CASE STUDY DOCUMENT

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The Indian Retail Market

Introduction
The Indian retail industry is one of the fastest growing in the world. The Retail industry in India
is expected to grow to US$ 1.3 trillion by 2020, registering a Compound Annual Growth Rate
(CAGR) of 16.7 per cent over 2015-20.
India is the fifth largest preferred retail destination globally. According to the IBEF retail report,
India is among the highest in the world in terms of per capita retail store availability. Indias
retail sector is experiencing exponential growth, with retail development taking place not just in
major cities and metros, but also in Tier-II and Tier-III cities. Healthy economic growth, changing
demographic profile, increasing disposable incomes, urbanisation, changing consumer tastes
and preferences are the other factors driving growth in the organised retail market in India.
Indias population is taking to online retail in a big way. The online retail market is expected to
grow from US$ 6 billion to US$ 70 billion during FY15-FY20.
Increasing participation from foreign and private players has given a boost to Indian retail
industry. Indias price competitiveness attracts large retail players to use it as a sourcing base.
Global retailers such as Walmart, GAP, Tesco and JC Penney are increasing their sourcing from
India and are moving from third-party buying offices to establishing their own whollyowned/wholly-managed sourcing and buying offices.
The Government of India has introduced reforms to attract Foreign Direct Investment (FDI) in
retail industry. The government has approved 51 per cent FDI in multi-brand retail and
increased FDI limit to 100 per cent (from 51 per cent) in single brand retail.
Evolution of Retail in India
CONSOLIDATION
- 2010 onwards
EXPANSION
- 2005-2010
CONCEPTUALISATION
- 1990-2005
INITIATION
- Pre 1990's

- retailers identify
potential in the market,
mostly in apparel

- Significant investments
by large inidan
corporates

- Entry of International
players
- FDI in single brand retail
upto 100%

- Entry in food segment

- Manufacturers Outlets

Fig 1: Evolution of Retail in India Source IBEF

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Retail Classification
The Retail industry can be broadly classified into two categories namely- organised and
unorganised retail.

Organized retail - Organised traders/retailers, who are licensed for trading activities and
registered to pay taxes to the government.
Unorganized retail It consists of a variety of small shops - conventional Kirana shops,
Pan shops, general stores, corner shops among various other small retail outlets - but
remain as the radiating force of Indian retail industry.

Retail Formats in India

Retail Format
Exclusive Branded Retail Shops
Multi-Brand Retail Shops
Convergence Retail Outlets
E-Tailers

USP

Exclusive Showroom of Manufacturer or Franchisee

Complete range of products of brand available
Focus on most brands of particular category
More Choices for Consumer
Display most of convergence products , electronics & IT
One stop shop for consumers
Online shopping for products and brands across
categories
Highly convenient with 24x7 access

Changing Indian Retail Landscape

Changing demographics and various external factors have played a huge role in the rapidly
changing Indian retail landscape. The Indian retail sector landscape has been gradually
changing, catalysed by
-

Rising Income & Consumer Expenditure

The past five years have seen rising income level across segments, resulting in rise in disposable
incomes which in turn has led to rise to consumer expenditure. The overall retail market is
expected to grow to USD 1.3 trillion in 2020 from USD 600 billion in 2015

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Fig 2: Indias total disposable personal income growth

Growth in Tier-II and Tier-III Market

Rising number of Tier II and Tier III cities has enhanced supermarket space in the country.
Supermarkets are expected to reach 8500 in 2016 from 500 in 2006

Growth Value Proposition

Demand Factor
Growing youth segment & working women
population
Rising incomes and increasing purchasing
power
Higher brand consciousness
Changing consumer preferences and growing
urbanization
Increasing number of High Net Worth
Individuals (HNIs)
Rising internet penetration
SHOPPERS STOP Campus Guru Challenge 2.0

Supply Factor
Rapid real estate infrastructure development
Easier access to credit
Increased efficiency due to development in
supply chain
R&D, innovation and new product
development
Growing interest of investors
Conducive regulatory environment
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Online Retail & E-commerce

EY estimates peg online retail in India to grow to USD 70 billion from USD 6 billion (10 times
current size), expanding from 10% to 15% of the overall retail sector. Online retail is expected
to be at par with the physical stores in the next five years. India is expected to become the
worlds fastest growing e-commerce market, driven by robust investment in the sector and
rapid increase in the number of internet users. Indias e-commerce market is estimated to
expand to over US$ 100 billion by 2020.

The Digital Era

With the rapidly growing internet population of India, online retail is expected to play a major
role in how retail companies evolve over the next 5 years. Online retail is already creating
considerable impact but is expected to exponentially increase in terms of revenue generation in
the coming years.
According to a survey by Google and A.T. Kearney, by the year 2020 the number of online
shoppers will grow more than 3X, to about 175 Million. Of these shoppers, about 1/3 rd will
drive more than 2/3rd of the spend.
The current barriers to online shopping will be overcome. The top barriers currently include
delayed gratification, no Touch and feel and long delivery time.

