2016 (1)

Let liberalization be in steps rather than being in a leap.

By :Aakriti RohatgiKunal Relan

Since The Beginning

Barter System

Weekly marketVillage melas

Kirana StoresConvenience store

Government Stores

Super marketsHyper markets

Single Brand Retailing

Cash and Carry Model

•51%

•100%

LETS TAKE IT FROM THE TOP

• 95%Unorganized Sector

• 5%Organized Sector

Attractions In India

FDI inflows crossed $300 billion

FDI inflows were $134.6 billion.

But what global retailers are doing?

Contribution of Retail Sector in GDP

USA

China

Japan

Brazil

India

0%5%10%15%20%25%

Contribution to GDP

Percentage

Cou

ntr

ies

Porters Model

SWOT Analysis

Strength• Major contribution to GDP

• High Growth Rate

• High Potential• High Employment Generator

Weaknesses• Lack of Competitors

• Highly Unorganised

• Low Productivity

• Shortage of Talented Professionals

Opportunities• There will be more organization in the sector

• Healthy Competition will be boosted and there will be a

• check on the prices (inflation)

Threats• Current Independent Stores will be compelled to close

• Big players can knock-out competition

A new Buzz: E-Tailing

• The word E-tail has its roots in the word ‘retail’. Here the letter E stands for ‘electronic’ since the shopping process happens through the electronic media (internet). With the use of a web-space a virtual shop is created and the products are displayed through images in this space with the features and price tags. By accessing this shopping site a customer can choose his/her products into a cart. The payment to this product can be done in various modes as mentioned by the shopping site. The product would be delivered to the address specified by the customer.

• E- tailers in India:-• Yebhi.com• Flipkart.com• Infibeam.com• Myntra.com• E-bay.com• India times shopping 2012 2015

02000400060008000

Rs(in crore)

Rs(in crore)

New FDI policy

Single Brand Retail

100%

Multi Brand Retail

51%

Wal-mart and China

Wal-Mart In China

• It is almost two decades that China has opened up retail fully, cautiously allowing 26% FDI in 1992.

• Since then the sector has seen enormous growth.• Now, 20 years from there, it is china retailers who

dominate the market not the foreign retailers.• The big retailers are:

The Shanghai Bailan GroupSuningGomeDashang

• Wal-Mart opened 350 stores in china, but its market share appears to decline.

Market Share Of Wal-Mart in China

2010 20110%

1%

2%

3%

4%

5%

6%

7%

8%

Market Share

Market Share

Wal-Mart

Wal-Mart and Trade Deficits

• Entry of CHINA in WTO was supposed to improve the US trade deficit and create jobs in America, but the promises gone unfulfilled.

• US trade deficit in 2006 reached $235 billion, in which Wal-Mart contributes $27 billion with China

• The manufacturing sectors and its workers were hardest hit due to this.

• Trade deficit with china eliminated 133000 jobs in US,• China illegally reduces the value of currency, which

made the goods artificially cheaper and further subsidizing the export.

• Wal-Mart accounts for 9.3% of the total US imports from china in 2006

In the Meanwhile

• China became dependent on US consumer market for its employment

• It suppressed purchasing power of its own middle class and weaker sections.

THANK YOU ALL