Retail Sector and Foreign Direct Investment in India

As we all know, the retail industry is very crucial and is highly competitive. As this company

•  India's $250 billion retail business is the eighth largest in the world and has the potential to grow 7 per cent by 2011. [McKinsey Report] For a company already dominating the world markets, this is an un-passable opportunity.

At a first glance, India seemed to be the most promising market for investment for several reasons. First of all, India’s population increased quickly reaching to be 1.2 billion in 2013. The middle class which was the main Walmart’s target was estimated at 25% of Indian, and was anticipated to grow to 583 million by 2025. Moreover, there was an important economic growth noticing the increase of GDP which did India, the fifth larger retail industry in the world with the size of retail trade to reach at $200 billion. India’s young population which constituted a big purchasing power was growing, too. This generation was born when India’s economy began to boost, so, they regarded that the foreign investments were a good way to create more employment opportunities at the retail sector. Also, because of the advertising and promotional activities, these young people were receptive to foreign stores like Walmart regarding them prestige symbols. Last but not least, Walmart knew that India offers cheap raw materials and workforce. In this way, Walmart tried

India’s retail market is expected to nearly double to US$ 1 trillion by 2020 from US$ 600 billion in 2015, driven by income growth, urbanization and attitudinal shifts. While the overall retail market is expected to grow at 12 per cent per annum, modern trade would expand twice as fast at 20 per cent per annum and traditional trade at 10 per cent.

Recent time’s retail industry is achieving high importance. The retail industry is also facing very high competition and those who are able to retain their customers are the ones that are able to succeed in the market place.

In the past few years, Indian Retail sector has seen tremendous growth in the organized segment. Major domestic players have stepped into the retail arena with long term, ambitious plans to expand their business across verticals, cities and formats.

After this analysis, we are going to take a look at the characteristics of the Chinese retail

The retail industry is considered to be one of the most diverse industries in the vertical industry arena. The retail enterprise faces various challenges; challenges regarding

The Indian retail industry is divided into organized and unorganized sectors. Organised retailing refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. Unorganised retailing, on the other hand, refers to the traditional formats of low-cost retailing, for example, the local kirna shops, owner manned general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc. The emergence of organized retailing in India has more to do with the increasing purchasing power of buyers, specially post liberalization, increase in product variety, and the increasing economics of scale, with the aid of modern supply and distribution management solutions. The current retailing revolution has been provided impetus from multiple sources. These revolutionaries include: (1) Conventional stores upgrading themselves to modern retailing (2) Companies in competitive

I am Prof. (Mrs) Vaishali Patil of K.M.Agrawal College of Arts, Commerce & Science, Kalyan (West), Dist.- Thane, doing a research on the topic “A Study Of Challenges And Opportunities In Unorganised Retailing In Thane District” for the award of Ph.D Degree in Commerce from Swami Ramanand Teerth Marathwada University, Nanded. Kindly find enclosed herewith a questionnaire to be completed and obliged. Your responses will go a long way in establishing the hypotheses and objectives of the research under consideration.

Retail, with total sales of $6.6 trillion, is the world’s largest private industry ahead of financial industries $5.1 trillion. It is also home to a number of the world’s largest enterprises. Over 50 of the fortune 500 companies, and around 25of the Asian top 500 companies, are retailers. The industry accounts for over 8% of the GDP in western economies. The level of consolidation within each country has increased significantly over the last few decades. This is most marked in the grocery, where large chains have leveraged superior scales of operations and souring to capture share from the unorganized players, while offering consumers the best price. This trend has led to organized networking capturing up to 80% of the groceries market in the developed economies.

The advent of globalisation has influenced the scope of economic growth for countries in a rapid manner. It has also notified that with globalisation, the business sector has been able to experience considerable benefits from international domain. The concept of Foreign Direct Investment (FDI) has been gain huge prominences in the recent years for getting considerable benefits for the economy and overall development of a nation. The importance of FDI has been attaining huge prominences among the economic as well as business domain. FDI is one kind of investment that influences the overall economic functioning within a country. FDI is mainly accompanied by multinational companies (MNCs)

The Indian retail industry is the largest among all the industries, accounting for over 10 per cent of the country’s GDP and around 8 per cent of the employment. The retail industry in India has come forth as one of the most dynamic and fast paced industries with several players entering the market. But all of them have not yet tasted success because of the heavy initial investments that are required to break even and compete with other companies. The Indian retail industry is gradually inching its way towards becoming the next boom industry.

Vietnam’s retail sector is currently alike to Thailand’s around 10-15 years ago, in terms of regulations and consumption behavior. Given that the regulatory environment has yet to be liberalized in Vietnam, BJC has formed joint-ventures (JVs) with local partners and expanded its distribution network aggressively ahead of anticipated market liberalization in 2016 - after the AEC comes into place. Currently, both Thai-An and Thai Corp have a combined distribution network of around 130,000 outlets nationwide, with total sales contributions of around THB3.0bn. BJC expects this distribution network to reach 230,000 outlets, with sales value of around THB9.0bn in 2016, implying compound annual growth rate of around 28%.

Foreign direct investment was neglected in the developmental process of Indian economy before 1991.the 1991 industrial policy has paved out a way for the foreign player, India is a democratic polity and is a country with the political stability and a growing pool of consumers and educated manpower which is a favorable aspect for FDI in India.