IMPACT OF RETAIL MANAGEMENT IN THE GROWTH OF INDIAN ECONOMY

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					IMPACT OF RETAIL MANAGEMENT IN THE GROWTH OF INDIAN ECONOMY
INTRODUCTION

•Retailing is timely delivery of goods and services demanded by consumers at prices that are competitive and affordable

•Face of the Indian retail industry is changing from traditional Kirana stores to ‘mall country’
•Significant change in the demographics which has encouraged organized retail market •Flow of Foreign Direct Investment

Foreign Direct Investment in Retail
•The government approved 51 percent FDI for retail trade in `Single Brand' products, subject to Government approval •FDI is still not allowed in retailing of goods of multiple brands where the same manufacturer produces such branded products. •However, 100% FDI is permitted in case of trading companies for the following activities: 1. exports; 2. bulk imports with ex-port/ex-bonded warehouse sales; 3. cash and carry wholesale trading; 4. other import of goods or services provided at least 75% of it is for procurement and sale of goods and services among the companies of the same group and not for third party use or onward transfer/distribution/sales

BENEFITS OF MODERN RETAIL MANAGEMENT
•Higher quality in products and services •Better lifestyle •Increase in Exports •Increase in Investment in whole supply chain •Upgraded Technology •Employment would increase •promote tourism. •Economies of scale and improvement in the purchasing power •bridging the gap between the manufacturer and consumers •up-gradation of agriculture and small scale & medium scale industries.

Modern Retail Structure
•Malls like Ansal Plaza (New Delhi), Garuda (Bangalore) etc •Discount Stores like Brand Factory, M&B Factory, Subhiksha •Department Stores like Shoppers Stop, Big Shop, Central • Hypermarkets/ Supermarkets like Big Bazaar •Convenience Stores like Spencer’s Daily, Choupal, More •Multi Brand Outlets like Globus

Scope for Growth in the Indian Retail Market
•Mumbai •Delhi •Pune •Ahmedabad •Bangalore •Hyderabad •Kolkata •Chennai

Global Retail Development Index (GRDI)
A.T.Kearney the largest high value management consulting firms prepares the GRDI

India was the most attractive emerging market destination for retail investment for last 3 years.
In 2008, India is the second most attractive market

2006 Global Retail Development Index
2006 RANK 1 2 3 4 COUNTRY INDIA RUSSIA VIETNAM UKRAINE COUNTRY RISK 55% 43% 43% 42% MARKET GRDI ATTRACTIVENESS SCORE 34% 59% 24% 37% 100 85 84 83

5

CHINA

58%

40%
0 =low attractiveness 100 = high attractiveness

82

0=high risk 100 =low risk

2007 Global Retail Development Index
2007 RANK 1 2 3 4 COUNTRY INDIA RUSSIA CHINA VIETNAM COUNTRY RISK 67% 62% 75% 57% MARKET GRDI ATTRACTIVENESS SCORE 42% 52% 46% 34% 92 89 86 74

5

UKRAINE

41%

43%

69

0=high risk 100 =low risk

0 =low attractiveness 100 = high attractiveness

2008 Global Retail Development Index
2008 RANK 1 2 3 4 COUNTRY VIETNAM INDIA RUSSIA CHINA COUNTRY RISK 57% 29% 31% 36% MARKET GRDI ATTRACTIVENESS SCORE 34% 39% 52% 50% 88 80 72 767

5

EGYPT

22%

34%

66

0=high risk 100 =low risk

0 =low attractiveness 100 = high attractiveness

REASONS OF GROWTH OF RETAIL SECTOR
•Existing Indian middle classes with an increased purchasing power •Rise of upcoming business sectors like the IT and engineering firms •Change in the taste and attitude of the Indians •Effect of globalization •Heavy influx of FDI in the retail sectors in India •Improvements in infrastructure and enhanced availability of retail space

IMPACT OF RETAIL IN THE GROWTH OF INDIAN ECONOMY
•India consumer’s psyche has changed •Helped in increasing the per capita income of the individuals •Change the pattern of consumption. •Improvement in the infrastructure enhances the availability of retail space •Economic growth due to trained employee and fast modernization. •Organized retailing can increase farmers’ incomes •Provide customers 3 V’s- value, variety and volume


				
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