INSTITUTE OF TECHNOLOGY & MANAGEMENT UNIVERSE,

VADODARA

FEASIBILITY STUDY
ON
CHALLENGES THAT BRICK & MORTAR WILL FACE DUE TO
EMERGENCE ON ONLINE RETAIL

SUBMITTED TO:
Prof. RAHIM MUNSHI

SUBMITTED BY:
JERRIN RACHEL ALIYAS (138220592017)
SHERRIN MARY ALIYAS (138220592029)

INDEX

1.INTRODUCTION
2.GROWTH & EVOLUTION OF INDUSTRY IN INDIA
2.PRODUCT PROFILE
3 PLAYERS IN THE INDUSTRY
4.DEMAND DETERMINANTS OF INDUSTRY
5.FUTURE PROSPECTS

INTRODUCTION

The Indian retail industry has presently emerged as one of the most dynamic and fast
paced industries as several players have started to enter the market. It accounts for
over 22 % of the countrys gross domestic product (GDP) and around eight per cent of
the employment in India. The country is today the fifth largest global destination in the
world for retail.

Several corporates have planned to exploit the opportunities in the Indian retail space,
such as Reliance Industries Ltd (RIL), which has lined up capital expenditure of Rs 1.8
trillion (US$ 29.41 billion) for the next three years for its petrochemicals, telecom and
retail ventures.

With the growth in the retail industry, the corresponding demand for real estate is also
being created. Further, with the online medium of retail gaining more and more
acceptance, there is a tremendous growth opportunity for retail companies, both
domestic and international.

Types OF Retail Marketing

Store Retailing
Store retailing provides consumers to shop for goods and services in a wide variety of
stores and it also help the Consumers to get all the needed goods and services from one
shop only. The different types of store retailing are given below:
Specialty Stores
These stores focus on leisure tastes of different individuals. They have a narrow product
line with deep assortment such as apparel stores, sporting goods stores, furniture stores,

florists and bookstores. These stores are usually expensive and satisfy the needs of
selected consumers who have liking or preference for exclusive things.
Departmental Store
These stores are usually built in large area and keep variety of goods under one shed. It is
usually divided into different sections like clothing, kids section, home furnishings, electronic
appliances and other household goods. In a departmental store a consumer can buy variety
of goods under one shed.
Supermarket
These stores are relatively large, low cost, low margin, high volume, self service operations
designed to serve total needs for food, laundry and household maintenance products.
Supermarkets earn an operating profit of only 1 percent on sales and 10percent on net
worth.
Convenience Stores
These are relatively small stores located near residential area, open for long hours seven
days a week, and carrying a limited line of high turnover convenience products at slightly
higher prices than departmental stores. Many such stores also have added takeout
sandwiches, coffee and pastries.
Off - Price Retailer
These stores sell goods at low price with lower margins & higher volumes. These stores sell
goods with deteriorated quality. The defects are normally minor. This target at the persons
belonging to the lower income group, though some have a collection of imported goods
aimed to target the younger generation. The company owned showroom selling the
seconds products is a typical example of off - price retailer.
Discount Store
These stores sell standard merchandise at lower prices by accepting lower margins and
selling higher volumes. The use of occasional discounts or specials does not make a
discount store. A true discount store regularly sells its merchandise at lower prices, offering
mostly national brands, not inferior goods.

In recent years, many discount retailers have traded up. They have improved decor,
added new lines and services, and opened suburban branchesall of which has led to
higher costs and prices and as some department stores have cut their prices to compete
with discounters.
Not only that, discount stores have moved beyond general merchandise into specialty
merchandise stores, such as discount sporting goods stores, electronics stores, and
bookstores.
Catalog Showroom
Catalog showrooms generally sell a broad selection of high-markup, fast-moving, brandname goods at discount prices. These include jewelry, power tools, cameras, luggage small
appliances, toys, and sporting goods. Catalog showrooms make their money by cutting
costs and margins to provide low prices that will attract a higher volume of sales. Catalog
showrooms have been struggling in recent years to hold their share of the retail market.

RETAIL SCENE IN INDIA

India has some sometimes been called a nation of shopkeepers. This epithet has its roots in
the huge number of retail enterprises in the country totaling 12 million, about 78 percent of
these are small family owned businesses utilizing only household labour. even among retail
enterprises that hire workers the bulk of them hire less than 3 workers .Indias retail sector
appears backwards not only by standards of industrialized countries but also in comparison
to several other emerging markets in Asia and elsewhere. There are only 14 companies that
run departmental stores and mere two with hypermarket operations. While the number of
businesses operating supermarkets is higher ( 425 in 2004 ) most of these had only 1
outlet, the number of companies with supermarket chains was less than 10.
Major Formats of Retailing
Major formats of In-Store Retailing have been listed in Table given below:
Table 3:
Format

Description

The Value Proposition

Branded Stores

Exclusive showrooms either

owned or franchised out by a
manufacturer.

Complete range available

for a given brand, Certified
product quality.

Specialty Stores

Focus on a specific consumer

need; carry most of the brands
available.

Greater choice to the

consumer, comparison
between brands possible

Department Stores Large stores having a wide

One stop shop catering to
variety of products, organized into varied consumer needs.
different departments, such as
clothing, house wares, furniture,
appliances, toys, etc.
Supermarkets

Extremely large self-services

retail outlets.

One stop shop catering to

varied consumer needs.

Discount Stores

Stores offering discounts on the

retail price through selling high
volumes and reaping the
economies of scale.

Low prices.

Hyper-mart

Larger than a Supermarket,

Low prices, vast choice
sometimes with a warehouse
available including services
appearance, generally located in as cafeterias.
quieter parts of the city

Convenience Stores Small self-service formats located Convenient location and

in crowded urban areas.
extended operating hours.
Shopping Malls

An enclosure having different

formats of in-store retailers, all
under one roof.

Variety of shops available

close to each other.

Source: India info line

Non-store Retailing
It is another type of retail marketing. Different types of non-store retailing are given below:
Direct Selling

Direct selling which started centuries ago with itinerant peddlers has burgeoned into a $9
billion industry, with over 600 companies selling door to door, office to office, or at home
sales parties. A variant of direct selling is called multilevel marketing, whereby companies
such as Amway recruit independent businesspeople who act as distributors for their
products, who in turn recruit and sell to sub distributors, who eventually recruit others to sell
their products, usually in customer homes.
Direct Marketing
Direct marketing has its roots in mail-order marketing but today includes reaching people in
other ways than visiting their homes or offices, including telemarketing, television direct
response marketing, and electronic shopping.
Automatic Vending
Automatic vending has been applied to a considerable variety of merchandise, including
impulse goods with high convenience value (cigarettes, soft drinks, candy, newspaper, hot
beverages) and other products (hosiery, cosmetics, food snacks, hot soups and food,
paperbacks, record albums, film, T-shirts, insurance policies, and even fishing worms).
2.4 Organized Retail Formats in India
Each of the retail stars has identified and settled into a feasible and sustainable business
model of its own.

