current datails about retail industry

1. Retail industry
Submitted by-
Swati sharma (evolution)
Pearl arora (market size)
Rubbaljeet kaur (global view)
Shivani bedi (profiles)
Sakshi goomer (trends)

2. Evolution of Indian retail
• The emergence of the
neighborhood Kirana’s stores
catering to the convenience
of the consumers
• Era of government support for
rural retail: Indigenous franchise
model of store chains run by
Khadi & Village Industries Commission
• 1980s experienced slow change as
India began to open up economy.
• The latter half of the 1990s saw a
fresh wave of entrants with a shift
from Manufactures to Pure Retailers.

3. Contd……
• For e.g. Subhiksha
• Post 1995 onwards saw an emergence of shopping centers, mainly in
urban areas, with facilities like car parking targeted to provide a complete
destination experience for all segments of society
• Emergence of hyper and super markets trying to provide customer with 3
V’s -Value, Variety and Volume

4. Reforms in retail
• In January 2012, India approved reforms for single-brand stores
welcoming anyone in the world to innovate in Indian retail market with
100% ownership, but imposed the requirement that the single brand
retailer source 30 percent of its goods from India.
• Indian government continues the hold on retail reforms for multi-brand
stores

5. Contd……
• The reform seeks to attract investments in production and marketing
• Improve the availability of goods for the consumer
• Encourage increased sourcing of goods from India, and enhance
competitiveness of Indian enterprises through access to global designs
• Technologies and management practices.
• This requires single-brand retailer, with greater than 51% foreign
ownership, to source at least 30% of the value of products from Indian
small industries, village and cottage industries, artisans and craftsmen.
• India needs trillions of dollar to build its infrastructure, hospitals, housing
and schools for its growing population.

6. Social impact and controversy with
retail reforms
• Independent stores will close, leading to massive job losses. So, Small
shops should switch to super markets. As India retailers provide good
relationships between buyer and seller, loyalty, discounts.
• Work will be done by Indians, profits will go to foreigners.
• Remember East India Company. It entered India as a trader and then took
over politically.

7. MARKET SIZE
• The size of retail industry in an economy depends on many
factors and the level of consumer spending is the most
important among these factors. The retail sector in India has
grown by leaps and bounds in the last five years. The reason
behind this growth has been the synergy of many propellants.
• the present situation is just a depiction of nascent stage.
• The future of the trajectory may not be as steep as it is now or
may be even slope downward.

8. MARKET SIZE (cont’d)
• The present value of the Indian retail market is
estimated by the Indian Retail Report to be around
Rs. 12,00,000 crore.
• Annual growth rate is 5.7 percent.
• Retail market for food and grocery with a worth of
Rs. 7,43,900 crore.
• Country’s retail sector share in GDP(%) is 10.

10. MAJOR PLAYERS
• Shopper’s Stop: Shoppers' Stop is famous for the expertise and
acumen relating to the current practices of the industry. It provides
quality services, products and the right kind of shopping
environment.
• Westside(Trend): Tata Group founded Trent Ltd. (Westside) in
1998. The acquisition of a London-based retail chain Littlewoods by
the Tatas was followed by the establishment of Trent Ltd, which was
later renamed as Westside.
• Future group(big bazaar): Pantaloon Retail is the flagship
enterprise of the Future Group. Pantaloon Retail (India) Limited has
spread across various businesses and cities in India. Pantaloon owns
multiple retail formats and is able to cater to a large section of the
society.

11. • Lifestyle
• RPG Retail
• Crossword
 Local players like ITC, the A.V. Birla Group and
Tatas have given the hints to enter organised retail.
France’s Carrefour SA and Britain’s Tesco too were
recently in news for their future plans to explore the
Indian retail market.

12. MARKET SHARE OF THE PLAYERS
• Shopper’s Stop: They currently have a 59% stake in
Crosswords -- the book and music store.
• Lifestyle: While lifestyle accounts for 15 per cent of the
consumer’s spend, 60 -65 per cent comes from food and
grocery and it is this segment Shoppers is setting its sight on.
• Pantaloons(big bazaar):7.1%

13. MAJOR CHALLENGES TO THE RETAIL
INDUSTRY IN INDIA
1. THE KIRANAS CONTINUE
2. RETAIL NOT BEING RECOGNIZED AS AN INDUSTRY IN INDIA.
3. THE HIGH COSTS OF REAL ESTATE
4. HIGH STAMP DUTIES
5. LACK OF ADEQUATE INFRASTRUCTURE
6. MULTIPLE AND COMPLEX TAXATION SYSTEM
7. DIFFICULTY TO RETAIN CUSTOMERS
8. LACK OF TRAINED WORK FORCE
9. TOO BIG TO MANAGE

14. TOP 10 GLOBAL PLAYERS IN RETAIL INDUSTRY
1. Wal-Mart
• Country of Origin: US
• Countries of operation: 16
2. Carrefour
• Country of Origin: France
• Countries of operation: 36
3. Metro AG
• Country of Origin: Germany
• Countries of operation: 33
4. Tesco
• Country of Origin: UK
• Countries of operation: 13
5. Schwarz Unternehmens Treuhand KG
• Country of Origin: Germany
• Countries of operation: 25

15. 6. The Kroger Co.
• Country of Origin: US
• Countries of operation: 1
7. Costco Wholesale Corp.
• Country of Origin: US
• Countries of operation: 9
8. Aldi Einkauf GmbH & Co.
• Country of Origin: Germany
• Countries of operation: 18
9. The Home Depot
• Country of Origin: US
• Countries of operation: 5
10. Target
• Country of Origin: US
• Countries of operation: 1
Source: Deloitte's Global Powers of Retailing

16. IMPACT OF GLOBAL CRISIS ON RETAIL INDUSTRY
• Markets in recession worldwide
• Reduced purchasing power of customers
• Downfall in us economy

17. Retail formats in India
Malls
Discount stores
Department stores
Hyper markets/supermarkets
Convenience stores

18. Latest trends in domestic retail
industry
Industry concentration
Brands under pressure
Technological advances E – commerce
Global sourcing

19. Latest trends globally in retail
industry
Supplier retailer relationships
Innovations in transportation logistics
Formats
Social trends
Online retailing
Impact on technology
Food safety issues

20. PROFILE OF OWNERS/TOP EXECUTIVES
Big bazaar
• Founder and group CEO: MR. Kishore Biyani
• Established : In 1994
• Born on: 9th August,1961
• Awards: young entreprenuer of
the year award
• CNBC indian buisness leaders awards 2006
• The first generation entreprenuer of the year

21. Bharti retail limited
• CEO and president: MR. Vinod Sawhney
• Education : MBA(XLRI Jamshedpur) 1981-83
BE Hons.(Birla institute) 1975-80
• Joined Bharti in: Jan 2007 – Jan 2010(3 years 1
month)

22. Shoppers stop
• CEO: MR. B.S Nagesh
• Started his career: as sales officer with
Blowplast. Post this he worked with Orson
electronics as branch manager
• Awards: Top CEO award 2001 instituted by
institute of marketing management
• Most admired apparel retail professinal of the
year at the inaugural fashion awards 2000.