RETAIL

SECTOR FOCUS

RETAIL

NEWSBYTES

Government Announces 51 % FDI in Retail and

backtracks due to opposition pressure

WHY THE WORLD WANTS TO INVEST IN RETAIL IN INDIA According to a research report named ‘Retail Sector in India’ by Research and Markets, Indian retail sector accounts for 22 per cent of the country's gross domestic product (GDP) and contributes to 8 per cent of the total employment. The report further highlighted that hypermarkets (currently accounting for 14 per cent of mall space) will witness immense progress in the Indian landscape.

THINK (RETAIL)

Market Map all the words and companies that come to your mind when you hear the word RETAIL..

TAKE !10 MINUTES. Do it in your notebook

LETS TAKE A WALK INTO THE RETAIL INDUSTRY AND SEE HOW MUCH YOU HAVE MAPPED IS IN LINE WITH HOW IT REALLY IS>>>

Stages in Retail

Department Stores

Supermarkets

Discount Stores

Hyper - Mart

Convenience Stores

Shopping Malls

Branded Stores

Specialty Stores

GLOBAL SNAPSHOT

GLOBAL PLAYERS- EYE ON INDIA Global players plans to have their presence

in India

Wal- Mart has already signed a JV with Bharti Enterprises to set up stores

Tesco has a service center in Bangalore.

Metro AG has cash & carry stores af.

The Govt. of India currently allows a foreign player to enter the market in JV with an Indian partner

More global luxury brands to enter India.

INDIA VIEW

THE RETAIL SCENARIO IN INDIA

The Rs 18,673 billion (US$ 401 billion) Indian retail

market entails only 6 per cent of itself as organised

retail segment as of 2010, according to Booz and Co

(India) Pvt Ltd.

The Business Monitor International (BMI) India

Retail Report forecasts that the total retail sales will

grow from US$ 411.28 billion in 2011 to US$ 804.06

billion by 2015.

India is one of the most Attractive Retail Markets

1. Consumer spending & retail sales are declining in home markets

2. GDP in emerging markets is expected to continue to grow, albeit at a slower rate

3. The larger, more resilient emerging markets are at the top of the Global retail development index mapped AT Kearney, A retail consulting firm

THE GRDI is brought by ATKearney , A global Management consulting firm

The A.T.Kearney GRDI 1. India is ranked number one, followed by Russia and China in the eighth

annual Global Retail Development IndexTM, a study of retail investment attractiveness among 30 emerging markets.

2. Published since 2001, the GRDI helps retailers prioritize their global development strategies by ranking the retail expansion attractiveness of emerging countries based on a set of 25 variables including economic and political risk, retail market attractiveness, retail saturation levels, and modern retailing sales area and sales growth.

3. The GRDI focuses on opportunities for mass merchant and food retailers, which are typically the bellwether for modern retailing concepts in a country.

Major Industry Players - GLOBAL

Walmart , USA

Carrefour, France

Metro AG, Germany

Seven & I Holdings Col, Ltd, Japan

Woolworths, Australia

Baillian, Brillaince Group, China

Coop Italia, Italy

Major Industry Players -INDIA

Future Group

Shopper’s Stop

Trent – Westside

RPG Spencer

Reliance Retail

Aditya Birls – MORE

Metro Cash & Carry

AD FACTOR

SONE KI CHIDIYA http://www.youtube.com/watch?v=5vMaGPmh1yw FUTURE GROUP , CORPORATE FILM http://www.youtube.com/watch?feature=endscreen&NR=1&v=EcQMNGWK2nE IBM RFID COMMERCIAL FUTURE MARKET http://www.youtube.com/watch?v=eob532iEpqk Microsofts Vision for Future retail http://www.youtube.com/watch?v=AJL_oivIMhQ&feature=related

RETAILING STRATEGY IN INDIA

• Strategy most important in India – Diverse country

• What may sell in the north may not sell in the south under the same brand name

• Successful retailers have always been region specific in India

• Nilgiris-south ; Sabka Bazaar , Nirula’s- Delhi & NCR

• Although the same group might own different formats in different regions

• Also different formats are adapted for tier 2 cities and Metros

• A strategy like Wal-mart unlikely to work out here

• Kashmir to Kanyakumari – same product in all segments not possible

INDIAN SCENE -VIS-À-VIS GLOBAL SCENARIO

• The global market is more standardized

• Whereas India is a much more diversified market so a region specific approach required

• The Indian Markets are currently booming with more purchasing power

• Whereas no other market in the world is experiencing this growth leaving alone China

• India : Potentially huge; 96% unorganized retail market to be tapped

• Other retail markets have slowed down especially in comparison to India & China

WHAT KEEPS THIS INDUSTRY TICKING?

