ashish final rpt 97-03
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PRESENTATION ON
opportunities & challenges in indian retail industry
BY:
Dadhania Ashish s.092019
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INTRODUCTION:
The retail industry is divided into organized and unorganized
sectors.
Organized retailing refers to trading activities undertaken by
licensed retailers, 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 retailing refers to the traditional formats of low-cost
retailing.
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the local kirana shops, owner managed general stores, paan/beedi
shops, convenience stores, hand cart etc.
Over 12 million outlets operate in the country and only 4% of them
being larger than 500 sq ft in size.
The BMI India Retail Report for the first-quarter of 2011 forecaststhat total retail sales will grow from US$ 392.63 billion in 2011 to
US$ 674.37 billion by 2014.
Indias retail industry accounts for 10 percent of its GDP and 8
percent of the employment & its $17 billion by 2010.
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OBJECTIVE:
To understand the role of Retail industry in India.
Understand the growth & profitability on Retail industry.
To study the opportunities in Retail market in India.
To analyse the prospect & future of Retail Industry in India.
To study impact of recession on retail industry in India.
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OPPORTUNITIES:
increasing income & purchasing power.[$348(01) to $849(10)]
An increase in urbanization.[% is double in 10 yrs.]
Changing consumer attitudes.[price, product, convenience, value]
Retail sector is the largest contributor to the Indian GDP.[10%]
Retail Sector provides enough employment.[8%]
Brand consciousness.[60% is > 30 yrs.]
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Easy consumer credit. [credit & debit card, other facility]
Strategic Location & Geography.
Many ways to entry.[J.V., franchising, Mgnt. operation]
Government also taking initiative.[union budget]
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Size & Position in the current Scenario
ORGANISED RETAIL EXPECTED TO GROW 35-40% CAGR
The IndianRetailSector,
currentlythe Fifthlargest inthe world,is poised
forphenomenal growthin thecomingyears
India Shopping Trends, 2009 - Technopak
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in india largest population
is of working age that is
from 20-59 years.
The average age is 24
years.
So young blood can beeasily trained & gain.
2 5
3 43 7 3 8
4 4
0
1 0
2 0
3 0
4 0
5 0
India
China
US
RussiaJapan
pulation Median Age (In Years): 2009
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CHALLENGES:
The organized retail industry in India is faced with stiffCompetition from the unorganized sector.
There is a shortage of quality real estate and
infrastructure requirements in our country.
Opposition to Foreign Direct Investment from small traders
affects retail industry.
Very high stamp duties on transfer of property affects the
industry.
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Shortage of retail space in central and downtown locations also
affect the growth of retail industry.
Shortage ofmiddle management level professionals.
Land-use conversion is time consuming and becoming
complex.
For settling property disputes, it consumes lot of time.
Lack oftrained work force.
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Rigid building laws makes procurement of retail space difficult.
Non residents are not allowed to own property except they are
ofIndian origin.
Prohibition of Foreign investment in real estate business.
Customs duties are levied on import of goods in India.
Intrinsic complexity of retailing rapid price changes, constant
threat ofsubstitute product and low margins.
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THANK YOU!!
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