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PRESENTED BY: -
IRFAN BALSANIA B07
DIPINDER CHADHA B 08
RIZWAN QURESHI B 37
KUMAR NAIR B 31
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Retailing
Worlds largest private industry
US$ 6.6 trillion sales annually
Indian retailing Largest employer after agriculture - 8%* of
population
Highest outlet density in world
Around 12 mn outlets
Still evolving as an industryLong way to go
An overview
Retailing: An overview
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Wal-Mart
Topmost global Fortune 500 company(3Consecutive Years)
Annual Sales of over US$ 250 bn Indias two largest retail player turnover
around US$ 158 mn (Bata) and US$ 102 mn(Shoppers Stop)
An overview
Retailing: An overview
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Weekly Markets
Village FairsMelas
Convenience StoresMom andPop/Kiranas
PDS OutletsKhadi Stores
Cooperatives
Exclusive BrandOutletsHyper/Super MarketsDepartment StoresShopping Malls
Traditional/Pervasive Reach
GovernmentSupported
Historic/RuralReach
Modern Formats/International
Evolution of Indian retail
Source ofEntertainment
NeighborhoodStores/Convenience
Availability/ LowCosts /
Distribution
ShoppingExperience/Efficiency
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Informal retailing Sector Typically small retailers.
Evasion of taxes
Difficulty in enforcing tax collectionmechanisms
No monitoring of labor laws
Formal Retailing Sector
Typically large retailers
Greater enforcement of taxation
mechanisms High level of labor usage monitoring
Indian retail
Evolution of Indian retail
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Chain store format
High street format
Destination format
Convenience store format
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Family store
Specialty store
Department store
Super market
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Super store
Shopping mall
Hyper market
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Discount format
Every day low price(EDLP)format
Category killer format
Factory outlet format
Single-price domination format
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Stopover store format
Kiosk
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Corporate Houses
Tatas: Tata Trent
RPG group: Food World, Health andGlow, etc
ITC: Wills Life Style
Rahejas(ShoppersStop),Hiranandani(Haiko), DLF(DT cinemas) etc.
Dedicated brand outlets
Nike, Reebok, Zodiac etc
Multi-brand outlets
Vijay Sales, Croma etc
Manufacturers/ Exporters
Pantaloons, Bata, Weekender
Indian retail
Categories of Indian retail
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Modern Format retailers Supermarkets (Foodworld)
Hypermarkets (Big Bazaar)
Department Stores (S Stop)
Specialty Chains (Ikea)
Company Owned Company Operated
Traditional Format Retailers
Kiranas: Traditional Mom and Pop Stores
Kiosks
Street Markets Exclusive /Multiple Brand Outlets
Indian retail
Classifying Indian retail
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Hypermarket
Big Bazaar Giants
Shoprite
Star
Department store Lifestyle
Pantaloons Pyramids
Shoppers Stop
Trent
Entertainment Fame Adlabs
Fun Republic Inox
PVR
Indianretailers
Large Indian retailers
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Greater per capita income
Increase in disposable income of middleclass households
20.9%* growth in real disposable income in99-03.
Growing high and middle income population
Growing at a pace of over 10%* per annumover last decade
Affordability growth
Falling interest rates
Easier consumer credit
Greater variety and quality at all pricepoints
Indianconsumer
The changing Indian consumer
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The urban consumer
Getting exposed to international lifestyles
Inclined to acquiring asset
More discerning and demanding than ever
No longer need-based shopping
Shopping is a family experience
Changing Mindset
Increasing tendency to spend
Post Liberalization children coming of age
100 mn 17-21 year olds*. Tend to spendfreely.
Greater levels of education
Indianconsumer
The changing Indian consumer
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Low domestic competition
Because of fragmented nature of industry
Lack of exposure to global best practices
Low entry barriers for unorganized retailing
Moderate entry barriers for organized
retailing
Wholesale system under-invested leading to20-40% wastage
Non level playing field issues Wide differences in treatment of small and
large retailers
IndustryChallenges
Challenges in the Industry
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Real Estate Costs
Supply Chain Inconsistency
Poor Infrastructure
Lack of Skilled Manpower
issues
Challenges
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Market size
Current market size is roughly US$ 286 bn*
96% of the 12 Million stores are less than 500
Sq. ft. Sales from large format stores would rise by
24-49%**
Formal and modern format retailing wouldenjoy rapid growth
Anticipatedgrowth
Opportunities
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Growth determining factors
Government Policy
Infrastructure development GDP growth
Employment generation and job creation
Growthfactors
Growth factors
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India ranked 1st in the Global A.T KearneyRetail Development Index
India
Russia
China
AdvantageIndia
The Indian advantage
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Thank you