MACRO-ECONOMIC ENVIRONMENT IN THE

INDIAN RETAIL MARKET

SUBMITTED BY :
PIYUSH SINGH(ROLL:18)
PRITAM KAR CHOWDHURY (ROLL: 20)
PRITAM GHOSH ROY CHOWDHURY (ROLL: 19)
PRITHA DASGUPTA (ROLL: 21)
PRIYABRATA GHOSH ROY CHOWDHURY (ROLL: 22)
ECONOMIC ENVIORNMENT OF INDIAN RETAIL
MARKET:
• Total retail sales in India will grow from US$ 395.96 billion in 2011 to US$ 785.12 billion
by 2015.(BMI)
• Strong underlying economic growth, population expansion, the increasing wealth of
individuals and the rapid construction of organized retail infrastructure are key factors
behind the forecast growth.
• Mass grocery retail (MGR) sales in India are expected to undergo tremendous growth
over the forecast period.
• Organized retail in India is expected to increase from 5 per cent of the total market in
2008 to 14-18 per cent and reach US$ 450 billion by 2015,(PWC)
• Driven by the growth of organized retail coupled with changing consumer habits, food
retail sector in India is set to be more than double to US$ 150 billion by 2025, according
to a report by KPMG.
TECHNOLOGY IN RETAIL
• The availability of information in near-real time on how the mall is working from all
the perspectives. Keeping abreast of customer buying patterns, preferences, and
conversion rates etc. is mandatory for a retailer to stay relevant in the crowded mall.
It helps them decide on pricing, promotions , market analysis, site selection,
merchandising, distribution, delivery and facilities management etc..
• By using multiple servers, which run any standard operating system (Windows,
Linux, UNIX etc.) and has any (RDBMS) database software installed in it., enables
the retail companies to analysis, and compute the current market condition and to
organize, visualize, analyze and leverage business by implying greater work
efficiency, and improved productivity and communication, in the work area.
• Using the DBI analysis and reporting software, which can be accessed over the
internet business managers can view reports, do analysis and draw conclusions on
the data.
• software's helps to track, analyze and automate customer footfalls, time-slots, trends
and more when the market in full swing
• Technology helps in understanding customer profile. This helps in taking and rolling
out quick decision in retail planning etc..
THE CHANGING FACE OF THE INDIAN RETAIL CONSUMER :

• Increasing disposable income .

• Favorable demography.
• Progressive growth in terms of working women & and high penetration of all
the media are the key drivers.
• Salary package have highly increased with many perks and compensation
coming in.
• And to add more or less middle class people has started living in isolated
nuclear families and that have made them dump from “zero” spending and
frugal living to zero saving ,living life King Size.
• Globalization have bought the world closer opening doors to culture , trends
and lifestyle. That were alien and unknown.
• Retail malls and outlets for branded goods mushrooming up everywhere ,
fuelled by the new found confidence and attitude of shop till you drop, they
slowly moved from kirana shopping to mall shopping.
GOVERNMENT POLICIES (FDI):
The current FDI acts as on (7 th April 2011) for the retailers as follows :
• For single branded retailing India allows 51 % FDI.
• For multibranding there is no FDI.
• Starting a business in India takes 35 days compared to the world average of
48 days(source:PWC )
• The freedom to start ,operate and close a business is significantly restricted
by the national regulatory board.
• Govt expenditure in India including consumption and transfer payments are
low.
• All business must contain with extensive federal and state regulation, as well
as an infamously slow bureaucracy .
CONCLUSION:
• Although the above reports give a colourful picture of retail market in India yet there still
certain shortcomings
• Unavailability of quality real-estate .
• Lack of quality logistics and supply schain management system.
• The economy is fully protected from inflationary effects.
• The occasional price rise in crude oil & other petroleum by-products are usual
phenomenon of this economy.
• .Inflation is completed by constant price rise of food products.
However,the situation not completely out of the hand and if the company takes proper
care to such issues then an overall profitable business can be expected from this part of
the globe.
THANK YOU