RETAIL SECTOR

ANISH
NIDHI
PRIYANKA
USHA
BHUSHAN
 RETAILING -SKY IS THE LIMIT

 Retail comes from the French word retaillier,

which refers to "cutting off, clip and divide“.
 Retail marketing try to discover the
understanding of the people’s motives and
interests.
 A moral obligation to observe customer’s
behavior as well as customers also observe the
marketer’s behavior.
 “CONSUMPTION = DEVELOPMENT”
 CATEGORIES

 Food & Beverage Store:

 Grocery Stores.

 Specialty food stores.

 Beer, vine and liquor stores.

 Clothing & Accessories Stores:

 Clothing, shoes , luggage and leather good stores.

 Jewelry.

 Building Material, Garden Equipment Stores.

 Merchandise Store:
 Miscellaneous Retail Store.
 Sporting Goods, Hobby, Book & Music Store.
 Furniture ,Home Furnishing & electronic
appliance Stores.

 Motor Vehicles:
 Automobile dealers.
 Auto parts , accessories and tire stores.
 Gasoline stations.
 TYPES OF RETAIL SECTOR
ORGANIZED RETAIL UNORGANIZED RETAIL
 Professionally managed has a  Owner lacks technical &
accounting transparency with accounting standardization
proper usage accounting  For example, owner manned
standards. general stores, convenience
stores, hand cart and
 These include the corporate pavement vendors, etc.
backed hypermarkets and  According to a survey by AT
retail chains. Kearney , an overwhelming
 According to a survey by AT proportion of the Rs. 400,000
crore retail market is
Kearney ,only a Rs. 20,000 UNORGANISED.
crore segment of the market is
ORGANIZED.
 TYPES OF RETAIL SECTOR
100%
90%
80%
70%
60%
50%
40%
30% unorg anis ed
20% O rg anis ed
10%
0%
US INDIA

Source: The Great Indian Retail Story, 2009.

 RETAILING FORMATS IN INDIA

 MALLS: Ranges from 60,000 sq ft to 7,00,000 sq

ft and above. Examples include Shoppers Stop,
Piramyd, and Pantaloon.
 SPECIALTY STORES: focusing on specific market
segments and have established themselves
strongly in their sector. Kids Kemp, Music World .
 DISCOUNT STORES: As the name suggests,
discount stores or factory outlets, offer discounts
on the MRP through selling in bulk.
 DEPARTMENT STORES: Large stores ranging from
20000-50000 sq. ft, catering to a variety of consumer
needs. Reliance Fresh, More.
 HYPER MARTS/SUPERMARKETS: Large self
service outlets, catering to varied shopper needs are
termed as Supermarkets. ranging from of 3,500 sq ft
to 5,000 sq ft. having a strong focus on food &
grocery and personal sales.
 CONVENIENCE STORES: Small stores 400-2,000
sq. feet located near residential areas. Prices are
slightly higher due to the convenience premium.
 4 P’S IN RETAIL SECTOR
 Product.
 Place.

 Promotion.

 Price.
RETAIL SECTOR GROWTH IN
INDIA

Source: Datamonitor
CEO – MIKE DUKE
 COMPETITORS
 In North America
 Kmart, Target, ShopKo and Meijer,
 Canada
 Zellers, The Real Canadian Superstore and
Giant Tiger
 Mexico
 Comercial Mexicana and Soriana.
 UK
 Tesco.
 WALMART
 Founded by Sam Walton in 1962, incorporated on
October 31, 1969, and listed on the New York
Stock Exchange in 1972.

 It is the world's largest public corporation by

revenue, according to the 2008 Fortune Global
500.

 In accordance with its global strategy, it proposed

a 50:50 joint venture with Bharti Enterprises
targets up to 25 percent lower prices than
wholesalers.
 WALMART SUCCESS
 Empowering associates.
 Maintain technology superiority.
 Build loyalty among associates,
customers, and
suppliers.
 Global Expansion for new market
opportunity.
 Effective use of logistics management.
 FINANCIAL STATUS
 In 2008, Wal-Mart was 67th most
profitable corporation.

 For the fiscal year ending January

31, 2008, Wal-Mart reported a net
income of $12 billion on $340 billion
of sales revenue (3.5% profit
margin).
CEO – KISHORE BIYANI
 PANTALOON
 Company has crossed $1 billion turnover mark during the
year under review.

 12 million square feet of retail space in 71 cities and towns

and 65 rural locations across India. Headquartered in Mumbai
(Bombay), Pantaloon Retail employs around 30,000 people.

 A front runner in retail with over 2.7 million square feet of

retail space.

 21 departmental stores.
 COMPETITORS
 Shoppers Stop.
 RPG Retail (Foodworld,
Musicworld)
 Reliance Fresh.
 Subhiksha Trading Services.
 TATA groups(Lifestyle,Westside)
 Birla’s More.
 LINES OF BUSINESS

 Fashion
 General Merchandise
 Electronics
 Furniture
 E-tailing
 Wellness
 Malls
 Investment & Savings
 SUCCESS FACTORS

 Entrepreneur led, professionally managed and

experienced team.
 Strong projects and operations capabilities.
 Vast range of lifestyle and value retailing
products and services.
 Strong distribution and logistics network and
supply chain.
 Large base of loyal customers.
FINANCIAL GROWTH

One-year comparative graph with BSE

SWOT
ANALYSIS
 STRENGTH
 Consumer spending increasing at 11% annually.
 2nd largest contributor to GDP after agriculture at 20%.
 Mall Mania.
 Increase in spending per capita Income.
 The increasing share of young population in total
population of India.
 Media.
 WEAKNESS

 Lack of huge investments for expansion.

 Lack of good infrastructure.

 Lack of proper logistics.

 Cost of business operations is very high

in India.
OPPORTUNITIES

 India ranks 1st for top international

destination for retail investment.
 U.S $ 350 billion retail market.
 4th largest economy in purchasing terms
after US, china & Japan.
 Expected to increase to 15-18% by 2011.
 Employment(2 million jobs by 2010).
 Huge Untapped market.
 THREATS

 Poor monsoons and low GDP Growth could

affect consumer spending drastically .
 Price sensitive market.
 Thefts.
 Increase in Competition.(More competition
reduce demand & price.)
 Unavailability of qualified personnel to
support exponential growth in retail.
 Security Concerns.
SUPPORTIVE SECTORS
 IT.

 Media.

 Real Estate.

 Tourism.
 STRATEGY
 The hypermarket would be selling the products
on EDLP (every day low price) basis at prices
15-20 percent lower than market prices.

 Buying products from the first level suppliers.

 Shift of advertising from product awareness to

product preference .
 FUTURE PERCEPTIVE
 FDI approval.

 Increasing at a rate of 10% yearly.

 India will have 600 new shopping centers by 2010.

 Food is the most dominating sector and is growing at a rate of 9%

annually.

 Providing employment to 8 per cent of the nation’s workforce.

PROJECTED RETAIL GROWTH
 CONCLUSION
o India’s GDP growth of 10% in 2007-08,
reflecting the booming economy of the
country.
o The sector is on a high growth trajectory
and is expected to grow by more than
27%over the next 5 to 6 years.
o Retail sales in India are hovering around
33-35% of GDP as compared to around
20% in the US.
THANK
YOU