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    Indian Retail Industry-It's Growth, Challenges & Opportunities

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    melroy8888
    This document summarizes the growth of the retail industry in India. It notes that the retail industry accounts for over 10% of India's GDP and is expected to grow 25% annually. Key drivers are India's large young population, increasing disposable incomes, and growing brand awareness among various socioeconomic classes. While modern retail currently makes up only 3% of the industry, it is projected to reach $23 billion by 2010. The trends of urbanization, westernization, and nuclear families are fueling organized retail sector growth. Challenges remain from small retailers and potential monopoly concerns.

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    Indian Retail Industry-It's Growth, Challenges & Opportunities

    Uploaded by

    melroy8888
    960 views20 pages
    This document summarizes the growth of the retail industry in India. It notes that the retail industry accounts for over 10% of India's GDP and is expected to grow 25% annually. Key drivers are India's large young population, increasing disposable incomes, and growing brand awareness among various socioeconomic classes. While modern retail currently makes up only 3% of the industry, it is projected to reach $23 billion by 2010. The trends of urbanization, westernization, and nuclear families are fueling organized retail sector growth. Challenges remain from small retailers and potential monopoly concerns.

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    Indian Retail Industry-It’s Growth, Challenges & Opportunities

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    This document summarizes the growth of the retail industry in India. It notes that the retail industry accounts for over 10% of India's GDP and is expected to grow 25% annually. Key drivers are India's large young population, increasing disposable incomes, and growing brand awareness among various socioeconomic classes. While modern retail currently makes up only 3% of the industry, it is projected to reach $23 billion by 2010. The trends of urbanization, westernization, and nuclear families are fueling organized retail sector growth. Challenges remain from small retailers and potential monopoly concerns.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    960 views20 pages

    Indian Retail Industry-It's Growth, Challenges & Opportunities

    Uploaded by

    melroy8888
    This document summarizes the growth of the retail industry in India. It notes that the retail industry accounts for over 10% of India's GDP and is expected to grow 25% annually. Key drivers are India's large young population, increasing disposable incomes, and growing brand awareness among various socioeconomic classes. While modern retail currently makes up only 3% of the industry, it is projected to reach $23 billion by 2010. The trends of urbanization, westernization, and nuclear families are fueling organized retail sector growth. Challenges remain from small retailers and potential monopoly concerns.

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    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 20

    Ashu Xavier

    Dhiraj Sawant
    Dhairyasheel Powar
    Fiona Alphonso
    Introduction:
    •This article provides growth of retail industry in
    India.
    •It examines the growing awareness & brand
    consciousness among people across different
    socio-economic classes in India & how the urban
    & semi-urban retail markets are witnessing
    significant growth
    •Key forces for global retail giants are vast
    middle class & it’s almost untapped retail
    industry.
    •The Indian population is witnessing a
    significant change in its demographics.
     India retail industry is the largest among all
    the industries, accounting for over 10% of the
    country’s GDP & around 8% of the
    employment.

     India retail industry is expected to grow 25%


    annually.

     Modern retail in India could be worth US $175-


    200 billion by 2016.
     A large young working population with
    median age of 24 years, nuclear families in
    urban areas, along with increasing working
    women population & emerging
    opportunities in the services sector are
    going to be the key drivers of the organized
    retail sector in India.

     The trends that are driving the growth of


    the retail sector in India are
    4. Low share of organized retailing
    5. Falling real estate prices
    6. Increase in disposable income and customer
    aspiration
    7. Increase in expenditure for luxury items
     Malls
     Discount Stores
     Department Stores
     Hyper marts/ Supermarkets
     Convenience Stores
     MBO (Multi Brand Outlets)
     For manufacturers and service providers the emerging
    opportunities in urban markets seem to lie in capturing and
    delivering better value to the customers through retail.

     However, manufacturers and service providers will also


    increasingly face a host of specialist retailers, who are
    characterized by use of modern management techniques,
    backed with seemingly unlimited financial resources.
    Organized retail appears inevitable.

    Retailing in India is currently estimated to be a US$ 200 billion
    industry, of which organized retailing makes up a paltry 3
    percent or US$ 6.4 billion. By 2010, organized retail is
    projected to reach US$ 23 billion. For retail industry in India,
    things have never looked better and brighter. Challenges to
    the manufacturers and service providers would abound when
    market power shifts to organized retail.
     The retail sector has played a phenomenal
    role throughout the world in increasing
    productivity of consumer goods and
    services.
     The Retail Industry in India has come forth
    as one of the most dynamic and fast
    paced industries with several players
    entering the market. But all of them have
    not yet tasted success because of the
    heavy initial investments that are required
    to break even with other companies and
    compete with them. The India Retail
    Industry is gradually inching its way
    towards becoming the next boom
    industry.
     Constant fight for market share
     Consumers-the decision makers
     Consumer buying decision depends on

    various factors
     Small room
     Merchandise

    arranged as per
    convenience
    SERVICES
     No bargains  Bargains may be
     Equal discounts considered
    and offers to all the  Discounts and

    customers offers may differ


     No home delivery  Home delivery may

    clause be considered
    RANGE
     Varied brands  Limited brands
     Varied price range  Limited price range
     Employment opportunities
     One stop shop
     Raises the standard of living
     Range of offers ,discounts and brands
     Employment opprtunities-75%-80% of part
    time job openings
     Shut down of small stores and local

    businesses
     No economic development due to shut

    down of stores
     Deficit household budgeting
     Monopoly
    Factors that would facilitate
    a continued Retail Boom in
    India
    Source-MARKETING
    MASTERMIND
    JUNE-2009
    Paradigm shift in Consumer Lifestyle.
    Traditional Outlook to Modern Outlook
    Shopping as a Necessity to shopping for

    pleasure.
    Itemized Purchase to Bulk purchase
    Prepared Food to Ready to eat
    Utilized-Based products to Lifestyle

    Products
    Conservative Spending to Liberal

    Spending
    Increased Buying During Holidays and

    Festive Seasons
    Enormous potential for rural retail.
    50billion dollar organized retail market
    by 2011
    Presently 87%of rural markets have no
    acess to organized rural areas
    Future it would be seen integration of
    rural supply chain and urban retailers.
    Scope for increased FDI in retail.
    In future India would eventually have to
    open its doors to the likes of
    Walmart,Tessco and such others.
    Technology Trends
    Organized retail sector in india can expect to witness a
    second big revolution in the not too distant future,in spite
    of setback faced due to the current economic slowdown.
    A possible decision to allow FDI in multi-brand retailing
    could provide significant impetus, as India is a huge
    market with very low percentage .
    Inspite of certain speculations organized retail sector is very
    likely to bounce back and once again begin growing at
    rapid pace.

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