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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