...Title: Foreign Direct Investment in Retail in India: Good or Bad? Name: Amit Rohilla*, Manoj Bansal** Official Address: *Department of Commerce, Gargi College (University of Delhi), Siri Fort Road, New Delhi-110049 ** Department of Commerce, R. K.S. D. (P. G.) College (E), (Kurukshetra University, Kurukshetra), Ambala Raod, Kaithal-136027 Email id: *rohilla_amit@yahoo.co.in; ** manoj.bansal.5686@facebook.com Phone/fax number of author(s): *+91-8860-82-8731; **+91-9812-39-4945 A brief biographical note of the author(s): Amit Rohilla [M. Com., MBA (Finance), M.Phil. (Finance)] is currently Assistant Professor of Commerce at the Gargi College, University of Delhi, Delhi. Earlier he has worked as a Lecturer in R.K.S.D. (P.G.) College, Kaithal (Haryana). He is an active researcher and a teacher with an experience of more than 4 years in commerce and management. He has four papers to his credit out of which one has been published in South Asian Journal of Marketing and Management Research (SAARJ). He has also attended five seminars and one workshop. His area of interest is Finance and Marketing. Electronic copy available at: http://ssrn.com/abstract=2163952 Title of the page: Foreign Direct Investment in Retail India: Good or Bad? Abstract: Indian retail industry is a sunrise sector and many global players are willing to enter this. Indian retail industry is one of the pillars of the Indian Economy. Since 1991, when the policy of the liberalization was introduced by the Indian...
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...Government Policy, Fiscal Deficit and Infrastructure. Emergence of FDI in Retail in India FDI in single brand retail was first introduced in 2006 and it was first in 2010 that the idea of FDI in multi-brand retail was proposed by the government as a step to boost the economy of the country. The Indian Retail industry is being seen as a concrete pillar to boost the economy. Currently the retail industry accounts to 14-15 % of the GDP and employs 6-7%of the total nation’s population. It is expected to reach 16-18% of the total market within the next five years. At the time when FDI in single brand retail was introduced in 2006 the limit was set to 49% ownership rights but in the fiscal year 2011-12 government of India agreed to reform its policy on the single brand retails and increased the ownership rights to 100%. Also in 2012, the Indian government allowed FDI in multi-brand retail in which the company has 51% ownership. Following are some of the points of proposed FDI in retail: * Minimum investment to be done is $100 million. * 50% of the investment should be done in improving the back end infrastructure. * 30% of all raw materials have to be procured from the small and medium enterprises ( this rule has been recently reformed as government has made exception for IKEA). * Permission to set retail stores only in cities with a minimum population of 10 lakhs. * Government has the first right to procure material from the farmers. Political Opposition: ...
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...GDP The Indian retail market is estimated to be US$ 450 billion and one of the top five retail markets in the world by economic value. India is one of the fastest growing retail markets in the world, with 1.2 billion people India's retailing industry is essentially owner manned small shops. In 2010, larger format convenience stores and supermarkets accounted for about 4% of the industry, and these were present only in large urban centers. India's retail and logistics industry employs about 40 million Indians. Until 2011, Indian central government denied foreign direct investment (FDI) in multibrand retail, forbidding foreign groups from any ownership in supermarkets, convenience stores or any retail outlets. Even single-brand retail was limited to 51% ownership and a bureaucratic process. In November 2011, India's central government announced retail reforms for both multi-brand stores and single-brand stores. These market reforms paved the way for retail innovation and competition with multi-brand retailers such as Walmart, Carrefour and Tesco, as well single brand majors such as IKEA, Nike, and Apple. The announcement sparked intense activism, both in opposition and in support of the reforms. In December 2011, under pressure from the opposition, Indian government placed the retail reforms on hold till it reaches a consensus. In January 2012, India approved reforms for single-brand stores welcoming anyone in the world to innovate in Indian retail market with 100%...
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...MALL S O N SMALL SHOPS A STUDY OF DELHI AND NCR Kumar Singh* Reetesh K umar Singh* Aditya Prakash Tripathi** O RGANIZED 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 country’s GDP & eight percent of the employment. The Retail Sector is seeing investments of up to Rs. 6000 crore by the 20 prominent retail players. On the other hand (A report by Govt. of India in 2004 by the centre for policy alternatives entitled FDI in India’s retail sector: ‘More bad than good’ stated that) retailing is “probably the primary form of disguised unemployment, underemployment in the country. India has 35 towns each with a population of over one million. If Wal-Mart were to open an average Wal-Mart store in each of these cities and they reached the average Wal-Mart performance per store, we are looking at a turnover of over Rs. 80, 330 million ($1.82 billion) with only 10,195 employees. Extrapolating this with the average trend in India, it would mean displacing about 4,32,000 persons. If large retailers were to obtain 20 per cent of the retail trade, ‘this would mean a turnover of Rs. 800 billion ($ 18 billion) at current market price. And of course, would mean an employment of just 43,540 persons displacing meanly eight million persons employed in the unorganized retail sector. Understanding the importance of the issue, the present study is aimed to investigate the impact of Malls on small shops and...
