RETAIL INDUSTRY IN INDIA

RETAILING DEFINITION

According to Philip Kotler “retailing includes all the activities

involved in selling goods or services directly to final

consumers for personal, Non business use”

“Every sale of Goods and Services to final consumers” – Food

products, apparel, movie tickets

RETAILING

Retailing is the final step in distribution of merchandise, for

consumption by the end consumers

Retailers attempt to satisfy consumer needs by having the right

merchandise, at the right price, at the right place, when the

consumer wants it

Retailers are the final business in a distribution channel that links

manufacturers to consumers

INDIAN RETAIL

Indian retail market is the 5th largest market in the world by

economic value.

The Indian retail sector is highly fragmented with more than 90%

of its business being carried out by traditional family run small

stores

Retailing in India can be categorized as:

Unorganized Retailing

Organized Retailing

TYPES OF RETAIL MARKET

Organized market Unorganized market

Professionally managed has a

accounting transparency with

proper usage accounting

standards.

These include the

corporate backed

hypermarkets and retail

chains.

Organized sector in India generates

1.13 million jobs in 2010.

Organized market in India is 8%.

Owner lacks technical &accounting standardization.

For example, owner

manned general stores,

convenience stores, handcart, Kiranas store.

Unorganized market in India is 92%.

PRESENT SCENARIOUnorganized market: Rs. 583,000 crores

Organized market: Rs.5, 000 crores

Over 4,000 new modern Outlets in the last 3 years

Over 5,000,000 sq. ft. of mall space under development

The top 3 modern retailers control over 750,000 sq. ft.

of retail space 

Over 400,000 shoppers walk through their doors every week 

RETAIL MARKET SIZE

India is the 3rd most attractive retail market for global

retailers among 30 largest emerging market

The total retail sales in India will grow from US$424

billion in 2012 to US$795.12 billion by 2015

Indian retail sector accounts for 22% of country’s

GDP.

It contributes 9% to the total employment

In the Indian retailing industry, food is the most dominating

sector and is growing at a rate of 9% annually

60% of the Indian grocery basket consists of non- branded

items

The first few companies to come up with retail chains were in

textile sector like Bombay Dyeing, Raymond’s.

Indian retail is expected to grow 25 per cent annually.

RETAIL FORMATS

Mom and pop stores

Category killers

Department stores

Malls

Specialty store

Discount stores

Hypermarkets

Convenience stores

E – Tailers

Warehouse stores

Vendors

KEY PLAYERS IN INDIA

RPG Retail

Pantaloon

Tata

Landmark group

Future group

Reliance

FDI IN RETAIL

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 for retail trade of ‘Single

Brand’ products.

 FDI is not permitted in Multi Brand Retailing in India.

The foreign direct investment (FDI) inflows in single-brand retail trading

during April 2000 to June 2013 stood at US$ 96.96 million, as per the

data released by Department of Industrial Policy and Promotion (DIPP).

Global Top 10 Retailers World WideRetailer Home Country

Wal-Mart StoresCarrefour GroupThe Home Depot, IncThe Kroger Co.Royal AholdMetro AGTarget CorporationAlbertson’s,Inc.Sears, Roebuck and Co.Kmart Corporation

USAFranceUSAUSANetherlandsGermanyUSAUSAUSAUSA

GLOBAL RETAIL SCENARIO

Global Retail Industry is of size 8 trillion USD

WAL-MART is the NO.1 retailer

Over 50 of the fortune 500 companies are retailers

25 of the Asian top 200 companies are retailers.

Thank you..