Retail Sector

Group 02
05. Alok Kumar
22. Harshita Joshi
34. Mohan Ram S.
37. Pallavi Pawar
41. Pawan Kamalesh Thadani
 Index
Topic
Introduction to retail Industry 3
Types of Retailing 4
Global Retail Scenario 6
Top 10 Global retail companies 7
Indian Retail Scenario 8
Organised & Unorganised Retailing 9
Formats of Retail 10
Retail Terminology 11
FDI 12
GRDI 13
Porter’s Five Forces 14
Recent Issues 15
Models in Rural Retailing 16
 INTRODUCTION TO RETAIL INDUSTRY
Retail

The sale of goods

to the public in Agrochemical Companies with Retail Outlets
relatively small
quantities for use 1. Coromandel International Limited- Mana Gromor
or consumption 2. Zuari Agro Chemicals Limited- Jai Kisan Junction
rather than for
resale.

Manufacturer Wholesaler Retailer Consumer 3

 TYPES OF RETAILING

RETAILING

Corporate Non-Store
Store Retailing
Retailing Retailing

Direct Automatic
Direct Selling Buying Service
Marketing Vending

4
 GLOBAL RETAIL SCENARIO

• The Retail Industry was valued

at USD 23,460 billion in 2017
• Expected to register a CAGR of 01
5.3% during 2018-2023
04
• To reach USD 31,880.8 billion by
2023
03
• Internet Retailing is the Fastest
Growing Segment
02
• Asia Pacific Expected to Witness
the Fastest Growth Rate 05

6 Source- Businesswire
 Source- Deloitte

TOP 10 GLOBAL RETAIL COMPANIES

Retail Revenue FY 2017 (US$M)

600000
500000
400000
300000 500343
200000
100000 129025 118982 118573 111766 100904 99115 98287 79398 73961
0
. . . . .
In
c
tio
n
C o
Inc o up Inc Inc HG t io
n
L C
res
,
or
a
ge
r
m
, Gr ot
,
c e , o.
o
or
a
co
P
o r p o c. o rz e p an C r p s
tr S
t o Kr n a D li & Co T e
C
he zo hw e l
bH
a al
e
T a Sc om sA lt h
a l M
l e s
A
m H o ot Gm e a
W ho he B uf H
T s a S
W e en i n k C V
st co gr iE
o al d
C W Al

7
 INDIAN RETAIL SCENARIO
 Retail sector  is emerging as one of the
largest sectors

India is world’s fastest growing e- Retail investments doubled to reach Rs

commerce market 1,300 crore (US$ 180.18 million) in 2018.

Retail market to grow from US$ Retail has received FDI of US$
672 billion in 2017 to US$ 1,200 1.66 billion during April 2000–
billion in 2021 March 2019

8
Source- IBEF
 ORGANIZED & UNORGANIZED RETAIL

Indian retail market ( in USD Billion)

Organized retailing refers to trading 800

activities undertaken by licensed retailers. 700

697.71
627.4
600 563.55
509.94
500
426.43
400

300

200
Unorganized retailing refers to the
100 66.6 79.43
traditional formats of low-cost retailing. 39.26 46.82 55.83

0
2014 2015 2016 2017 2018

Organized Column1

Marketinglessons 9
 FORMATS OF RETAILING

DEPARTMENT STORES DISCOUNT STORES SUPERMARKET

WAREHOUSE STORES MOM & POP STORES SPECIALITY STORES

MALLS E-TAILERS DOLLAR STORES

10
 RETAIL – TERMINOLOGIES
TERMINOLOGIES TERMINOLOGIES
Carrying cost Purchase order
Cross merchandising Point-of-sale (POS) system:
Dead stock Impulse purchase
FIFO (first in first out) Markdown/markup
Franchise Clienteling
Green retailing Monthly Sales Index

LIFO (last in first out) PLU( price look up)

Merchandising Tribetailing

Niche retailing Webrooming

11
 FOREIGN DIRECT INVESTMENT
a) Food Processing
100% b)Development of Seed and Planting
FDI Material

Single Brand Retailing

• 100% retail through automated route
FDI
Multi Brand Retailing
• Maximum 51%
• No e-commerce allowed

Advantages and Disadvantages

12
Source- The Hindu,Business World
 Source-AT Kearney
GRDI

Selection Criteria for

Country Risk

countries
Global Retail Development Index
Population size
Published by London based consultancy AT
Kearney
Wealth
Identifies markets most attractive for retailers
and ranks countries on basis of ease of doing
business in retail sector Scores
Analysis 25 macroeconomic & retail 71.7 70.4
specific variables 60.9 59.8 59.4

Ranks 30 developing countries

2017 GRDI- The Age of Focus

India China Malaysia Turkey UAE

Scores
13
PORTER’S 5 FORCES ANALYSIS BARGAINING POWER OF SUPPLIER: LOW

Power of supplier
OF RETAIL INDUSTRY • Large number of suppliers
• Tough Competition between suppliers
THREAT OF • Easy availability of suppies
POTENTIAL
ENTRANTS:
STRONG THREAT OF
SUBSTITUTE
• Little products
PRODUCTS:
differentiation. Competitive LOW
• Low cost of Threat of potential Rivalry Threat of substitute
doing business entrants products • Less number of
HIGH substitutes
• Moderate capital available
requirements • High
development

Power of consumer
cost in NPD
BARGAINING POWER OF CONSUMERS: LOW
• Low varieties of
• Large population of consumers
substitution
• High diversity prevalent
• Small individual purchases
14
 Recent Issues In Retail Industry

Lack of Technology Adoption

Nestle to replace Indiabulls Housing

.
Mandatory 30% domestic sourcing
Finance in Nifty from Sept 27 in Single Brand Retailing

Lack of Integrated Planning • Dabur , Marico, Parle –

• Multiple platforms the slowdown hit them
• Inventory problem differently
prices

Amazon Go
• Cash Crunched Distributors
• Digitalization with AI

Changing Trends
• Product centric Models to Customer centric Models 15
 MODELS OF RURAL RETAILING

ITC e-Choupal

Godrej Aadhar & Manthan

CIRCLE DIAGRAM

TATA Kisan Sanskar

Delhi Shriram’s Kissan Hariyali Baazar

16
15
Thank you