Global vs India retai scenario

7/29/2019 Global vs India retai scenario

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RETAIL MANAGEMENT

Ness Wadia college

of commerce



GLOBAL RETAILING

SCENARIO AND INDAINRETAIL

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INTRODUCTION

Retail means selling goods and services in small quantitiesdirectly to customers. Retailing consists of all activitiesinvolved in marketing of goods and services directly to

consumer for their personal, family and household use.

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INDIAN RETAIL SCENARIO

Most of the retailing in India isunorganized. Only 5% of totalretail sector is organized in thecountry. Organized retailing has

just started recently, and has beenconcentrated mainly in the metrocities. The two main factors whichdrives organized retailing in India

are low prices and the benefitsthat are offered by them.

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Formats of Unorganized Retail

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CHALLENGES OF RETAILING IN INDIA

The first challenge facing the organized retail sector is thecompetition from unorganized sector.

Taxation, which favors small retail businesses.

Developed supply chain and integrated IT management isabsent in retail sector.

Lack of trained work force.

Low skill level for retailing management.

Threat of product obsolescence and low margins.

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GROWTH IN INDIA FOR RETAIL SECTOR

Liberalization of the Indian economy .

Increase in spending Per capita Income.

Shift in consumer demand to foreign brands like McDonalds,

Sony, Panasonic, etc. About 47% of India's population is under the age of 20; and

this will increase to 55% by 2015. This young population,watch more than 50 TV satellite channels, and display thehighest propensity to spend.

Foreign companies' attraction to India is the billion-pluspopulation.

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FDI IN INDIAN RETAIL

In India , FDI in Retail, is restricted. 51 % of FDI is allowed inSingle brand retailing and 100 % in cash and carry format.

An international retailer can enter the Indian Retail market inany of the following-

1. High tech items/items that require specialized after salesservice.

2. Franchising (Eg: Nike, McDonalds)

3. Joint Ventures (Eg: Reebok)

4. Setting up distribution offices (Eg: Hugo Boss)

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GLOBAL RETAIL SCENARIO

Retail, with total sales of $ 6.6 trillion, is the world’s largestprivate industry ahead of financial industries.

Over 50 of the Fortune 500 companies, and around 25 of the Asian top 500 companies, are retailers.

The US retail Industry is the world largest retail industryand its still growing.

In USA most part of retailing is accounted by organizedsectors.

The organized retailing has gained a great deal of momentum in China in the past few years.

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CONTD…

Retail is the significant contributor to the overall economicactivity around the world.

The employment opportunities offered by the retail industryis huge.

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INTERNATIONAL RETAIL: AT A GLANCE

38%

27%

13%

8%3% 2% 9%

USA EU Japan China

India Russia Others9



RECENT TRENDS

Countries like South Africa, UAE, Singapore, India, Russiaand Brazil are looked at as emerging fashion marketstoday.

The key growth drivers in these countries are Government

Support, Recognition of Local Designers, Support fromCorporations and Associations, Awareness of InternationalFashion Brands and Demand for Fashion Apparel.

Major fashion houses are expanding their presence in the

emerging markets of Asia, the MiddleEast, and Latin America.

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CONCLUSION

The Indian retail industry is one of the fastest growingindustries in India, especially over the last few years.Though initially, the retail industry in India was mostly

unorganized, however with the change of tastes andpreferences of the consumers, the industry is gettingmore popular these days and getting organized as well.

The retail industry in India is currently growing at a greatpace and is expected to go up to US$ 833 billion by theyear 2013

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Thank You!!

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Global vs India retai scenario