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M01S02 - Retail in India.pptx

The retail industry in India is rapidly transforming, driven by economic development, changing consumer preferences, and globalization, making it the fifth largest retail market globally. It comprises organized and unorganized sectors, with organized retailing including corporate-backed hypermarkets and retail chains, while unorganized retailing consists of traditional formats like kirana shops. The sector is projected to reach a value of US$ 2 trillion by 2032, but faces challenges such as high real estate costs and a complex taxation system.

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17 views9 pages

M01S02 - Retail in India.pptx

The retail industry in India is rapidly transforming, driven by economic development, changing consumer preferences, and globalization, making it the fifth largest retail market globally. It comprises organized and unorganized sectors, with organized retailing including corporate-backed hypermarkets and retail chains, while unorganized retailing consists of traditional formats like kirana shops. The sector is projected to reach a value of US$ 2 trillion by 2032, but faces challenges such as high real estate costs and a complex taxation system.

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zynox
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We take content rights seriously. If you suspect this is your content, claim it here.
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RETAIL IN INDIA

INTRODUCTION
Retailing business in India is undergoing rapid transformation. The kirana store is a major
element in the retail business in India.
The emergence of new retail formats in retailing sector has attracted attention of many like
government, large corporations, economists and general public in recent years.
The environment of retailing business in India is witnessing several changes on the demand side
due to increased income and changes in Indian consumers’ preferences.
The driving forces in Indian retail sector are: rapid economic development in recent years,
changes in consumers’ preferences, improvements in civic situation, liberalization policy
and globalisation.

The Indian retail industry is the fifth largest in the world. Comprising of organized and
unorganized sectors, India retail industry is one of the fastest growing industries in India.
ORGANISED RETAIL
As per the definition retail industry comprises of organized and unorganized sectors. Corporate
retailing refers to trading activities undertaken by licensed retailers, that is, those who are
registered for GST, Income tax, etc.
These include the corporate-backed hypermarkets and retail chains, and also the privately
owned large retail businesses.
Unorganized retailing, on the other hand, refers to the traditional formats of low-cost retailing.
Example: The local kirana shops, owner operated general stores, paan/beedi shops,
convenience stores, hand cart and pavement vendors, etc.
Examples of Organised: Among the organized ones the already established corporate retailers
in India are Pantaloon Retail, Shoppers’ Stop, Spencer’s, Hyper CITY, Lifestyle, & Reliance
Retail etc.
EVOLUTION OF RETAIL IN INDIA
Traditional formats
⚫ Haats
⚫ Melas
⚫ Mandis
⚫ Salesman

Established Formats
⚫ Kirana Shops
⚫ Convenience/Department Stores
⚫ Company/Multibrand showrooms
⚫ PDS/Fairprice shops
⚫ Cooperative stores
⚫ Panshops
Emerging Formats

⚫ Exclusive Retail outlets


⚫ Hypermarkets
⚫ E-tailing
⚫ Malls/Speciality Malls

⚫ Multiplexes

⚫ Fastfood outlets
DRIVERS OF RETAIL CHANGE IN INDIA
Raising incomes and improvements in infrastructure are enlarging consumer markets an
accelerating the convergence of consumer tastes

Liberalization of the Indian Economy

Increase in spending per capita income

Advent of dual income also helps in the growth of retailer sector

Shift in consumer demand to foreign brands like McDonald, Sony, and Panasonic etc.

Consumer preference for shopping in new environment.

The Internet revolution is making the Indian consumer more accessible to the growing
influence of domestic and foreign retail chains.
INDIAN RETAIL MARKET
Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to
the entry of several new players.
It accounts for over 10% of the country’s gross domestic product (GDP) and around 8% of the
employment (35mn+). India is the world’s fifth-largest global destination in the retail space.
The retail sector in India is expected to reach a whopping US$ 2 trillion in value by 2032,
according to a recent analysis by the Boston Consulting Group (BCG).
Food & Grocery, Apparel & footwear, and consumer electronics are the largest retail segments,
constituting 63%, 9% and 7% respectively of the retail market.

10% Growth rate of retail sector over 2022-32, 12% Share of Organised retail of total retail
market.
KEY SECTORS IN INDIAN RETAIL
i. Food retail – food & grocery, Food services

ii. Apparel

iii. Consumer durables

iv. Footwear

v. Jewellery retail

vi. Retail of watches

vii. Luxury retail


CHALLENGES TO RETAIL DEVELOPMENT IN INDIA
Retail not recognised as an industry in India

High costs of real estate

High stamp duties on transfer of property.

Lack of adequate infrastructure

Multiple and complex taxation system.

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