GDP:

It is the sum total of final value of good & services produced in an economy within a
territory of a country.

GDP is the sum of gross value added by all resident producers in the economy plus any
product taxes and minus any subsidies not included in the value of the products. It is
calculated without making deductions for depreciation of fabricated assets or for depletion
and degradation of natural resources.

INDIAN GDP SCENARIO:

INDIA is one of the countries in South Asia which comes under the Lower middle-income
group.

YEAR 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

GDP 1.19 1.34 1.67 1.82 1.8276 1.856 2.039 2.103 2.290 2.652 2.719

GDP expressed in US $(trillion)

https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?end=2018&locations=IN&start=2008

Over the last ten years GDP has accelerated to 2.719 Trillion economy which witness the
steady growth of manufacturing and service sector.

The Government has also taken up a series of measures to improve ease of doing business,
Further, the Foreign Direct Investment policy has been simplified and liberalized
progressively and now most sectors are on automatic route.
Pradhan Mantri Mudra Yojana was launched to extend collateral free loans by banks, non-
banking financial companies and micro finance institutions to small/micro business
enterprises in the non- agricultural sector to individuals to enable them to setup or expand
their business activities and to generate self-employment.

Annual growth rate:

% of GDP growth from 2008 to 2018

https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?end=2018&locations=IN&start=2008

From 2008 to 2009 the was steady increase in annual growth rate %.but, in from 8.49 % in 2010
to 5.24% in 2011. From 2014 to 2018 there is not much growth rate was witnessed.

The various sectors which contribute towards Indian GDP are:

 Agriculture
 Chemicals & resources
 Construction
 Consumer goods & FMCG
 E-commerce
  Energy and environmental services
 Finance, insurance & real estate
 Health & pharmaceuticals
 Travel tourism & hospitality

SECTOR-WISE CONTRIBUTION TOWARDS GDP:

The share of various sectors (including manufacturing and services sector) in Gross Value
Added (GVA) during last three years is given in the table below.

Sector/year 2015-16 2016-17 2017-18

Services 52.5 52.8 53.9

Major industries contributing towards the Indian service sector:

 IT & IT enabled services contributed 126 US $ billion in 2018 and 137 US $ billion
in 2019

 Tourism & Hospitality had contributed 247.37 US $ billion in 2018 and 268.29 US $
billion in 2019

GLOBAL SERVICE SECTOR CONTRIBUTION TO WORLD ECONOMY:

Service sector is the largest sector of the world as 63% of total global wealth comes from
service sector. United states is the largest producer of service sector with around 15.53
trillion USD. Service sector is the leading sector in 201 countries.

30 countries receive more than 80% of their GDP from services sector. Chad, officially
known as the republic of chad, is a landlocked country in north-central Africa which has
the lowest 27% contribution by service sector in its economy.

INDIAN SERVICE SECTOR SCENARIO:

India is an export hub for software services. It has a 55% share in the US$ 185-190 billion
global sourcing market in 2017. It is also becoming a Destination for medical tourism as a
result of cheaper but quality health care services.

Competitive advantage:

Large pool of skilled manpower, especially in the areas of IT& ITeS available at a
relatively low cost and a rapidly increasing youth population looking to migrate from
agriculture to other sectors.

Policy support:

Government of India is working to remove many trade barriers to services and tabled a
draft legal text on trade facilitation in services to the World Trade Organisation in 2017.

Increasing investments:

Service sector is the largest recipient of FDI in India with inflows of US$ 74.94 billion
between April 2000 and June 2019.The services sector is the fastest growing sector in
India, contributing significantly to GDP, trade and FDI flows. The share of the service
sector in India’s total trade is higher than the global average. India is among the top 10
WTO member countries in service exports and imports.

GLOBAL SERVICE SECTOR SCENARIO:

The services sector now accounts for over 70% of total employment and value added in
(OECD- Organisation for Economic Co-operation & Development) economies. It also
accounts for almost all employment growth in the OECD area. But despite its growing
weight, productivity growth in services has been slow in many OECD countries and the
share of the working-age population employed in services remains low in many countries.

If policy makers wish to strengthen economic growth and improve the foundations for the
future performance of OECD economies, the services sector will need to do better. But
strengthening growth performance is not the only challenge facing policy makers; OECD
countries are also confronted with the growing globalisation of services and manufacturing
and with rapid technological change.

This has raised doubts about the capacity of OECD economies to create new jobs, while at
the same time offering new opportunities for international trade and investment.
Addressing these challenges and strengthening the potential of services to foster
employment, productivity and innovation will need to build on sound macroeconomic
fundamentals and involve a combination of structural policies.

Moving quickly towards more open and competitive services markets, at both the national
and international level, is of the greatest importance to foster new employment
opportunities and increase innovation and technology diffusion. This also means
providing more scope for entrepreneurs to explore the new business opportunities in the
services sector, in particular at the global level, and providing a fiscal environment that is
conducive to the growth of services.

