Retailing Revolution in India

Presentation by:
Prateek Rathore and Sreenath V

INTRODUCTION

India is fifth most attractive emerging retail market: a potential goldmine. Indian retail is largest among all industries(200 billion $). 10% - Indias GDP. Growth rate 20-25% 8% - employment Potentiality to grow 427 billion $ by 2010 and 637 billion $ by 2015.

INTRODUCTION CONTD.
RETAIL FORMATS IN INDIA Malls Speciality stores Discount stores Department stores Hypermarts / Supermarts Convenience stores Multi brand outlets

INTRODUCTION CONTD.
Types of Retailers
Small/ Medium Size Retailer Large scale Retailers Consumer Co-op Stores Direct Mktg/Channel less Retailing

1. Mobile Retailers, Hawkers.

1.Super Market.

1.Co-op stores.

1.In home Selling.

2.Departmental Stores. 2 .Sahakari Bhandars. 2.Telemarketing. 3.Mail Order sale. 3.Discount stores. 4.Vending Machine

2. Convenience 4.Manufacturers stores. Showroom 3. Specialty Stores 5.Super stores. (Combination Stores,Hypermarkets)

The journey so far Pre 1990 Few players, predominantly in textile vertical Charagh Din, Raymonds, Bombay Dyeing 1990 2005 Emergence of Lifestyle retailing Pantaloons, Shoppers Stop, Lifestyle McDonalds, Adidas, Reebok, Nike, Benetton, Levis

2005 2012 Tata, Reliance, Aditya Birla, Bharti Metro AG, Max Retail, Hypercity, Tesco, Carrefour, Zara 2012 Armani, Versace, Gucci

GROWTH OF RETAIL IN INDIA

GROWTH OF RETAIL IN INDIA CONTD

INDUSTRY REVOLUTION

Retailing in India can be traced to emergence of the neighborhood "Kirana " stores catering to the convenience of the consumers. Era of government support for rural retail: Indigenous franchise model of store chains run by Khadi & Village Industries Commission 1980s experienced slow change as India began to open up economy. Textiles sector with companies like Bombay Dyeing, Raymond's, S Kumar's and Grasim first saw the emergence of retail chains

GROWTH OF RETAIL IN INDIA CONTD

1990s saw a fresh wave of entrants with a shift from Manufactures to Pure Retailers. For e.g. Food World, Subhiksha and Nilgiris in food and FMCG; Planet M and Music World in music; Crossword and Fountainhead in books. Post 1995 onwards saw an emergence of shopping centers. Targeted to provide a complete destination experience for all segments of society Emergence of hyper and super markets trying to provide customer with 3 Vs - Value, Variety and Volume.

GROWTH OF RETAIL IN INDIA CONTD

FACTORS FOR GROWTH OF ORGANISED RETAIL SECTOR

Growth of Indian Economy: Second fastest Emerging opportunities in service sector Capital no longer a constraint easy loans Increase in the young working population Increasing working women population Hefty pay pockets Nuclear families in urban areas Changing Cultural Habits Middle class dwelling revamped

CONTD ..,

Multiple drivers leading to a consumption boom:

Favorable demographics

Growth in income
Increasing population of working women Raising aspirations: Value added goods sales

CONTD..,

Rural markets emerging as a huge opportunity for retailers reflected in the share of the rural market across most
categories of consumption

ITC is experimenting with retailing through its e-Choupal and Choupal Sagar rural hypermarkets. HLL is using its Project Shakti initiative leveraging women self-help groups to explore the rural market.

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