A brief description about Retail Industry with special reference to Global, Indian and Kerala Scenarios

1. Jubin.P.George, T3 MBA,
SS.III, SJCET SoM

2. What is retailing?
Means “sales in small quantities.”
The Retail Industry is the sector of economy which is
consisted of individuals, stores, commercial complexes,
agencies, companies, and organizations, involved in the
business of selling or merchandizing diverse finished
products or goods to the end-user consumers directly and
indirectly.

3. Retail Industry
World’s largest private industry
Above US $ 8 trillion sales worldwide annually
Accounts for almost 10% of GDP in most countries
Major employer in most economies
Major driver for real estate and urban development
Generates competition which results in:
Reduction of prices
Product and service innovation
Enhanced customer experience

4. Types of Retailing
Organised Retailers:
 Supermarkets
 Hypermarkets
 Departmental stores
Unorganised retailers:
 Kirana stores
 Street markets

5. Evolution of Retailing

6. Global Retail Development Index™
The Global Retail Development Index™ is an
annual study that ranks the top 30 developing
countries for retail expansion worldwide. The
Index analyzes 25 macroeconomic and retail-
specific variables to help retailers devise
successful global strategies and to identify
developing market investment opportunities. The
GRDI is unique because it identifies today's most
successful markets and those that offer the most
potential for the future.

7. 2016 Global Retail Development Index
Ranking
Country 2016 Rank
China 1
India 2
Malaysia 3
Kazakhstan 4
Indonesia 5
Turkey 6
United Arab Emirates 7
Saudi Arabia 8
Peru 9
Azerbaijan 10

8. Major players in International retailing
Company Name
Net Sales
(Billion $)
Country
Wal-Mart $4,21,849 USA
Carrefour $1,20,297 French
Tesco $94,185 UK
Metro AG $89,081 German
The Kroger Company $82,189 USA
Schwarz $77,220 German
Costco Wholesale $77,946 USA
Home Depot $67,997 USA
Target $67,390 USA
Aldi GmbH & Company $58,000 German

9. Major players in International retailing

10. In Indian scenario
The retail sector in India is emerging as one of the largest
sectors in the economy
By 2015, the total market size is estimated to be around
USD600 billion, thereby registering a CAGR (Compound
Annual Growth rate) of 7.45 per cent since 2000.
Retail industry is expected to grow to USD$ 1.3 trillion by
2020, registering a CAGR of 9.7 per cent between 2000-
2020

11. In Indian scenario (cont.)
Indian retail industry is 5th largest in the world
Accounts for 24% of country’s GDP and 8% of the total
employment.

12. Retail India
The Indian retail market is currently estimated at USD
450 billion.
Food segment contributes largest part of total value of
retail market, followed by fashion, leisure & entertainment
and fashion accessories.
India's organized retail space is evolving fast and achieve
penetration level of 7%, which signifies huge potential
growth.
Indian luxury market currently stands at USD 3.5 billion
and expected to grow to make India the twelfth-largest
luxury retail market in the world by 2017.

13. Govt. policy in retailing
1995– World Trade Organization’s general agreement
on trade in services, which include both wholesale and
retailing services, came into effect.
1997– FDI in cash and carry (wholesale) with 100%
rights allowed under the government approval route.
2006– FDI in cash and carry (wholesale) brought under
the automatic route.
Up-to 51% investment in a single- brand retail outlet
permitted.
2011– 100% FDI in single –brand retail permitted.
2012– 51% FDI in multi- brand retail permitted.
2016- 100% FDI in multi-brand food processing.

14. Govt. policy in retailing
The governments of some states, particularly Congress-ruled
states have said they will allow foreign supermarkets to open
in their state:
Andhra Pradesh, Assam, Delhi,
Haryana, Kashmir, Maharashtra, Manipur, Uttarakhand, Daman &
Diu and Dadra-Nagar Haveli.
Other states, have said they will not allow foreign
supermarkets to open in their state, these are:
West Bengal, Gujarat, Bihar, Kerala, Madhya Pradesh, Tripura,
and Orissa, Rajasthan.

15. Retail formats in India:
Retail formats in India:
Hyper marts/supermarkets
Mom-and-pop stores
Departmental stores
Convenience stores
Shopping malls
E-retailers
Discount stores
Vending
Specialty stores

16. Top players in Indian market
4 3 %
1 8 %
8 %
7 %
1 2 %
6 % 6 %
Market Share
Pan t alo o n Ret
Sh o p p ers St o p
Bran d h o u se
Tren t
Ot h ers
Pro vo gu e
Ko u t o n s Ret ail

17. Hot destinations
TIER 1 Cities
Delhi, Mumbai, Kolkata, Chennai
TIER 2 Cities
Hyderabad, Bangalore, Ahmadabad, Gurgaon, Pune,
Baroda, Noida
TIER 3 Cities
Chandigarh, Coimbatore, Trivandrum, Faridabad,
Ludhiana, Cochin, Shimla, Mysore, Amritsar

18. In Kerala Scenario
Retailing in Kerala is a subject too subtle and relevant; as
Kerala is known as a consumer state rather than a producer
state. The introduction of Margin Free Markets have turned out
to be grand success resulting in it becoming one of the largest
retail chains in the country.

19. Top Kerala retailers
Margin Free Markets
Reliance Retail
Grand Fresh Hypermarkets
Co-operative stores
Supply Co
Maveli Supermarkets
Labham markets
Festival markets (e.g. Onachantha)

20. Thank
you…