BY: SADAF TAHSIN ROLL NO-11/MBA/45

The Indian retail industry has grown at a Compounded AnnuaL Growth Rate (CAGR) of 13.3% for the period FY06-10.Of all the segments in retail, the contribution of food & grocery remained the highest at 58% of the total retail sales during FY10, with the clothing & footwear segment remaining the second largest contributor occupying 10% of the total retail pie during the same period. However in terms of growth figures, the entertainment, books & sports goods equipment' segment outperformed the other retail segments registering a CAGR of 22.5% during the period FY06-10. In spite of the growth, the industry remains largely fragmented with the organized retailing still at a nascent stage. In case of overall retailing revenues, the food & grocery segment accounted for the highest share at 58% of the total retailing pie aggregating Rs.11.49 lakh crore during FY10.

Low share of organized retailing Falling real estate prices Increase in disposable income and customer aspiration Increase in expenditure for luxury items

1. Less Conversion level : Despite high footfalls, the conversion ratio has been very low in the retail outlets in a mall as compared to the standalone counter parts. It is seen that actual conversions of footfall into sales for a mall outlet is approximately 20-25%. On the other hand, a high street store of retail chain has an average conversion of about 5060%. As a result, a stand-alone store has a ROI (return on investment) of 25-30%; in contrast the retail majors are experiencing a ROI of 8-10%. 2. Customer Loyalty: Retail chains are yet to settle down with the proper merchandise mix for the mall outlets. Since the stand-alone outlets were established long time back, so they have stabilized in terms of footfalls & merchandise mix and thus have a higher customer loyalty base.

Rapid economic growth:-The fast & furious pace of the Indian economy is the driving force for the Indian consumerism, confident about earnings and also spending a large proposition of their disposable income. Potential untapped market:-Organized retail penetration is on the rise & offers an attractive proposition on entry for new players as well as scope for existing players.

70% of organized retail is concentrated in 6 major cities, of 300 million middle class only 15% live in these 6 major cities which means there is a huge buying capacity in indias tierII and III cities. Tier II cities-Coimbatore,Lucknow,Chandigarh ,Kochi,Jaipur TierIII cities-Vadodara ,Vizag,Indore,Vijayawada,Bhopal,Nashik and Madurai

Internet driving awareness and online purchases:-There has been a substantial increase in the no's of Indians using the internet Indians have started using the internet not only for awareness but also to shop online. Indian retailers are missing out the opportunity that amazon.com and eBay are providing to US consumers recently future group launched futurebazaar.com to capture the ever growing tech savvy Indians

Automatic approval is not allowed for foreign investment in retail Regulations restricting real state purchase and cumbersome local laws Taxation which favous small retail business Intrinsic complexity of retailing-rapid price changes,constatnt threat of product

CONCLUSION
The retail sector has played a phenomenal role throughout the world in increasing productivity of consumer goods and services. It is also the second largest industry in US in terms of numbers of employees and establishments. There is no denying the fact that most of the developed economies are very much relying on their retail sector as a locomotive of growth.

Regulatory developments From the Indian perspective, regulatory initiates hogged the maximum limelight during the last quarter. Some of these initiatives could have significant implications on the Indian financial sector opening up further to foreign participation, as well as in the achievement of its all important goal of financial inclusion. Proposed policy on foreign banks: The RBI proposes to ease the norms applicable to foreign banks in regard licensing new branches, capital requirements and access to the domestic bond market to raise funds in rupees.

Greatest strengths are the human resources.

Well-managed workforce who have domain knowledge.

Lack of bolt trading facilities in certain branches. Not having adequate number of computers to do job faster

Efficient teamwork, partnership and joint efforts

Since the stock market and the Indian economy are booming, more and more people are willing to invest and multiply their wealth.
Due to this there is a demand of financial service provider to people to fulfill their advisory needs so that they can have money to support them at the time of crisis.

The threats are the competitors like India info line, angel broking firm

STRENGTHS It has an extensive distribution network comprising of 253branches all over India and one international office in Dubai. This provides a competitive edge over the competitors. The bank has a strong retail depositor base of 3.2 million accounts.

WEAKNESSES: Due to continuous fall in the rate of interest , the margins on theBank's wholesale assets has drastically reduced. The branches are not proactively selling third party products tothe customers

Greater liberalization in foreign ownership via FDI in Indian Private sector banks. Healthier exposure norms. Infrastructural improvements and better systems for trading and settlement in the govt. securities and foreign exchange markets

The bank has started facing competition from players like Bank Of Punjab, SBI, ICICI, etc. in the finance market. This could reduce the margins in future.