Retail

trade is worlds oldest business.

Retail trade consists of sale of goods & services to consumers for their personal, family or household use. Based on turnover and volume, retail trade is worlds biggest economic activity.

 In

India by investing nominal Capital a person can start retail business. India Retail shops are generally owned and run by family. The whole family gets self employed.

In

Retail Sector\

Organized Retail

Unorganized Retail

RETAIL GIANTS
Indian Giants
Pantaloons Reliance Bharti Airtel RPG lifestyle

Global
Tesco Wal-Mart Metro Carrerfour B&Q

K Raheja

Target

FORMAT Convenience stores Discount stores Category killers Specialty stores Shop-in-shop supermarkets
Department stores Cash and carry hypermarkets

AVERAGE SIZE 800 sq. feet 1000 sq. feet 8000 sq.feet Single category Within malls Large in size, typical in layout 10,000-60,000 sq.ft 75,000 sq.ft 50,000-1,00,000 sq.ft

Manufacturers

Whole seller

Organized Sector
Distributor

Retailer

Foreign direct investment (FDI) refers to the net inflows of investment to acquire a lasting management interest (10 percent or more of voting stock) in an enterprise operating in an economy other than that of the investor. It is a sturdy source of money.

FDI

Single Brand FDI

Multi-Brand Retail

Some time in 1991-92, the then Finance Minister and present Prime Minister Dr. Manmohan Singhji referred to certain criteria for allowing Foreign Direct Investment. These were :

1.

Establishment of basic industries requiring huge capital and advanced sophisticated technology.
Infrastructure projects like electricity generation road building etc. Projects which would generate employment

2.

3.

FDI POLICY- OVER THE YEARS.

No of Retail outlets Between 1981-99 in United Kingdom came down from 56862 to 25800. Between 1970-80 in Europe about 4 lakhs closed. Competition shall be limited to Big Retail Houses In the year 2000 Five Big Fast food companies captured following percent market share : Country Norway Switzerland Sweden UK Portugal % Share 99 88 94 64 57 Retail shops were

Name of Country America England Western Europe Brazil Thailand Korea China Malaysia India

% of Market Share 80% 80% 70% 40% 40% 35% 20% 20% 3%

Remember example of BATA in shoe business. Imagine Roadside DHABAs after RELIANCE FOOD CHAIN Starts working. Cold drink business in India.

10 million jobs will be created in the next 3 yrs.

It will help farmers.

Foreign retail majors will ensure supply chain efficiencies. Improve competition. impact on food inflation from efficiencies in supply chain.

A strong legal framework.

Impressive growth in China and Thailand. Increase in exports.

Investment in technology.
Infrastructure development.

Skilled workers Competition Taxation policies Real estate problem Market power Supply chain management Problem raising in funds inflation

Founded by Mr. Sam Walton in 1962 and incorporated on October 31, 1969 First store opened in Bentonville, Arkansas Today 6600 stores worldwide in countries It is an American public corporation & also largest public corporation by revenue in the world 1.3 million people working

The winning strategy- selling branded products at low cost.

Non dependence on any single vendor. Reliability on its own distribution system.

Future Group RPG

Reliance Retails
Aditya Birla Group

India is one country, but a hundred different markets. Favorable demographics. Use population to their advantage Availability of more sourcing options Rising consumer incomes

Unorganized sector. Storage setup of households.

Real estate rents.

Smaller states will not be able to handle.

CONCLUSION