Shoppers' Stop - Department store format

Westside - Emulated the Marks & Spencer model of 100 per cent private label, very
good value for money merchandise for the entire family

Giant and Big Bazaar - Hypermarket/cash & carry store

Food World and Nilgiris Supermarket format

Pantaloons and The Home Store - Specialty retailing

Tanishq has very successfully pioneered a very high quality organized retail business
in fine jewellery.
Structure of the retailing industry according to ownership patterns:

An unaffiliated or independent retailer

A chain retailer or corporate retail chain

A franchise system

A Leased Department (LD)

Vertical Marketing System (VMS)

Consumer Co-operatives

A new entrant in the retail environment is the 'discounter' format. It is also is known as cash
and-carry or hypermarket. These formats usually work on bulk buying and bulk selling.
Shopping experience in terms of ambience or the service is not the mainstay here. RPG
group has set up the first 'discounter' in Hyderabad called the Giant. Now Pantaloon is
following suit.

GROWTH & EVOLUTION OF RETAIL INDUSTRY IN INDIA

An increasing number of people in India are turning to the services sector for employment
due to the relative low compensation offered by the traditional agriculture and
manufacturing sectors. The organized retail market is growing at 3.5 percent annually while
growth of unorganized retail sector is pegged at 6 percent. The Retail Business in India is
currently at the point of inflection. Rapid change with investments to the tune of US $ 25
billion is being planned by several Indian and multinational companies in the next 5 years. It
is a huge industry in terms of size and according to management consulting firm Techno
park Advisors Pvt. Ltd., it is valued at about US $ 350 billion.
Organized retail is expected to garner about 16-18 percent of the total retail market (US $
65-75 billion) in the next 5 years. According to the tenth report of GRDI of AT Kearney, India
is having a very favorable retail environment and it is placed at 4th spot in the GRDI. The
main reasons behind that is the 9% real GDP growth in 2010, forecasted yearly growth of
8.7% through 2016, high saving and investment rate and increased consumer spending.
According to reports organized retail accounts 7% of India's roughly $435 billion retail

market and is expected to reach by 20% by 2020. Food accounts for 70% of Indian retail,
but it remains under penetrated by organized retail.
Organized retail has a 31% share in clothing and Food accounts for 70% of Indian retail, but
it remains under penetrated by organized retail. Organized retail has a 31% share in
clothing and apparel and continues to see growth in this sector . The analysts believe that
the sector is likely to show significant growth of over 9% over the next ten years and also
see rapid development in organized retail format with proportion likely to reach more
respectable 25%by 2018. The BMI India Report for the first quarter of 2012 released
forecasts that total retail sales with growth from US $ 422.09 billion in 2011 to US $ 825.46
billion by 2015.
India's retail market is expected to be worth about US$ 410 billion, with 5 per cent of sales
through organised retail, meaning that the opportunity in India remains immense. Retail
should continue to grow rapidlyup to US$ 535 billion in 2013, with 10 per cent coming
from organised retail, reflecting a fast-growing middle class, demanding higher quality
shopping environments and stronger brands, according to the report Expanding
Opportunities for Global

The Indian retail landscape is evolved from the brick-and-mortar model to adopt technology
for connecting with consumers. The aim is to achieve a complete seamless customer
experience. The Indian retail sector accounts for over 20% of the countrys gross domestic
product (GDP) and contributes 8% to total employment. The cumulative foreign direct
investment (FDI) inflows in single-brand retail trading, during April 2000 to June 2011, stood
at 69.26 million USD. The current estimated value of the Indian retail sector is about 500
billion USD and is pegged to reach 1.3 trillion USD by 2020.
Organized & Unorganized Retail sector in India
Currently India constitutes only 8% of organized retail and remaining 92% is left
unorganized, which may grow much faster than traditional retail. It is expected to gain a

higher share in the growing pie of the retail market in India. Various estimates put the share
of organized retail as 20% by 2020.
The growth pattern in organized retailing and in the consumption made by the Indian
population may follow a rising graph helping the newer businessmen to enter the India
Retail Industry.
The country's traditional retail industry is expected to grow at an average annual rate of 5%
over the next year, while the organised retail is estimated to register a growth rate of around
25% during this period.

Within the organized retail sector, Apparel is the largest segment. Food and Grocery and
Mobile and telecom are the other major contributors to this segment.International retail
giants entering into Indian atmosphere may bring a massive change in increasing the pie of
organized retail in coming years

Online Retail in India

Market is small now, but will grow rapidly in coming years Indias eCommerce market is at
an early stage but is expected to see huge growth over the next four to five years. Over the

past 12 months, venture capitalists have invested heavily in Indias eCommerce market,
new players have emerged, and the eCommerce ecosystem has developed, presenting a
huge opportunity for companies willing to work through some of the logistics and payments
challenges in India.
An increasing number of global companies are eyeing the rapidly growing eCommerce
market in India. As the worlds 11th-largest economy (and fourth-largest emerging economy
after BRIC peers China, Brazil, and Russia), India is starting to appear on eBusiness
organizations lists of key international markets. eCommerce revenues in India will increase
by more than five times by 2016, jumping from US$1.6 billion in 2012 to US$8.8 billion in
2016" Source: Forrester Research, Inc.

The e-commerce market in India is set to grow the fastest within the Asia-Pacific Region at
a CAGR of over 57% between 2012 2016. E-commerce sales in India will surpass $1
billion for the first time this year and reach $8.8 billion by 2016. Indias e-commerce industry
is set to grow on the back of rising demand from consumers and increasing penetration of
technology.
India will grow quickly off a small base. Indias eCommerce market is poised to grow by
more than five-fold by 2016 as the number of online buyers and per capita online spending
increase rapidly. This market is gaining more attention as global brands look to markets that
are in the early stages of eCommerce adoption but offer significant long-term potential.
Almost 75% of Indias internet users are under the age of 34. As many of them move into
the earning segment in the years to come, Internet commerce is expected to get a
significant boost.
The world's consumers spend on average 22 percent of their disposable income on
purchases on the Internet, with Indians at the forefront (33 per cent). Chinese and Indians
spend the most time shopping online at 8 hours per month, while French, Finnish, Japanese
and Spanish allocate less than four hours to the activity.

