Retailing

An industry Analysis

Manager in Making 2nd March

Business History of the Retail Sector Global

Retail Sector emerged in US in 18th Century Specialty Stores came up Growth of Suburbs (US & Canada) after World War II Revenue in US alone - $5 trillion

The share of organized retail in developed countries is much higher than developing countries like India. In 2006, the share of organized retail in various countries was: Developed Countries US 85% UK 80% Japan 66%
Russia 33% India 6% China 20%

Developing Countries

Modern day retail came into existence in three successive waves.

3rd Wave : Late 1990s and early 2000 in some parts of Africa, Central and South America, South-east Asia, China, India and Russia and continues to grow at a rapid pace.

1st Wave : Early to mid-1990s in S. America, East Asia (except China), N. Central Europe and S. Africa.

2nd Wave : Mid-to-late 1990s in Mexico, Central America, South-east Asia and South Central Europe.

Business History of the Retail Sector India

Organized Retails Sector holds just 6% of the Market Share in India Dates back to Pre-Independence Era Established Business house (mostly Textile) - Company Owned and Franchisee Outlets First Organized Food & Grocery & Consumer Durables Retail Chain in South India (late 80s)

Classification of Retail Evolution in India

Initiation - Pre 1990s Conceptualization - 1990 - 2005 Retail Expansion 2005 through 2010 Consolidation and Growth - 2010 onwards

Business History of the Retail Sector India

The organized retail in India has been divided into various categories:
Jewellery and Watches Catering and Services Furniture & furnishing Footwear Consumer durables

Food & Grocery

Clothing & Textile

Mobile handsets

Books, Music & Gifts etc.

Organized Retail is growing at the rate of 40% Factors which contribute to the growth of organized retail in India:
Increasing purchasing power Increase in the no. of working women Large no of working young population

Rapid urbanization

Major Brands

Contribution to GDP Compare figures across India, US, China and Europe
USA
Largest Market in the World. Organized Sector constitutes over 85% of total Retail Sales. In 2008, the US retail industry recorded sales of US$ 4.41 tn, i.e., 31% of the national GDP . The US retailing is divided into three categories: department stores, mass merchandisers, and specialty stores.

Online retailing also has been gaining popularity in the US.

Domestic markets in the developed countries have saturated.

Opportunities in emerging markets are rising, hence organized retailers from those countries have been turning to new markets.

United Kingdom

The UK retail sales were valued at 278 billion in 2008 with 197,990 establishments.

8% of the national GDP in 2008

Employment to 2.8 million people, which constitutes 11% of the total workforce

China
China opened up its economy to the world in 1980s which led the growth of the organized retail market in the country. Organized Retail Sector constituted 20% of the total retail sales of US$ 785 billion in 2006. Large and burgeoning population, large cities, and increasing purchasing power of local population are the main factors behind the growth of this sector

Thank You