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Retail Sectors: Presented By:-Purval, Rashmi, Sandeep, Joy Jayesh
Retail Sectors: Presented By:-Purval, Rashmi, Sandeep, Joy Jayesh
Presented by :-
Purval, Rashmi, Sandeep, Joy
Jayesh
Retail Sector
Evolution of Retail
Barter System was known as the first form of retail.
As time passed currency was exchanged with goods
and services.
Hawkers carried out the first Retailing in Push Carts
Followed by Kirana Stores …….. Mom and Popup
Stores
Finally Manufacturing era necessitated the small
stores and Specialty stores
It was a seller market still than this point of time
with the limited no of brands available
Barter chain Single brand franchise chain
Standalone large store
<_
Chain of large stores And Finally Malls
• Economist says that Boom Has
Started of Retail due to more
spending Capacity of Indians
Big PictureGDP
2005 -06 :-PictureGDP -$700 bn :-
(50%)
Heterogeneous country
BETTER
CREATIVE/ INVESTMEN
INNOVATIVE T/
avenues for BUSINESS
CONSUMERS opportuniti
to want to es for our
spend their PARTNERS
money &
INVESTORS
Different products involved in
Retailing
Food
Books & Magazines
Fashion & Clothing
Personal Care
Optical Consumer Electronics
Sport & Leisure
Home Ware
Footwear & Leather
Toys & Games
Jewellery & Watches
Furniture
Petrol
Manufactu
rers
Whole
seller
Organized Sector
Distributor
Retailer
Types of Retail Sectors
Unorganized Retailing
Hawkers (Kirana)
Weekly Markets
Organized retailing
Convenient / Departmental stores
Factory outlets and discounts Market
Supermarkets
Wholesalers market
Company and Franchises showroom
Disadvantages Of Retail
Industry in India
Margins are low
High property cost
Poor Infrastructure
Expertise in logistics
Couple of firms in retail sector have turn
over more than Rs 100 cr
Factors that attracted major
industry players to enter the
retail sector
Phenomenal success of certain players in retail
sector
Eg: Shopper’s Stop
Hype created by management consultants and
media
Phenomenal growth of service sector and down
turn in manufacturing sector
A good way to leverage existing property
Eg: Primals started developing Crossroads after
closing of Roche factory they have acquired on
prime property in Mumbai
Cont
….
Globalization
Success of organized retail sector in
developed countries
Changes in Consumer behavior and increase
in their purchasing power.
Ever green demand for basic things like food
Negative working capital ; Companies buy on
credit and sell for cash
Importance
Largest and fastest growing sector in India.
2.5
2
Price
1.5
0.5
0
0 0.5 1 1.5 2 2.5 3 3
Demand
Government Policies
The retail industry in India is growing at a significant pace.
However, there are several problems faced by the industry.
The major challenges for the organized sector include:
3% 2% 9%
8% 38%
13%
27%
Share of Organized Retail
Key Players
Inadequate Infrastructure
retail in India
International retailers in
India: Strategies
Distribution
International company sets up local
distribution office
Supply products to Indian retailers
to sell
How they
Also set up franchised outlets for
are present
brand
Swarovski, Hugo Boss
Wholesale trading
Cash and Carry operations
Improve competition
Develop the market
Greater level of exports due to
Benefits of increased sourcing by major players
FDI Sourcing by Wal-Mart from China
improved multifold after FDI
permitted in China
Similar increase in sourcing
observed for Metro in India
Provides access to global markets
FDI policy
No incentives needed to attract FDI
HOME
FOOD
COMMUNICATIONS
GENERALMERCHANDISE
LEISURE &ENTERTAINMENTL
Pantaloon Retail (I)
Limited
Fashion
Pantaloons 25,000(sq.ft.) Lifestyle(format)
Central 1,25,000(sq.ft.) Lifestyle
Big Bazaar 50,000(sq.ft.) Value
Fashion Station 15,000(sq.ft.) Value
Competitive Market