Key Sectors of Indian Retail and FDI in Indian Retail

Key Sectors of Indian Retail and FDI in Indian Retail

1. Key Sectors of Indian Retail

2. Retail is the process of selling consumer goods or   services to customers through multiple channels of distribution to earn a profit.  Retail management has become one of the fastest growing career in the industry with the tremendous growth in the economy. Retail Market of India is the most attractive and emerging market in the world.  

3. Indian Retail Sector Fashion , Fitness and Personal Care Health and Pharmaceuticals Entertainment Retailing Food and Grocery Catering Retailing Consumer Electronics

4. This sector is divided into beauty parlours health centres, spa, gym, and yoga centres. This sector is characterized by large formats, which are fairly price competitive. With growth in incomes, Indians have been spending enough money on fashion, fitness and personal care products. India has over 1 million retailers, of whom 50 % belong to personal care.  Fashion, Fitness and Personal Care

5. R etailers in this sector are : Lakme Liver Health and Glow Avon Beauty OTC Medicines Oriflame Stores Shahnaz Hussain

6. Health and Pharmaceuticals Today due to increase in per capita income, all over the world, people are becoming health conscious and have been spending more on health and pharmaceutical products . Currently, India has over 5 million retailers, of whom 16 % are chemists. Most of the independent retailers have started providing value added services for the consumers, such as free home delivery, order over phone and other reminder services.

7. In addition, pharmaceutical stores consist of self-diagnostic digital equipment, skin care, blood pressure, sugar control products, and toiletries among other things. Leaders in this segment: Life Spring SRL Ranbaxy OTC Oriflame Outlets

8. Entertainment Retailing There are specialized retailers for each category of products in this sector. A few retail chains have emerged particularly in the retailing of amusement parks, music products and movies. This sector is mainly characterized by franchising and retail chain arrangements/tie-ups.

9. This retail segment includes :   T heme parks W ater parks C yber cafes M usic stores A musement parks Resorts C lubs  

10. Food and Grocery The food and grocery sector is divided into restaurants, fast food, coffee shops, juice bars, intercontinental food courts etc. W orld over, grocery being the largest sector in retailing. Wal-Mart , Mc Donalds , and Carrefour are some of the key global players in this sector . Food sales accounted for 77% of total sales, growing to 70.7 lakh crores from 35 lakh crores in 2005.

11. Catering Retailing Catering retail is the business of providing food and services at desired area . It may include Packaged lunch to full service catering with serving staff at dining tables or in the form of self-serve buffet. The food may be prepared at caterer’s place and final touching at the place of event or entirely cooked at the place of event . Catering service is usually provided at convention centers , venues for conferences, seminars, official meetings, weddings and orientation programmes of big corporates .

12. Consumer Electronics Consumer Electronics Retailing is one of the most amazing developments in the field of retailing since the advent of Direct Response Marketing in India. Today it is the fast growing segment of the retail industry after food and grocery. The way Indian masses are spending money on luxury and items of standard living, it is the golden opportunity for every businessman who is planning of entering into retail industry.

13. FDI In Indian Retail

14. The Government of India was initially very apprehensive of the introduction of the Foreign Direct Investment in the Retail Sector in India . There are different viewpoints on the impact of FDI in the retail sector in India , According to one viewpoint, the US evidence is a proof to the fact that FDI in the retail sector does not lead to any collapse in the existing employment opportunities. There are divergent views as well. According to the UK Competition Commission, there was mass scale job loss with entry of the hypermarkets brought about by FDI.

15. Until 2011, foreign direct investment (FDI) was not allowed in multi-brand retail, forbidding foreign companies from any ownership in supermarkets, convenience stores or any retail outlets.  In January 2012, India allowed 100% FDI investment in single-brand stores. On 7 December 2012, India allowed 51 per cent FDI in multi-brand retail. Now the announcement of retail FDI in India has triggered a series of debates on both positive and negative notes and become political issue.

16. Advantages of FDI in retail sector in India :   Growth in economy Due to coming of foreign companies new infrastructure will be build, thus real estate sector will grow consequently banking sector, as money need to be required to build infrastructure would be provided by banks. Job opportunities Estimates shows that this will create about 80Lakh jobs. These career opportunities will be created mostly in retail, real estate

17.   Benefits to consumers Consumer will get variety of products at low prices compared to market rates, and will have more choice to get international brands at one place .

18. Disadvantages of FDI in retail sector in India The domestic organized retail sector might not be competitive enough to tackle international players and might lose its market share . Many of the small business owners and workers from other functional areas may lose their jobs, as lots of people are into unorganized retail business such as small shops.

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