2. Who Is a Retailer ?
• One who sells goods directly to consumers
• Purchases a variety of goods from no. of
wholesalers, manufacturers etc.
• Last link in the chain of distribution. Consumer
touch point.
5. Evolution in India
Pre 1947 1947 1970’s 1980’s 1991
Haats, Melas, Emergence of Emergence India opens
India
typical indian organized of brands doors through
becomes
Markets were retail through and branded economic
Independent
formed textile sector retail outlets reforms
2006 2005 2000-05 1995-99 1991-95
Govt allows Expansion of Multiple formats
51% FDI in High street Multiple Modern
and products
Single brand shop centers Indian Malls are
introduced
retailing formats introduced
2006-10 Last week
Rapid Modern Bill drafted for FDI
mall and single limits of 51% in multi
brand brand, 100% in single
specialty store brand
6. Current scenario in India
• Organized and unorganized retail
– Unorganized (90-95%)
• Types of most prevalent retails
– Category killers / Product category based
– Discount stores
– Malls
– Supermarkets/hypermarkets
– Rural retail
– Open format
• Counter and deep formats
• E-retailing (e-tailing)
7.
8. Peculiarities in Indian buyers’ behavior
• Shopping- for necessity not for experience
• Purchasing capacity
• Timing of purchase
• Buying things as and when needed
9. Popularity of unorganized sector
• Operated from owned premises inside localities
• Family members as employees
• Time saved factor
• Purchase pattern and behavior
• Shorter shelf life products
• Smaller shopping lists
• Population segment without cars
• Open from early morning till late everyday
….cont.
10. Popularity of unorganized sector
• Personal relationship with customers
• Products are sold on monthly credit to
customers
• Very low operational costs
• No inventory cost, as products are stored in
own setting
• Supporting infrastructure missing for bigger
chains
11. Future Ahead
• Stakeholders – Regulators, Employees, Owners,
Customers
• India - one of the biggest markets attracting all
retailers worldwide
• Share of organized retail may increase, not
substantially though
• Unorganized sector still to remain dominant for
the foreseeable future
• Own brands will heavily determine profitability of
big players
• Rural retail is a largely untapped avenue