THE INDIAN

RETAIL SECTOR
Unorganized
retail sector In
India

The Indian Retail Sector

India is the country having the most unorganized retail
market.
The contribution of retail industry to Indias GDP is more
than 13%.
More than 99% retailers function in less than 500 square
feet of shopping space.
India's retail sector is on its way of modernization.
Traditional markets are making way for new formats such
as departmental stores, supermarkets and specialty stores.
With the growth in income levels, Indians have started
spending more on health and beauty products.
India's retail sector is estimated to touch US$ 833 billion by
2013 and US$ 1.3 trillion by 2018.

Unorganized Retail sector

The Indian retail scene has witnessed too many players
in too short a time, crowding several categories without
looking at their core competencies or having a well
thought out branding strategy.
With rapid urbanization, and changing patterns of
consumer tastes and preferences, it is unlikely that the
traditional outlets will survive the test of time.

Share of Organized and

Unorganized Retail sector.

Opportunities in Indian retailing

sector
Food retailing segment
Retailing of lifestyle products segments
o shoppers shops limited
o Coffee parlors
o Vending machines

Beauty and healthcare retailing segments

Some of the Indian retailing

brands

Indian retail industry: current

scenario
The emergence of retailing in India has more to do with
the increased purchasing power of buyers, especially
post-liberalization, increase in product variety, and
increase in economies of scale, with the aid of modern
supply and distributions solution.
Indian retailing today is at an interesting stage for
investors. The retail sales are at the highest points in
history and new technologies are improving retailing
productivity.
FDI are increasing for retailing sector. MNCs are more
interested in retailing sector

Challenges in Indian retailing sector

Retail differentiation
Supply chain managements
Merchandising planning
Competition from suppliers brand
Location
Pricing
Target audience

Solution or strategies for problems of

Indian retailing sector

Right positioning
Effective visual communication
Strong supply chain
Changing the perception
Systematic pricing

Present situation in Indian retailing industry

Unorganized market 97%
Organized market 3%
At present , the industry is estimated to be at more than US$ 400 billion
by a study of McKinsey.
Expected 5X growth in organized retailing in next 5 years.
More than 4000 new modern outlets in the last 3 years .
Over 400000 shoppers walk through their doors every year

Factors for growth of retail industry in India

Existing Indian middle classes with an increased purchasing power.
Rise of upcoming business sectors like the it and engineering firms.
Change in the taste and attitude of the Indians.
Effect of globalization.
Heavy influx of FDI in the retail sectors in india.

Conclusion
In India the retail sector is the second largest employer after
agriculture, although it is highly fragmented and predominantly
consists of small independent, owner managed shops.
The country is witnessing a period of boom in retail trade,
mainly on account of a gradual increase in the disposable
incomes of the middle and upper-middle class households. More
and more corporate houses including large real estate
companies are coming into the retail business, directly or
indirectly, in the form of mall and shopping center builders and
managers. New formats like super markets and large discount
and department stores have started influencing the traditional
looks of bookstores, furnishing stores and chemist shops.

With the generous use of global and local experiences, Indian

retailers are going to improve their bottom lines with efficient
management of supply chain and logistics. Because of the
FDI, competition is increased this will helps the consumer to
get good quality products and services.