Carrer Prorpects in Distribution Services

Distribution Services

• This includes a wide spectrum of sectors i.e Retail sector, wholesale sector, franchise sector, logistics and supply chain management sector and commission agents. They act as an intermediary link between the manufacturers and the consumers of goods. They specialise in providing a wide range of services for both the producers as well as the consumers. Disposable incomes are expected to rise at an average of 8.5% per annum until 2015.Retailing in India is one of the pillars of its economy and is one of the top five retail markets in the world by economic value. Wholesale Market- In the present scenario, their roles have changed to a large extent due to the enormous growth that the economy has witnessed. the need for a wholesale market is gradually diminishing. Commission agents-It is also known as commercial agents--work as middlemen between vendors and buyers.

. RETAIL

·         GDP-14-15 per cent

·         The present value of the Indian retail market is estimated to be around Rs. 12,00,000 crore($270 billion)

·         The sector grew 13% in FY 2013 and FY 2014 after 20% plus growth in the previous financial years. 

·         Permitted 51% FDI in multi brand retail and 100% FDI in single brand retail

·         The overall retail market is expected to grow at 15 % CAGR from Rs 23 trillion in 2011-12 to Rs 47 trillion in 2016-17 over the next five years. 

·         The drivers will be raising income levels, increasing urbanisation, plastic money, favourable demographics and rising rural consumption.

WHOLESALE

·         GDP-6.3percent

·         The specialised knowledge and skill of wholesalers increases the efficiency of the distribution network.

FRANCHISING

·         GDP -4.3percent

·         Though at a nascent stage the industry has witnessed 30- 35 percent growth in the last 4 years

·         There are approximately 1150 national and international business format franchise systems in India .

·         Around 8 to 10 per cent Indian franchise systems have entered international markets.

·         There are an estimated 70, 000 units operating in business format franchises.

·         Some 500000 persons are employed in business format franchise organizations.

·          innovative strategies like “Indianisation” of its products and marketing techniques must be employed by a foreign franchisor to further access the sizable market of India. In a franchised business, over 90 per cent succeed.

LOGISTICS AND SCM(SUPPLY CHAIN MANAGEMENT)-

·         GDP-13(SCM)

·         Growth rate -4.3

·         An improvement in the transport facility has made the interaction between the retailer and manufacturer easier

Employment opportunities

·         The retail sector has also contributed to 8% of the employment in the country. Indian Retail Industry would generate employment for more than 2.5 million people, (predicts an analysis by Ma Foi Management Consultants Ltd). Today the modern retail/retail services sector has the potential of creating over 2 million new (direct) jobs within the next 6 years in the country.

·         The franchising industry is expected to employ 1.4 crore people by 2017

• They say ‘If you aren’t in IT or entertainment,you ought to be in retailing. Or you’re missingthe boom times altogether.’ In India, the retail sector is the second largest employer after agriculture. The retailing sector in India is highly fragmented and predominantly consists of small independent, owner-managed shops. One quarter of the world’s youth live in India. More than 50% of the Indian population is below 25 years of age.

Top leading Companies

·         Pantaloon, TATA GROUP,RELIANCE,BIRLA, Archies, Bata India Ltd, Big Bazaar, Crossword, Ebony Retail Holdings Ltd., Fabmall, Food Bazaar, Globus Stores Pvt. Ltd

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