Indian retailing scenario

 According to the report ‘Strong and Steady 2011’ released by global consultancy and research firm PricewaterhouseCoopers (PwC), India's retail sector, which is currently estimated at about US$ 500 billion, is expected to grow to about US$ 900 billion by 2014.

 India has also been ranked as the FOURTH most attractive nation for retail investment among 30 emerging markets by the US-based global management consulting firm, A T Kearney in its 9th annual Global Retail Development Index (GRDI) 2011.

 RETAIL ACCOUNTS FOR 22 % GDP  8% EMPLOYMENT  The organized and unorganized sector co exist.  The share of unorganized sector is more than 90%

 According to the Indian council for research and international relations ( ICRIER) India is the 7 th largest retail market in the world.  India has the largest number of retail outlets in the world at over 13 million and the average size of a store is square feet.  Second highest is in china which are 5000in number

 It also has the highest number of outlets per million inhabitants.  The per capita retail space in India is among the lowest in the world, though the per capita retail store is the highest.  Majority of these stores are located in rural areas.

Organized retail in India is expected to increase from 5 per cent of the total market in 2008 to per cent and reach US$ 450 billion by 2015, according to a McKinsey & Company report titled 'The Great Indian Bazaar: Organised Retail Comes of Age in India'.

 Strong underlying economic growth,  Higher income Levels  High consumer spending  Dual Income  changing lifestyle

 aVERAGE AGE 25 YEARS IS THE LOWEST AS COMPARED TO OTHER COUNTRIES.  IT WILL BE 28 YEARS IN 2020 AND 53% WOULD BE UNDER THE AGE OF 30 BY 2020

Increase in working population India is the second-largest country in the world in terms of population, and is the largest consumer markets in the world owing to its favorable AVERAGE AGE. Further, the increase in the number of working women has fuelled the growth in sales. There has been a 20% increase in the number of working women in the last decade with an average salary of rs9492

Spurt in urbanization Historically cities and towns have been the driving force of overall economic and social development. Currently over 350 million people of India reside in cities and towns, which translates to around 25% of the total population. The rapid growth in urbanisation has facilitated organised retailing in India, and has caused the speedy migration of population into major tier I and tier II cities, which have a significant share in the retail sales of the country

The urban population’s contribution in India’s GDP shot up from 29% in 1951 to 60% in 2001 and is expected to increase to 70% by 2018, as migration to cities and towns grows rapidly in anticipation of higher income opportunities provided by these epicenters.

 Stiff competition from unorganized sector.  Organized retail sector has to pay huge taxes, which is negligible for small retail business.  In retail sector, Automatic approval is not allowed for foreign investment.  There is a shortage of quality real estate and infrastructure requirements in our country.

 Opposition to Foreign Direct Investment from small traders affects retail industry.  Shortage of retail space in central and downtown locations also hinders the growth of retail industry. Presence of strong Pro-tenancy laws makes it difficult to evict tenants and this is posing problems.  Lack of trained work force.