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...Emerging Trends in Modern Retail Formats & Customer Shopping Behavior in Indian Scenario: A Meta Analysis & Review “If at first the Idea is not absurd, then there is no hope for it.” -Albert Einstein Aditya P. Tripathi* Abstract The Indian retail sector is going through a transformation and this emerging market is witnessing a significant change in its growth and investment pattern. Both existing and new players are experimenting with new retail formats. Currently two popular formats hypermarkets and supermarkets are growing at a rapid pace. Apart from the brick –mortar formats, brick -click and click-click formats are also increasingly functional on the Indian retail landscape. Consumer dynamics in India is also changing and the retailers need to take note of this and formulate their strategies and tactics to deliver the exact expected value to the customer. In the backdrop of all these developments the present paper makes an attempt to: Explain the emerging trends in the development of Modern Retail formats in Indian Context and Highlights the emerging Rural Retail Landscape and also, Reveals the Consumer Shopping Behavior (Across the Country) among the Modern Retail Formats with special reference to Delhi & NCR. The empirical data has been collected with the help of Primary as well as secondary resources. Key Words: Hypermarket, Convenience Store, Retailing, Malls, Shoppers Introduction India has witnessed a frenetic pace of retail development over the past...
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...INITIAL REPORT THE COCA COLA LIMITED (GLOBAL AND INDIAN SCENARIO) Team 1 Members: Sirisha Adiraju 2014281 Vikrant Gupta 2014324 Udit Birpalia 2014310 Himanshu Dawra 2014344 Tanya Dhingra 2014300 Ankit Rawat 2014339 1. GLOBAL BEVERAGE MARKET SCENARIO The global beverage market has been forecast to increase at a compound annual growth rate (CAGR) of 4.6% over the next five years, to reach a market value of $1,347 billion by 2017. The global beverage industry's rising product demand, not much affected by the currents of global recession, bears testimony to its unyielding growth throughout. Until recently, the beverages market was divided simply between alcoholic and non-alcoholic beverages. As consumers' tastes grew more sophisticated and demand surged for a variety of beverage options catering to lifestyle changes and health concerns, the beverages industry has responded with a dizzying array of options to choose from. Products manufactured by the beverage industry include: bottled water, juice, sparkling and still drinks, syrups, nectars, ready-to-drink and regular teas and coffees, dairy drinks, energy drinks, sports drinks, fruit powders, and alcoholic drinks such as beer, wine, cider and spirits. The industry experienced a CAGR of 2.3% for the period spanning 2007-2016. Industry consumption volumes increased with a CAGR of 2.4% between 2006 and 2010, to reach a total of 717,040.5 million litres in 2011. The soft drinks industry will continue...
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...1.6 CRM Practices in Retail Sector India presents a huge opportunity to the world at age, to use as a hub. Standing on the threshold of a retail revolution and witnessing a fast changing retail landscape, India is all set to experience the phenomenon of global village. India is the “promised land” for global brands and Indian retailers A “Vibrant economy”. India tops in the list of emerging market for global retailer and India’s retail sector is expanding and modernizing rapidly in line with India’s economic growth. The future is promising; the market is growing, government policies are becoming more favorable and emerging technologies are facilitating operations. Retailing in India is gradually inching its way toward becoming the next boom industry. The whole concept of shopping has altered in terms of format and consumer buying behavior, ushering in a revolution in shopping in India. Modern retail has entered India as seen in sprawling shopping centers, multi-storied malls and huge complexes offer shopping, entertainment and food all under one roof. The Indian retailing sector is at an inflexion point where the growth of organized retailing and growth in the consumption by the Indian population is going to take a higher growth trajectory. The Indian population is witnessing a significant change in its demographics. A large young working population with median age of 24 years, nuclear families in urban areas, along with increasing working-women population and emerging opportunities...
