SRI RAM INSTITUTE OF TECHNOLOGY

PRESENTED BY

JOYEETA BANERJEE (1ST SEMESTER)

RETAIL MARKET IS IN BOOM

• The word ‘retail’ is derived from the French word ‘retaillier’, meaning ‘to cut a piece off or to ‘break bulk’.

• In simple terms, it implies a first-hand transaction with the customer.

• RETAILING, business activity of selling goods and services directly to consumers.

• MARKETING is the task of creating, promoting, and delivering goods and services to consumers and businesses.

RETAIL INDUSTRY:AN OVERVIEW

GLOBAL RETAIL SCENARIO:

• Retail has played a major role world over in increasing productivity across a wide range of consumer goods and services.

• Retail is the second largest industry in the United States .

WAL-MART: WORLDS LARGEST RETAILER

GLOBAL RETAIL (source: CSO & MGI study)

1999 2002 2005

Total retail(US$ Billion)

150 180 225

Organised retail(US$ billion)

1.1 3.3 7

% share of organised retail

0.7 1.8 3.2

RANK RETAILERS HOME COUNTRY

1. WAL-MART stores, Inc. U.S.A2. Carrefour Group France3. The Kroger Co. U.S.A4. The Home Depot, Inc. U.S.A5. Metro

Germany6. A.T.Kearney India

TOP RETAILRES WORLDWIDE

RETAIL SCENERIO IN INDIA:

• 1999-2002:RETAIL SALES INCREASED AT AN ANNUAL RATE OF 7%

• 2002:RETAIL SALES-Rs.7400 BILLION• 2003:RETAIL SALES EXPANDED@ 10%• 2003-2008:RETAIL SALES GROWTH IS

8.3% AS COMPARED TO 7.1% FOR CONSUMER EXPENDITURE

Factors Responsible for the Development of Retail Sector in India

can be broadly summarized as follows:

a. Rising Incomes and Improvements in infrastructure.

b. Liberalization of Indian Economy c. Shift in consumer demandd. Creating awareness about global

products for local markets

Different Forms of Retailing: Emergence of

New Formats of Retailing in India.Popular Formats::

Hyper martsLarge Super markets, typically (3500 -5000

sqft.)Mini Super markets, typically (1000- 2000

sqft.)Convenience Store, typically (750- 1000 sqft.)Discount / Shopping list grocerTraditional Retailers trying to reinvent by

introducing self service formats as well as Value added Services such as Credit , Free home delivery etc.

The India retail sector can be broadly classified into;

Food RetailersHealth & Beauty ProductsClothing and Foot wareHome Furniture and House hold goods

Durable goodsLeisure and personal goods

MALLS IN INDIA

MALL:

• a large enclosed building complex containing stores, restaurants, and other businesses and facilities serving the general public.

CHALLENGES OF RETAILING IN INDIA

Unorganized retailing is so called because of the fragmented real estate sector, inefficient up stream processes, poor infrastructure, lack of advance technology, absence of proficient man power and inadequate funding.

1. Rise in fuel prizes 2. Infrastructure constraints3. Distribution cost 4. Weak Retail Supply Chain 5. Supplier Integration 6. Supplier maturity & Relations 7. Low adoption and Use of Technology 8. Disparities in Culture and Taste9. Real Estate Cost 10.Regularity aspects 11.Skilled man power 12.Concerns over Indian Retailers

OPPORTUNITIES By 2010, the Indian retail sector is anticipated to become a Rs.12.5 tn market. The share of organized retailing is supposed to jump to about 10% from the existing 3%.Development of successful and profitable retail formats Expansion beyond geographical boundaries Vertical integration As an employment generator

RETAILING BOOM• With the shopping mall culture catching up in the

metros and plans of around 150 new malls stated to be launched by 2008, the retailing sectors is poised to boom in the country. The Indian real estate industry is on a high growth path with a current market size of $ 15 billion approximately. Moving on, it is expected to be over $ 50 billion by 2010. The growth is being propelled by a variety of factors which include :Political reforms in relation to real estate Economic factors: The lower interest rate and ease of credit availability Demographic factors: Demographic factors like increasing literacy rates, higher disposable incomes and increasing urbanizations

BIBLIOGRAPHY

• Marketing Management – Philip Kotler

• Retail Management – Berry & Barman

• Retail Management - Swapna Pradhan

• www.answer.com

• www.wikipedia.com

• www.thinktank.com

THANK YOU