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6. regulatory policies (29 licenses required to start a
hypermarket in Mumbai)
7. high real estate prices (10-15% of operating costs in India;
5% in other countries)
Growth Drivers
Rising living standards.
8. Favorable demography: more than half the country is under 25
years of age
9. Consumer mindset: Mandi to Market
10. By2025, India will be 5th largest consumer market (60 mn
people in Indian middle class)
11. More working women; More plastic money
Entry of global giants in India through multiple tie-ups!
Aggressive growth plans of domestic players!
12. Retail in Rural India
Future of Kirana Stores?
Kirana store is for emergency shopping, supermarket is for
necessities and the hypermarket is for family outing. There will
still be a role for the itinerant street hawker on the 21st century
Indian shopping landscape, but it will be diminished one. Sanjay
Bhade, senior VP at Aditya Birla Retail
13. Future of kirana stores also depends on inclination of next
generation in running family businesses. There are better
employment opportunities available in small towns now.
Numbers Speak
Reality Speaks
Rural Indian spends 52% of his income; Urban Indian 50%
Expanding rural consumption at 12 % for last 6 quarters; Urban
demand trails at 7%
2012: 52% of retail spending from rural India
Better roads - better distribution network.
Only 1200 retail outlets in these areas!
14. Bharti Wal-Mart stores near cities only
15. Tata & Reliance have no ready plans too.
16. Fragmented customer base
17. Opposition from market middle men
18. Consumers prefer kirana stores (buy on credit, home
delivery, proximity to home)
But Big Bazaar rises in hinterlands!
95 stores in tier-3 towns (pop.-1 lakh); Acquired Aadhar - gone
into towns with 30,000 population
19. In a Big Bazaar outlet in Sangli - a family ran up a bill
of Rs 1.25 lakh!
20. In Alwar, Big Bazaar store had annual sales of over Rs 18
crore. Sale of small stores has dropped 8%.
21. Treat catchment area like constituencies - just the way
political parties dont ignore ethnic communities."
22. Concepts built specially for rural India - stocking
aluminium vessels in Muslim dominated communities, tapping local
trader & women SHG for food items to address local
preferences.
23. All this added with competitive prices, good ambience &
aspirational needs of middle class!