Retail Business by Sam

8/2/2019 Retail Business by Sam

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Retail Business


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Retail consists of the sale of physical goods

or merchandise from a fixed location, such asa department store, boutique or kiosk, orbymail, in small or individual lots fordirect consumption by the purchaser.
http://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Department_storehttp://en.wikipedia.org/wiki/Boutiquehttp://en.wikipedia.org/wiki/Kioskhttp://en.wikipedia.org/wiki/Mailhttp://en.wikipedia.org/wiki/Consumption_(economics)http://en.wikipedia.org/wiki/Consumption_(economics)http://en.wikipedia.org/wiki/Mailhttp://en.wikipedia.org/wiki/Kioskhttp://en.wikipedia.org/wiki/Boutiquehttp://en.wikipedia.org/wiki/Department_storehttp://en.wikipedia.org/wiki/Sales


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Based on Products: Food products

Hard goods ("hardline retailers") - appliances,electronics, furniture, sporting goods, etc.

Soft goods - clothing, apparel, and otherfabrics.


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Based on marketing strategy: Department Store Hypermarket Super Market Home Furnishing Seamless Mall Discount Store

Books & Music Store Convenience Store Cash & Carry


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Existing Format Brand Name

Department Store Pantaloons, ShoppersStop, Westside

Hypermarket Big Bazaar, Spencers

Super Market Food Bazaar, Spencers

Home Furnishing Home Town, Home Stop

Seamless Mall Central

Discount Store Subhiksha, Koutons

Books & Music Store Cross Words

Convenience Store In & Out

Cash & Carry Metro


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Organized Retail: trading activities undertaken by licensedretailers, that is, 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.

Unorganized Retail: refers to the traditional formats oflow-cost retailing, for example, the localkirana shops, owner mannedgeneral stores, paan/beedi shops, convenience stores, hand cart andpavement vendors, etc
http://en.wikipedia.org/wiki/Hypermarketshttp://en.wikipedia.org/wiki/Kiranahttp://en.wikipedia.org/wiki/Paanhttp://en.wikipedia.org/wiki/Paanhttp://en.wikipedia.org/wiki/Kiranahttp://en.wikipedia.org/wiki/Hypermarkets


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One of the worlds largestindustry exceeding US $ 9trillion

47 Global Fortune 500companies & 25 Asia's Top 200companies are retailers

Dominated by developedcountries.

US, EU & Japan constitutes 80%of world retail sales

Biggest player in India,Pantaloons total group sales isabout equal to 2 Wal-Mart supercenters annual revenues

38%

27%

13%

8%3% 2% 9%

USA EU Japan China

India Russia Others


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Total retail contribution in World GDP is 27% Organized retail in US accounts for 22% of GDP

Share of organized retail in developing marketsranges between 20% to 55%

Retail markets are organizing faster In developed markets, dominant player (Wal-Mart

in US, Tesco in UK) has a significantly higher share;enjoying up to 8-13% market share

Departmental stores growth is declining while All-under-one-roof & neighborhood convenience isgaining strength


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Indias Retail Market Strength- $350billion.

Organized Retail Strength in the

country-$8. billion. Annual Rate of growth for organized

retail-30%.

Amount likely to be invested in thesector in the next 5 years- $412 billion.

Retail Industrys share in GDP 13%.

Retail accounts for 6% of the workforce.


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In Rs 00 croresIndian retail is dominated by food & grocery which contributes > 65%of Rs 9.3t retail market, almost 99% of this is dominated by kiranastores.


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Future group- big bazaar, food bazaar,pantaloons etc.

Reliance retail- marks & spencer

RPG group- spencer

Bharti-walmart

Tata tesco- star bazaar


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Parsvnath retail

Subhiksha retail Vishal mega mart retail

Shoppers stop


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The share of organized retail in total retail pie is set to increase fromabout 3% to 8 10 % by 2010.


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Existing players expanding to smaller towns Number of existing players like Big Bazaar,

Shoppers Stop, Piramyd are planning expansion insmaller cities

Indian business houses in retail Many business houses are planning retail entry /

expansion either on their own or through

partnerships Global Players planning entry in India

Some of worlds largest retailers - evaluating entry inIndia including Wal-Mart, Carrefour,Tesco, IKEA, BestBuy, Lowe's, Kingfisher Group, Auchan, Woolworth,NTUC etc.

Shop Rite, Metro, Marks & Spencers, & Spar arealready here

Some have setup Sourcing / Back-office centers e.g.Tesco, Wal-Mart, etc.

Rural opportunity - becoming interesting fororganized retailers


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943990

10401092

11461203

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68

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2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

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Total Retailing Market ( Rs '000 Cr) Organized Retailing (Rs '000 Cr)

Indian retail industry ~ Rs 990,037 Cr (USD 300 bn), growing at 5-6%p.a.

Organised retail industry ~ Rs 35,000 Cr (USD 7.7 bn), growing at 25-30% p.a.


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Documents

Retail Business by Sam