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8/8/2019 The Indian Retail Market By hemanthkumar
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Lifestyle International-Lifestyle, Home Centre,
M ax, Fun City and International Franchise brand stores. Pyramid Retail-Formats: Pyramid M egastore,Tru M art
Nilgiris-Formats: Nilgiris supermarket chain Subhiksha-Formats: Subhiksha supermarket pharmacy and telecom discount chain.
Trinethra- Formats: Fabmall supermarket chainand Fabcity hypermarket chainVishal Retail Group-Formats: Vishal M ega M art
BPCL-Formats: In & Out
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Reliance Retail-Formats: Reliance Fresh Reliance ADAG Retail-Format: RelianceWorld
German M etro Cash & Carry Shoprite Holdings-Formats: Shoprite Hyper Paritala stores bazar: honey shine stores
Aditya Birla Group - more Outlets
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Entry of M NCsThe world's largest retailer by sales, Wal- M art Stores
Inc and Sunil M ittal's Bharti Enterprises have entered into a joint venture agreement and they are planning toopen 10 to 15 cash-and-carry facilities over seven years.The first of the stores, which will sell groceries,consumer appliances and fruits and vegetables toretailers and small businesses, is slated to open in north
India by the end of 2008. Carrefour, the worlds second
largest retailer by sales, is planning to setup twobusiness entities in the country one for its cash-and-carry business and the other a master franchisee whichwill lend its banner, technical services and know how toan Indian company for direct-to-consumer retail.
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The worlds fifth largest retailer by sales,
Costco Wholesale Corp (Costco) known for its warehouse club model is also interested incoming to India and waiting for the right opportunity.
Opposition to the retailers' plans have argued that livelihoods of small scale and rural vendors would be threatened. However,studies have found that only a limited number of small vendors will be affected and that thebenefits of market expansion far outweigh theimpact of the new stores
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ChallengesTo become a truly flourishing industry, retailing needsto cross the following hurdles:
Automatic approval is not allowed for foreigninvestment in retail.
Regulations restricting real estate purchases, and cumbersome local laws.Taxation, which favours small retail businesses.
Absence of developed supply chain and integrated IT management.
Lack of trained work force. Low skill level for retailing management. Intrinsic complexity of retailing rapid price changes,constant threat of product obsolescence and lowmargins.
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Thank You.
By.. K.HE M ANTHKU M AR