3. indian retailing scenario ppt 3 23-08-2012

Indian retailing scenario

According to the report ‘Strong and Steady 2011’ released by global consultancy and research firm PricewaterhouseCoopers (PwC), India's retail sector, which is currently estimated at about US$ 500 billion, is expected to grow to about US$ 900 billion by 2014.

India has also been ranked as the FOURTH most attractive nation for retail investment among 30 emerging markets by the US-based global management consulting firm, A T Kearney in its 9th annual Global Retail Development Index (GRDI) 2011.

RETAIL ACCOUNTS FOR 22 % GDP

8% EMPLOYMENT

The organized and unorganized

sector co exist.

The share of unorganized sector

is more than 90%

According to the Indian council for research

and international relations ( ICRIER) India is

the 7th largest retail market in the world.

India has the largest number of retail outlets

in the world at over 13 million and the

average size of a store is 50-100 square feet.

Second highest is in china which are

5000in number

It also has the highest number of

outlets per million inhabitants.

The per capita retail space in

India is among the lowest in the

world, though the per capita

retail store is the highest.

Majority of these stores are

located in rural areas.

Strong underlying economic

growth,

Higher income Levels

High consumer spending

Dual Income

changing lifestyle

aVERAGE AGE 25 YEARS IS THE

LOWEST AS COMPARED TO

OTHER COUNTRIES.

IT WILL BE 28 YEARS IN 2020

AND 53% WOULD BE UNDER THE

AGE OF 30 BY 2020

Increase in working populationIndia is the second-largest country in the world in

terms of population, and is the largest consumer

markets in the world owing to its favorable AVERAGE

AGE.

Further, the increase in the number of working

women has fuelled the growth in sales .

There has been a 20% increase in the number of

working women in the last decade with an average

salary of rs9492

Spurt in urbanizationHistorically cities and towns have been the driving

force of overall economic and social development.

Currently over 350 million people of India reside in

cities and towns, which translates to around 25% of

the total population.

The rapid growth in urbanisation has facilitated

organised retailing in India, and has caused the

speedy migration of population into major tier I and

tier II cities,

which have a significant share in the retail sales of

the

country

The urban population’s contribution in

India’s GDP shot up from 29% in 1951 to

60% in 2001 and is expected to increase to

70% by 2018, as migration to cities and

towns grows rapidly in anticipation of

higher income opportunities provided by

these epicenters.

Stiff competition from unorganized sector.

Organized retail sector has to pay huge taxes, which is negligible for small retail business.

In retail sector, Automatic approval is not allowed for foreign investment.

There is a shortage of quality real estate and infrastructure requirements in our country.

Opposition to Foreign Direct Investment from small traders affects retail industry.

Shortage of retail space in central and downtown locations also hinders the growth of retail industry. Presence of strong Pro-tenancy laws makes it difficult to evict tenants and this is posing problems.

Lack of trained work force.