Tag: FDI

RNCOS has recently added a new Market Research Report titled, Indian Online Retail Market Analysis to its report gallery. For the past few years, the Indian retail sector has been witnessing tremendous growth, and contributing significantly to the countrys GDP. Though the country retail sector is highly unorganized, organized retailing is growing at a rapid pace to grab a considerable market share. According to our new research report, with the growth in organized retailing, the online retail segment is emerging as a new platform in the market. It is estimated that the online retail market will grow at a compound annual rate of around 39% during FY 2013 to FY 2016.

The report, Indian Online Retail Market Analysis, finds that online retail has been growing in the country at an unprecedented rate. With the rising internet penetration and broadband availability, and growing culture of Smartphones and tablets, people have started buying products online. As per our study, the major reasons driving the online buying is cash-on-delivery facility, and discounts & offers provided by the online retailers. The busy lifestyle in metros is also propelling people to buy products online. On studying the latest trends and drivers, we observed how the growing sales of kids products and grocery are expected to boost the online retail market in India.

As per our research, online retail account for less than 1% of the total retail market in India, and thus, presents a huge growth potential for international retailers. Domestic players are also expanding their reach to the online customers. For understanding the market in a better way, we also conducted a survey on consumer behavior towards online shopping. It revealed that metros or tier-I cities have more awareness about online retailing as compared to tier-II & III cities. It was also found that electronic products are most popular among online buyers. The survey also analyzed buying habits, major reasons for online shopping, purchase preferences, and spending patterns under different price bands.

The government is supporting the growth of organized retailing, and has allowed 100% FDI for single brand retail outlets, and 51% for multi-brand retail outlets. Our report provides an insight into the government policies and regulations (cyber laws), and various industry roadblocks which will help clients understand the market structure. In order to study the competitive landscape, we have also done a SWOT analysis of major players in the Indian online retail market, including flipkart.com, snapdeal.com, and homeshop18.com. We are hopeful that this comprehensive research work will prove decisive for the clients.

For FREE SAMPLE of this report visit: http://www.rncos.com/Report/IM421.htm

Some of our Related Reports are:

– Chinese Male Grooming Market Analysis (http://www.rncos.com/Report/IM420.htm)
– Indian Footwear Market Forecast 2014 (http://www.rncos.com/Report/IM310.htm)
– Indian Cosmetic Sector Forecast to 2015 (http://www.rncos.com/Report/IM388.htm)

Check Related REPORTS on: http://www.rncos.com/Retail%20industry.htm

About RNCOS

RNCOS specializes in Industry intelligence and creative solutions for contemporary business segments. Our professionals analyze the industry and its various components, with a comprehensive study of the changing market behavior. Our accuracy and data precision proves beneficial in terms of pricing and time management that assist the intending consultants in meeting their objectives in a cost-effective and timely manner.

FDI is investment which occurs directly across national boundaries. It means when firm of one country buys a controlling investment in firm of another country or where a firm sets up its branch in another country. A firm that engages itself in FDI becomes a multinational enterprise (MNE).

Foreign Direct Investment (FDI) is important because it gives facility to make investments in long-term profits which are in long-term projects working in other countries. The investment is done directly by foreign investors which can be any company or a group of persons who are looking for power in excess of the foreign ventures. It is also a major source of finance where the country can obtain finance from other countries to develop itself. f.

Recently, the government announces that the retail sector is partially opened for FDI. It means the foreign investors who are interested in Indian markets can invest up to 51% in multi brand retail and 74% FDI in single-brand retail. The government decision divided experts on the problem and on its prospects. Some says the decision will decrease opportunities, and will result in wipe out of local stores. The optimists, on the other hand, have seen decision as a large range of opportunities for farm products and more opportunities for the unemployed.

FDI provide benefits to small farmers by working together to form producer companies which will directly work with corporations to get higher revenues, or small farmers must willingly move into the new jobs directly or indirectly created by FDI in sectors such as retail, food processing and supporting industries.

The FDI offers a foreign capital and funds. It also extends an economy of a particular country where the investment is being made. It permits the move of highly developed technologies from developed countries to developing countries which helps in creating fresh jobs in a particular country and in turn the salary of the employee increases. The country where investment is done increases its human capital resource. It also brings new skills in a country & possibility of innovative research increases which helps in the growth of the country.

Now, global retailers are willing to sell their products by setting their own branch or franchises in another country which will again attract foreign capital along with better quality products in a large variety and advance services for the consumers and even consumers will get access of some global brands. This will in turn increase competition in the country and expands manufacturing units. To stand in a market, these global retailers have to lower their prices of foreign goods which need them to set up their manufacturing units locally or to handover the production assignments to domestic manufacturers on their specifications which brings a large number of employments in the country.

All this opportunities make, the Indian retail market a real happening place in the days ahead while at the same time it will be offering immense business opportunities and growth to the domestic entrepreneurs. In result, the Indian market will become the part of the global market.

The retail industry in India is emerging to attract new investments in the retail sector in the country.

Bharti Retail Ltd operates about 80 stores and owns a chain of grocery outlets and easyday market hypermarkets to cater to the retail market in India . Owned by billionaire Sunil Mittals Bharti Group, the company plans to open 140 retail stores in India in 2010, said Raj Jain, managing director of the groups venture with Wal-Mart Stores Inc.

He added that Wal-Mart can open a large number of retail stores in India if the government allows foreign direct investment in the South Asian countrys retail industry.

The company awaits policy changes in the retail market in India. The Bharti-Walmart JV runs the BestPrice Modern Wholesale stores to cater to the retail sector in North India. This is a 50:50 cash and carry joint venture between Bharti Enterprises and WalMart. The company will require additional manpower as it plans to open more cash-and-carry stores in the retail sector in the country. At present, it has two stores in India (in Punjab) and employs 450 workers.

The government has been in talks to open the multi-brand retail sector for FDI. At present, up to 51 per cent foreign investment is allowed in single brand retail and 100 per cent FDI in wholesale, but none in multi-brand.

The company has recently launched the second Bharti-Walmart Training Centre in New Delhi by entering into a public-private partnership with the Delhi Government. The centre would enroll up to 2,000 students a year to impart free of cost training in sectors, such as retail, BPOs and hospitality. The centre was inaugurated by Sheila Dikshit, Chief Minister of Delhi and would work to fill up the shortage in skilled workers for organised retail and cash-and-carry stores.

At a recent function, the Daniele Smadja, Head of the Delegation of the EU to India, said “We would like India to further open its economy to EU investments.

Furthermore, Nokia India is focussing on the retail distribution model. It is for the first time the worlds largest mobile phone company has initiated a retail distribution model for its services venture.

In yet, another format of the retail market in India, the major retail players proved to be a boon to the small food processing vendors as they helped the latter put in a system which in turn attracted FMCG companies to hire the same vendors on account of quality.

Similarly the retail market in India is foraying into various sectors. Retail in healthcare sector is witnessing an immense interest from private equity investors. The upturn in the retail industry in India is attracting PE investors, gearing them to maximise their profits with the highest deal volumes being in various sectors including retail. According to V Jayasankar, Head, Private Equity, Kotak Investment Banking, There is high level of interest in the retail sector as it directly feeds on consumption.

Additionally, the airport retail market in India is witnessing a renaissance with the fast pace of development in the expanding airport facilities in the country and the increasing number of passengers. With people on a constant move the target audience is easily available and the round the clock mode of retail sector available on airport gives that strategic advantage to the retail players.