PRODUCT PROFILE

Annapurna salt and atta

Bru coffee

Brooke Bond (3 Roses, Taj Mahal, Taaza, Red Label) tea

Kissan squashes, ketchups, juices and jams

Lipton tea

Knorr soups & meal makers and soupy noodles

Kwality Wall's frozen dessert

Modern Bread, ready to eat chapattis and other bakery items

Magnum (ice cream)

viance Beauty Solutions

Axe deodorant and aftershaving lotion and soap

LEVER Ayush Therapy ayurvedic health care and personal care products

Breeze beauty soap

Clear anti-dandruff hair products

Clinic Plus shampoo and oil

Close Up toothpaste

Dove skin cleansing & hair care range: bar, lotions, creams and anti-perspirant
deodorants

Denim shaving products

Fair & Lovely skin-lightening products

Hamam

Lakm beauty products and salons

Allen Solly

Arrow

Wrangler

Provogue

Killer

E- TAILER

DEMAND DETERMINATION OF THE INDUSTRY

The growing disposable income in the country is resulting in increasing consumer spending
habits. A large young working population with median age of 24 years, nuclear families in
urban areas, along with increasing workingwomen population and emerging opportunities in
the services sector are going to be the key factors in the growth of the organized Retail
sector in India.
Factors driving the organised retail sector include the following:

Higher incomes driving the purchase of essential and nonessential products

Evolving consumption patterns of Indian customers
Favourable demographics, increasing urbanisation, nuclear family concept, rising
affluence amid consumers, growing young and working class, growing preference for

branded products and higher aspirations

New technology and lifestyle trends creating replacement demand.
Technology will be even more integrated in brick and mortar stores. In-store mobile
devices like tablets and smartphones can be used in several ways including
receiving payments, demonstrating products, offering more information, and
encouraging social sharing. Studies anticipate that major retailers will implement
immersive experiences with the use of large, interactive displays that are meant to
fully engross customers to the point end to end. Such practices are already being

followed in western markets with brands like Nike and Gucci taking the lead.
Increase in rural income as well as urbanization
Increase in easy access to credit and consumer awareness
Growth of modern trade format across urban, Tier I, Tier II and Tier III cities and

towns
Rapid urbanization and growing trend towards nuclear families

Entry to various sources of financing:

An economy gets finance from two routes either in form of FDI (Foreign direct investment)
or as FII (Foreign institutional investment). Now both the ways are opened up for retail
sector. Previously so as to protect small Kiryana stores route for FDI in retail was difficult
but later on when it was found that retailing is generating employment of around 8% in
economy FDI route was also simplified

Investments
The foreign direct investment (FDI) inflows in single-brand retail trading during the period
April 2000 - July 2014 stood at Rs 842.53 crore (US$ 137.70 million), as per data released
by the Department of Industrial Policy and Promotion (DIPP).
Some of the other notable investments and developments in the Indian retail sector in the
recent past are as follows:

IKEA has entered into a memorandum of understanding (MoU) with the Government
of Telangana to set up its first store in India at Hyderabad.

Liberty Shoes has planned to improve its retail presence as it plans to double the
revenue to Rs 1,000 crore (US$ 165.38 million) within three years.

Walmart Stores invested Rs 623 crore (US$ 101.82 million) into its Indian cash-andcarry operations in June 2014 to expand its network, thereby taking its total
investment in the country to nearly Rs 2,000 crore (US$ 326.91 million).

Online marketplace Infibeam looks to build an online presence for large retail clients
in West Asia with its technology platform Buildabazaar. The company has partnered
with Axiom Telecom and will handle its e-commerce business.

Argentina-based luxury brand La Martina - a polo lifestyle company known for its
apparel, technical equipment and accessories - has started operations with its
maiden store in New Delhi. La Martina has also diversified the brand to add general
fashion products for ladies, men and kids.

Japan-based Uniqlo plans to open up to 1,000 stores in India in the coming years to
tap into the growing consumption story and has announced a strategy to source

garments from the country. Uniqlo, which started as a chain of suburban roadside
stores in Japan, is targeting close to 1,500 stores across the globe by the end of
August.

The combined entity of Flipkart and Myntra plans to launch a fashion incubator, a
first-of-its-kind move by an Indian startup, in its aggressive push to gain complete
dominance of the fast-growing online apparel category.

UK-based Tesco in equal partnership with the Tata Group's Trent plans to open six to
eight new stores in Maharashtra and Karnataka under three of its formats this
financial year. The stores will take the total number of Tesco-Trent outlets in the
country to 20.

Market size
In 2013, the Indian retail sector was estimated at US$ 520 billion and was among the
largest employers in the country. By 2018, the Indian retail sector is likely to grow at a
compound annual growth rate (CAGR) of 13 per cent to reach US$ 950 billion. Food and
grocery is the largest category within the retail sector with 60 per cent share followed by the
apparel and mobile segment.
Organised retail, which constituted seven per cent of total retail in 2011-12 is estimated to
grow at a CAGR of 24 per cent and attain 10.2 per cent share of total retail by 2016-17,
according to a study titled 'FDI in Retail: Advantage Farmers' conducted by an industrial
body.
India has about one million online retailers - small and large - which sell their products
through various e-commerce portals. Presently, these online retailers have started to use
the medium of online mobile apps to increase their reach to the customers. Several ecommerce firms - Myntra, Flipkart, Jabong, etc., have launched their own mobile apps.
Flipkart plans to use their US$ 1 billion funds raised to acquire companies in mobile
applications.

According to the TCS Gen-Y 2013-14 survey, a total of 68 per cent of teenagers shop
online, while 91 per cent own mobiles in smaller metros. Mobile phones and tablets were
the most popular gadgets among teenagers, highlighted the survey.

