retail branding - reliance fresh
Post on 22-Oct-2014
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- 1. Group 6
Akanksha Singh0911004Saurabh Chandra0911047
Sumit Kumar0911057Arvind Choudhary0911085
Bhawna Jain0911301Ganeshram K0911309
Shikha Rawat0911344
Retail Branding - 2. Facts in India
- Retail market growing at 13% per annum
- 3. Organized retail penetration -14% by 2015
- 4. 5 mn sq feet (2010) -> 20 mn sq feet (2011)
- 5. Food retail - 60% of the total retail market
- 40% perishables lost due to bad supply chain
- 6. regulatory policies (29 licenses required to start a hypermarket in Mumbai)
- 7. high real estate prices (10-15% of operating costs in India; 5% in other countries)
- Rising living standards.
- 8. Favorable demography: more than half the country is under 25 years of age
- 9. Consumer mindset: Mandi to Market
- 10. By2025, India will be 5th largest consumer market (60 mn people in Indian middle class)
- 11. More working women; More plastic money
- 12. Retail in Rural India
Future of Kirana Stores?
- Kirana store is for emergency shopping, supermarket is for necessities and the hypermarket is for family outing. There will still be a role for the itinerant street hawker on the 21st century Indian shopping landscape, but it will be diminished one. Sanjay Bhade, senior VP at Aditya Birla Retail
- 13. Future of kirana stores also depends on inclination of next generation in running family businesses. There are better employment opportunities available in small towns now.
Reality Speaks
Rural Indian spends 52% of his income; Urban Indian 50%
Expanding rural consumption at 12 % for last 6 quarters; Urban demand trails at 7%
2012: 52% of retail spending from rural India
Better roads - better distribution network.
- Only 1200 retail outlets in these areas!
- 14. Bharti Wal-Mart stores near cities only
- 15. Tata & Reliance have no ready plans too.
- 16. Fragmented customer base
- 17. Opposition from market middle men
- 18. Consumers prefer kirana stores (buy on credit, home delivery, proximity to home)
- 95 stores in tier-3 towns (pop.-1 lakh); Acquired Aadhar - gone into towns with 30,000 population
- 19. In a Big Bazaar outlet in Sangli - a family ran up a bill of Rs 1.25 lakh!
- 20. In Alwar, Big Bazaar store had annual sales of over Rs 18 crore. Sale of small stores has dropped 8%.
- 21. Treat catchment area like constituencies - just the way political parties dont ignore ethnic communities."
- 22. Concepts built specially for rural India - stocking aluminium vessels in Muslim dominated communities, tapping local trader & women SHG for food items to address local preferences.
- 23. All this added with competitive prices, good ambience & aspirational needs of middle class!
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