key growth drivers are the rising disposable incomes of consumers, which is making them more brand conscious. There is also greater availability of consumer financing options and supportive government policies that allow 100% FDI in single-brand and 51% in multi-brand retail. Several international retailers and private equity firms have announced large investments in Indian retail companies, which will help drive further expansion.

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    © All Rights Reserved
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    20 views5 pages

    Retail Assignment

    Uploaded by

    Amardeep Raj
    The retail industry in India is growing rapidly due to increasing demand and investments. Some of the key growth drivers are the rising disposable incomes of consumers, which is making them more brand conscious. There is also greater availability of consumer financing options and supportive government policies that allow 100% FDI in single-brand and 51% in multi-brand retail. Several international retailers and private equity firms have announced large investments in Indian retail companies, which will help drive further expansion.

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    © All Rights Reserved
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    of 5

    Classification of Retail Formats

    Retail Formats

    Store Based
    Non-store Based Service Based

    Merchandise
    Ownership Based Based

    Independent Retailers Convenience Store Direct Sales Various service providers


    Chain Stores Supermarkets Email orders Banks
    Franchises Hyper Market Postal Orders Car rentals
    Co – operative stores Speciality Store Telemarketing Service contracts
    Departmental store Automated Vending
    Factory outlets
    Catalogue
    Showrooms
    What Advantage India Has?

    Demand side reasons Finance Options


     According to the retailer’s  Collective efforts of
    association of India (RAI) financial houses and banks
    the retail Industry with retailers are enabling
    achieved 93% of pre-covid consumers to go for
    sales in February 2021, durable products with
    Consumer durables and easy credit.
    quick service restaurants
    (QSR) increased by 15%
    and 18% respectively.

     Increasing purchasing
    power has led to growing
    demand

    Increasing investment Policy Support


     Foreign Retailers entering  About 51% FDI in multi
    the Indian market. brand retail.
     100% FDI in single brand
     Cumulative FDI inflows retail under the automatic
    student US dollar 3.47 route.
    billion between April 2000  Goods and services tax
    and March 2021. was introduced for single
    unified tax system.
     India's retail sector  To provide a level playing
    attracted US dollar 6.2 field to stakeholders the
    billion from various government is preparing
    private equity and venture policies of retail FMCG and
    capital funds in 2020. e-commerce within a
    single policy framework.
    Growth Drivers
    1 Consumer  India's per capita GDP increase to rupees
    Preference 143,048 in FY 19 from rupees 129,901 in
    FY18.
     Indian consumers are now shifting more
    towards premium brands

    2 Brand  Factors like young demographic


    Consciousness composition, increasing personal
    disposable income, preferences towards
    affordable luxury and rising middle class
    population are developing preferences for
    specific brands.
    3 Consumer  According to India ratings and research
    Finance (Ind-Ra), domestic organised food and
    Opportunities grocery retailers are expected to increase
    by 10% YOY in FY22 with organised retailer
    and e-commerce likely to benefit from the
    ongoing demand for essentials.
    4 FDI Approvals  Department for promotion of industry and
    internal trade (DPIT) approved three
    foreign direct investment (FDI), mountain
    trail food, Kohler India corporation, and
    Merlin entertainments India in single
    brand retail.
     DPIT has a proved to FDI proposals worth
    more than rupees 400 crore within the
    retail sector.
    5 Investments  In September 2020, US private equity firm
    silverlake announced plant to invest
    rupees 7500 crore in Reliance retail, by
    silver lake in a Reliance industries
    subsidiary of the US dollar 1.35 billion
    investment in jio platforms are there in
    2020.
     In November 2020, Saudi Arabia sovereign
    public investment fund (PIF) announced
    plan to invest in Reliance retail venture
    limited for 2.04 % stake.
     in November 2020 fresh to home, a
    Bengaluru-based online fresh fish and
    meat retailer raised US dollar 121 million
    in series C funding, led by investment
    corporation of Dubai (ICD)
     in December 2020, Singapore sovereign
    wealth fund, GIC pte Ltd. And ESR caymn
    Ltd. Formed a JV to develop and purchase
    industrial and logistic assets worth US
    dollars in 50 million in India

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