Purchasing power of the consumer

New products in the market

India’s economic development as a

whole

The employment opportunities that

this industry possesses

Commercial Real Estate development

Only 4% of the market unorganized – lot of work left to

be done

The sales figures – India s changing

consumption pattern

MARKET insight

Explosion of Media

Rising Incomes

Disposable Income

Growing Economy

Growing Consumer

Class

Drivers for Growth

Sam Walton Kishore Biyani

Prime People

Strategies

Discounted

Pricing

Longer Store

timings

Wide range of goods

Saturday Morning

Meet 10 Foot rule

Dominate

Location

Expanding to US and

Abroad

Strategies

Discounted

Pricing

Bazaar like atmosphere

in stores

Wide range of goods

Appointing category

managers

Believes in taking quick

decisions

Walks streets and Bazaars to

identify product stacking in new

stores

Talks to people and community

leaders

Game changer

The best Laid Plans

THE BEST LAID PLANS

A unique aspect of the Retail Industry are the strategies revolving around the location planning of retail store. Retail Giants go through a lot of discussion before settling down on specific locations for each retail store. Based on such research and groundwork only then do they assess the kind of profit that can be generated in the future course of business.

For the next twenty Minutes , we will break you into teams of 6 people each. And in your groups… you will discuss

• Discuss on what are the points to be kept in mind while deciding on the location for a shopping mall.

• Make a list of different types of locations and their description of real estate cost..

LETS DICUSS WHAT YOU HAVE COME UP WITH

LETS SEE HOW CLOSE YOUR APPROACh is to reality..

High Street Location Very Busy with high

customer traffic Has an array of retail stores

in small sizes Has stores that are

generally found in clusters based on product categories

High real – estate rentals

TYPES OF LOCATIONS

Brigade Road, Bangalore

Destination/Freestanding Location

Destination does not have a high footfall rate

May not be a commercial retail area

Low real – estate rentals

May have a large parking area

Neighborhood Stores

Shopping Center/Mall Location

Has an existing mall traffic

Has a clean Environment

Has a designated parking area

Medium to High rental cost

Forum Mall, Hosur Road

PAGETURNER A BOOK TO READ…

It Happened in India: The Story of Pantaloons, Big Bazaar, Central and the Great Indian Consumer

Kishore Biyani writes about his struggles, his work philosophy and inspires you with stories and tips . This is a simple inspiring read and it could also help you make an impact in the Indian retail business. Its insightful even if you plan to build a career in retail.

CAREER OVERVIEW

Retailing: Overview

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Retail is one of the largest, most dynamic parts of the world economy. • In good economic times, jobs in the retail sector are numerous and many entry-level positions are easy to get. •Even during economic contractions, when some retailing sectors suffer, others--like groceries, drugstores, and discounters--continue to thrive. •Careers in retail are people-oriented, fast-paced, and have room for creativity. • Retailing jobs are worth taking a good look at, particularly if you are looking for a service-oriented, entrepreneurial profession. • The options are many including store management, buying, merchandising and central management. •There's also the booming area of e-tailing (online retail). •If you have an interest in technology, marketing and retail, these may be the retailing jobs for you.

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RETAIL Research

B2B Marketing

Logistics and supply chain

FMCG IT & ITES

VENDOR PARTNERS

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Management Trainee

Store Manager

Department Manager

Regional Manager

Buyer

Sales

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Retailing: Skills & Talents

People skills: High Sales skills: High

Communication skills: High Analytical skills: Low

Ability to synthesize: Medium Creative ability: Medium

Initiative: High Work hours: 35-65/week

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Retailing: Facts & Trends

1. Internet Retailing is Huge 2. Recession is hurting the high end 3. Category killers usually dominate either on price,

selection, store appearance or, better yet, all three

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RETAIL CAREER TIP# 1

Each retail firm has its own approach to similar processes. Don’t assume. Ask

questions?

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RETAIL CAREER TIP# 2

Retailing is Teamwork

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What are the major challenges

Abnormal hours The negative impression about retailing is that retailers work long

hours and for relatively low reward. There is a lot of truth to that impression. some work schedules may not be the typical 9 to 5, Monday through Friday schedule of other professions.

Pay is low to begin with

MBA is not a requirement to enter the profession

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