BUSINESS ENVIRONMENT

NAME: LAVIN M.HIRANANDANI CLASS:FYBMS S-126 TOPIC : RETAIL SECTOR IN INDIA

INTRODUCTION
The retail scenario is one of the fastest growing industries in India over the last couple of years. India retail sector comprises of organized retail and unorganized retail sector. Traditionally the retail market in India was largely unorganized; however with changing consumer preferences, organized retail is gradually becoming popular. Unorganized retailing consists of small and medium grocery store, medicine stores, kirana stores, paan shops etc.

 The organized sector is largely concentrated in big cities. Organized retail in India is expected to grow 25-30 per cent yearly and is expected to increase from Rs35, 000 crore in 2004-05 to Rs109, 000 crore ($24 billion) by 2010.

REASONS FOR THE GROWTH OF RETAIL SECTOR

INCREASING CLASS OF CONSUMERS
Favorable demographic and psychographic changes relating to India's consumer class, international exposure, availability of increasing quality retail space, wider availability of products and brand communication are some of the factors that are driving the retail in India.

RISING INCOME Over the past decade , Indias middle and High Income group has grown at a rapid pace of over 10% per annum . Though this growth is most evident in urban areas, it has also taken place in rural markets.

 EXPLOSION OF MEDIA
There has been an explosion in media as well during the past decade . Kick-started by the cable-explosion during the gulf war, television has accelerated to a pint where there are more cable connections than telephones in Indian homes and more than 100channels are being aired at all times .This media bombardment has exposed the Indian consumer to the lifestyles of more affluent countries.

Key Players in Indian Retail Sector

AV Birla Group: Has a strong presence in apparel retail and owns renowned brands like Allen Solly, Louis Phillipe, Trouser Town, Van Heusen and Peter England. Trent: Is a subsidiary of the Tata group; it operates lifestyle retail chain, book and music retail chain, consumer electronic chain etc. Reliance has more than 300 Reliance Fresh stores; they have multiple formats and their sale is expected to be Rs 90,000 crores ($20 billion) by 2009-10.

CONCLUSION
Industry experts predict that the next phase of growth in the retail sector will emerge from the rural markets. By 2012 the rural retail market is projected to have a total of more than 50 per cent market share. The total number of shopping malls is expected to expand at a compound annual growth rate of over 18.9 per cent by 2015.

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