Upload
fazilshareef1885
View
216
Download
0
Embed Size (px)
Citation preview
7/30/2019 new trends in business education
1/35
Dept of Commerce and Management studiesAndhra UniversityUGC Seminar On
new trends in business education4th Dec, 2012
7/30/2019 new trends in business education
2/35
Session on Experience sharing with retail Focus
Under the EsteemedGuidance of
Prof. B. Mohan Venkat Ram
By:
Sobha Rani Peddini
7/30/2019 new trends in business education
3/35
Definition: A business or person that sells
goods to the consumer, as opposed to a
wholesaler or supplier, who normally sell their
goods to another business.
Retail consists of the sale of goods or
merchandise for final consumption by the user
and not for further sale or processing.
Retail Basics
7/30/2019 new trends in business education
4/35
Organized Retailing trading activities
undertaken by licensed retailers those who are
registered for sales tax, income tax, etc., these
include the corporate-backed hypermarkets and retail
chains, and also the privately owned large retail
businesses.
Unorganised retailing traditional formats of
low-cost retailing, for example, the local kirana shops,
owner manned general stores, etc
7/30/2019 new trends in business education
5/35
Major global RetailersRetailer Home Country
Wal-Mart Stores
Carrefour Group
The Home Depot, Inc
The Kroger Co.
Royal Ahold
Metro AG
Target CorporationAlbertsons,Inc.
Sears, Roebuck and Co.
Kmart Corporation
USA
France
USA
USA
Netherlands
Germany
USAUSA
USA
USA
7/30/2019 new trends in business education
6/35
Major Domestic PlayersRetail Group Store
Future Group PantaloonK.Raheja group Shoppers stop
Tata group West side
RPG SpencersLandmark Group Lifestyle
Bharati-walmart Walmart
Reliance group Reliance retailA V Birla Group Louis Phillipe, Van Heusen
Metro Metro cash and carry
Viveks Ltd Viveks
7/30/2019 new trends in business education
7/35
Retail Formats
7/30/2019 new trends in business education
8/35
Other classification of retail formatsMom-and-pop Stores Family owned businesses
Department stores Karachiwala
Category Killers best buy, sports authority
Malls Forum mall, Spencer Plaza
Discount Stores
Brand factory
Supermarkets Trinethra
Hypermarkets -- Big bazaar
7/30/2019 new trends in business education
9/35
Indian Retail Scenario At A Glance The contribution of retail industry to Indias GDP is
more than 13%.
Spreads over more than 6 million outlets (2.4 million
urban and 3.6 million in rural).
There is no supply chain management perspective.
Over 8 per cent of Indias population is engaged in
retail
7/30/2019 new trends in business education
10/35
Indian Retail Scenario At A Glance
Indias per capita retailing space is the lowest in the
world. (2 square feet).
In India still, more than 60% sales in retail comes from
food items only
No role model for Indian suppliers and retails to adapt
or expand in the Indian context. Hence Indian
retailers have to find a suitable model and adopt it to
the Indian context.
7/30/2019 new trends in business education
11/35
Indias first true shopping mall was inaugurated in
1999 in Mumbai. (This mall is called Crossroads).
An FDI Confidence Index survey showed that the
retail industry is one of the most attractive sectors
for FDI (foreign direct investment) in India.
Indian Retail Scenario At A Glance
7/30/2019 new trends in business education
12/35
Issues in International Retailing
Legislation and Regulation -- FDI
Taxation and Cross Border Shopping
Variations in Retailing Practice andCustoms
7/30/2019 new trends in business education
13/35
Introduction to fdiFDI refers to the capital inflows from abroad that is invested in
or to enhance the production capacity of the economy
Methods:
The foreign direct investor may acquire voting power of anenterprise in an economy through any of the following methods:
by incorporating
by acquiring shares
through a merger or an acquisition of an unrelated
enterprise
joint venture with another investor or enterprise
7/30/2019 new trends in business education
14/35
FDI in IndiaName of the sector Increase in FDi
Insurance 49%
Broadcast sector 74%
Retail and consumer
products(Multi brand)
51%
Retail and consumer
products (single brand)
100%
Aviation 49%
7/30/2019 new trends in business education
15/35
Scope of FDI in retail sector
After agriculture, retail sector is the
highest employer, employing 7% of the total
work force in the country.Retailing in India accounts for more than
13% of its GDP
7/30/2019 new trends in business education
16/35
Better cold storages prevent loss of fruits
and vegetables
Opening up of large retail houses willupgrade systems, supply chain, upgrade
people and their abilities and skills. Consumers will be benefited first
Scope of FDI in retail sector
7/30/2019 new trends in business education
17/35
On September 14th 2012, Government of India allowed
FDI in Multi-brand retail up to 51% and in single brand
retail up to 100%
The choice of allowing FDI has been left to state
governments.
The Chief Ministers of Delhi, Assam, Maharashtra,
Andhra Pradesh, Rajasthan, Uttarakhand, Haryana and
Governments of the State of Manipur and the Union
Territory of Daman & Diu and Dadra and Nagar Haveli,
have expressed support for the policy in writing.
FDI in Retail
l f
7/30/2019 new trends in business education
18/35
Some Regulations of FDI
The establishment of the retail sales outlets will be
in compliance of applicable State laws/ regulations,
such as the Shops and Establishments Act etc.