Fig 3: Top adoption barriers for current buyers & number of online shoppers (million)

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SHOPPERS STOP - OVERVIEW WITH KEY MILESTONES

The foundation of Shoppers Stop was laid on October 27, 1991 by the K. Raheja Corporation
Group of Companies. Being amongst India's biggest hospitality and real estate players, the
Group crossed yet another milestone with its lifestyle venture - Shoppers Stop.
From its inception, Shoppers Stop has progressed from being a single brand shop to becoming a
Fashion and Lifestyle store for the family. Today, Shoppers Stop is a household name, known
for its superior quality products, services and above all, for providing a complete shopping
experience.
With an immense amount of expertise and credibility, Shoppers Stop has become the highest
benchmark for the Indian retail industry. The companys continuing expansion plans aim to help
Shoppers Stop meet the challenges of the retail industry, in an even better manner.
Shoppers Stop in the only retailer from India to become a member of the prestigious
Intercontinental Group of Department Stores (IGDS), which has the likes of Selfridges (United
Kingdom), Karstadt (Germany), Matahari (Indonesia).
With an unparalleled assortment of the leading international and national brands along with
our private and exclusive brands in clothing for men, women, and kids; accessories, fragrances,
cosmetics, footwear; home furnishing and dcor products, our stores aim to provide shoppers a
truly international shopping destination.
Experienced professional management; supported by world-class systems and practices; and a
talented pool of associates share the passion for making every shoppers visit a memorable
one. Our efforts have been appreciated and recognized, which is evident by the several
accolades that continue to be showered every year.
At Shoppers Stop we believe in a world of limitless possibilities. We always
set benchmarks, cross limits, achieve the impossible and celebrate our successes. We
endeavour to Start Something New in performance. Start Something New in products. Start
Something New in customer service. Start Something New in Life.

Shoppers Stop has many Firsts to its credit, such as

First to create a Store brand in 1994.

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First to create a Retail Loyalty Program in 1994.

First to obtain the permission in 1996, to open the stores for 365 days a year.
First to launch a co-branded Credit Card in retail, in the country.
First retailer to go to B School for recruiting fresh talent in 1994.

SHOPPERS STOP - SOME MAJOR MILESTONES

YEAR

MILESTONE

1991

Shoppers Stop began the organised retail revolution in India with the launch of
Mens ready-to-wear at Andheri, Mumbai.
Loyalty Program - First Citizen's Club and the exclusive brand Stop was launched.
Opened the second store in Bangalore.
Shoppers Stop celebrated the 'Festival of Britain' at the stores.
Launched 'Parikrama', a festival to celebrate Indian traditions and culture.
Was awarded the prestigious IGDS membership. Initiated the 'Customer Care
Associate' term for all associates.
Crossword became a part of Shoppers Stop.
First Retailer to adopt Enterprise Resources Planning (ERP) in association with J.D.
Armstrong.
Mr. B.S.Nagesh won the 'CEO of the Year' award and SSL won the Retailer of the
Year award at CMAI Awards.
Lycra Images Fashion awarded SSL as 'The Best Retail Chain of the year'.
Won the 'Most favoured Retail Destination of the Year', award from Images Retail.
Homestop store opens at Bengaluru. SSL IPO oversubscribed by 17.25 times.
Mothercare launched in India by SSL
Created movie merchandise for Om Shanti Om.
SSL repositioned itself as a 'Bridge to Luxury' store with a new logo and tagline 'Start
Something New'.
Was awarded the 'Best Visual Merchandising' by VMRD Retail Design.
Mr. Govind Shrikhande was awarded 'The Most Admired Fashion Retail Professional
of the Year' award.
Received the 'Department Store of the Year Award' at the Star Retail Award.
50th SSL store opened at Gopalan Mall, Bengaluru. The 'I Pledge to Serve' campaign
was initiated.
Chosen as 'India's Most Respected Retail Company', by Business World Magazine.
Awarded the 'Best Employer Brand Award' at the ceremony held in Singapore.
Has 75 operational SSL stores. (till Oct. 15). On 27th October - Foundation Day, SSL
fed 1 lac poor children across the country.

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The SHOPPERS STOP CAMPUS GURU CHALLENGE 2.0

The 'SHOPPERS STOP CAMPUS GURU CHALLENGE', is a Case Study Competition for B-School
Students. After the stupendous success of the initial CAMPUS GURU challenge, this year the
competition is back in its 2.0 avatar! The CAMPUS GURU CHALLENGE comes from India's
premier Retail Brand, SHOPPERS STOP and is for bright young management students who
possess sound business knowledge, have an eye for detail and are ready to take that extra step
that differentiates them from others! Students from premium B-Schools are invited to form
teams and submit their papers on the challenges presented in the case study document.
The best teams will be short-listed for the Grand Finale to be conducted in Mumbai for
presenting their strategies to a Grand Jury comprising of Chief Executives. The Challenge offers
immense possibilities and rewards for those who excel in the competition.
Kuotient (www.kuotient.com) is the facilitating partner for this premier competition.

Expectations from Participating Teams

As consultants to the Innovation team of SHOPPERS STOP you are expected to conduct a
comprehensive research into the global retail landscape focusing on:

Innovations in the retail space by Indian and international retailers both in the online
and brick and mortar space.
Innovations could include disruptive strategies, Usage of Social Media/ Apps etc., retail
formats and initiatives aimed at young customers etc.
Key differentiating strategies

Basis your research, help SHOPPERS STOP identify specific growth strategies to bring to life
their Vision To be an inspirational and trusted brand, transforming customer's lives through
fashion and delightful shopping experience every time
Your solution needs to focus on ONLY ONE of the following 5 areas:
1. Social Media Strategies focused on increasing sales for SHOPPERS STOP
2. App based strategies targeted at a Million Downloads of the SHOPPERS STOP app
3. Innovative Strategies to attract more Millennials to shop at SHOPPERS STOP
4. Creation of Wow Experiences that would drive conversion in the Stores
5. Strategies to help SHOPPERS STOP compete with the leading e-commerce brands without
Burning Cash
Your strategy should be backed up by implementation details, cost-benefit and profitability
analysis and any other relevant documents.
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All the Best!

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