Food Retailing in India

FOOD

RETAILING

Get rea

dy to a

ctiva

te yo

ur tas

te buds

becau

se th

ings are

going to

get rea

l CHEE

SY!

WE’RE IN

DIANS.

LET’S FA

CE IT,

WE’RE

“FOODIES”

1 COUNTRY29 STATES

1.2 BILLION PEOPLE.

(YES! BILLLLLLLION)

AND EVERYBODY

NEEDS TO EAT.

LET

US

LEAR

N W

HY

IND

IA IS

TH

E 2N

D L

ARG

EST

PRO

DU

CER

OF

FOO

D IN

TH

E W

ORL

D.

• India is the world's second largest

producer of food • Food and grocery retail

in India exceeds US$ 294 billion

representing 16% of India’s GDP.

• Food retail comprises of 89% of unorganized

& 11% of organized market

11%

DRIVERS OF FOOD

RETAILING IN INDIA

•Infra

structu

re dev

elopmen

t

•Multi

chan

nel mark

eting

•Ea

sy cr

edit a

vaila

bility

SUPPL

Y

CHAIN

DEMAND SIDE

• Increasing urbanizat ion • increasing d isposable income • ra is ing middle c lass populat ion • increasing youngsters • increasing working women • health consciousness • consumer awareness & changing

preferences • increasing travelers • internet penetrat ion etc.

VARIOUS FOOD RETAIL

FORMATS ININDIA

GOURMET STORES

Gourmet food is nicer or more unusual or

sophisticated than ordinary food, and is often

more expensive.

DEPARTMENTAL STORES

Large retail establishment with an extensive

assortment in variety and range of goods, organized into separate departments. All departments are housed

under the same roof to facilitate buying, customer

service merchandising, and control.

A discount store is a retail store which sells products at prices lower than the typical market

value.

DISCOUNT STORES

HYPERMARKET

A Hypermarket is a very large self-

service store with a wide range of goods and a large car park,

typically situated outside a town.

KIRANA STORESKirana is

a small, usually family-

owned shop selling groceries and

other sundries.

E-GROCERS AND

E-TAILERS

• Online Grocer  or E-grocers refers to a grocery store that allows private individuals and businesses to purchase groceries and grocery products online.

• There is usually a delivery charge for this service.

• 6th largest grocery market in the world.

• In Delhi, an e-grocer delivers about 20 orders a day.

• 40% of the grocery shopping in Mumbai is done online.

WHY E-GROCERS?

KEY DRIVERS OF THE FOOD

SERVICES MARKET

FOOD MARKET SERVICES

& GROWTH OPPORTUNIIES

Foodservice or catering industry

defines those businesses, institutions,

and companies responsible for any

meal prepared outside the home. This industry

includes restaurants, school and

hospital cafeterias, catering operations, and many other formats.

AGE PROFILE OF THE PEOPLE WHO EAT OUT

ORGANISED

UNORGANISED

• Indian consumers are increasingly dining out, particularly in urban areas.

• Eating out has evolved from an occasion driven activity to an occasion in itself.

• Urbanizing double-income households, changing lifestyles and food preferences are spurring the organized market within the dining out sector.

• High rental costs and increasing operating costs are impacting the growth.

• Many brands such as Domino’s KFC and Subway opened a high number of outlets in 2012-2013 and will continue to pursue expansion policies.

• Rents are low and sales are growing. • Off the 749 outlets operated by Domino’s in

India, 376 ( roughly 50%) are located in tier – II and tier – III citiesG R O W T H

CHALLENGES&

NEW AVENUES

WHAT DO YOU THINK?

EXCUSE US

IF WE MADE YOU

DROOOOOL!

PRESENTATION BY:ADITI SINGH

ANU ARYAASHWARYA

CHAUDHARYPRACHI JJA

SALOMIKA JENA