A

PRESENTATION ON
RETAILING

PRESENTED TO:-
PROF. S. ROUT

PRESENTED BY:-
KIRAN
SUBRAT
SUDHIR
DEEPAK
SANDIP
PROBLEMS: 
 The organized retail
industry
in India is faced with stiff
competition from the un-
organized sector.
 There is a shortage of
quality real estate and
infrastructure requirement
s in our country.  Very high stamp duties on
 Logistics transfer of property affects
the industry.
 Shortage of retail space in
central and downtown
locations also hinders the
growth of retail industry.
 Customs duties are levied
on import of goods in India.
Contd.
 Presence of strong Pro-
tenancy laws makes it
difficult to evict tenants and
this is posing problems.
 Land-use conversion is
time consuming and
becoming complex.
 For settling property
disputes, it consumes lot of
time.  Rigid building laws makes
procurement of retail space
difficult.

 Prohibition of Foreign
investment in real estate
business.

 Opposition to Foreign Direct

Investment from small traders
affects retail industry.
Conclusion:-
 The organized retail industry is facing lot of opposition
from traders, politicians and the government has to
formulate a separate policy for the industry. 

 FDI needs to be encouraged and land acquisition rules

required modification. Retail has to be recognized as a
separate industry and to be given fair treatment by all.
Reasons for which the Indian
retailers are afraid of:-
 Existence of highly
fragmented retailing:
Organized large
retailers, like Wal-Mart,
Tesco, Carrefour could
potentially cause major
disruption to small retailers.
 Large international retailers
might upset the import
balance, by preferring to
source more globally rather
than use local production
bases.
 Large international retailers
might also resort to predatory
pricing, thereby disrupting
local small and large retailers.
 
 Challenges faced by McDonald’s in
Entering Indian Market
 Regiocentricism: Re-engineering menu
Globally McDonald’s was known for its
hamburgers, beef and pork-burgers.
Most Indians are barred by religion not to
consume beef or pork. To survive, the
company had to be responsive to the Indian
sensitivities. So McDonald’s came up with
chicken, lamb and fish burgers to suite the
Indian palate.

 The vegetarian customer – India– has a

huge population of vegetarians. To cater to
this customer segment, the company came
up with a completely new line of vegetarian
items like McVeggie burger and
McAlooTikki.
The separation of vegetarian and non-
vegetarian sections is maintained throughout
the various stages & that brought the success
for McDonald’s.
Wal-Mart’s principal mistakes on the German
market may be summarized as follows:

 A fundamentally flawed
entry-by-acquisition
strategy.
A management by
“hubris and clash of
cultures”
Contd.
 A blatant failure to
deliver on its legendary
“we sell for less –
always“, “everyday low
prices” and “excellent
service” value
proposition.

 Bad publicity due to its

repeated infringement
of some important
German laws and
regulations.