BY: KUSHAL KALANTRI

RETAIL INDUSTRY

Retail Introduction

Retailing include all the activities involved in selling goods and services to the final consumers for personal, non-business use. A retailer or retail store is any business enterprise whose sale volume comes primarily from retailing.

Functions of retailer

Form utility

Place utility

Time utility

Ownership utility

Histroy

Started from villages in melas and fairs With the government intervention the retail

industry in India took a new shape. Outlets for Public Distribution System, Cooperative stores and Khadi stores were set up.

The retail industry in India gathered a new dimension with the setting up of the different International Brand Outlets, Hyper or Super markets, shopping malls and departmental stores.

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Weekly MarketsVillage FairsMelas

Convenience StoresMom and Pop/Kiranas

PDS OutletsKhadi StoresCooperatives

Exclusive Brand OutletsHyper/Super MarketsDepartment StoresShopping Malls

Traditional/Pervasive Reach

Government Supported

Historic/Rural Reach

Modern Formats/ International

Evolution of Indian retail

Source of Entertainment

Neighborhood Stores/Convenience

Availability/ Low Costs /

Distribution

Shopping Experience/Efficiency

Retail formats

Convenience stores Supermarkets Hypermarkets Speciality stores Department stores Catalogue showrooms Category killers

The Organized Retail Pie

The Indian retail market, which is the 5th largest retail destination globally, has been ranked the 2nd most attractive emerging market for investment after Vietnam in the retail sector by AT Kearney's seventh annual Global Retail Development Index (GRDI), in 2008.

The growth in the Indian retail markets is seen in: Mumbai Delhi Pune Ahmedabad Bangalore Hyderabad Kolkata Chennai

Key Players in the Indian Retail Sector: Bata Pantaloons(Big Bazaar) Indiabulls retail Subhiksha Itc Vishal retail Reliance retail Archies Cafe Coffee Day Landmark Khadims lifestyle Shopers stop

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Hypermarket Big Bazaar Giants Shoprite Star

Department store Lifestyle Pantaloons Piramyds Shoppers Stop Trent

Entertainment Fame Adlabs Fun Republic Inox PVR

Indian retailers

Large Indian retailers

M & S Reliance India is planning to open 35 more stores over the next 5 years, acc to Mark Ashman, CEO of the company. The 51:49 joint venture between UK’s Marks and Spencer and Reliance Retail Ltd.

Carrefour SA, Europe’s largest retailer, may start wholesale operations in India by 2010 & plans to set up its first cash-and-carry outlet in the National Capital Region. Currently, Carrefour exports goods worth US$ 170 million from India to Europe, UAE, Indonesia, Europe, Thailand, Singapore and Malaysia.

Jewellery manufacturer and retailer, Gitanjali Group and MMTC are jointly setting up a chain of exclusive retail outlets called Shuddi–Sampurna Vishwas. The joint venture, which plans to open around 60 stores across India by end of this year, will retail hallmarked gold and diamond jewellery.

Mahindra Retail, a part of the US$ 6.7-billion Mahindra Group, plans to invest US$ 19.8 million by 2010 to step up its specialty retail concept 'Mom and Me'.

Policy Initiatives

100 per cent FDI is allowed in cash-and-carry wholesale formats. Franchisee arrangements are also permitted in retail trade.

51 per cent FDI is allowed in single-brand retailing.

Facts about Indian retail industry Indian retail industry is the largest industry in

India employment of around 8% contributing to over 10% of the country's GDP expected to rise 25% yearly In 20o6 retail industry in india amounted to us

$200 billion. It is expected that by 2010, India may have

600 new shopping centers. Food is the dominating sector

Retailing in India: A forecast: Future of organized retail in India looks bright Growth rate 37% in 2007 & 42% in 2008 According to Kamal Nath - There are under construction at present around 325

departmental stores, 300 new malls, and 1500 supermarkets.

The entry of foreign players A report by Images Retail estimates the number of

operational malls to grow more than two-fold, to cross 412, with 205 million square feet by 2010, & a further 715 malls to be added by 2015, with major retail developments even in tier-II & tier-III cities in India.

Challenges to retail development in India

Retail not being recognized as an industry

The high costs of real estate High stamp duties Lack of adequate infrastructure Multiple and complex taxation

system

Reasons for the fast Growth of Retail Companies in India existing Indian middle classes with an

increased purchasing power rise of upcoming business sectors like

the IT and engineering firms change in the taste and attitude of the

Indians effect of globalization heavy influx of FDI in the retail sectors

in India

Greater Per Capita Income

Greater ConsumerSpending due to

economic boom

Increasing Tax Paying Population

Greater Sourcing

From India

Reduced TaxEvasion

GDP Growth

Increased Tax Revenues

Greater Exports

Employment

Benefits to Govt.

Benefits to government from retail

Recommendations:

Grant industry status to retail Encourage FDI Investment in supply chain

infrastructure Ease distribution-infrastructure

creation, octroi, etc.• Organize real estate market:

-Increase supply of land -ensure proper rent laws

Ensure flexible labour laws

Pantaloons retail

The retail formats followed by Pantaloons retail are Food Bazaar, Big Bazaar, Pantaloons, and Central.

Other formats which the Pantaloons operates. They are Brand Factory, Fashion Station, Sitara, aLL, Shoe Factory, Depot, Top 10, mBazaar, Blue Sky, and Star, Collection i and the E-Zone ,futurebazaar.com.

Pantaloon Retail (India) Limited, is India’s leading retailer that operates multiple retail formats in both the value and lifestyle segment of the Indian consumer market. Headquartered in Mumbai , the company operates over 10 million square feet of retail space, has over 1000 stores across 61 cities in India and employs over 30,000 people.

Pantaloon Retail was recently awarded the International Retailer of the Year 2007 by the US-based National Retail Federation (NRF) and the Emerging Market Retailer of the Year 2007 at the World Retail Congress held in Barcelona.

Pantaloon Retail is the flagship company of Future Group, which is promoted by Kishor Biyani.

RETAIL AS A CAREER

Buying and merchandising Marketing and sales Stores operations Finance Human resources Technology and e-commerce Supply chain management and

logistics

Recommendations:

Grant industry status to retail Encourage FDI Investment in supply chain

infrastructure Ease distribution-infrastructure

creation, octroi, etc.• Organize real estate market:

-Increase supply of land -ensure proper rent laws

Ensure flexible labour laws

RETAIL AS A CAREER

Buying and merchandising Marketing and sales Stores operations Finance Human resources Technology and e-commerce Supply chain management and

logistics

Sources:

Retailing management-swapna pradhan

Rediff.com Retailindustry.com business.mapsofindia.com/india-

retail-industry/ Moneycontrol.com

Thank You….