Road Ahead
Driven by a combination of demand, supply and regulatory factors, the Indian retail sector is
set to grow rapidly with a gradual shift toward organised retailing formats. Organised retail
penetration is expected to increase from 7.5 per cent in 2013 to 10 per cent in 2018 at a
robust CAGR of 19-20 per cent during that period.
Tier-II and Tier-III cities such as Jaipur, Nagpur, Ludhiana, Vadodara, Aurangabad, Kochi,
etc., are emerging as the new hot spots of consumption. Organised retailers are
increasingly setting up stores in these smaller cities with increasing focus on profitable
growth in the sector. E-commerce is also expected to be the next major area for retail
growth in India. Along with this, achieving profitable growth and inventory management are
also some major areas of focus in the times ahead for the retail companies in India.
Exchange Rate Used: INR 1 = US$ 0.0163 as on September 25, 2014

Market size and growth

India's e-commerce market was worth about $3.8 billion in 2009, it went up to $12.6 billion
in 2013. In 2013, the e-retail market was worth US$ 2.3 billion. About 70% of India's ecommerce market is travel related. India has close to 10 million online shoppers and is
growing at an estimated 30%.CAGR vis--vis a global growth rate of 810%. Electronics
and Apparel are the biggest categories in terms of sales
Increasing broadband Internet (growing at 20% MoM) and 3G penetration.

Rising standards of living and a burgeoning, upwardly mobile middle class with high
disposable incomes

Availability of much wider product range (including long tail and Direct Imports)
compared to what is available at brick and mortar retailers

Busy lifestyles, urban traffic congestion and lack of time for offline shopping

Lower prices compared to brick and mortar retail driven by disintermediation and
reduced inventory and real estate costs

Increased usage of online classified sites, with more consumer buying and selling
second-hand goods

Evolution

of

the

online

marketplace

model

with

sites

like Jabong.com, Flipkart, Snapdeal and Infibeam.

India's retail market is estimated at $470 billion in 2011 and is expected to grow to $675 Bn
by 2016 and $850 Bn by 2020, estimated CAGR of 7%. According to Forrester, the ecommerce market in India is set to grow the fastest within the Asia-Pacific Region at a
CAGR of over 57% between 201216.
As per "India Goes Digital"a report by Avendus Capital, a leading Indian Investment Bank
specializing in digital media and technology sector, the Indian e-commerce market is
estimated at Rs 28,500 Crore ($6.3 billion) for the year 2011. Online travel constitutes a
sizable portion (87%) of this market today. Online travel market in India is expected to grow
at a rate of 22% over the next 4 years and reach Rs 54,800 Crore ($12.2 billion) in size by
2015. Indian e-tailing industry is estimated at Rs 3,600 crore (US$800 mn) in 2011 and
estimated to grow to Rs 53,000 Crore ($11.8 billion) in 2015.
On 7 March 2014 e-tailer Flipkart claimed it has hit $1 billion in sales, a feat it has managed
to achieve before its own target (2015).
Overall e-commerce market is expected to reach Rs 1,07,800 crores (US$24 billion) by the
year 2015 with both online travel and e-tailing contributing equally. Another big segment in
e-commerce is mobile/DTH recharge with nearly 1 million transactions daily by operator
websites.

Funding
As of 2012, most of the e-commerce companies are yet to start making money. However,
due to their growth prospects, many venture capital firms such as Accel Partners have
invested considerably. In one of the biggest fund raising, Flipkart.com, in August 2012,
raised about 822 crores. Entertainment ticketing website BookMyShow.com raised 100
crores investment by Accel Partners.
On 10 July 2013, Flipkart announced it had received $200 million from existing investors
Tiger Global, Naspers, Accel Partners, and ICONIQ Capital. New investors making up the
additional $160 million include Dragoneer Investment Group, Morgan Stanley Wealth
Management, Sofina, Vulcan Inc. and more from Tiger Global.
Snapdeal - USD 50 million in 13 April.
In February 2014, online fashion retailer Myntra.com raised $50 million from a group of
investors led by Premji Invest, the investment company floated by Azim Premji, Chairman
of Wipro. May 2014 also witnessed an acquisition of Myntra by Flipkart reportedly for
2,000 crores.[19] However, cyber law and e-commerce due diligence are still being ignored
by investors and financial institutions while investing in India. [21]
In October 2014, KartRocket, an Indian e-commerce platform, announced granting of
a Series A round led by technology investor Nirvana Venture Advisors and and 500
Startups, together with Tokyo-based Beenos, previously known as Netprice.com.

PLAYERS

Bharti - Walmart: With a plan of creating a network of retailing with a capacity of including
U. S. $ 7 billion investment, this brand retailer has got 100 hypermarkets along with
innumerable small stores. They run their retailing with a joint venture of 50:50 ratios with
Walmart, where the latter deals with the cash and carry whereas, Bharti group does the
work related to front end.
K. Raheja Group: Starting the retail business initially with Shoppers Stop, one of the
famous brands, this is the sole Indian retailer to become a part of the prestigious I. G. D. S.
(Intercontinental Group of Departmental Stores). Presently some of the renowned retail
brands of this group are as follows:
Crossword: A branded book store.
Homes Stop: A retail store dedicated to home solutions
Shoppers Stop: The 1st departmental store in India, which was started in the year 2001.
Apart from these, this group has even got a joint business with the Nuance Group in the
field of Airport Retailing as well as a plan for getting involved in internet and catalogue
retailing. Setting up of 55 hypermarkets all over India is in the pipeline.

Pantaloons: Headquartered in the city of Mumbai, this is the largest retail brand in India.
Operating from 450 stores located all over the country of India, this mostly favored retail
brand has got the following divisional outlets:

Big Bazaar and Food Bazaar for food items and grocery

Collection - I, Furniture Bazaar, Hometown for home solutions

Crossroads, which has recently been bought by Pantaloons

Depot for books, gifts and music

E-zone for consumer electronic goods

Shoe Factory for shoes

Recently, they have even introduced small shops for e-commerce, where 40 digital screens
will be placed in a 150 sq. ft. store, which will help the customers to browse their
requirements and place the order accordingly. They will get those items delivered to the
house of the customer within a few hours from placing the order.
Reliance: This retail brand introduces most ambitious plans in the Indian retail industry from
time to time. Apart from the 1st Reliance Hypermart situated in the city of Ahmedabad, this
brand has got above 300 stores of Reliance Fresh across the country.
R. P. G. Group: Being the first entrant in the field of organized grocery and food, this group
established their first store of Foodworld in the year 1996. Presently, they have got several
outlets of one of the most popular retail brands, Spencers, who specializes in providing
fresh vegetables and fruit, grocery and food items, personal care goods, electrical and
electronics, office and home essentials, garments as well as fashion accessories and many
more. These stores of Spencer's Hyper make it easy for a shopper to get every required
item under one roof.
Subhiksha: This decade old retail brand is mainly based in Chennai in the southern part of
the country of India. Their 500 retail stores are spread all over the country, which gained its
fame as a chain of discount retail industry.
Tata group: Trent, one of the Tata Groups subsidiaries was set up in the year 1998. Two of
the most famous brand outlets of this group are:

