The document discusses the prospects and challenges facing the retail sector in India. It notes that retail is one of India's largest industries, contributing 12% to GDP. However, the sector also faces several challenges including positioning products and services for the Indian market, finding suitable store locations, determining the best store formats, and developing skilled manpower. Allowing foreign direct investment in multi-brand retail could help address infrastructure and supply chain issues but may also increase competition for domestic retailers.

1. PROSPECTS AND CHALLENGES OF
RETAIL SECTOR IN INDIA
Submitted by : Submitted to :
Mr Gaurav Arora
Preeti Gulati
Malvika didwal
Venkatesh

3. INTERESTING FACTS ON  Every 10th billionaire is a
retailer.
RETAIL  25 of the top 50 Fortune 500
companies are in Retail.
 In India the Retailing
Industry provides
employment to over 18
million people.
 1 out of every 25 families in
India are engaged in the
business of retailing

4. Indian Retail Scenario Today
Retail amongst the largest
industries in India,
With over 12% of country’s GDP
& about 8% of employment
12th largest economy in the world
4th largest in purchasing-power
parity terms
Over 65% of Indian population
below 24yrs.
That is over 564 million people,
nearly twice the total population
of the United States

5. Changing Scenario
BEFORE AFTER
Shift from Unorganized to Organized
self service outlets

6. Brands in India Today

7. PROSPECTS
Ample Scope for the New Players to Enter the Indian Retail Market
Sea Changes in the Preferences of the Indian Consumers
Scope in Retail Education
FDI in Multi brand Retailing taking India to a new level

8. International Retailers in India
International Players Eyeing India
Shoprite South Africa (Hypermarkets)
Landmark, Dubai (Lifestyle stores)
Marks & Spencer’s (Lifestyle stores)
Metro Cash & Carry (Wholesale Hypermarket)
Tesco
Wal Mart (Hypermarkets)

9. The challenges of Indian retail
The Positioning Challenge
The Location Challenge
The Format Challenge
The Manpower Challenge

10. The Positioning Challenge
Positioning
Position on price
on range
Position Position on
on convenience store experience

11. The Location Challenge
Lack of availability
of stores locations convenient to shopper
The infrastructural problems to get to a store
The rising cost of leasing
Mad rush to open
stores contributing to increased cost

12. The Format Challenge
Multiple formats being experimented
Convenience versus supermarkets
versus hypermarkets

13. The Manpower Challenge
Big disconnect between quality of personnel
and customer experience desired
Lack of skilled Manpower
High cost of retaining Manpower

14. What does it mean?
 It means that global retailers such as Wal-Mart,
Carrefour, Tesco and others can set up mega
deep-discount stores in the country through joint
ventures with Indian firms, where the foreign
partner can hold up 51% equity.
 The issue arises that Wal-Mart, Carrefour and
Metro already have stores in India but these are
wholesale cash-and-carry stores where only
institutions or kirana shops can buy — not
consumers.
Conditions set by government for
allowing FDI in India:
 Minimum investment of $100 million.
 50% of the investment is to be in backend
infrastructure development.
 30% of all raw material has be procured from
India's small and medium industries.
contd……

15. contd……
 Permission to set up malls only in cities with a minimum
population of 10 lakh.
 Government has the first right to procure material
from the farmers.
Why do we need it:
 We are the second highest producer of fruits and
vegetables in the world but still we are not able to
utilize is properly because of inadequate
infrastructure facilities.
 It will create 1.5 million more jobs in 5 years. Apart
from the huge number of indirect employment.
 It will increase competition which is always
beneficial for the customer.
 It will remove the middleman from the equation. It
will reduce costs which in turn will reduce prices.