Retail Sector in the Indian Economy

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TABLE OF CONTENTS
 |  |  |
Sr. No.| Topic| Pg. No.|
1| INTRODUCTION| 2|
2| AMUL: AN INTRODUCTION| 4|
3| SITUATION ANALYSIS| 6|
4| STRATEGIC ANALYSIS| 10|
5| AMUL SCOOPING PARLORS| 18|
6| A QUESTIONNARE: REVIEW OF ICE-CREAM PARLORS| 20|
7| BIBLIOGRAPHY| 23|
1.
INTRODUCTION

Retail Sector is the most booming sector in the Indian economy. Some of the biggest players of the world are going to enter the industry soon. It is on the threshold of bringing the next big revolution after the IT sector. Although organized retail market is not so strong as of now, it is expected to grow manifolds by the year 2010. The sector contributes 10% of the GDP, and is estimated to show 20% annual growth rate by the end of the decade as against the current growth rate of 8.5%. A CRISIL report says that the Indian retail market is the most fragmented in the world and that only 2% of the entire retailing business is in the organized sector. This suggests that the potential for growth is immense. There are about 300 new malls, 1500 supermarkets and 325 departmental stores currently being built in the cities across India. The retail sector would generate employment for more than 2.5 million people by the year 2010, predicts an analysis.

Some of the players present in the industry:
Archies, Bata India Ltd, Big Bazaar, Crossword, Ebony Retail Holdings Ltd., Fabmall, Food Bazaar, Globus Stores Pvt. Ltd., Health and Glow, Liberty Shoes Ltd., MTR Foods Ltd., Music World Entertainment Ltd., Pantaloon Retail India Ltd., Shoppers Stop, Style SPA Furniture Ltd, Subhiksha, Titan Industries, Lifestyle, etc. New entrants entering the market soon will be Reliance Retail Ltd, Wal-Mart Stores, Carrefour, Tesco, Boots Group, etc.

Evolution of the Sector
1. Weekly Markets, Village and Rural Melas
Source of entertainment
Rural and historic reach

2. Convenience stores, Mom-and-pop / Kirana shops
Neighborhood stores/convenience
3. Traditional and pervasive reach Government supported
Availability/low costs/distribution

4. Exclusive Brand outlets,
Hypermarkets, Supermarkets, Department stores and Shopping malls Shopping experience/ efficiency
Modern formats/ international

5. Modern Format retailers
Supermarkets
Hypermarkets
Department Stores
Specialty Chains
Company Owned Company Operated

6. Traditional Format Retailers
Kiranas: Traditional Mom and Pop Stores

2.
AMUL: AN INTRODUCTION

WHERE AMUL STANDS IN MARKET?
Amul, the most famous Indian brand of milk and milk-based products, owned by Gujarat Co-operative Milk Marketing Federation (GCMMF), which achieved an annual turnover of Rs 6,711 crore in 2008-09, has now become the largest retailer of processed food products in the country. While, Amul products are currently available to consumers across India through a network of more than two million retail outlets, Amul has also begun to expand its network of its exclusive retail outlets popularly known as Amul parlours (”Amul Utterly Delicious”). The concept of exclusive retail parlors developed in 2002 has now gained momentum with the approvals number crossing 4500 outlets. These parlors, located in various towns and cities across the country, are mostly owned by franchisees, though some of them are still operated by the company. The large part of the credit for creation of over 2,000 parlors during the current year has been given by the company to its channel partners (wholesale distributors) who embraced the concept by not only by starting their own parlors, but also motivated franchises to set up new parlors, that apart from generating business are also creating employment. Apart from garnering sales turnover of over Rs. 200 crore during the current year, the parlors have also become an effective platform for introducing all the innovative products of the company. Amul has also opened food stalls across major railway stations of the country to...
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