Croma that is a retail chain of consumer electronic goods

Landmark, the largest music and book retailer which was acquired by this group in
2005

Star India Bazaar that is a hypermarket offering an array of low priced products

Tanishq, which is a well known jewelry brand in India

Titan that is a famous watch brand

Westside, which is a retail chain of lifestyle goods

To name a few more retail brands in India are:

Allen Solly

Barista

Cafe Coffee Day

Louis Phillipe

McDonalds

Music World

Peter England

Provogue

ONLINE RETAIL PLAYERS

Amazon
Apple.com
Samsung Group
Flipkart.com
Homeshop18.com
Naaptol.com

TRENDS AND KEY ISSUES IN RETAIL INDUSTRY

Evolution of logistics landscape in the country will be a very important factor in determining
the course for the e-retailing industry. Logistics evolution will be necessary to realise the
potential robust growth.
Despite a huge potential, long term profitability of the e-retailing industry in the country is
still under question. After so many years of operations, all the major e-retailers are yet to
start making profits. In the wake of wafer-thin margins and sub-optimal infrastructure
resulting in higher delivery cost, the long-term profitability still seems a distant possibility.

FDI in the inventory-led retail will also be an important factor in shaping up the future of the
industry. In the current scenario, global e-retailing giants like Rakuten and Alibabaare
eyeing an entry into Indian e-retail market. Amazon has recently announced a 2 billion USD
investment operating on marketplace model. FDI allowance could be a vital factor in
attracting significant investments resulting in better infrastructure and robust supply chains.
Evolution of taxation policies in the country will in a large way effect the way industries
practice warehousing. With uniformity in taxation laws across the country, e-retailers are
expected to move closer to consumption centers with an aim to address the duplicities in
the logistics chain by removing the overlaps in form of delivery and sortation centers which
are traditionally closer to the consumption centers. It will also result in uninterrupted access
to the e-retailing market. In a recent case, a south Indian state had sent a tax notice to eretailers resulting in all e-retailers withdrawing services in the particular state because of
differing tax policies.
The evolution of the existing logistics providers and more players entering the 3PL domain
will result in realisation of the huge potential of the e-retailing industry. Major 3PL
players(such as FedEx, DHL, UPS, Gati, etc) will have to gear up to the increasing
demands of the e-retailing industry thereby helping in rationalisation of delivery costs and
provide much needed balance between using captive logistics network and 3PLs. To take
the opportunity and help the e-retailing industry to overcome infrastructural bottlenecks,
resurrection of the Indian Postal Service can be a game changer. Collaborating the strong
last-mile capability with technological upgradation will ease the dependence on the other
modes of transportation.After taking a holistic view of the industry trends, e-commerce is
poised for an exciting period of exploding growth in a period of three to five years. This is
expected to lead to substantial investments in supporting infrastructure and innovative and
game changing business models.
Trends in the Retail industry
Emergence of organized retail: Real estate development in the country, for example, the
construction of mega malls and shopping malls, is augmenting the growth of the organized
retailbusiness
Spending capacity of youth of India: India has a large youth population, which is a
conducive environment to growth of this sector.
Raising incomes and purchasing power: The per capita income in India has doubled
between 2000- 01 and 2009-10 resulting in improved purchasing power.
Changing mindset of customers: The customer mind set is gradually shifting from low
price to better convenience, high value and a better shopping experience
Easy customer credit: Emergence of concepts such as quick and easy loans, EMIs, loan
through credit cards, has made purchasing possible for Indian consumers, for products
such as consumer durables
Higher brand consciousness: There is high brand consciousness among the youth; 60%
of Indianspopulation is below the age of 30 leading to popularization of brands and products

Challenges Faced by the Retail Industry:

International Standards: Even though India has well over 5 million retail outlets of different
sizes and styles, it still has a long way to go before it can truly have a retail industry at par
with International standards. This is where Indian companies and International brands have
a huge role to play.
Inefficient supply chain management: Indian retailing is still dominated by the
unorganized sector and there is still a lack of efficient supply chain management. India must
concentrate on improving the supply chain management, which in turn would bring down
inventory cost, which can then be passed on to the consumer in the form of low pricing.
Lack of Retail space: Most of the retail outlets in India have outlets that are less than 500
square feet in area. This is very small by International Standards.
Cultural Diversity: India's huge size and socio economic and cultural diversity means there
is no established model or consumption pattern throughout the country. Manufacturers and
retailers will have to devise strategies for different sectors and segments which by itself
would be challenging.
Real estate issues: The enormous growth of the retail industry has created a huge demand
for real estate. Property developers are creating retail real estate at an aggressive pace.
With over 1,000 hypermarkets and 3,000 supermarkets projected to come up by 2011, India
will need additional retail space of 700,000,000 sq ft (65,000,000 m2) as compared to today.
Human resource problems: Trained manpower shortage is a challenge facing the
organized retail sector in India. The Indian retailers have difficulty in finding trained person
and also have to pay more in order to retain them. This again brings down the Indian
retailers profit levels.
Frauds in Retail: It is one of the primary challenges the companies would have to face.
Frauds, including vendor frauds, thefts, shoplifting and inaccuracy in supervision and
administration are the challenges that are difficult to handle. This is so even after the use of
security techniques, such as CCTVs and POS systems. As the size of the sector would
increase, this would increase the number of thefts, frauds and discrepancies in the system.
Challenges with Infrastructure and Logistics: The lack of proper infrastructure and
distribution channels in the country results in inefficient processes. This is a major hindrance
for retailers as a non-efficient distribution channel is very difficult to handle and can result in
huge losses.
Infrastructure does not have a strong base in India. Urbanization and globalization are
compelling companies to develop infrastructure facilities. Transportation, including railway
systems, has to be more efficient. Highways have to meet global standards. Airport
capacities and power supply have to be enhanced. Warehouse facilities and timely
distribution are other areas of challenge. To fully utilize India's potential in retail sector, these
major obstacles have to be removed.
TRENDS AND KEY ISSUES IN E COMMERCE

