A STUDY ON INDIAN RETAIL

MARKET WITH REFERENCE TO FMCG

SECTOR

MADE BY:-
MONAL RAJ TANDON
BBA ( BB2016112)
ROLL NO.- 1610101068
FACULTY GUIDE:- DR.ANGRISH
AGARWAL
 INTRODUCTION

 Retail refers to the activity of selling goods or services directly to

consumers or end-users

 Retailing often occurs in retail stores or service establishments,

but may also occur through direct selling such as through vending
machines, door-to-door sales or electronic channels.

 Fast-Moving Consumer Goods (FAST MOVING

CONSUMER GOODS) or Consumer Packaged Goods (CPG)
are products that are sold quickly and at a relatively low cost.
Examples include non-durable goods such as packed
foods, beverages, and consumables.
 OBJECTIVES
 To study the changing phase of Indian retail
market with reference to FAST MOVING
CONSUMER GOODS sector

 To study the growth of Indian retail market

 LITERATURE REVIEW
 International Journal of Multidisciplinary Research and
Development Online ISSN: 2349-4182, Print ISSN: 2349-
5979 Impact Factor: RJIF 5.72 Volume 4; Issue 12;
December 2017; Page No. 91-97-

 Fast Moving Consumer Goods is the 4th largest sector in

the Indian economy. FMCG companies have dominated
the Indian market and are set to grow further. FMCG
companies are trying to influence consumers with
intelligent deals. GST is beneficial for the FMCG
industry as many of the FMCG products such as soap,
toothpaste and hair oil now come under 18 percent tax
bracket. . FMCG sector has a bright future related to
happenings in demand side, supply side and systematic
drivers.
 International Journal of Multidisciplinary Research and
Development Online ISSN: 2349-4182, Print ISSN: 2349-
5979, Impact Factor: RJIF 5.72 www.allsubjectjournal.com
Volume 4; Issue 5; May 2017; Page No. 143-145

 India is on the 5th position in the world for the largest retail
market. The Indian retail market is very fragmented but with
an improving economy and growth drivers such as favorable
demographics, urbanization and shift in consumer shopping
behavior gives an opportunity for the development of modern
retail formats. The Indian retail market is expected to almost
be double to US$1 trillion upto 2020 (Source: Retail 2020:
Retrospect, Reinvent, Rewrite by BCG and RAI, 2015). In
Indian modern retail market, private label brand is in rising
phase. The focus of the paper on the top private label brand
retailers (Aditya Birla Group, Future Retail and Reliance
Retail) dealing in food and grocery sector in Indian retail
industry.
 According to Deloitte (global powers of retailing 2013)

 a robust retail strategy must include: a strong vision of the

experience the customer desires across all channels, a nimble
operating model that can adapt as the retail environment
changes, a deep understanding of how to support the visible
through inventive digital solutions and retail technologies, such
as playbooks to operationalize the Omni-channel strategy.
 Swapna Pradhan in her book “retailing management
text & cases provides a wide picture of Indian retailing
and global perspective. The book through light on a
complete knowledge on retailing from its evolution to the
current market situation and emerging formats of retailing
and its worldwide growth. The types of retailers and
location strategies and its importance also give complete
retail knowledge.
 . A report published by Delloite titled “Indian Retail
Market Opening more doors” (2013)

 It is mainly focused on government policy on multi-brand

retail trade-its evolution, policy implications and political
landscape with respect to new FDI policy[13]. The report
states that various policy conditions for FDI in multibrand
retail makes mass grocery and apparel the two most favorable
segments. Multi-brand specialty retail segment such as
Beauty & Wellness and Consumer Electronics are still in their
nascent stage. Their current market size may not hold a big
potential for foreign retailers.
RESEARCH METHODOLOGY
 Research type: Descriptive Research

 Area of study: Marketing

 Type of data collected - Secondary Data

 Data collection tools- Journals, Articles

DATA
INTERPRETATION
  CAGR OF FAST MOVING CONSUMER GOODS
MARKET IN INDIA

CAGR OF FMCG MARKET IN INDIA

120
100 103.7

80
60
52.75 50 49
40
20 18.92 15.6
0
2019 2018 2017 2016 2015 2014

INTERPRETATION
The year 2019 recorded the highest COMPOUND ANNUAL GROWTH RATE of 103.70

The year 2014 witnessed the lowest COMPOUND ANNUAL GROWTH RATE of 15.6

The moderate growth of COMPOUND ANNUAL GROWTH RATE can be seen in the
year 2017 which was 50
.
TRENDS IN FAST MOVING CONSUMER GOODS REVENUE
8

OVER YEARS
( US $ BILLION)

