Retail Sector Opportunity and Threats

Indian sell industry is dividing into organized and nonunionized spheres. Organized retail refers to trading activities undertaken by licensed retailers, that is, those who are registered for barter tax, income tax, etc. these include the corpo deem-backed hypermarket and retail arranges, and also the privately owned man-sized retail businesses. Unorganized retailing, on the other hand, refers to the traditional formats of low-cost retailing for example, the local kirana shops, owner manned general stores, paan shops, gismo shop, hand hang back and pavement vendors, etc.Opportunity * India is among 10 largest retail markets in the world. * urbanization * Location advantage. * Falling real estate cost * E-retailing * Changing consumer habits and lifestyles. * The retail sector in India is worth USD 394 billion and is growing at the rate of 30% annually. * India is the to the lowest degree competitive as well as least saturated of all major global market. This implies that ther e are significantly low entry barriers for players trying to setup base in India in term of the competitive landscape. A good talent pool, unlimited opportunities, wide markets, and availability of quality raw materials at cheaper cost is anticipate to generate India overtake the worlds best retail economies by 2040, accord to industry players. * Currently, the market share of organized modern retail is secure over 4 percent of the total retail industry, thereby exit a huge untapped opportunity. * The composition of the Indian population is change towards the age group of 20-49 i. e. the working population with purchasing power. As per a Mckinsey report, of the current 204 million households in India, about 13 million households break the income to prop up harvest-festival of organized retail and this consumer segment is expected to grow at over 20% annually in the conterminous eight years. * Rising disposable income The second fastest growing economy has provided new em ployment avenues and the same cast off resulted in increase in number of people in the earners category. Increasing instances of double incomes in close families coupled with the rise in spending power is further fuelling growth in consumption and in turn growth of the retail sector. obtain convenience Apart from the population that has desire and ability to spend, the other factors that have patronized modern retail or organized retail is the convenience of shopping and wide variety. Threats * Inflation. * Lack of differentiation among the malls that are coming. * The industry is face a severe shortage of talented professionals, especially at the middle-management level. * approximately Indian retail players are under serious pressure to stumble their supply chains more efficient in order to let the level of quality and service that consumers are demanding.Long intermediation chain would increase the costs by 15 percent. * Lack of adequate basis with respect to roads, elect ricity has further led to the impediment of a pan-India interlocking of suppliers. Due to these constraints, retail chains have to restore to multiple vendors for their requirements, thereby, height costs and prices. * Retailing is yet to become a preferred occupational group option for most of Indias educated class that has chosen sector like IT, BPO and financial services. * Policy related issues Lack of industry condition for retail. * Numerous license, permits and registration requirement. * Farmer and retailer unfriendly APMC act. * Limited consumer shrewdness * Lack of detailed region specific customer selective information. * Less data on spending pattern. * Inadequate human resources * Lack of trained force-out at all level. * Stringent employment and industry laws. * Fragment apostrophize to human resources. * Taxation hurdle * Inconsistent octopi and entry tax structure. * bathing tub and multiple taxation issues. * Large grey market presence.