A. Information directories:
The products and services are listed with appropriate sub-headings to make it easy for a
serious information-seeker to find what he wants. Allied services provided by them:
Message boards, chat rooms, forums, etc.
B. Banks:
1) Net banking/phone banking: This is an online banking facility available for savings
account holders as well as current account holders. Some of the special Net banking
services are: Demat accounts for sale/purchase of stocks and shares, Foreign Exchange
services, Direct/Instant payment of bills on the account-holders behalf, Financial Planning &
advice, Electronic Funds Transfer, Loans to account-holders.
2) Credit/Debit Cards- Banks facilitate E-commerce by providing the most vital trade
instrument, namely the Credit or Debit Card, without which E-commerce would be
impossible.
Category of e-commerce and its trendy uses in India:
Today, E-commerce is an essence in Indian society and it has become an integral part of
our daily life.
There are websites providing any number of goods and services. There are those, which
provide a specific product along with its allied services Multi-product e-commerce. These
Indian E-commerce portals provide goods and services in a variety of categories. To name
a few: Apparel and accessories for men and women, Health and beauty products , Books
and magazines, Computers and peripherals, Vehicles, Software,Consumer electronics,
Household appliances, Jewelry, Audio/video, entertainment, goods, Gift articles, Real estate
and servicesSingle-product e-commerce Some Indian portals/websites deal in a specialized
field, for example:
i) Automobiles and e-commerce: On these sites, we can buy and sell four wheelers and
two-wheelers, new as well as used vehicles, online. Some of the services they provide are:
Car research and reviews, Online evaluation, Technical specifications, Vehicle Insurance,
Vehicle Finance.
ii) Online Trading in Stocks & Shares and e-commerce- Online stock trading activity is
gaining momentum in India. Services offered by the online stock trading companies include
online buying and selling of stocks and shares, market analysis and research, details of
companies, comparison of companies, and research on equity and mutual funds, customer
services through email and chat. Online trading also has an added advantage of real time
stock trading without calling or visiting the broker's office. Major online stock trading
websites in India include: ICICIDirect.com, Sherkhan.com, Indiabulls.com, 5Paisa.com,
Motilal Oswal Securities, HDFC Securities, Reliance Money, IDBIPaisaBuilder, Religare,
and Kotak Securities.
iii) Real estate and e-commerce- There are a number of real estate portals and sites that
provide information to users regarding the property they wish to buy/sell. This information
includes properties available for sale/purchase, the cost, location, etc.
They provide information on new properties as well as properties for resale. One can deal
directly with developer through consultant. Allied services: Housing Finance, Insurance
companies, Architects & Interior Designers, NRI services, Packers &Movers. Some of the

popular real estate portals include: Indiaproperty.com, 99acres.com, Magicbricks.com, and

Makaan.com.
iv) Travel & tourism and e-commerce- Use of e-commerce in India is increasing in the travel
segment. India has a rich history and heritage and e-commerce is instrumental, to a large
extent, in selling India as a product, encouraging Indians as well as foreigners to see its
multifaceted culture and beauty. The tourist destination sites are categorized according to
themes like: Adventure - trekking, mountain climbing etc,
Eco-Themes pertains to jungles, flora and fauna. Online travel industry is expected to be
worth US $6 billion in 2010. IRCTC is the most successful eCommerce initiative in India. It
has contributed Rs 340 Million to the total eCommerce business of Rs 900 Million. The
Indian Travel Ministry has introduced atravel portal called Incredible India. This portal is a
big success as tourists can easily contact travel agents,tour operators and hoteliers easily.
This portal has also caused a surge in medical tourism to India. By theyear 2010, the
medical tourism market in India is expected to be around US$ 2 million. Other travel
portalsinclude Makemytrip, Yatra, Cleartip, and Travelguru. Makemytrip has targeted
revenue of Rs 230 Million for the financial year ending March 2010.
v) Gifts and e-commerce- In the bygone days, one had to plan what to gift a loved one,
trudge across to your favorite shop, and browse for hours before purchasing a gift. The gifts
are categorized as: Collectibles like paintings and sculptures, Luxury items like leather
goods, perfumes, jewelry boxes, etc, household curios and carpets, etc, Toys & games,
Chocolates, Flowers, Woodcraft & metal-craft.
vi) Hobbies and e-commerce- The most popular hobbies from time immemorial are reading,
music and films. The books cover a wide range of topics like Business, Art, Cookery,
Engineering, Childrens Stories,Health, Medicine, Biographies, Horror, Home & Garden, etc.
vii) Matrimony and e-commerce- Matrimony eCommerce portals provide the seekers
appropriate information regarding the prospective matches, region of their residence, their
religion, caste, etc. Allied services are also provided to the listed members. It is said that
marriages are made in heaven, but in the world of E-commerce they are made on marriage
portals. One can search for a suitable match on their websites by region of residence (India
or abroad), religion or caste. Allied services for registered members: Astrological services,
Information on Customs and Rituals, Legal issues, Health & Beauty, Fashion & Style,
Wedding Planners. These services include: astrology, information on customs and rituals,
legal issues, health and beauty, fashion, wedding planners, etc. Some of the leading
matrimony portals in India include: Shaadi.com, Jeevansathi, com, Bharatmartimony.com,
Indiamatrimony.com, and Simplymarry.com, and LifepartnerIndia.com.
viii) Employment and e-commerce- Another area where eCommerce is widely used is that
of employment. Internet has simplified the process of search for 'right people on the right
job'. There are a number of web portals and sites that match a prospective employer's
requirements with that of candidates applying for that job. Two major portals like
www.Monsterindia.com and www.naukri.com (meaning job.com in Hindi) are instrumental in
providing job seekers with suitable employment at the click of a mouse.
ix). E-Tailing or Online Retailing and e commerce-