At the same time, improvements in the functioning of labour markets and institutions are
urgently needed to help OECD economies adjust to globalization and the shift to services.
Education and training policies clearly have a key role in providing workers with the new
skills they will require in an increasingly global service economy. Also, much can be done
to improve policies related to innovation and (ICT-Information &
Communication Technology) in services, as the combination of ICT and process
innovation holds the key to generating more rapid innovation and productivity growth in
the services sector.
INDIAN SERVICE SECTOR ANALYSIS WITH MACRO VARIABLES:

The macro economic variables include economic growth (GDP), employment rate, interest
and inflation rates.

GDP:

For more than a decade after independence, share of services in Indian GDP was less than 30%, while
agriculture has the maximum share. But now the trend has reversed, service sector contributes to around
55% of Indian GDP. Business services including IT, communications and financing have contributed
more in-service sector GDP. The IT sector contributes around 7.5% in the country’s GDP.

EMPLOYMENT RATE:

The service sector accounted for 62%in 2018 of total organized sector/ corporate sector
employment. Sectors such as finance, insurance, defence, business services largely provide
the organized employment.

Services such as retail, wholesale trade, road transport and real estate largely provide
unorganized employment.

Overall, service sector employment in India is low compared to its share in GDP, but it is
growing. The service industry is facing high input costs, fluctuating interest rates. These
factors are affecting the global competiveness.

PANTALOONS FASHION & RETAIL LTD

Pantaloons is today the fastest growing large format retailer in the country. The rate of new
store openings has increased from one every two months to one every two weeks. The
brand is now present in 78 Indian cities / towns.

Pantaloons posted revenues of INR 2,164 crores in FY15-16, up by 17 percent from the
previous year. The company offers a wide range of brand offerings across apparel and non-
apparel categories and across varied price points.

It operates across categories of casual wear, ethnic wear, formal wear, party wear and
active wear for men, women and kids. Womenswear is the lead category contributing to
half of total apparel sales. Non-apparel products include footwear, handbags, cosmetics,
perfumes, fashion jewellery and watches.

Pantaloon’s Story

Pantaloon’s success and continuous growth in the Indian organized Retail market can be
attributed to a number of factors, some of which have been derived from the strategies of
large retailers in the west, while others are completely tailor-made for the Indian market.
What is evident at the outset is that Biyani has foreseen and understood the Indian retail
roadmap better than anyone else.

Pantaloon’s major advantage over its competitors in the retail sector has been its unique
understanding of the Indian organized retail market with all its quirks, shortcomings and
challenges. It decided to experiment with as many retail formats, product-mixes and brands
as was possible in order to gain maximum knowledge about the uncertain Indian mindset.

The Retail Experiment – Multiple Formats, Multiple Brands

Pantaloon has experimented with every retail format possible. Most of their experiments
have proven to be successful and Pantaloon continues to experiment while expanding
existing ventures. However, the real reward of these experiments is the knowledge and

Experience gained- This was most elusive in a previously untouched and unknown
organized retail sector. This is an example of Pantaloon adapting itself to the Indian market
rather than attempting to copy a Wal-Mart. The experimentation process did not end with
testing different store formats alone: Pantaloon is also experimenting with a variety of
products. From men’s wear the company has moved on to introduce furniture, sportswear,
kitchen appliances, food, electronics and children’s apparel. Again, it seems to know what
works and what doesn’t in the Indian market, something that would not have been this
apparent even 1 decade ago.

Pantaloon has also introduced a number of private brands. Within the brand retailing space,
Pantaloon has also tied up with some of India’s most popular brands like Gini and Jony to
sell them at their stores. Rather than attempt to compete with existing popular brands the
company has decided to partner with them and leverage them in the ambiguous Indian
market.

Strengthening Back End Operations: Supply-Chain

A robust Supply chain serves as the backbone of a successful retail chain in the long-run.
Although the company ignored these aspects in initial phases due to the inadequacies in
infrastructure, it rightly favoured experimentation over organization. But to continue to
grow at the pace it had acquired in the first few years, it needed to pay attention to its
sourcing network, transportation system and other logistics.

SAP retail solutions supported product development, which includes ideation, trend
analysis and collaboration with partners in the supply chain. Managing the supply chain
which includes the logistics of moving the finished goods from the sources into stores.

The service features include Intangibility, Perishability, Heterogeneity

Lifestyle Brands

With over 9 million deeply engaged customers and the largest distribution network, our lifestyle
brands - Louis Philippe, Van Heusen, Allen Solly and Peter England, continue to lead the
market in their respective segment. Three out of the four brands have crossed the 1,000 Crore
mark in consumer sales. The leadership position of our brands has been further strengthened
with the roll-out of omni channel capabilities across 500+ stores in the network, giving
consumers unprecedented access to a wide variety and choice of our products. Our relentless
focus on consumer experience, innovation and brand building has helped us build a strong
equity with our consumers.

Human Resources

Powered by a team of 19,397 employees, we believe that our employees provide us with a
competitive edge. The Company believes in harnessing its leadership and people
capabilities through sharp focus and initiatives on talent development. We have instituted
an active talent review process to take stock of succession planning for key roles in the
businesses.

Competitors:

Much of Pantaloon’s competition comes from either retail ventures of other large Indian
industrial houses (Reliance Retail, Birla’s retail venture) or foreign retail giants (Wal-
Mart). In other words, Pantaloon’s competition is rich, very rich.