Retail Industry In India

INDUSTRY PROFILE

2.1 RETAILING:

The word ‘RETAIL’ is derived from the French word ‘retailer which means to cut a piece off’ or ‘to break bulk’. In simple terms, we can say it implies a first-hand transaction with the customer.

The term retailing involves a direct integration with the customer and the allocation of business activities from the concept or design stage of a product or offering to its delivery and post-delivery service to the customer. This industry has contributed its maximum to the economic growth of many countries and is one of the fastest changing dynamic industry in the world today.

2.2 INDIAN RERTAIL INDUSTRY: Retail industry occupies top fifth position in the world. Combining of organized

Most of them are independent and contribute as much as 96% to total retail sales. Because of the increasing number of the nuclear families, working women, greater work pressure and increased commuting time, convenience has become a priority for Indian consumers. They want everything under one roof for easy access and multiplicity of choice. This offers an excellent opportunity for organized retailers in the country which account for just 2% and modern stores 0.5% of the estimated US Dollar 180 billion worth of goods that are retailed in India.

2.3 GROWTH OF INDIAN RETAIL INDUSTRY

According to the 8th Annual Global Retail Development Index (GRDI) of AT Kearney, Indian retail industry is the most promising and emerging market for investment. In 2007, the retail trade in India had a share of 8-10% in the GDP (Gross Domestic Product) of the country. In 2009, it had raised to 12%. It is also expected to reach 22% by 2010 and expecting continuous increase in the percentage. According to a report by North bride Capita, the India retail industry is expected to grow to US$ 700 billion by 2010. At the same time, the organized sector will be 20% of the total market share. It can be mentioned here that, the share of organized sector in 2007 was 7.5% of the total retail

WEAKNESSES:

 Due to large fixed costs the cost of operation is very high.

 Specific items are not consistently available and hence people may feel uncomfortable regarding the unavailability of the items.

 The supply chain management is poor & also the infrastructure facilities are weak.

 The store opening targets are unable to meet.

 Some of the popular clothing branded items are unavailable.

 Weak technology.

OPPORTUNITIES:

 As the population of the country has been growing and the scope of the market has also being increasing for the retail sector.

 Due to its in depth understanding of customer’s tastes & preferences they can enter into the production of various products.

 There is a growth in the income of the customers.

 Can expand their business operations at global level.

 Quality services can be provided to the customers.

THREATS:

 To tap the market potential there are many competitors coming forward.

 Shrinkage may also stand as a threat for the company.

 There is an involvement of high business risk.

 The technology has been advancing day-by-day.

2.20 FUTURE GROWTH AND