2010-2011

SUBMITTED TO: P.G. DEPARTMENT OF COMMERCE SUBMITTED BY: DAVINDER SINGH M.COM 1ST ROLL. NO.8310

MATA GUJRI COLLEGE (F.G.S)

TABLE OF CONTENTS
MEANING OF ORGANIZED RETAIL IN INDIA EVOLUTION OF RETAILING CLASSIFICATION OF RETAIL EVOLUTION IN INDIA MAJOR INDIAN RETAILOR OPENING THE DOOR -51%PERMITTED TO SINGLE BRAND RETAIL FEW INTERNATIONAL RETAILORS HAVE SIGNIFICANT PRESENCE IN INDIA ADVANTAGE AND DISADVANTAGE OF ORGANIZED RETAIL CHALENGES FACING BY THE ORGANIZED RATAIL INDUSTRY CONTRIBUTION TOWARDS GDP AND EMPLOYMENT CONCLUSION

MEANING OF ORGANIZED RETAIL IN INDIA

ORGANIZE RETAILING REFERS TO TRADING ACTIVITIES UNDERTAKEN BY LICENSED RETAILORS,THAT IS,THOSE WHO ARE REGISTERED FOR SALES TAX,INCOME TAX,ETC

EVOLUTION OF RETAILING
THE EMERGENCE OF RETAILING IN INDIA NOW HAS MORE TO DO WITH THE INCREASING PURCHASING POWER OF BUYERS,ESPECIALLY POST-LIBERALISATION INCREASE IN PRODUCT VARIETY AND THE INCREASING ECONOMIES OF SCALE WITH THE AID OF MODERN SUPPLY AND DISTRIBUTION MANAGEMENT SOLUTIONS

CLASSIFICATION OF RETAIL EVOLUTION IN INDIA

INITIATION CONCEPTULIZATION RETAIL EXPANSION CONSOLIDATION AND GROWTH

MAJOR INDIAN RETAILOR

RETAILERS PENTALOON K.RAHEJA GROUP TATA GROUP SPACE Sq. Ft. 5mn 75200 4lakh TURNOVER 20bn 6.75bn 3.58mn

SUBHIKSHA
R.P.G GROUP

1mn
6 lakh

3.34bn
4.5bn

Opening the door partly 51% FDI permitted to Single Brand Retail
The most significant development in regulatory aspects influencing the Indian retail industry is the governments decision to allow foreign direct investment (FDI) up to 51% in retail outlets meant exclusively for single brands. Previously single brands had to enter India only through joint ventures or the franchisee route. Now brands can enter with a majority stake of 51% along with a local partner. This definitely gives the international brands more space to play ground.

FEW INTERNATIONAL RETAILORS HAVE SIGNIFICANT PRESENCE IN INDIA

ADVANTAGE AND DISADVANTAGE OF ORGANIZED RETAIL

Advantages: Monumental increment in economic growth Employment generation by the organized retail sector Good competition means better products & services Disadvantages: The companies with superior resources would muscle out the ones inferior to them. Monopolization of the organized retail sector

CHALENGES FACING BY THE ORGANIZE RETAIL INDUSTRY

The major constraint of the organized retail market in India is the competition from the un-organized sector. Traditional retailing has been deep rooted in India for the past few centuries and enjoys the benefits of low cost structure, mostly owner-operated, therein resulting in less labor costs and little or no taxes to pay. Consumer familiarity with the traditional formats for generations is the greatest advantage to the un-organized sector. On the contrary, organized sector have big expenses like higher labour costs, social security to employees, bigger premises, and taxes to meet.

CONTRIBUTION TOWARDS GDP AND EMPLOYMENT

ORGANIZED retail sector has witnessed a CAGR of around 35 per cent over the past five years and currently contributing around 10 per cent to the countries GDP & eight percent of the employment.

CONCLUSION
Finally, it is important to note that value is function of not just price, quality and service but can also be enhanced by personalization and offering a memorable experience. In fact, building relationships with customers can by itself increase the quality of overall customer experience and thus the perceived value. But most importantly for winning in this intensely competitive marketplace, it is critical to understand the target customer's definition of value and make an offer, which not only delights the customers but also is difficult for competitors to replicate.