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RETAILING IN INDIA AND

ACROSS GLOBE:
EMERGING TRENDS
AN IN-DEPTH ANALYSIS
DEFINING RETAILING AND RETAILER
• According to Philip kotler, “Retailing includes all the activities
involved in selling goods or services to the final consumes, for
personal, non-business use.” A retailer or retail store is any business
enterprise wholesales volume comes primarily from retailing.
• In simple words, retailing refers to the activities involved in the
selling of goods to ultimate consumers for personal or household
consumption.
• A retailer, or merchant, is an entity that sells goods such as clothing,
groceries, or cars directly to consumers through various distribution
channels with the goal of earning a profit. This merchant can
operate in a physical building or online.
FUNCTIONS OF RETAILING
• Warehousing and Storing of goods are one of the key functions of
retail. After procurement of goods from the wholesalers these must
be stored properly in warehouses before being sold to the consumer.
• Buying and Assembling of finished goods forms another important
function performed by the retailers. Together with warehousing and
storing, these two stands as the first and foremost operations.
• Providing Information to the customers about the products on sale
also falls under the purview of retailers. Further, such information
must also be shared with the wholesalers to ensure proper supply of
goods as per demand.
• Demand Estimation for goods on sale must be done by the retailers.
Appropriate demand estimation is the key to understanding the
quantity of inventory required to fulfill consumers’ needs at any given
time.
• Marketing of course, is yet another necessary function of retailing.
Proper retail marketing efforts, both traditional and digital, are of
vital importance to the success of retail.
RETAIL FORMAT
• The retail format (also known as the retail formula) influences the
consumer's store choice and addresses the consumer's
expectations. At its most basic level, a retail format is a simple 
marketplace, that is; a location where goods and services are
exchanged.
• In some parts of the world, the retail sector is still dominated by
small family-run stores, but large retail chains are increasingly
dominating the sector, because they can exert considerable buying
power and pass on the savings in the form of lower prices. Many of
these large retail chains also produce their own private labels which
compete alongside manufacturer brands..
TYPES OF RETAILING
• Store Retailing is by far the most common form of retailing. As the
name suggests, the items are sold at physical stores in this case.
Examples include departmental stores, supermarkets and the like.
• Non-store Retailing involves the sales of goods to consumers from
non-store sources such as automatic vending machines.
• Corporate Retailing is done through retail structures such as
franchises or chain stores, which are more efficient and have a larger
reach.
• Mobile Retailers transact their business through mobile phone-based
platforms, such as smartphone apps. The product is then shipped
physically to the consumer.
• Internet Retailers rely on websites for sale of goods, such as
amazon.com. As they do not incur the usual overheads of brick-and-
mortar stores they can sell items at relatively lower prices.
• Service Retailing focuses on providing services rather than tangible
goods. This can be done through offline as well as online platforms,
such as software downloads and house maintenance work.
INDIAN RETAIL SECTOR
• Indian retail industry has emerged as one of the most dynamic and fast-paced industries
due to the entry of several new players. It accounts for over 10% of the country’s gross
domestic product (GDP) and around eight% of the employment. India is the world’s fifth-
largest global destination in the retail space.
• India ranked 73 in the United Nations Conference on Trade and Development's Business-
to-Consumer (B2C) E-commerce Index 2019. India is the world’s fifth-largest global
destination in the retail space and ranked 63 in World Bank’s Doing Business 2020.
• India is the world’s fifth-largest global destination in the retail space. In FDI Confidence
Index, India ranked 16 (after US, Canada, Germany, United Kingdom, China, Japan,
France, Australia, Switzerland, and Italy).
MARKET SIZE
• As per Kearney Research, India’s retail industry is projected to grow at a
slower pace of 9% over 2019-2030, from US$ 779 billion in 2019 to US$
1,407 billion by 2026 and more than US$ 1.8 trillion by 2030.
• According to the Retailers Association of India (RAI), the retail industry
achieved 93% of pre-COVID sales in February 2021; consumer durables and
quick service restaurants (QSR) increased by 15% and 18% respectively.
• E-Retail has been a boon during the pandemic and according to a report by
Bain & Company in association with Flipkart ‘How India Shops Online 2021’
the e-retail market is expected to grow to US$ 120-140 billion by FY26,
increasing at approximately 25-30% p.a. over the next 5 years. India has the
third-highest number of e-retail shoppers (only behind China, the US). 
DEVELOPMENT SCENARIO/ IMPACT
• The Indian retail trading has received Foreign Direct Investment (FDI)
equity inflow totalling US$ 3.61 billion during April 2000-June 2021,
according to Department for Promotion of Industry and Internal
Trade (DPIIT).
• With the rising need for consumer goods in different sectors
including consumer electronics and home appliances, many
companies have invested in the Indian retail space in the past few
months.
• India’s retail sector attracted US$ 6.2 billion from various private
equity and venture capital funds in 2020.
GROWTH IN INDIAN RETAIL EXAMPLES
• In October 2021, Reliance announced plan to launch 7-Eleven Inc.’s
convenience stores in India.
• In October 2021, Realme launched 100 new exclusive stores across India to
expand and strengthen its footprint in the country.
• Tanishq, Shoppers Stop and Bestseller India (sells fashion brands Vero Moda,
ONLY and Jack & Jones) plan to add 10-35 stores in FY22.
• Flipkart hired 23,000 individuals in India between March and May 2021 in
various capacities across its supply chain, including delivery executives, to
strengthen the supply chain.
• In May 2021, Big Bazaar rolled out its two-hour delivery service in small cities,
such as Bhopal, Mangalore, Raipur, Ranchi, Guwahati, Kanpur, Lucknow, and
Varanasi, and recorded a boost in orders over the past weeks.
GOVERNMENT INITIATIVES
• In October 2021, the RBI announced plans for a new framework for
retail digital payments in offline mode to accelerate digital payment
adoption in the country.
• Government of India has allowed 100% FDI in online retail of goods and
services through the automatic route, thereby providing clarity on the
existing businesses of E-commerce companies operating in India.
• The government’s focus to improve digital infrastructure in Tier 2 and
Tier 3 markets would be favourable to the sector.
• The Minister of MSME announced inclusion of retail and wholesale
trades as MSMEs. Retail and wholesale trade will now get the benefit of
priority sector lending under the RBI guidelines.
ROAD AHEAD
• E-commerce is expanding steadily in the country. Customers have the ever-
increasing choice of products at the lowest rates. E-commerce is probably
creating the biggest revolution in retail industry, and this trend is likely to
continue in the years to come. Retailers should leverage digital retail
channels (E-commerce), which would enable them to spend less money on
real estate while reaching out to more customers in tier II and tier III cities.
• Online retail market in India is projected to reach US$ 350 billion by 2030
from an estimated US$ 55 billion in 2021, due to rising online shoppers in
the country.
• Nevertheless, long-term outlook for the industry looks positive, supported
by rising income, favourable demographics, entry of foreign players, and
increasing urbanisation.
WALMART CASE CUM ANALYSIS
FINAL THOUGHTS
• Based on all the facts and figures, the kind of support government is
providing to boost retail in India and immense potential of growth of E-
commerce, it can be con concluded that the retail sector is one of the
highly promising sector in terms of growth, contribution to GDP and
employment generation.

CREDITS- BHAVYA GUPTA


THANK YOU

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