INDIAN RETAIL ENVIRONMENT

By:Jaspreet SinghSiddhatrh SinhaVinayak Pant

Who Is a Retailer ?

• One who sells goods directly to consumers

• Purchases a variety of goods from no. of wholesalers, manufacturers etc.

• Last link in the chain of distribution. Consumer touch point.

RetailersManufacturers

A

B

C

Distributors

a

b

c

RETAILERS

Consumers

x

y

z

Pre 1947 1947 1970’s 1980’s 1991

2006 2005 2000-05 1995-99 1991-95

2006-10 Last week

India becomes

Independent

Emergence of organized

retail through textile sector

Emergence of brands

and branded retail outlets

India opens doors through economic reforms

Haats, Melas, typical indian Markets were

formed

Modern Malls are introduced

Multiple formats and products introduced

Expansion of Multiple Indian formats

High street shop centers

Govt allows 51% FDI in Single brand retailing

Rapid Modern mall and single brand specialty store

Bill drafted for FDI limits of 51% in multi brand, 100% in single brand

Evolution in India

Current scenario in India• Organized and unorganized retail– Unorganized (90-95%)

• Types of most prevalent retails – Category killers / Product category based– Discount stores– Malls– Supermarkets/hypermarkets– Rural retail– Open format

• Counter and deep formats• E-retailing (e-tailing)

Peculiarities in Indian buyers’ behavior

• Shopping- for necessity not for experience

• Purchasing capacity

• Timing of purchase

• Buying things as and when needed

Popularity of unorganized sector

• Operated from owned premises inside localities• Family members as employees• Time saved factor• Purchase pattern and behavior • Shorter shelf life products• Smaller shopping lists• Population segment without cars• Open from early morning till late everyday

….cont.

Popularity of unorganized sector• Personal relationship with customers• Products are sold on monthly credit to

customers• Very low operational costs• No inventory cost, as products are stored in

own setting• Supporting infrastructure missing for bigger

chains

Future Ahead

• Stakeholders – Regulators, Employees, Owners, Customers

• India - one of the biggest markets attracting all retailers worldwide

• Share of organized retail may increase, not substantially though

• Unorganized sector still to remain dominant for the foreseeable future

• Own brands will heavily determine profitability of big players

• Rural retail is a largely untapped avenue

Thank you