RETAIL VS MNC

RETAIL INDUSTRY
 The retail industry emerged in the US in the eighteenth
century
 
 Specialty stores were developed only in those areas that
had a population of above 5,000.

 Super markets flourished in the US and Canada with the

growth of suburbs after World War II.
 RETAIL INDUSTRY: DEMAND AND SUPPLY
DRIVERS

The major demand drivers of the retail industry are:

Interest rates
 
Population

 
Employment

 
Personal disposable income 

 
Individual debt
 SUPPLY DRIVES

 Competitors in the industry

 
 Size of the market
 
 Cost of the factors of production
DIFFERENT SEGMENTS IN THE INDIAN RETAIL
INDUSTRY
 Informal and Formal
 On the basis of Format

Modern and Traditional

 Modern Format :- Super Market, Hypermarket,

Departmental Stores.

 Traditional Format :- Kiranas, Kiosks, Street market, and

the Multiple brand outlets.
 SIZE AND CONTRIBUTION OF
THE RETAIL INDUSTRY IN
INDIA
 In terms of value, the Indian Retail industry is worth $300 billion.

 Its contribution to the Gross Domestic Product is about 10% the

highest compared to all other Indian Industries.

 The retail sector has also contributed to 8% of the employment of

the country.

 Retail market for food and grocery with a worth of Rs. 7,43,900
crore is the largest of the different types of retail
industries present in India.
MAJOR RETAILERS IN INDIA 
 Pantaloon

 Tata Group

 RPG Group

 Reliance

 AV Birla Group
CHALLENGES FACING INDIAN RETAIL
INDUSTRY
 The tax structure in India favors small retail business

 Lack of adequate infrastructure facilities

 High cost of real estate

 Dissimilarity in consumer groups

 Restrictions in Foreign Direct Investment

 Shortage of retail study options

 Shortage of trained manpower

 Low retail management skill