Akant Goyal

Vipul Thapa
Saptarag Banerjee
Palvasha Arora
Tushar SIngh

Analysis Of Retail Industry
Understanding Retail Sector
It involves the sale of goods from a single point
directly to the consumer in small quantities for his end
use
It has emerged from mere merchandising to casting
customers in a story, reflecting their desires and
aspirations, and forging long-lasting relationships
Organized retail or modern retail is usually chain
stores, all owned or franchised by a central entity, or a
single store that is larger than some cut-off point. The
relative uniformity and standardization of retailing is
the key attribute of modern retail

Manufacturers ........................ Retailers ................ End User
(Consumer)
Wholesalers
Retail Sector In India
India is the 3
rd
most attractive retail market for global
retailers
Retail accounts for 14-15 percent of GDP
Indian retail sector is highly fragmented with more than 90
% of its business being carried out by traditional family
run stores.
Only 7% of the total population is engaged in organized
retail trading and it is expected to grow at CAGR of 24 per
cent and attain 10.2 per cent share of total retail by 2016
17
Online retail industry in the country touched US$ 12.6
billion in 2013
The Indian retail market, currently estimated at around
US$ 490 billion, is project to grow at a compound annual
growth rate (CAGR) of 6 per cent to reach US$ 865 billion
by 2023
This provides an excellent platform for large scale
retailers to set-up their operations with a slew of
organized retail formats
Trends/Outlook in Retail Market
Omni Channel Retailing will be normal.
The mobile wallet will continue to rise
Shoppers will get more personalized in-store experiences
Technology will be even more integrated in brick and mortar
stores
The number of mobile businesses will increase
Retailers will reinvent loyalty programs
Relationship marketing and thought leadership will rule retailers'
sales & marketing strategies
Customers' need for speed will grow in 2014
Retailers will continue to invest in Big Data to track shoppers
Big Data will lead to bigger privacy concerns for consumers
Social media will heavily influence product decisions
Retail will grow in emerging markets
Bottom Line: The future lies in the hands of consumers



KEY PLAYERS IN THE INDIAN
RETAIL
http://www.ibef.org/industry/indian-retail-industry-
analysis-presentation
http://www.ibef.org/industry/indian-retail-industry-
analysis-presentation
FDI In Retail
51% FDI in multi brand retail
Minimum investment cap is USD 100 m.
30% of the procurement value of
manufactured/processed products must be
from SMEs.
Minimum 50% of total FDI must be
invested in back-end infrastructure within
three years of the first tranche of FDI.
Retail sales outlets may be set up only in
cities with a population of more than
100,000
Retail trading, in any form, through e-
commerce would not be permissible for
companies with FDI engaged in multi-
brand retail trading
100% FDI in single brand retail
Products to be sold should be of a single
brand only.
Products should be sold under the same
brand in one or more countries other than
India
Single-brand retail trading would cover
only products branded during
manufacturing.
The foreign investor should be the brand
owner.
Sourcing of at least 30% of the value of
products sold must be from Indian small
industries/ village and cottage industries,
artisans and craftsmen.

FDI plays an important role in the economic growth of developing countries and is
considered a major source of capital infusion that can provide the booster dose to
countrys economic growth. As per the extant FDI policy, FDI up to 100 per cent is
permitted in single brand retail trading. No decision on FDI in multi-brand retail
trading has been taken
Indian Retail Industry-promising
future for investment
Tier II and Tier III cities.
Opportunities in Organizing retail.
Food and Grocery retail
Infrastructure.
Agriculture.
Supply Chain and Logistics.
FDI Stalled for now by Commerce minister Nirmala
Sitharaman in the new government
Upside
Downside
Removal of intermediaries
between farmers and the
retailers
Bring down prices at retail level
and calm inflation
Reduction in wastage due to
better infrastructure
development
Small and medium enterprises
will have bigger market, along
with better technology and
branding
Induce better competition in the
market , thus benefiting both
producers and consumers
Opening this floodgate may
impact small traders impacting
livelihood of 40 million people
It may bring down prices
initially, but fuel inflation once
MNCs get a stronghold in the
retail market
Farmers may be benefit initially,
but eventually they will be at
mercy of big retailers
It will disintegrate established
supply chains by encouraging
monopolies of global retailers


Latest Buzz in Retail Industry
Sustainable Initiatives
Indian retails should understand the purpose of
environmental sustainability in order to catalyze Indian
retail towards innovative solutions.
Marks & Spencer has 40 lower energy stores based
on LED. Use of LEDs in store has improved total
energy efficiency across its stores, offices and
warehouses by 28% to 41.5 kwh/sq.ft
Walmart earned $231 mn from diverting 80% of its
waste from landfill. It sold the materials within its
waste stream to earn profit that is typically achieved
by its superstores
IKEA, made TEXTUR 34% cheaper than the original
one by eliminating 24 out of 33 components from the
lamp hence reducing weight of the lamp by 28% and
changed its fabric covering. The new lamp VIDJA is
not only cost efficient but also sustainable
.
Thank You