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Presented by:
Ravi Verma
Mba 1st year
RETAIL INDUSTRY IN
INDIA
MBA :-104

Serial no:- Topic Slide no:-
3 Introduction 3
4 Retail Marketing 4
5 Retail scenario in India 5
6 Centre to over turn Delhi govt’s rejection
of FDI in retail?
6
7
FDI in retail: investment up to 49%
through automatic route.
7
8 Types of Retailers 8,11
9 Types of wholesalers 9,14
10 Top 10 Retailers Worldwide Comp. 15,16

11 COUNTRY RETAIL SECTORE’S SHARE IN GDP (IN %) 18
12 Top Largest Shopping Malls in India 19,2o
13 Major players of Retailing 21
14 Key drivers of the Indian Retail Industry 22
15 Vision, Mission and Values 23,26
16 Porter’s Five Forces model 27,30
17 SWOT Analysis for Retail 31,34
18 Retailing Sector Analysis Report 35,

The word ‘retail’ means to sell or be sold
directly to individuals. Retail is India’s
largest industry, and arguably the one with
the most impact on the population. It is the
country’s largest source of employment after
agriculture, has the deepest penetration to
rural India, and generates more than 10
percent of India’s GDP. However, retailing in
India has so far, been mostly in the hand of
small disorganized entrepreneurs

The Indian retail market is poised to reach USD 1.3
trillion by 2020 and therefore it will provide a
tremendous growth opportunity for retail and
FMCG players a like. With all multinational brands
coming to India, there is going to be explosion of
jobs in the retail sector .

Earlier this month, the Aam Aadmi Party government
had written to the Department of Industrial Policy and
Promotion about its decision to reverse the Sheila
Dikshit government’s approval of FDI in Delhi. However,
as per an article in Hindu, the Centre has claimed the
power to reject the Delhi government’s proposed de-
notification of FDI in the State. The article quotes
sources in the Industry Ministry as saying that after FDI
in retail is notified by the government in a State, the
powers to de-notify it are with the Centre, and not with
the State government. The Ministry, however, is yet to
communicate this to the Delhi government.

The Government has so far received 63 applications
for starting single brand retail operations since it
permitted100 % FDI in single brand retail. Now the
government has made the norms easier. Single-
brand retailers, keen to enter India, need not seek
any regulatory approvals if their investment is up to
49 %. In this case they can come in through
automatic route. Any investment over and above
this will need an approval

Department Store – This type of retailer is
often the most complex offering a wide
range of products and can appear as a
collection of smaller retail stores managed
by one company.
Supermarkets – Generally this type of
retailer concentrates in supplying a range of
food and beverage products.

Warehouse retailers – This type of retailer is
usually situated in retail or Business Park and
where premises rents are lower.
Speciality Retailers – Specialising in specific
industries or products, this type of retailer is
able to offer the customer expert knowledge
and a high level of service.

E-tailer – This type of retailer enables customers
to shop on-line via the internet and buy products
which are then delivered.
Convenience Retailer – Usually located in
residential areas this type of retailer offers a
limited range of products at premium prices due
to the added value of convenience.

Discount Retailer – This type of retailer
offers a variety of discounted products.

Merchant Wholesalers – These wholesale
suppliers own and produce a product or
service and resell their products to resellers,
retailers, distributors and other wholesalers.
General Wholesalers - Wholesalers that fall
into this category will usually buy large
quantities of products from one or more
suppliers

Speciality Wholesalers - This type of
wholesaler will resell products in a specific
industry or product category, but may have
products from multiple suppliers.
Specific Product Wholesalers - These are
wholesalers who only supply 1 type of
product for example footwear or computers.

Discount Wholesalers – This type of wholesaler
will supply significantly discounted stock.
Drop Ship Wholesalers - This type of wholesaler
will complete the sale of a product
On-line Wholesaler - Wholesalers who sell their
products on-line offer discounted prices as they
can reduce their overheads such as rent and
rates of physical premises.

