ashish final rpt 97-03

8/7/2019 ASHISH FINAL RPT 97-03

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PRESENTATION ON

opportunities & challenges in indian retail industry

BY:

Dadhania Ashish s.092019


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INTRODUCTION:

The retail industry is divided into organized and unorganized

sectors.

Organized retailing refers to trading activities undertaken by

licensed retailers, that is, those who are registered for sales tax,income tax, etc.

These include the corporate-backed hypermarkets and retail

chains, and also the privately owned large retail businesses.

Unorganized retailing refers to the traditional formats of low-cost

retailing.


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the local kirana shops, owner managed general stores, paan/beedi

shops, convenience stores, hand cart etc.

Over 12 million outlets operate in the country and only 4% of them

being larger than 500 sq ft in size.

The BMI India Retail Report for the first-quarter of 2011 forecaststhat total retail sales will grow from US$ 392.63 billion in 2011 to

US$ 674.37 billion by 2014.

Indias retail industry accounts for 10 percent of its GDP and 8

percent of the employment & its $17 billion by 2010.


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OBJECTIVE:

To understand the role of Retail industry in India.

Understand the growth & profitability on Retail industry.

To study the opportunities in Retail market in India.

To analyse the prospect & future of Retail Industry in India.

To study impact of recession on retail industry in India.


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OPPORTUNITIES:

increasing income & purchasing power.[$348(01) to $849(10)]

An increase in urbanization.[% is double in 10 yrs.]

Changing consumer attitudes.[price, product, convenience, value]

Retail sector is the largest contributor to the Indian GDP.[10%]

Retail Sector provides enough employment.[8%]

Brand consciousness.[60% is > 30 yrs.]


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Easy consumer credit. [credit & debit card, other facility]

Strategic Location & Geography.

Many ways to entry.[J.V., franchising, Mgnt. operation]

Government also taking initiative.[union budget]


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Size & Position in the current Scenario

ORGANISED RETAIL EXPECTED TO GROW 35-40% CAGR

The IndianRetailSector,

currentlythe Fifthlargest inthe world,is poised

forphenomenal growthin thecomingyears

India Shopping Trends, 2009 - Technopak


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in india largest population

is of working age that is

from 20-59 years.

The average age is 24

years.

So young blood can beeasily trained & gain.

2 5

3 43 7 3 8

4 4

0

1 0

2 0

3 0

4 0

5 0

India

China

US

RussiaJapan

pulation Median Age (In Years): 2009


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CHALLENGES:

The organized retail industry in India is faced with stiffCompetition from the unorganized sector.

There is a shortage of quality real estate and

infrastructure requirements in our country.

Opposition to Foreign Direct Investment from small traders

affects retail industry.

Very high stamp duties on transfer of property affects the

industry.


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Shortage of retail space in central and downtown locations also

affect the growth of retail industry.

Shortage ofmiddle management level professionals.

Land-use conversion is time consuming and becoming

complex.

For settling property disputes, it consumes lot of time.

Lack oftrained work force.


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Rigid building laws makes procurement of retail space difficult.

Non residents are not allowed to own property except they are

ofIndian origin.

Prohibition of Foreign investment in real estate business.

Customs duties are levied on import of goods in India.

Intrinsic complexity of retailing rapid price changes, constant

threat ofsubstitute product and low margins.


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THANK YOU!!

ashish final rpt 97-03

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