Emerging indian retail - Presentation Transcript

1. Indian Retail scenario

2. * India‘s increasingly affluent middle class-300 million * Increasing proportion-Higher disposable income
83000 millionaires,India to be the fastest wealth creator by 2010. * The new age Indian youth-modern,well
informed * Indian value system-price sensitive * Market Growth 8-10% annual growth with 30%+ growth rate for
modern format retail * Strong Economy: Fourth Largest on purchasing parity basis * Market opportunities:
Growing consumers aspirations together with very low penetration of modern format retailing. * Infrastructure-
Large amount of quality retail space being added
3. Evolution of Indian Retail Historic/Rural Reach-Weekly Markets,Village fairs,melas- Source of
entertainment Traditional/pervasive reach-Convenience store,Mom and Pop/kiranas-Neighborhood
stores/convenience. Government supported-PDS Outlets,Khadi stores,cooperatives-Availability/Low
costs/Distribution Modern Formats/International-Exclusive Brand Outlets/Hyper/Super Market/Departmental
Stores/Shopping Malls-Shopping Experience/Efficiency
4.
o Retailing Formats
 Hyper Marts
 Large supermarkets,typically (3500-5000 Sft)
 Mini Supermarkets,typically (1000-2000 Sft )
 Convenience Store,typically (750-1000 sft )
 Discount/shopping list grocer
 Traditional retailers trying to reinvent by introducing self-service formats as well
as value added services
5. Indian Retailers Hypermarket Department Stores Entertainment Big Bazaar Life Style Fame Giant
Pantaloons Adlabs Shoprite Pyramids Fun Republic Star Bazaar Shopper’s stop Inox Aditya B Group Trent PVR
Hyper city Cinemax
6. Consumer Expenditure in Organized Retail
7. Retailers-Always healthier than Ever Company Market Cap(Rs mn) P/E CAGR Returns 3 Year or On
Listing Pantaloons 3,561 60.2 89% Shopper’s Stop 1,727 63.7 29% Trent 991 40 54%
8. Global Retail Scenario Global Retail Industry is of size of USD 8 Trillion Over 50 of the Fortune 500
companies are retailers Fortune #1 “Wal-Mart” is a retailer 25 of the asian top 200 companies are retailers
9. Indian Retail Market * Over 12 Million Outlets in India *Organized Retail 3% *Set to Grow to 8-10% by
2010 *Organized Retail expected to be around Rs.110,000 Cr (USD 25 b) by 2010
10. FDI In Indian Retailing *Franchise-Nike,Pizza Hut, Tommy Hilfiger,Marks and spencer,Mango
*Manufacturing-Bata India *Distribution-Swarovski,Hugo Boss * Wholesale Trading-Metro cash & carry *Food
outlets-McDonald’s KFC,Pizza Hut,Dominos
11. Benefits of FDI *Greater per capita income *Increasing Tax paying Population *Reduced Tax Evasion
*Greater Sourcing From India *Greater Consumer Spending due to economic boom
12. The Changing Indian Consumer The Urban Consumer *Getting exposed to international lifestyle
*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 Mn17-21 year olds tend to spend freely Greater level of Education
13. Challenges of Retailing in India *Automatic approval is not allowed for foreign investment in India *
Regulations restricting real estate purchases,and cumbersome local laws * Taxation,which favors small retail
business * Absence of developed supply chain and IT management * Lack of trained workforce * Low skill level
for retailing management
14.
o Recommendations
o Grant full industry status to retail
o Permit FDI in retail in phases
o Invest in supply chain infrastructure
o Ease distribution
o Ensure single window clearance foe retail chains
o Organize market for real estate
o Ensure proper rent laws
o Enforce zoning laws and city development plan
o Increase land supply
o Ensure flexibility of labor laws
15. Implications for India *Be ready *Be realistic *Be resilient
Relationships-- of all kinds-- are like sand held in your hand. Held loosely, with an open hand, the
sand remains where it is. The minute you close your hand and squeeze tightly to hold on, the sand
trickles through your fingers. You may hold onto some of it, but most will be spilled. A relationship is
like that. Held loosely, with respect and freedom for the other person, it is likely to remain intact.
But hold too tightly, too possessively, and the relationship slips away and is lost. (Kaleel Jamison)