Rank Retailer No. of store
owned
Sales in US$
Millions
1 Wall-Mart
Stores Inc.
(USA)
3445 $180,787
2 Carrefour
Group (France)
8130 $61,047
3 The Kroger Co.
(USA)
4178 $49,000
4 The Home
Depot, Inc.
(USA)
1134 $45,738
5 Royal Ahold
(Netherlands)
7150 $45,729

6 Metro AG
(Germany)
2169
7 Kmart
Corporation
(USA)
2105
8 Sears, Roebuck
and Co. (USA)
2231
9 Albertson's, Inc.
(USA)
2512
10 Target
Corporation
(USA)
1307

India 10
USA 10
China 8
Brazil 6

1st. Lulu International Shopping Mall – Kochi
in kerela
http://traveljee.com/top-10/top-10-largest-shopping-malls-in-india-857412

- Food and grocery
- Fashion
- Others
- Food world
- Shoppers' Stop
- Vivek's
- Subhiksha
- Westside
- Planet M
- Nilgris
- Lifestyle
- Music World
- Adani- Rajiv's
- Pyramid
- Crossword
- Nirma-Radhey
- Globus
- Life spring

Emergence of nuclear families
An increase in the double-income households trend
Large working population
Reasonable Real estate prices
Increase in disposable income and customer
aspiration
Demand as well as increase in expenditure for luxury
items
Growing preference for branded products and higher
aspirations
Growing liberalization of the FDI policy in the past
decade
Increasing urbanisation,
Rising affluence amid consumers

Vision
Matrix Business Services will be the most
recognized professional service organization
in the verification business. We will achieve
a right balance between exceptional client
service, and financial success of the firm.
Mission
Enabling enterprises to mitigate business risk
and increase business efficiency.

Values
1. Client Focus:- Client comes first: We will
offer solutions and services to our clients
that create highest level of value and client
delight.
2. Quality:- Commitment to Excellence: We
will set high standards of excellence with our
delivery capabilities and compliance with
best-in-class quality practices

3. Integrity:- Ethically driven: We are
committed to highest standards of corporate
governance and to setting integrity
benchmarks for the industry we operate in.
4. People:-People are our assets: We are an
equal opportunity employes driven by
teamwork and a belief in diversity, providing
outstanding growth opportunities for our
employees and associates.

5. Growth:- Always moving forward: We will
consistently grow our business year after
year, ensuring long term value creation for
our share Whole.

Risk of entry by potential
competitors: Potential competitors refer to
the firms which are not currently competing
in the industry but have the potential to do
so if given a choice.
The various barriers to entry are:-
Economies of scale
Brand loyalty
Government Regulation
Customer Switching Costs
Absolute Cost Advantage
Ease in distribution

Rivalry among current competitors: Rivalry
refers to the competitive struggle for market
share between firms in an industry.
Extent of exit barriers
Amount of fixed cost
Competitive structure of industry
Presence of global customers
Absence of switching costs
Growth Rate of industry
Demand conditions

Bargaining Power of Buyers: Buyers refer to
the customers who finally consume the product
or the firms who distribute the industry’s
product to the final consumers.
Bargaining Power of Suppliers: Suppliers refer
to the firms that provide inputs to the industry.
Bargaining power of the suppliers refer to the
potential of the suppliers to increase the prices
of inputs( labour, raw materials, services, etc)

Threat of Substitute products: Substitute
products refer to the products having ability
of satisfying customers needs effectively.
Substitutes pose a ceiling (upper limit) on
the potential returns of an industry .

Strengths:-The first step in doing a SWOT
analysis for retail entails identifying certain
strengths. One possible strength may be the
retailer's financial backing, meaning it has
plenty of capital and access to bank loans.
Weaknesses:-When reporting weaknesses,
the retail store or company should start with
its most palpable weaknesses.

Opportunities:-Another step in a retail SWOT
analysis is identifying key opportunities in
the market. There are a myriad of
opportunities a retailer may discover through
both its sales force and ma
Threats:-A retailer can identify certain
threats through a SWOT analysis. Threats can
include a decrease in consumer demand, a
recession, price wars among key
competitors, or even an increase in
competition.

India is the 5th largest retail market in the world. The
country ranks fourth among the surveyed 30 countries
in terms of global retail development. The current
market size of Indian retail industry is about US$ 500
bn (Source: IBEF) and is expected to grow at the rate
of 15-20% p.a. The retail industry is expected to
increase to US$ 750-850 bn by 2015 (according to a
report by Deloitte). Retailing has played a major role
the world over in increasing productivity across a
wide range of consumer goods and services. In the
developed countries, the organised retail industry
accounts for almost 80% of the total retail trade. In
contrast, in India organised retail trade accounts for
merely 8-10% of the total retail trade. This highlights
a lot of scope for further penetration of organized
retail in India.

For a start, these retailers need to invest
much more in capturing more specific
market. Intelligence as well as almost real-
time customer purchase behavior
information. The retailers also need to make
substantial investment in
understanding/acquiring some advanced
expertise in developing more accurate and
scientific demand forecasting models

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