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After a long spell of shortages, which shackledconsumer buying for decades, retail is becomingIndia's new mantra.

The Sanskrit word "mantra" is not just "hymn" or"slogan"; it embraces aspiration and encompassesnew India's way of life.

The more-than-expected success clocked by the

country's retailing pioneers confirms that retailinghas finally arrived. The world has started takingnote of this in this country of one billion.

INTRODUCTION


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WHAT IS RETAIL?

Retail is the concept of providing solutions to consumer problems. from a fixed location, in small or

individual lots for direct consumption by the purchaser.

Retailing may include subordinated services such as delivery. Purchasers can be both individuals and

businesses.

A retail is one who stocks the producers goods and is involved in the act of it to the individualconsumer, at the Margin of Profit .

As such retailing is the last link that connects the individual consumer with the manufacturing and

distribution chain.

Selling Directly to consumer selling in smaller units / quantities the bulk.

Very high numbers near to neighborhood

Reorganized by the service levels


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RETAIL CONTD..


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Types of Retail Sectors

Unorganized Retailing Hawkers (Kirana)

Weekly Markets

Organized retailing Convenient/ Departmentalstores

Factory outlets and discounts Market

Supermarkets Wholesalersmarket

Companyand Franchisesshowroom


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RETAIL CONTD..


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Evolution of Retail Barter System was known as the first form of retail.

As time passed currency was exchanged with goods and services.

Hawkers carried out the first Retailing in Push Carts

Followed by Kirana Stores .. Mom and Popup Stores

Finally Manufacturing era necessitated the small stores andSpecialty stores

It was a seller market still than this point of time with thelimited no of brands available

Barter chain Single brand franchise chain Standalone largestores

Chain of large stores And Finally Malls


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EVOLUTION OF RETAIL CONTD..

Economist says that Boom Has StartedofRetail due tomore spending Capacityof

people.

Emergingof retail started in briefinpatterns like changingfaceoftheindustrial sector.


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Different products involved in

Retailing

Food

Books & Magazines

Fashion & Clothing

Personal Care

Optical Consumer

Electronics

Sport & Leisure

Home Ware

Footwear & Leather

Toys & Games

Jewellery & Watches

Furniture

Petrol

Banking


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RETAIL BANKING

Retail Banking is a service that is usually made available by commercial

banks.as well as smaller community banks

Retail Banking is the BANKING SERVICES for individual customers

Retail Banking is a typical mass-market banking that is very different from

wholesale banking.


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FUNCTIONS OF RETAIL BANKING

DEPOSITS

PAYMENT AND REMITTANCE SYSTEMS

COLLECTION SERVICES

CASH HANDLING AT A BRANCH

MUTUAL FUND DISTRIBUTION

BANCASSURANCE DISTRIBUTION

DEMAT SERVICES

ANCILLARY SERVICES

RETAIL LOANS


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Retail Loan - 2010

Auto

28%

Other personal

Loans

16%

Home

49%

Consumer

Durables

7%


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Present Scenario

Indian retail banking has been showing phenomenal growth

In 2005-10, 42% of credit growth came from retail

Over the last 5 years CAGR has been over 35%

Retail credit levelcrossed Rs.189K Crore in 2005-10

Market has transformed into a buyers market from asellers market

Comprises of multiple products, channels of distribution and

multiple customer groups


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Drivers Of Retail Growth

CHANGING CONSUMER DEMOGRAPHICS

Growing disposable incomes

Youngest population in the world

Increasing literacy levels Higher adaptability to technology

Growing consumerism

Fiscal incentives for home loans

Changing mindsets-willingness to borrow/lend Desire to improve lifestyles

Banks vying for higher market share


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Industrys response to the change

Any where, Any time Banking

Improved processes/Bundled product offerings

Faster service/Reduced TATs

Customer specific products/offerings on a regular basis

Bank customer has replaced Branch customer

Focus on understanding customer needs/ preferences

Segmentation/Differentiation of customers

Customer driven strategies

Building relationships


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Future Of Retail Banking

The accelerated retail growth has been on a historically low

base

Penetration continues to be significantly low compared to

global bench marks

Share of retail credit expected to grow from 22% to 36%

Retail credit expected to grow to Rs.575,000 crs by 2015 at

an annual growth rate of 25%


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Future of Retail Banking Contd.

Dramatic changes expected in the credit portfolio

of Banks in the next 5 years

Housing will continue to be the biggest growthsegment, followed by Auto loans

Banks need to expand and diversify by focussing

on non urban segment as well as varied incomeand demographic groups

Rural areas offer tremendous potential too which

needs to be exploited


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Strategic prerequisites.

Performance oriented leadership

Sophisticated marketing and sales

Efficient distribution channels

Process efficiency and ease of scalability

Superior credit policy, procedures and skills


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Challenges

Sustaining Customer loyalty

NPA reduction & Fraud prevention

Avoiding Debt Trap for customers

Bringing Rural masses into mainstream

banking


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Strategies for Future

Reaching to masses : Need to customize

Customer segmentation/differentiation

Data mining/CRM based campaigns

Products per customer/loyalty

Promoting low risk retail lending products

Offer an array of products and financial advisory.


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Strategies for Future Contd.

Cost effective expansion

Renewed emphasis on superior execution by front-lineemployees

Grow through Alliances:1.Hospitality

2.Education

3.Retailers

4.Automobiles

5.ConsumerDurables

6.Housing/Construction


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Winning Strategy

The bank that best addresses and anticipates

customers needs, delivers consistently higher

quality service and connects to the customer

via their channel of choice wins


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Presented By

DEBARATI DUTTASHAKAMBHARI MAZUMDAR

&

RATUL DASGUPTA

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