TRENDS IN FMCG REVENUE OVER YEARS

( US $ BILLION)
100

80 83.3
68.4
60
52.8 49
40 43.1 38.8
20

0
2019 2018 2017 2016 2015 2014

INTERPRETATION
•The highest revenue was generated in the year 2019 of 83.3
•The lowest revenue in this sector was generated in the year 2014 which
was 38.8
•The year 2017 generated moderate revenue of 52.8
 CONSUMER EXPENDITURE IN INDIA IN RETAIL
( US $ BILLION )
CONSUMER EXPENDITURE IN INDIA
( US $ BILLION)
2500

2000 1957 1875 1824

1500 1595

1000

500
264.52
0 27
2019 2018 2017 2016 2015 2014

INTERPRETATION
•The year 2019 recorded the highest consumer expenditure which was 1957
•The lowest expenditure was recorded in the year 2014 which was 27
•The year 2015 saw the moderate expenditure which was 264.52.
 MARKET SIZE OF INDIAN RETAIL INDUSTRY

MARKET SIZE OF INDIAN RETAIL

INDUSTRY
( US $ BILLION)
2000
1750
1500
1200
1000
672 641 600
500 534

0
2019 2018 2017 2016 2015 2014

•INTERPRETATION
•The year 2019 recorded the highest market size of retail industry which was 1,750.
•The lowest share was in the year 2014 which was 534
•The second highest share of retail industry was in the year 2018 which was 1200
CHANGING PHASE OF FAST MOVING CONSUMER GOODS SECTOR

consolidation FAST MOVING CONSUMER GOODS companies are consolidating

themselves which is leading to mergers and acquisitions and
disinvestments.

Product innovation FAST MOVING CONSUMER GOODS companies are innovating

their products by either changing their packaging or bringing
something new in the existing product.

premiumisation Nowadays, consumers are willing to buy premium goods at high

prices in the space of health , wellness and convenience

Product customisation Consumers have started demanding customised products specifically

designed to tailor their needs and tastes.

Brand consciousness consumers are becoming more brand conscious and prefer premium
range products due to increase in disposable income.

Backward integration Backward integration is becoming preferred strategy in order to

increase profit margins, secring capacity and source of supply

Increasing private label with the rise of retail players, private label has become popular in
FAST MOVING CONSUMER GOODS space. They are considered
penetration
as substitute for premium branded goods.
•CHANGING PHASE OF RETAIL INDUSTRY

Stage 1 ( earlier Manufacturers Used to open their own outlets

trend)

Stage 2 Retailers realised the potential of market.Most of the retailers

entered into apparel sector.

Stage 3 Entry in food and general merchandise category.

Stage 4 ( modern Movement to smaller cities and rural areas,large scale entry of
international brands, rise in private labelling by top
trend)
companies, emergence of e-commerce as one of the major
segments.
 RESEARCH FINDINGS

•Through this research, I came to know about the compound annual growth rate in FAST MOVING
CONSUMER GOODS sector.

•the year 2019 recorded the highest COMPOUND ANNUAL GROWTH RATE in the FAST MOVING
CONSUMER GOODS sector. In 2019, the COMPOUND ANNUAL GROWTH RATE was 103.90 US billion
dollar.

•The moderate growth was seen in the year 2016. It was 49 US billion dollars.

This brings to the testimony of fact that FAST MOVING CONSUMER GOODS sector has faced
fluctuations when it comes to growth . the highest growth which was seen in the year 2019, shows that there
is a rise in the income level of the consumers because of which they are spending on FAST MOVING
CONSUMER GOODS sector leading to the growth of this sector.
•The trend in the FAST MOVING CONSUMER GOODS sector is also changing with the passage of time.
The FAST MOVING CONSUMER GOODS companies are consolidating themselves through mergers and
acquisitions.

the products are nowadays coming in different packaging . Companies are constantly focusing to innovate
their products in order to survive in the dynamic environment.

•the consumer has become more brand conscious thanks to the entry of new FAST MOVING CONSUMER
GOODS players .

.
CONCLUSION

Retail is one of the fastest growing segment of Indian economy.

It has spread its roots across the globe and has become a new discipline in itself .

it has evolved from marketing but gradually has become a subject in itself.

Brands themselves have been constantly developing themselves to become leaders in this sector.
FAST MOVING CONSUMER GOODS sector constitutes a major chunk in retailing. The growth
trend in this sector has helped the brands to change their outlook from profitable outlook to
customer centric approach.
LIMITATIONS

The sources were conflicting with each other.

•Secondary data cannot reveal individual or group values, beliefs or reasons that maybe
underlying current trends.

Limited time frame for study

RECOMMENDATIONS

•Consumers should spend some amount towards the non store based retail outlets .

•Fdi in retail sector should be done in such a manner that domestic retail market does
not have to face any consequences.

•The prices should be set according to the consumer. They should be set in such a
manner that an average consumer should be able to purchase them.
THANK YOU….