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CHANGING DYNAMICS OF RETAIL

SECTOR AND ITS IMPACT ON INDIAN


ECONOMY

PRESENTATION BY:
SHOBHANA
SURBHI
ANJALI
WHAT IS RETAIL?
Retail is the sale of goods & services from
business to an end user.
It is as old as our civilization.
The most popular form is MOM & POP
STORES (KIRANAS) while Barter is
considered to be the oldest form of retail
trade.
DIVISION OF RETAIL
MARKET
ORGANISED SECTOR
UNORGANISED SECTOR

We are going to focus on Organised Sector which


includes Hypermarket, Supermarket, Speciality
stores etc.
Unorganised sector includes KIRANAS and MOM &
POP Stores.
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.
 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.
 Indian Retail Sector worth is nearly US$ 500 Billion & its
value is expected to cross the mark of US$ 1 Trillion by
2020.
Some important facts
 Switzerland luxury retail brand BALLY plans to enter Indian
market with reliance by the end of 2017 .
 Urban Ladder World Rebute Furniture dealer is planning to
invest around 30 million with Kalari Capital of Mumbai for
their retail showroom.
 IKEA world’s largest furniture retailer plans to invest 10500
crore to set up 25 stores across India & hire 15000
permanent employees and 37000 temporary employees.
Top 5 Key Players Of India
5.Pantaloons came into existence in the year 1997. it is
owned by Aditya Birla Nuvo Limited. Currently 1000 outlets
across the country employing about 35000 employees.
Its capitalization was values at Rs. 1,761.22 crore in May
2015.

4. Trent Limited is the retail wing of the Tata Group was


established in 1998, operates the famous Westside, Star
Bazaar (a hypermarket chain), Landmark (a books & music
chain) and Fashion Yatra (a complete family fashion store).
It operates 83 Westside Stores 50 cities.

3. Fabindia opened its first retail store at New Delhi in 1976.


It has over 196 retail stores across India consisting an array of
product range like garments, jewellery , accessories, home
furnishings, non-textile products, organic food, personal care
products & stationary.
……
2. Shoppers Stop started in year 1991 &
promoted by K. Raheja Group.
69 Shoppers Stop stores in 33 cities, 48 of
Crossword stores, 19 Mothercare stores, 4
MAC & 25 Food beverage outlets and 3
Homestop outlets.

1. Reliance Retail Limited founded in the


year 2006.
Operates more than 1700 stores across the
nation, which serves more than 25
lakhs customers weekly.
Reliance fresh, reliance digital, reliance
trends, & reliance jewels are some of the
divisions of the company.
HOW HAS RETAIL HELPED INDIAN
ECONOMY?
1. It has boosted exports.
2. Increased employment.
3. Promotes tourism.
4. Upgradation of the agriculture sector and other SSI (Small Scale
Industries).
5. Better quality products and services.
6. Has improved Logistics- infrastructure.
7. Farmers benefit significantly from option of direct sales to
organized sector.
8. Impact on intermediaries- Over two third of intermediaries plan
to expand their business in response to increased business
oppurtunities opened by the expansion of the retail.
SECTOR WISE JOBS
SECTOR EMPLOYMENT IN PROJECTED BY PROJECTED SKILL
2013 2020 GAP
CONSTRUCTION /REAL 45.4 76.5 31.1
ESTATE
RETAIL 38.6 55.7 17.1
TRANSPORT & LOGISTICS 16.7 28.4 11.7
BEAUTY & WELLNESS 4.2 14.3 10.1
FURNITURE & 4.1 11.3 7.2
FURNISHINGS
AGRICULTURE 240.4 215.6 -24.8
TOTAL* 459.5 578.6 119.2

ALL FIGURES IN MILLION;* FOR 23 SECTORS: SOURCE: SKILL DEVELOPMENT MINISTRY


Sector wise job
300

250 240.4

215.6

200

150

100 EMPLOYMENT IN 2013


76.5
55.7 PROJECTED BY 2020
45.4
50 38.6
31.1
17.1
28.4
16.7 14.3
PROJECTED SKILL GAP
11.7 11.37.2
4.2 10.1 4.1
0
-24.8
-50

ALL FIGURES IN MILLION: SOURCE: SKILL DEVELOPMENT MINISTRY


BOOM IN THE RETAIL INDUSTRY
IS DUE TO:
increase in the purchasing power of middle
class Indians
Becoming more and more quality conscious
Change in taste and living styles
Emergence of big international names in the
retail sector
The entry of FDI in the retail sector
Rapid growth of IT and Engineering sectors