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8/7/2019 Impact of Organized Retailing
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by Mrs.Sara &Mrs.Jayalakshmi
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Industry Profile:
� Retailing, consists of goods or merchandise from a fixed location, such as
departmental Store, kiosk etc., in small for direct consumption by the
purchaser.
� Retail sector is the fastest growing sector in the Indian economy with a 3yr
compounded growth rate of 46.64%.(Ranked among 10 largest retail
growing countries in the World)
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� An important aspect of the current economic scenario in India is the
emergence of organized retail. There has been considerable growth in
organized retailing business in recent years and it is poised for much
faster growth in the future.
� Major industrial houses have entered this area and have announced very
ambitious future expansion plans.
� However, opinions are divided on the impact of the growth of organized
retail in the country.
� Concerns have been raised that the growth of organized retailing may
have an adverse impact on retailers in the unorganized sector.
� It has also been argued that growth of organized retailing will yield
efficiencies in the supply chain, enabling better access to markets to
producers (including farmers and small producers) and enabling higher
prices, on the one hand and, lower prices to consumers, on the other.
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� In the context of divergent views on the impact of organized retail, it is
essential that an in-depth study on the possible effects of organized
retailing is to be Observed.
� The study is focused on ³Impact of Organized Retailing on the
Unorganized Sector´ by considering various factors.
8/7/2019 Impact of Organized Retailing
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�STRENGTH-
The locational
advantage
The Familiarity Advantage
The Product
Advantage
The Credit Advantage
�THE AREAS OF
CONCERN ²
lack of
modernization
lack of deeper
variety
lack of space
lack of priceadvantage
lack of capital
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�STRENGTH
The bulk of
investments
The entrance ofcorporate houses
Greater product
assortment
Technologicaladvantage
High street locations
�THE AREAS OF
CONCERN
Lack of localization
Lack of sectoralconcentration
Poor scores on
customized service
Higher real estate
prices
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� Re Establishment of Customer base
� Service Delivery Mechanism
� Phenomenon of Discounting and Free Home
Delivery:
�Customer Information System
� Prominent Feed Back System
�
Consortium
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�Modern retailing may take away a sizeable
share from traditional retailing but will never
close down the opportunities of selling
certain categories in specific denominationfor the traditional retailers.
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