Retail industry in india

Retail industry in india

1. RETAIL INDUSTRY IN INDIA Hitesh N Bhiogade

2. Index Flow Definition of Retailing Revolution of Indian Retail Industry Present scenario of Indian Retail industry Types of Retail market Tax System FDI in Retail Challenges Opportunities Conclusion Reference

3. First form of retail was Barter system - exchange of goods Followed by Kirana store and Mom & Pop store and then PDS outlet controlled by government. Finally Manufacturing era necessitated the small stores and specialty stores 1990’s saw a fresh wave of entrants with a shift from Manufactures to pure Retailers Post 1995 onwards saw an emergence of shopping centers, hyper and super markets trying to provide customer with 3 Vs - Value, Variety and Volume Evolution of Indian Retail Industry “ Retailing - includes all the activities involved selling goods or Services directly to final consumers for personal use, not for business use”.

4. Indian Retail Industry Indian retail Industry is Fifth largest in the world. Retailing in India is one of the pillars of its economy and accounts for 14 to 15 percent of its GDP. Indian retail industry contributes 8% to of the total employment. Food segment contributes largest part of total value of retail market. The Indian retail sector is fragmented with more than 90% of its business being carried out by traditional family run small stores.

5. Types of Retail Market in India Unorganized Retail Market Market size - 92% It includes owner managed general store, convenience store, kirana store Location – Residential area, Main roads Lacks technical and accounting standard Space limitation

6. Shift from Unorganized to Organized self service outlets Changing Scenario BEFORE AFTER

7. Organized Retail Market Market size - 8%(rapidly growing) It includes Larger malls, Retail chain, Supermarket Professionally managed with accounting standard Customer are mostly brand conscious and use lifestyle products Customer are shifting from buying to shopping experience No space limitation

8. Organized Market

9. E-commerce E-commerce and organized retail has their own separate presence in the market Trading in products or services using Internet Effective and efficient way of conducting business It has market entry strategy where the company may or may not have a physical presence India has close to 10 million online shoppers and is growing at an estimated of 30% Main categories –Electronics and cloths and future category furniture Some disadvantage of e-commerce is that consumer can’t feel & touch product , so they came out with 30 days return policy Major players- Flipkart,Amazon,Snapdeal,Homeshop18

10. Key Players of Retail Industry in India Future group Shopper stop Trent Brand house Retail Reliance Sahara Group Videocon Next

11. Tax Impacts There we re multiple indirect tax:- Custom Duty Central value added tax (VAT) Service tax Central Sales tax (CST) State value added tax Entry tax GST :- In order to integrate all these tax into a single unified tax system and bring about broad-based reforms in the indirect regime, the Government of India has introduced Uniform Goods and Service Tax (GST) across the country.

12. FDI in Retail FDI up to 100% for cash and carry wholesale trading and export trading allowed under the automatic route. FDI up to 100% for retail trade of ‘Single Brand’ products. Single brand retailers like Apple, IKEA can own 100% of their Indian store, up from previous cap of 51%. Indian government allowed FDI up to 51% for multi brand sector. Both multi brand and single brand stores in India will have to source nearly a third of their goods from small and medium sized indian suppliers.

13. Challenges for Retail in India Lack of Finance - Due to lack of finance to a existing and new players. This affects growth and expansion plans. Requirement of numerous license, permits and registration Underdeveloped supply chain High cost of Real estate Lack of basic infrastructure like power, transport, communication

14. Opportunities Retail Education and Design to fulfill increasing demand of skilled people To develop supply chain and logistic infrastructure investment. To attract Large Rural Market have to develop some project like ‘Aadhar’ a joint venture between Future group and Godrej agrovet which sells paddy, wheat and help farmers for agricultural problem

15. Conclusion Indian Retail industry has a huge room for development and very bright future prospect. Proper government measure can assure healthy growth. Indian Retail Industry helps to grow Indian economy in terms of income and employment generation.

16. Reference Wikipedia, the free encyclopedia http://www.google.com http://www.economywatch.com http://www.nielsen.com http://www.indianretailing.com

17. Thank you