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...GROWTH AND CHALLENGES OF RETAIL INDUSTRY IN INDIA: AN ANALYSIS SUNITA SIKRI & Ms. DIPTI WADHWA Assistant Professor M.L.N College Yamuna Nagar-Haryana ABSTRACT The Indian Retail Industry is the fifth largest in the world. Comprising of organized and unorganized sectors, Indian retail industry is one of the fastest growing industries in India, especially over the last few years. Though initially the retail industry in India was mostly unorganized, however with the change of taste and preferences of consumers, the Industry is getting more popular these days and getting organized as well. The Indian Retail Industry is expected to grow from US$330 billion in 2007 to US$640 billion by 2015. According to the 10th Annual Global Retail Development Index (GRDI) of A.T. Kearney, India is having a very strong growth fundamental base that’s why it’s the perfect time to enter into Indian Retail Market. Indian Retail Market accounts for 22% of country’s GDP and it contributes to 8% of the total employment. The total retail spending is estimated to double in the next five years. Of this, organized retail –currently growing at a CAGR of 22%- is estimated to be 21% of total expenditure. The unorganized retail sector is expected to grow at about 10% per annum with sales expected to rise from $309 billion in 2006-07 to $496 billion in 2011-12. This paper focused on changing face of Retail Industry, organized or unorganized retail industry, major players in retail industry and also highlights...
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...investments at present. The country’s most significant industry is the retail industry (Jain et al, 2009). It is currently the 5th largest retail industry in the world and the industry contributes around 12% to the country’s Gross Domestic Product, it is also expected to grow at a very healthy rate and contribute around 22% by the end of 2011 (Srivastava, 2008). However the dominant sector in the retail industry is the unorganised sector, with the organised sector consisting of only 4% in the total industry. As India as a nation develops, there will be more foreign and domestic players looking to grab a share of the market. Along with domestic companies such as TATA, Future Group etc, Tesco of the UK and Wal-Mart from the USA have already set up plans to expand their business in the country, these are two of the heavy weights in the global retail industry. The organised sector in an effort to retain customers have introduced a variety of loyalty programmes and schemes, however due to the dominance of the unorganised sector in India the effectiveness and the consumer’s perception about such schemes have not been studied comprehensively. Therefore this dissertation aims to understand the consumer’s perception towards such loyalty schemes, how effective they are in building loyalty amongst the organization and the consumer, and to also understand the future and roles of the two retail sectors in the Indian retail industry. Key literature regarding this topic has been reviewed by...
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...Traditional Retail Channel (TTC) to Modern Retail Channel (MTC): A Study in HCM City. CHAPTER I INTRODUCTION The introduction section will look at the retail market nowadays in Vietnam that is reason and factors from initiated this study. This part will show you the background of research, problem statement, research methodology, implication and scope and limitations which expect from the research and structure of this study. Those parts help you capture the content of this study to understand clearly what this study did. 1.1 Background and Rationale: Vietnam's retail market is considered as one of the dynamic retail market and the annual growth rate is quite high in the area. In 2012, despite Vietnam's retail market slipped to number 32 in its annual index global retail markets (GRDI) announced by AT Kearney (2011 ranked 23). However many experts have identified this market still has great potential and opportunity. According to international organizations, Vietnam is still considered one of the countries with attractive retail market in the 2013-2015 period. Nielsen – Organization of market research evaluation, forecasts retail sales in the period 2013-2015 will have the average increase of about 8.5% / year. However, revenue growth will depend mainly on the disposable income of the people and the rise of the middle class (http://www.nhandan.com.vn/kinhte/). According to a survey by the market research company and the data from the statistical offices, modern retail models...
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...om2010 A Research on ―Purchase Pattern of consumers for Consumer Durables along with Preference towards Organized & Unorganized Retail Formats” In Partial fulfillment of MBA Program of Gujarat University (Batch: 2008-2010) Submited By Priyam Mehta (08059) Umesh Lukhi (08052) Submitted To Prof. Praneti Shah N R institute Of Business Management A GRAND PROJECT REPORT ON ―Purchase Pattern of consumers for Consumer Durables along with Preference towards Organized & Unorganized Retail Formats” IN PARTIAL FULFILLMENT OF TWO YEARS MASTER OF BUSINESS ADMINISTRATION PROGRAMME PROJECT GUIDE Prof. Praneti Shah PREPARED BY Mehta Priyam (08059) Umesh Lukhi (08052) BATCH: 2008-10 N.R. Institute of Business Management Preface Before the liberalization of the Indian economy, only a few companies like Kelvinator, Godrej, Alwyn, and Voltas were the major players in the consumer durables market, accounting for no less than 90% of the market. Then, after the liberalization, foreign players like LG, Sony, Samsung, Whirlpool, Daewoo, and Aiwa came into the picture. Today, these players control the major share of the consumer durables market. Consumer durables market is expected to grow at 10-15% in 2007-2008. It is growing very fast because of rise in living standards, easy access to consumer finance, and wide range of choice, as many foreign players were entering in the market with the increase in income levels, easy availability of finance, increase in consumer...
