AS A RETAIL MANGER OF GROCERY RETAIL COMPANY, PLANNING

TO ENTER THE INDIAN MARKET, YOU ARE REQUIRED TO

CRITICALLY ANALYSE THE INDIAN RETAIL ENVIRONMENT

 Abhiraj kr Dey(1)
 Ajay Jaiswal(2)

 Ambu Choudhary(3)

 Aminur Rahman(4)

 Anshu Choudhary(5)

 Shantanu Patra(38)
INTRODUCTION
 The Indian Food Retail
Industry is growing at a rate of
30%
 The Indian Food & Beverages
is the major segment, worth Rs
8,97,000 crore.
 Food consumption growth
2010 = +7.3%; forecast to
2015 = +54.3%
 2010 mass grocery retail sales
= +32.6%; forecast to 2014 =
+22.2%
FACTORS AFFECTING INDIAN RETAIL
MARKET
ECONOMIC FACTORS
 The size of GDP of any
country, at present, India to
Double Its GDP From $1
Trillion in 2006 to $2 Trillion
this Year,
 India's gross domestic product
(GDP) would be around 8.2
percent at the present fiscal
year, which the second highest
all over the world
 Constant rise in the per capita
income and the consumption
level
SOCIO-CULTURAL FACTORS
 Socio-Cultural factors include Caste, Creed, Religion
and the various social factors required for establishing a
new business
 Doing business in India involves building relationships.
Indians only deal favorably with those they know and
trust -  even at the expense of lucrative deals
 It also includes strong bonds with individuals or a group
which immensely affect the business in a positive as well
as in a negative way
POLITICAL FACTORS
 As in any part of the world, political
influence is highly essential to start a
business in India. It is the biggest
democracy in the world with multi
party political system
 India has a plural political system.
With numerous political parties,
national level and state level, it is very
difficult to get a consensus among all
parties for starting any business
 Also these political parties have
patronage of many factors, caste,
creed and ideologies.
 There are political parties with left
centric communist ideologies; they are
totally against direct foreign
investments.
POLITICAL FACTORS(FDI POLICY)
 FDI up to 100% for cash and carry wholesale trading
and export trading allowed under the automatic route.
 FDI up to 51 % with prior Government approval (i.e.
FIPB) for retail trade of ‘Single Brand’ products
  FDI is not permitted in Multi Brand Retailing in India.
TECHNOLOGICAL FACTORS
 The other important aspect of
retailing relates to technology.
It is widely felt that the key
differentiator between the
successful and not so
successful retailers is primarily
in the area of technology.
Simultaneously, it will be
technology that will help the
organized retailer score over
the unorganized players,
giving both cost and service
advantages. Retailing is a
`technology-intensive' industry
THANK YOU