Due to improved broadband connections and increased penetration of credit card facilities
to a wider population, e-Tailing or online retailing is witnessing a substantial growth. Internet
retailers provide a wide range of facilities to the consumers, including discounted prices,
comparison of product features offered by various vendors, areas where the products can
be procured, etc. Currently, the online retail industry in India is estimated to be worth Rs 110
Million. By 2013, India is expected to have the third largest internet user base, which
improves the prospects of online purchases. Some of the retail stores offering online retail
facilities include: Reliance's Rmoneymall, Pantaloon's FutureBazaar.com, Videocon's
eDigiworld.com, Vishalmart's Vishalmegamart.com, and the Tata Group's Westside. Some
of the popular job sites in India include: Naukri, Monster India, Times Jobs, Careerjet,
Naukri Hub, Career India, Bixee, ClickJobs, CareerAge, and Freshersworld.
x).Online Advertisements and e commerceThe Indian population accesses the internet from home, office, and cybercafes. There is a
large segment of population that is fast adapting to internet. Advertisers have identified the
internet as a medium for enhancing the awareness for their business activities. Online
advertising in India is expected to cover all organizations and their products. The online
advertisement industry grew to Rs 3250 million in India, accounting for 38% growth rate in
2008-2009. The growth rate for the year 2009-2010 is expected to be 32% which amounts
to Rs 4300 million.
Key issues to e-commerce in India:
Some of the infrastructural barriers responsible for slow growth of eCommerce in India are
as follows.
Some of these even present new business opportunities.
i). Payment Collection: When get paid by net banking, one has to end up giving a significant
share of revenue (4% or more) even with a business of thin margin. This effectively means
one parting away with almost half of profits. Fraudulent charges, charge backs etc. all
become merchants responsibility and hence to be accounted for in the business model.
ii). Logistics: Businesses have to deliver the product, safe and secure, in the hands of the
right guy in right time frame. Regular post doesnt offer an acceptable service level; couriers
have high charges and limited reach. Initially, one might had to take insurance for high value
shipped articles increasing the cost.
iii). Vendor Management: However advanced system may be, vendor will have to come
down and deal in an inefficient system for inventory management. This will slow down
drastically. Most of them wont carry any digital data for their products. No nice looking
photographs, no digital data sheet, no mechanism to check for daily prices, availability to
keep your site updated.
iv). Taxation: Octroi, entry tax, VAT and lots of state specific forms which accompany them.
This can be confusing at times with lots of exceptions and special rules.
v). Excessive pricing in e-commerce markets: Over the short term, excessive pricing is
unlikely to be a major issue for e-commerce companies. Few e-commerce operations are
currently making any profits, let alone excessive profits. Over the longer term, however,

excessive pricing may become a serious concern for those e-commerce companies that
develop dominant positions in their relevant markets.
vi). Collusion: One of the most widely held competition concerns relating to e-commerce is
that it may facilitate such collusive behaviour. Much of the recent discussion of this issue
has focussed on the development of B2B online marketplaces that are co-owned by a
number of significant market participants.
More generally, there are a number of characteristics of e-commerce that might be
expected to facilitate collusion, even in the absence of joint ventures and online
marketplaces.
vii).Cyber crime in E-Commerce:
Cyber crime is a key alarm that consumers have regarding e-commerce. No one wants to
become a victim of cyber crime, which is a real hazard to e-commerce. Cyber crime is an ecrime. Cyber crime is a criminal act that involves computers and networks. Cyber crime
includes criminal acts such as computer viruses, phishing, and denial of service attacks that
cause e-commerce websites to lose revenues. Understanding and defending against cyber
crime is critical for companies involved in e-commerce.
E-commerce companies lose billions of dollars in lost business, stolen assets, and
damaged reputations as a result of cyber crime (Smith et al. 2010). Cash is stolen, literally
with the push of a button. When an e-commerce website crashes, business activity stops.
The usual outcome is that a company loses business to a competitor who has a working
website. In addition to losing sales, companies that become victims of cyber crime also
experience damaged reputation. Vulnerability to cyber crime may cause some customers to
lose confidence in a companys ability to accurately process sales transactions and
effectively protect confidential customer information.

PESTLE ANALYSIS
POLITICAL FACTORS

The Government of India has taken several initiatives to boost the Indian retail sector. For
instance, the Ministry of Labour, Government of India has recently signed a Memorandum
of Understanding (MoU) with Flipkart to provide short-term training to its new employees
through its skill development initiative.

The changes in foreign direct investment (FDI) norms along with the relaxation of certain
regulations by the government are also seen as positive moves to attract more foreign
investments and enhance foreign trade. The government has allowed 100 per cent FDI in

Single-Brand Retail Trading (SBRT) and 51 per cent FDI in Multi-Brand Retail Trading
(MBRT).

In the Union Budget 2014-15, the Government of India announced a reduction in the excise
duty from 12 per cent to six per cent on footwear with retail price exceeding Rs 500 (US$
8.17) per pair but not exceeding Rs 1,000 (US$ 16.34) per pair.

The Government of India has also proposed the Goods and Services Tax (GST). Once
implemented it will simplify the supply chain and bring down prices. This will help to boost
the Indian retail sector.

Changing the Regulatory Scenario

Recently, the Indian government made the following two significant announcements that will
go a long way in developing the Indian retail sector:
Permitting foreign investment in multi-brand retail trading
Simplifying the rules for single brand retail trading to make it more business-friendly

It has also formulated specific regulations for foreign investors; for instance, global chains
planning to set up cold storages and warehouses in India will now need to invest only 50
per cent of the initial compulsory investment of US$ 100 million.

ECONOMIC FACTORS

Purchasing Power
An increasing number of Indian consumers are ascending the economic pyramid to form an
emerging middle class. Though they still earn modest income between 1.70 and 5 USD per
capita, per day, in the coming decade, these consumers will collectively have around 6
trillion USD worth of purchasing power annually.
In 2010, there were about 470 million people in the emerging middle class. As per PwC
estimate, this segment will grow to 570 million by 2021. This segment, existing between the
lowest-income group and the middle class, will constitute about 42% of Indias total
population.

Population Demographics
Indias working population is expected to be 117 million over the next decade as compared
to Chinas four million. In the following decade, from 2020, the former will add 98 million to
its workforce, while China will contract 51 million. This is a big positive for India.

Aspiring Middle Class

With a population of 100 million, the tier II and III cities in India are larger than countries
such as Germany and the UK. Besides, the untapped rural population holds immense
potential for retailers. It is estimated that by 2021, approximately 67% of Indians will still live
in rural areas.

Increase in per capita income

Per capita Income means how much an individual earns, of the yearly income that is
generated in the country through productive activities. India has marked growth in per capita

income by 10.5% which shows tremendous increase in GNP (Gross National Product) of
the country. Increase in per capita income reflects hike in income of Households which in
turn will consume more, thus leading to growth of retail sector. Household prefer to shop
from big giants as compare to their Kirana store.
Demographical changes: India is having huge young age working population which is
generating huge income and high savings. For any developing country young age group,
income, savings are key factors for its growth. Presence of these key factors has helped in
attracting big retail giants to India
High standard of living: Standard of living in India has improved. Earlier Shopping in
India always had an emotional tag attached to it, along with that people use to have myth
that shopping from shopping complexes or Malls is costlier and it suits only to rich class. But
now things have .changed, people have changed their misconception and have adopted
Mall culture. This shows that standard of living has increased.
Change in consumption pattern: Consumption patterns among various classes have
changed over the years. Earlier customers were brand loyal due to which they were not
allowing new brands to enter the market. But now customers are showing good response to
new product entering the market because they have realised that they are paying for quality.
This drastic change in customers perception has opened ways for many new entrants.