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...Equity Research ABOUT BIRLA SUN LIFE FINANCIAL SERVICES Aditya Birla Group through Aditya Birla Financial Services Group (ABFSG), has a strong presence across various financial services verticals that include life insurance, fund management, distribution & wealth management, security based lending, insurance broking, private equity and retail broking. The seven companies representing ABFSG are Birla Sun Life Insurance Company, Birla Sun Life Asset Management Company, Aditya Birla Money, Aditya Birla Finance, Birla Insurance Advisory & Broking Services, Aditya Birla Capital Advisors and Apollo Sindhoori Capital Investment. In FY 2010-11, the consolidated revenues of ABFSG from these businesses crossed Rs. 5023 crores, registering a growth rate of 38%. Sun Life Financial is a leading international financial services organisation providing a diverse range of protection and wealth accumulation products and services to individuals and corporate customers. Chartered in 1865, Sun Life Financial and its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. As of December 31, 2011, the Sun Life Financial group of companies had total assets under management of $421 billion. Birla Sun Life offers extensive and thoughtfully devised financial services to its large base of customers across the globe to help them manage their finance in the most effective...
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...Working Paper No. 201 Determinants of Competitiveness of the Indian Auto Industry Badri Narayanan G. Pankaj Vashisht January 2008 INDIAN COUNCIL FOR RESEARCH ON INTERNATIONAL ECONOMIC RELATIONS Contents Foreword............................................................................................................................. i Executive Summary .......................................................................................................... ii 1. Literature Review ..................................................................................................... 1 1.1 Introduction......................................................................................................... 1 1.2 Literature Review................................................................................................ 2 1.2.1 Global Comparisons ................................................................................... 3 1.2.2 Policy Environment and Evolution of Indian Auto Industry....................... 4 1.2.3 Productivity................................................................................................. 7 1.2.4 Aspects Related to Supply Chain and Industrial Structure......................... 7 1.2.5 Technology and Other Aspects ................................................................. 10 1.3 Contributions of the Study ................................................................................ 13 Supply Side Features of...
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...IOSR Journal of Business and Management (IOSR-JBM) ISSN: 2278-487X. Volume 6, Issue 1 (Nov. - Dec. 2012), PP 16-25 www.iosrjournals.org Organized Retail in the Rural Markets in India 1 Surajit Dey, 2Dr. Sameena Rafat, 3Puja Agarwal 1 (Research Scholar, Department of management, CMJ University, India) 2 (Asst. Professor, IIPM, Lucknow , India) 3 (Management Faculty, Wisdom School of Management, India Abstract: Retail is a buzz word in today’s changing business environment. Different industrial sectors are in the phase of transition from conventional business models to innovative, market driven and consumer centric models. In India retail is not a new word, however the emerging formats of retailing are changing the entire scenario and posing tough challenges in front of Indian retailers. They are now designing customized retail products and services and targeting the untapped segment of the market. Presently, nearly 60% of the population resides in rural India and their retail requirements are partially met by the unorganized retail stores. This study is an attempt to explore the potential of rural retail market of India, accessing their needs for products and brands. The study also aims at developing a business model for the rural retail market in India. I. Introduction: Today Indian consumers are becoming very unpredictable. The consumer today, is richer, younger, eager to accept changes and more aspirational in his/her needs than ever before...
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...[pic] SUMMER TRAINING REPORT ON CATCHMENT STUDY OF FOOD BAZAAR [pic] IILM INSTITUTE FOR HIGHER EDUCATION GURGAON IN THE PARTIAL FULFILMENT FOR THE AWARD OF POST GRADUATE PROGRAMME IN RETAIL MANAGEMENT SUBMITTED BY DEEPAK KUMAR PGPRM 2006-08 CATCHMENT STUDY OF FOOD BAZAAR [pic] DECLARATION This project is my original work done on behalf of IILM INSTITUTE FOR HIGHER EDUCATION under the guidance of Mr.Amit kumar, Food bazaar category head north zone and college mentors Mrs. Swaran Kanta and Mrs. Smita shelly, Faculty IILM. As well as with the great help of Food bazaar category team north zone. The material provided in this report is original and has not been submitted anywhere for any other diploma or degree. This data is completely confidential, hence the findings and analysis would not be shared in this document and outside too . so should not be share with any other places or organization. Signature of student Name : Deepak Kumar Date PREFACE I am Deepak Kumar doing post graduate program in retail management (PGPRM) student of Integrated Institute of Learning Management (IILM), Gurgaon, Haryana. undergone summer training program at Zonal office (North Zone) with Future group in Gurgaon. I have been assigned a task to do the ‘CATCHMENT STUDY OF FOOD BAZAARS IN NORTH ZONE”. In this topic there...
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