INDIAN RETAIL INDUSTRY

1 SWOT ANALYSIS
INTRODUCTION
 Retailing includes all the activities involved in
selling goods or services directly to final
consumers.

 Any organization that does this selling is

doing retailing.

 A retailer or retail store is any business

enterprise whose sales volume comes
primarily from retailing.
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TYPES OF RETAIL FORMATS IN INDIA

 Malls:
The largest form of organized retailing today. Located
mainly in metro cities, in proximity to urban outskirts.
 Discount Stores:
As the name suggests, discount stores or factory
outlets, offer discounts on the MRP.
 Department Stores:
it carries several product line, where each line is
operated as a separate deptt.
 Hyper marts/Supermarkets:
Large self-service outlets, catering to varied shopper
needs are termed as Supermarkets
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TYPES OF RETAIL FORMATS

CONT…….
 Convenience Stores:
These are relatively small stores 400-2,000 sq. feet
located near residential areas.

 Wholesale stores:
selling goods in bulk quantity only e.g. metro and
Shoprite holding.

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MAJOR PLAYERS IN RETAILING
 Future group-Big bazaar, food bazaar,
pantaloons, brand factory, e zone, central
mall, furniture bazaar,etc.
 Reliance industry ltd.-reliance fresh, reliance
trend,reliace footprint, reliance mart ,reliance
jewels etc.
 Tata group- croma, Westside, tanishq stores,
titan stores, star India bazaar, landmark.
 Aditya Birla group-peter England people
stores, more,
 Videocon group-Next, Bolld, planet M,
Raymond stores.

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and many more…
…...
GROWTH OF INDIAN RETAIL SECTOR
 Retail is the booming sector of India in the present
times. Retail, one of India’s largest industries, has
presently emerged as one of the most dynamic and
fast paced industries with several players entering the
market. Accounting for over 10 per cent of the
country’s GDP and around 8 per cent of the
employment in the country.

 India is among 10 largest retail market in the world.

 The retail sector in India is worth USD 394 billion and

is growing at the rate of 30% annually.

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SWOT ANALYSIS
STRENGTH………
….
 Demographic favor

 Rising disposable income

 Increase in number of people in earner

category.

 Urbanization

 Shopping convenience
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 Low labor cost of skilled ones.
STRENGTHS
CONT………
….
 Changing consumer habits and lifestyles.

 Plastic card revolution.

 Greater availability of quality retail space.

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SWOT ANALYSIS
WEAKNESS……..
 Policy related issues
- lack of industry status for retail.
- numerous licence,permits and registration
requirement.
-farmer and retailer unfriendly APMC act.
 Limited consumer insight

-lack of detailed region specific customer

data.
-less data on spending pattern.
 inadequate human resources

-lack of trained personnel at all level.

-stringent employment and industry laws. 9
-fragment approach to human resources.
WEAKNESS
CONT………..
 Taxation hurdle
-inconsistent octori and entry tax structure.
-vat and multiple taxation issues.
-large grey market presence.

 Underdeveloped supply chain

-underdeveloped logistics infrastructure.
-absence of national cold chain networks.
-lack of national distribution networks and hubs

 Lack of adequate utilities

- lack of basic infrastructure like power, transport and
communication creates difficulty in sustaining retail
operations across the large geographical spread of
country.
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.
SWOT ANALYSIS

OPPORTUNITIES……..
 Potential for investment.

 Locational advantage.

 Sectors with high growth potential.

 Fastest growing formats.

 Rural retail.
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OPPORTUNITIES
CONT………..
 Wholesale trading.

 Falling real estate cost

 E-retailing

 Retail franchising

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SWOT ANALYSIS
THREATS……
……..
 Political issues.

 Social issues.

 Inflation.

 Nostalgia

 Lack of differentiation among the malls that are

coming.

 Poor inventory turns and stock availability 13

measures.
CONCLUSION
Over the last few years, retail has become
one of the fastest growing sectors in the
Indian economy. The organized retail
however is at a very nascent stage though
attempts are being made to increase its
proportion to 15-25% by the year 2011
bringing in a huge opportunity for
prospective players . The sector is the
largest source of employment after
agriculture, and has started to penetration
into rural India generating more than 10% of
India's GDP. 14
THANKS
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