It describes about the indian retail scenario & FDI & retail types

1. Impact of Globalization in
Indian Retail Industry
M.BHUVANESWARI* MUTHUKUMAR.M**
Author CO-AUTHOR
A P/ Hindusthan college of I MBA/ Hindusthan college of
Engineering & Technology Engineering & Technology

2. ABSTRACT
Retailing & present status in Indian
scenario
 Contribution in Indian economy
 Reasons of increasing trend in retail
 Future of retail

3. Retailing
 Distribution channel function passing from
supplying firms or manufactures themselves,
and then sells these directly to consumers
 Makes the utility of the product
 Emphasize on the convenience of consumer
 Exists in various format like Super markets,
Hypermarkets, Departmental stores, and
Specialty stores

4. Ways undergone by retail sector in
India
 could be categorised into
organised(3%) & unorganised(97%)
 After 1991 LPG, organised sector
come to light
 Now purchasing trend changes as per
capita increases

5. Organised various retail
stores
Causes
 Changing life style
 Globalization effect on consumers
 Modern retailing in the form of
shopping center, multi-stored malls
 Younger population target

7. Growth in India
 Mostly unorganized retail market
 Huge potential market for Organized
sector
 focusing on urban customer
 Accounts for 14% of GDP in india
 Expected to grow at 25% annually
 Mobile & food industry dominating in
retail

8. Why such a fast growth
Middle classes with an increased
purchasing power
 Rise of IT & engineering firms
 Changes in taste & preferences
 Effect of globalization
 Demography Dynamics-60% indian
below 30 years
 Plastic revolution
 Urbanisation

9. FDI Scenario- Next India’s
step
 Government policy in retail sector
allows 100% foreign investment in
wholesale cash-and-carry and single-
brand retailing
 prohibits investments in retail trading
 In1997, the government imposed
restrictions on FDI in retail sector
 In 2006, these were lifted and opened
in single-brand retailing and in cash-
and-carry formats
 UPA-II taken steps but opposition

10. Players entered
 Metro and Shoprite
 Tesco entered India through an
alliance with Trent (Tata Group)
 Jv entrant-Louis Vuitton, Marks &
Spencer Plc, GAS, Armani
 Franchise entrant-McDonald’s, KFC,
Domino’s

11. REGULATORY FRAMEWORK FOR INDIAN
RETAIL INDUSTRY
Still there is no specific rules & regulation
some related Laws
 Shop and Establishment Act
 Standards of Weights and Measures Act
 Provisions of the Contract Labour
(Regulations and Abolition) Act
 Customs Act
 The Companies Act
The retail also have to follow certain regional
rules and regulations on the basis of the stores’
location

12. Conclusion
 Consumer’s expectations are
changing along with the economic
pursuit what they possess
 Conventional type of kirana shops
without any ambience will not go in the
near future
 Bureaucratic people may give
importance to this factor and help the
retail sector to achieve its expected
boom like the service sector

13. ….Contd
Also helps customer to get better
information bounded products at
lesser price
 FDI permission in retail will expand
the market into globalization as more
competitive

14. ….Thank you