EVOLUTION OF

MODERN RETAIL IN
INDIA
 Retail : The Evolution…
The first phase- Introduction stage
The second phase- Growth stage
The third phase- Mature stage
The fourth phase- Saturation to
decline
 Evolution of Indian retail Modern Formats/
Historic/Rural Traditional/Perva Government
International
Reach sive Reach Supported
Exclusive Brand
Outlets
Hyper/Super
Markets
Department Stores
Shopping Malls
PDS Outlets
Khadi Stores
Cooperatives
Convenience
Stores
Mom and
Pop/Kiranas
Weekly
Markets
Village Fairs
Melas
Source of Neighborhood Availability/ Shopping
Entertainmen Stores/Convenie Low Costs / Experience/Efficie
t nce Distribution ncy
 Evolution of Indian retail
 Informal retailing Sector
 Typically small retailers.

 Evasion of taxes

 Difficulty in enforcing tax

collection mechanisms
 No monitoring of labor laws
Indian retail

 Formal Retailing Sector

 Typically large retailers

 Greater enforcement of taxation

mechanisms
 High level of labor usage monitoring
 EVOLUTION OF RETAIL
EARLY TRADES
Barter System
MODERN RETAIL SCANERIO
EMERGING VARIOUS FORMATS

CHANGING LIFESTYLE SCANERIO

EMERGING AS A GLOBAL MARKET

LIBERLISATION
FACTORS AFFECTING MODERN
RETAIL
CHANGING CONSUMER TASTE & BEHAVIOUR
INCOME OF THE BUYER
STRONG ECONOMY
MARKET GROWTH
MARKET OPPURTUNITIES
INDIA’S SHARE OF WALLET IS
SHIFTING AS INCOME RISE
CONSUMER EXPENDITURE IN
ORGANISED RETAIL
Consummer Expenditure in Organized Retail
Entertainment
Durable
1%
10% Durable
Clothing & Textile Entertainment
Pharma
38%
2% Pharma
Food & Grocery
Food & Grocery
14% Health & Beauty

Health & Beauty Books, Music & Gifts

1%
Watch & Jwellery
Books, Music & Gifts
3%
Footwear
Clothing & Textile
Footwear Watch & Jwellery
13% 18%
FUTURE OF RETAIL IN INDIA
2007 END WILL SEE
-Us $560m investment for retail expansion
naionwide.
-Result in 50 Hypermarkets
-305large department stores
-1500 super markets
-10,000 exclusive retail showrooms
-One third through conversion from multi
brand to exclusive outlets.
CONCLUSION