Retail sales outlets may be set up only in cities witha population of more than 10 lakh as per 2011 Census
In States/ Union Territories not having cities with
population of more than 10 lakh as per 2011 Census,
retail sales outlets may be set up in the cities of
their choice, preferably the largest city
7/30/2019 new trends in business education
19/35
1} Minimum investment of US $100 million
2} At least 50% of total FDI brought in shall
be invested in 'backend infrastructure'
within three years of the induction of FDIback-end infrastructure will includeinvestment made towards processing,
manufacturing, distribution, designimprovement, quality control, packaging,logistics, storage, ware-house, agriculture
market produce infrastructure etc.
FDI proposed conditions
7/30/2019 new trends in business education
20/35
3} Expenditure on land cost and rentals, if any, will
not be counted for purposes of backend
infrastructure
4} There is a conditionality requiring at least 30%procurement from Indian small industries
5} State Governments are also responsible for
aspects ancillary to MBRT, such as zoning regulations,
warehousing requirements, access, traffic, parking
and other logistics
FDI proposed conditions
Safeguards
7/30/2019 new trends in business education
21/35
Safeguards
A three year timeframe has been fixed for setting
up the back-end infrastructureThis condition will bind the foreign investors to
invest in critical back-end infrastructure, which is a
felt need across the country
It would also make the foreign investors
accountable for proper implementation of thecondition.
Farmers stand to benefit from the significant
reduction in post-harvest losses
7/30/2019 new trends in business education
22/35
There is a conditionality requiring at least 30%
procurement from Indian small industriesThis would enable them to get integrated with
global retail chains. This, in turn, will enhance their
capacity to export products from India
The final decision will be taken by the state
governments
This gives a control on approvals for number,
size, format and type of retailer, based on the
favorable conditions of that concerned state
7/30/2019 new trends in business education
23/35
BenefitsGlobal experience indicates that organized and
unorganized retail co-exists and grow
Consumers stand to gain the most..
firstly, from the lowering of prices that
would result from supply chain efficiencies
secondly, through improvement in productquality
7/30/2019 new trends in business education
24/35
The young people joining the workforce will
benefit from the creation of employment
opportunities
The policy will facilitate greater FDI inflows,
additional and quality employment, global best
practices and benefit consumers and farmers in
the long run
Benefits
7/30/2019 new trends in business education
25/35
7/30/2019 new trends in business education
26/35
FDI- Vizagites perspective
7/30/2019 new trends in business education
27/35
Male
44%
Female
56%
Sample distribution
Upto 20
8%
21-30
60%
31-40
22%
41-50
8%
51 &
above
2%
Age of the individuals
6%
43.5%
37%
9%4.5%
business employes Student H.W Others
Occupation of individuals
G th f Sh i ll i t i b fi i t th
7/30/2019 new trends in business education
28/35
16% 15.3%
10%
3%
21.5% 21.7%
12%
0.5%
0
5
10
15
20
25
30
35
40
Strongly agree Agree Disagree Strongly disagree
Growth of Shopping malls in recent years is beneficiary to the
customers
Female
Male
37.5% 37%
22%
3.5%
Central Go ernments recent decision on FDI helps for the
7/30/2019 new trends in business education
29/35
8%
17.2% 15.3%
3.5%
13%
28.3%
14.7%
0
5
10
15
20
25
30
35
40
45
50
Strongly agree Agree Disagree Strongly Disagree
Central Governments recent decision on FDI helps for the
growth of retailing in India
Female
Male
45.5%
30%
21%
Wh d f t h ?
7/30/2019 new trends in business education
30/35
22.3% 22%
25.7%30%
0
10
20
30
40
50
60
Kirana Shops Shopping mall
Where do you prefer to shop?
Female
Male
48%
52%
Do you think foreign retailers intervention will effect small
7/30/2019 new trends in business education
31/35
33%
11.4%
49%
6.6%
0
10
20
30
40
50
60
70
80
90
Yes No
Do you think foreign retailers intervention will effect small
scale retailers business
Female
Male
82%
18%
Do you think foreign retailers offer products at cheaper
7/30/2019 new trends in business education
32/35
29.6%
14.3%
38.4%
17.7%
0
10
20
30
40
50
60
70
80
Yes No
Do you think foreign retailers offer products at cheaper
rates
Female
Male
68%
32%
7/30/2019 new trends in business education
33/35
ConclusionEntry of foreign investors into the country will
improve the GDP of the nation. It creates efficient
storage facilities, infrastructures, improve supply
chain matrix, upgrades the existing technology ,creates millions of jobs and consumers are benefited
more The studies shows that FDI approval is more
beneficial to the nation in the long run, but with some
conditions in order to safeguard the interests of
small and middle intermediaries.
7/30/2019 new trends in business education
34/35
The small scale intermediaries are however given priority
by the foreign players as they need local networking fortheir business activities. But still few will be endangered
because of their low supply capabilities.
Majority of Vizagites opined that they will get quality
products at a cheaper rates. They also opined that the
small scale retailers will be effected by the intervention of
big players. Majority of the sample agreed with the
Central Governments recent decision.
Conclusion
7/30/2019 new trends in business education
35/35
Thank You
Under the Esteemed Guidance ofProf. B.Mohan Venkat Ram