Transition from Traditional to

Modern Retailing

With a share of over 95% of total retail revenues, traditional

retailing continues to be the backbone of the Indian retail
industry.
Over 12 million small and medium retail outlets exist in
India, the highest in any country.
Traditional retail is highly pronounced in small towns and
cities with primary presence of neighbourhood “kirana”
stores, push-cart vendors, “melas” and “mandis”.
 Modern/Organized
retailing is growing at
an aggressive pace in
urban India, fuelled by
bourgeoning economic
activity.
 Organized retail sector is
estimated to grow by
400%, in value terms, by
2007-08.
 Increasing number of
domestic and
international players are
setting up base and
expanding their business
to tap the burgeoning
market.
 Future Outlook



Changing Paradigm : The Confluence of Modern and Traditional Retail

M&A,
Consolidation ,
High
Investments ,
Technology Confluence of
Adoption , Indian Retail
Leveraging
Traditional
Formats for
Range ,
Growth

Modern Retail
Portfolio ,
Format
Options ,
Beginning of
ce
the Rural - Spa
Entry , Growth , tai
l
Expansion , Urban Retail Re
Merge ita
Top Line cap
Focus for Per
Organized
Retail

Ist Phase 2nd Phase 3rd Phase 4th Phase

2000

2008
2005

2011
Players across Verticals
Food and Grocery Clothing and Textiles

Jewelry and Watches Footwear

Source: Industry Sources

5
 International Retailers
In te rn a tio n a l re ta ile rs a re fa st exp a n d in g th e ir b u sin e ss in In d ia to ta p th e la rg e co n su m e r b a se .
Reebok has set up its largest store in the world in Hyderabad , Tommy Hilfiger and Levis
have over 20 , 000 square feet of retail space and stand - alone stores across major metros .
The fast-food giants like Pizza Hut, McDonalds, Subway etc are expanding at a fast pace, with these
emerging Tier II and Tier III cities

Source: The Financial Times, Industry Sources

6
Marketing Strategies of PANTALOONS
1. Own Private Brands

2. Mass Marketing



3. Bottom of the Pyramid Strategy



4.
 Family to Youth

Tw o - th ird s o f In d ia ’ s p o p u la tio n is u n d e r 3 5 y e a rs of age

a n d m o re th a n 6 0 % o f th e p o p u la tio n w ill b e in th e w o rkin g
a g e g ro u p ( 1 5 -6 0 ) till ye a r 2 0 5 0 .
T h e m e d ia n a g e o f 2 3 y e a rs, opposed to the world median
a g e o f 3 3 , se ts th e e m e rg in g yo u n g In d ia a p a rt
5. Guerrilla Marketing Strategy


K e e p W e st- a S id e . M a k e a sm a rt
ch o ice !
S h o p p e rs ! S to p . M a k e a sm a rt
ch o ice !
C h a n g e Y o u r L ife sty le . M a k e a
sm a rt ch o ice !
 6. Launch of Green card
1 Star Members

Gift Voucher worth Rs. 150 on

 enrolment
3 Star Members

5% discount on every purchase

5 Star Members

An exclusive 7.5% discount on

 every purchase
7 Star Members

A whopping 10% discount on

 every purchase

7.
 Gift Voucher
8. Visual Merchandising
 Is an art by which a retailer makes the

store talk to its customer

shareholding pattern as on june 30, 2008


Sales & operating income crores