summary of retail industry

8/6/2019 Summary of Retail Industry

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RETAIL INDUSTRIES IN INDIA

Indian Retail industries are divided into organized and unorganized sectors.

Organized retailing refers to trading activities undertaken by licensed retailers. An

unorganized retailer refers to the traditional formats of low cost retailing. TheIndian retail sectors are highly fragmented with 97% of business running by

unorganized retailers. The organized retail however is at a very nascent stage

though attempts are being made to increase its proportion to 9 to 10% by the year

2010 bringing in a huge opportunity for perspective new players. The retail sector

is the largest source of employment after Agriculture. Large players like reliance,

Ambanis, K Rahejas, Bharathi Airtel, ITC and many others are making significant

investments in this sector leading to emergence of big retailers who can bargain

with suppliers to reap economies of scale.

International retailers see India as the last retailing frontier left as the chinas retail

sector is becoming saturated. However Indian government restriction on FDI are

creating ripples among the international players like Walmart, Tesco, and many

other retail giants struggling to enter in Indian market.

DIFFERENT TYPES OF INDUSTRIES ARE AS FOLLOWS:

y Food and grocery industriesy Apparel retail industriesy Gems and jewellery retaily Pharmaceutical retaily Music retaily Book retaily Consumer durable retail

Retail Formats available in India

1. Mono/Exclusive Branded retail shopsy Exclusive showrooms either owned or franchised out by manufacturer.y Complete range available for given brand certified product quality.


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2. Multi brand retail shopy Focus on particular product category and carry most of available brands.y Customers get have more choices as many brands are on display.

3. Convergence retail outletsy One stop shop for customers, many product lines of different brands on

display.

MAJOR PLAYERS IN INDIAN RETAIL INDUSTRIES

y Pantaloon retaily Lifestyle international retaily RPG retaily Shoppers stopy Trent(tata)y Vivek limited

INVESTM

ENT POLIC

Y AND INITIATIVES

y FDI policy in retail sectorsFDI is allowed in the wholesale business sectors. Due to FDI restrictions the

international players are looking for alternatives avenues to enter the Indian

markets. Some agreement with foreign players and Indian retailers are as

follows; Franchisee agreement, cash and carry whole sale trading, strategic

licensing agreements.

FDI in retail space specialized goods retailing like sports goods, electronic and

stationeries also being contemplated he government has to walk a tightrope toensure a level of playing field for every one.


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OPPURTUNITIES AND CHALLENGES

OPPORTUNITIES

y Retail industry in India will be a major employment genrataor in future. y A good talent pooly Unlimited opportunitiesy Huge marketsy Availability of quality raw material with cheaper rates.

CHALLENGES

y Industries is facing a severe shortage of talented professionals.y Most Indian retail players are under serious pressure to make their supply

chains more efficient in order to deliver the levels of quality and service that

consumers are demanded.

y There is many government restriction on FDI are leading o an absence offoreign players resulting in to limited explosure to best practices.

y Lack of adequate infrastructure facilitiesy Does not have an industry status

summary of retail industry

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