Indian Retail Industry

Topics: Retailing, Shopping mall, Supermarket Pages: 32 (9176 words) Published: March 30, 2013
EXECUTIVE SUMMARY
Retailing is the process that involves of selling goods or services directly to end consumer for personal, non business use (Kotler, 2010). A retailer or retail store is an enterprise where they make volume majorly from retailing. Any firm selling its goods or services to the end consumers- whether it is manufacturer, wholesaler, or retailer- is said to be retailing. It doesn’t matter how the goods or services are sold (may be by person, through mail, telephone) or where (from a store, by the street or in the user’s home). In the past, retailers secured customers loyalty by offering convenient locations, special or unique variety of goods, greater or better services than competitors. Retailers struggled in developed countries because of their saturated market and forcing them to invest in developing countries like India, China etc. And India has been ranked fifth most favourable market for foreign retailers, according to AT Kearney’s GRDI (2012). An Industrial Analysis on Retail Industry mainly concentrating on Food & Grocery is done in the project using Qualitative methods which includes PEST analysis, tracking mergers & acquisitions etc. and Quantitative methods which include comparison among the companies and comparison with the US markets. Certain limitation was faced while searching for data but it's made sure it is from a reliable and trusted source.

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Chapter 1

INTRODUCTION

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1.1. Overview
Retailing is the process that involves of selling goods or services directly to end consumer for personal, non business use. Present day consumers shop for goods and services at store retailers, non store retailers etc, but the best known retailer is the departmental store. Generally a retailer tend to buy goods or services in large quantities from manufacturers or importers which may include a middleman (wholesaler) or may directly purchase from them and then sell those to the end – user consumer as small quantities or in individual items. Retailers can be considered as the end of the supply chain, because they are final means from which the consumer receives their desired goods or services. Moreover in the marketer’s point of view retailing plays a major role in the overall distribution strategy, which means that to attain an efficient supply chain management retailer is the main source to assess the actual demand in the market. Some world leading retailers are (as per Revenue):1 1. Wal-Mart (US) 2. Carrefour (France) 3. Metro (Germany) 4. TESCO (UK) 5. Lidl Stiftury (Germany)

The world market is found is undergoing continuous transformation. And especially when retail market is consider, lots of innovation and cut throat competition is observed. If we consider in India the retail sector constitutes to 22% of GDP and provides 8% of employment.2 Indian retail sector worth is found to be US$ 350 billion and is growing at a rate of 15-20%3, it is estimated that the value of the retail sector may increase up to US$ 450 by 2015. This high growth rate has attracted many of the foreign investors to invest in India especially in Grocery and Apparel as a part of FDI in multi brand retail.4 Top retailers in India are; 1. Reliance Fresh 2. Food Bazaar 1 2

www.moneycontrol.com www.ibef.org 3 Pricewaterhousecooper research 4 Deloitte research

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3. Spencers Mart 4. More 5. Nilgiri's The organized retail sector is found to be only 5%, which shows a huge potential in retail sector and estimated to increase to 9% by 2015. Figure : 1.1

Organized retail has huge scope of expansion
Unorganized retail penetration Organized retail penetration

5%

9%

20%

95%

91%

80%

2011-12

2015-16

2020-21

Source: Indian retail market sep 2011, Delioitte Aranca research

1.2. Global Scenario
In the last part of 20th century, the world saw the emergence of the retail industry, majorly the supermarket found to dominant grocery retail form. And with the latest advancement in the...

References: 1. www.moneycontrol.com 2. www.ibef.org 3. Pricewaterhousecooper research 4. Deloitte research 5. www.Livemint.com 6. http://www.indianretailer.com/article/sector-watch/food-and-grocery/Standingagainst-each-other-1489/ 7. Business monitor international(Indian retail report Q1,2012) 8. ASA & Associates report, August 2012 9. http://www.punebds.com/pf.asp 10. http://www.managementparadise.com/forums/principles-management-p-o-m/208682pest-analysis-retail-industry.html 11. http://encyclopedia.thefreedictionary.com/PEST+analysis 12. http://www.ril.com/html/aboutus/major_milestones.html 13. http://www.ril.com/html/aboutus/major_milestones.html 14. http://www.bharti-walmart.in/Overview-CareerAtBhartiWalmart.aspx 15. http://info.shine.com/company/Spencers-Retail/204.aspx 16. http://info.shine.com/company/Spencers-Retail/204.aspx 17. http://www.cesc.co.in/cesc/web/investor/helpdesk/document/sub/Spencer%60s%20Re tail_Annual%20Report_2011-12.pdf 18. http://www.cesc.co.in/cesc/web/investor/helpdesk/document/sub/Spencer%60s%20Re tail_Annual%20Report_2011-12.pdf 19. Cifti.org/Reports/Ficci_Technopak%2008.pdf 20. Food.export.org/resources/countryprofiledetail.cfm?itemnumber=1015 21. www.cci.in 22. www.barcode-printing.co.uk/history-of-barcodes.htm 23. http://www.ibef.org/industry/retail-india.aspx 24. http://corporate.walmart.com/our-story/locations/india 25. http://www.investindia.gov.in/?q=retailing-sector 26. http://www.deloitte.com/assets/DcomIndia/Local%20Assets/Documents/Indian_Retail_Market.pdf 27. http://www.dnb.co.in/IndianRetailIndustry/overview.asp
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28. http://www.slideshare.net/hitaishi9/retail-assignment, http://www.slideshare.net/hitaishi9/retail-assignment 29. http://www.prospectsnet.com/cms/ShowPage/Home_page/Industry_insights/Retail/ov erview/p!egiLLL, http://raceforopportunity.bitc.org.uk/sites/default/files/kcfinder/files/RaceforOpportun ity/Retail%20Sector.pdf 30. http://industryreviewstore.blogspot.in/2012/04/future-of-retailing-in-france-to2016.html 31. http://www.slideshare.net/Allystephen/retailin-france-2011kh 32. http://www.planetretail.net/Presentations/grocery-2012-web.pdf 33. AT Kearney’s GRDI (2012) 34. CB Richard Ellis, 2010 35. Kotler, Marketing Management, 2010 36. Ernst & Young, 2012
37. Senthil Kumar. S, Shiva Kumar. P, Growing prospective of retail industry in and
around India, 2011 38. Brennan, D. P. and Lundsten, L. (2000), “Impacts of Large Discount stores on small US towns: Reasons for shopping and retailer strategies”, International Journal of Retail and Distribution Management, Vol. 28, No.45, pp. 155-161. 39. Canabal, M.E. (2002), “Decision Making Styles of Young South Indian Consumers: An Exploratory Study”, College Student Journal, Vol.36, No.1, pp. 65-71
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