SOCIAL FACTORS
Corporate Social Responsibility.
Cultural influence the consumers beliefs, art, morals, laws, custom. Indias large
and dynamic size and economical and cultural diversity which had lead to no proper
model or consumption pattern throughout the country. The main challenge the retail
industry in India faces is of diverse strategies for different sectors and segments.

 it has the maximum effect on consumes. Social environment changes the habbits of
people. In India brands like Dettol have a higher impact on people because of its
burning sensation. Maggi noodles are more of convenient food in Indian Market than
a staple food.
Ease of shopping.

TECHNOLOGICAl FACTORS
Online Shopping.
Retail media networks(RMN).
ERP System.
CRM System.
Digital Strategy
Going digital is not only about e-commerce but the way interaction will change in a
few major areas including changing business models (e-commerce, e-payments and
mobile transactions), employee and customer engagement and investment in
technology.
Customers are demanding an improved experience in terms of how to search,
browse products and conduct transactions online. R&C organisations need to
engage with customers differently, in terms of using a range of channels. However,
the overall customer experience should be the same-smooth and seamless.
Social media is also becoming a popular tool for consumers to educate themselves
about offerings, seek advice about products and compare brands. For retail
companies it is important to define how social media can support sales activities
throughout the various channels, especially e-commerce. Social media analytics is

the focus area for retailers.

Customer-centric Approach
The retailer is no longer looking at product innovation at the merchandising level only
but the entire store today is a product that needs to appeal to the customer. The
following are factors that will make a difference:
Experience design
Digital change
Analytical insights

LEGAL FACTORS
Government plays a great role in moderating the role of business in the society through
legislation. The legal frame work for relationship between business and consumer is
designed to encourage a competitive marketing system to employ and adhere to best
business practices.
Legal provisions pertaining to foreign direct investment (FDI), foreign exchange
management act (FEMA), national taxation laws, cyber law due diligence (PDF), cyber
security due diligence, e-commerce due diligence, etc are openly ignored in India. In some
instance, enforcement directorate (ED) has also initiated investigation against big ecommerce players like Myntra,Flipkart and many more e-commerce websites operating in
India. Many stakeholders have also protested against the unfair trade practices
and predatory pricing tactics of Indian e-commerce websites.

ENVIRONMENTAL FACTORS

Natural Environment the finite and non-renewable natural resources are being consumed
very fast and there is little likelihood. The resources such as fuel and gasoline are heading
towards a big crisis.
1. Poor infrastructure and power
supply;
2. High wastages in transit and high
cost logistics;
4. Inconsistency in government
policies;
5. Soaring cost of real estate

Availability of low-cost consumer credit: It is rightly said that sales generated on credit
are more as compare to cash sales. With the change in credit policies, many new
customers have entered the market. Purchasing on credit basis with good credit worthiness
gives both seller and buyer flexibility to transact. Earlier due to lack of cash many buyers
use to postpone their purchases, but now with modernisation they are carrying it on credit
basis as it is cheaper to repay.
6.

Improvements in infrastructure: With many infrastructural changes taking place

right from metro rails to Bandra-worli sea link in the country, retail is also expanding its
wings. With huge infrastructure spending which has entered the country in form of FDI
(Foreign Direct investment), more retail giants have proposed to enter Indian market.
7.

IT.

Media.

Real Estate.


Tou r i sm

FUTURE OUTLOOK

The future outlook

confirms, in todays ever-evolving and dynamically changing retail

industry, traditional business models and customer segments can no longer be taken for
granted. Technology has blurred the lines and created a retail industry open for business
anytime, anywhere and in any way the customer prefers to shop. The possibilities for
effectively engaging consumers are limited only by imagination, and each advance in new
technology brings excitement and anticipation of a brighter future for the retail industry.
As evidenced by our survey results, most executives realize that technology is paramount to
driving growth and enhancing customer engagement. With consumer behavior, spending,
and demographic profiles changing so rapidly,it is absolutely critical for companies to adopt
an omnichannel approach, utilizing all the touch points at their disposal, including brick
and mortar stores, online, and mobile to engage consumers.
Executive responses indicate that social media and mobile technologies are certainly
accelerating the rate of change, and they acknowledge a significant increase in their use to
explore new ways of doing business and reaching more customers. Smart retailers are
wasting little time in seizing strategic opportunities to seamlessly integrate their physical and
virtual channels in an effort to personalize customer experiences.

Retailers are also rapidly embracing the value of data and analytics as key facilitators of
success. Data and analytics enable retailers to better understand customer profiles and
preferences, and potentially predict future customer purchases. By examining and analyzing
traffic patterns in stores, mining loyalty data, and monitoring consumers online and social
media behaviors, retailers can dramatically enhance their connection to consumers.
Survey respondents also report that they are increasingly relying on data and analytics to
identify new markets, new strategies, and new operating models to generate growth and
profitability. Investing in technology to harness the vast amounts of structured data that
reside in a company, as well as the unstructured data online and in social media, is proving
to be integral to achieving success in the new retail environment. As it evolves in both
sophistication and application, data and analytics will be leveraged by all departments of the
retail organization.
Overall, this confirms that the retail industry continues to make slow and positive
improvement. Challenging economic conditions and increasing concern over the burden of
regulation and legislation are significant obstacles standing in the way of more robust
industry growth. While most executives believe there will be progress in the coming year,
their expectations are modest.

CONCLUSION
Modern retail in India could be worth US$ 175-200 billion by 2016. The Food Retail Industry
in India dominates the shopping basket. The Mobile phone Retail Industry in India is already
a US$ 16.7 billion business, growing at over 20 per cent per year. The future of the India

Retail Industry looks promising with the growing of the market, with the government policies
becoming more favorable and the emerging technologies facilitating operations.
Young Indians are driving purchases in mobile phones, fashion, accessories, food and
beverages, quick service restaurants, etc. Young Indians have access to more money than
before and with this have come independence, aspirations and a demand for products
The Indian retail sector is evolving rapidly and those who enter the market now can learn
about local dynamics, develop market insights and establish leadership positions.
E-commerce space in India is to quickly match the growth of its overall consumer
marketplace.