iipm rm 2 retail growth & formats 32

8/8/2019 IIPM RM 2 Retail Growth & Formats 32

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RETAIL GROWTH


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ORGANISED RETAIL 2006


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TOTAL RETAIL 2006


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Y-O-Y TOTAL RETAIL GROWTH (3 YEARS)


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Y-O-Y ORGANIZED RETAIL GROWTH


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THE SCENARIO

FDI will touch $ 10 billion

Infrastructure investment $130 billion

1000 FIIs already operating in India FIIs have bought shares worth Rs. 13,27,521

crores

FIIs have sold shares worth Rs. 11,14,219crores

Unorganized retail is about 15 million


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THE SCENARIO

Large groups like ITC, Reliance, Rahejas, Tata,

Jubilant etc have infused money

Additional 700 million sq. ft. space needed by2011

Most of the growth will come from 1000 Tier

II towns and major rural hubs

Most states have agreed on direct sales from

farmers to organized retail


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THE RURAL SCENARIO

Rural Markets are the flavor of the season

Problems:

Erratic weather conditions

Crop failures Inadequate irrigation methods

Rural debt

Rural-Urban spending 9:11

55% retail spending @ $260 billion

50% market potential is in rural


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CONSUMER STRENGTH

Rural: 720 million consumers across 627000

villages

17% villages have 50% strength and 60%wealth

100,000 villages need to be attacked

DCM Haryali Kisan Bazar, Godrej Aadhars, ITCChaupal Sagars, Tata Kisan Sagars, etc are

already there


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CONSUMER TRENDS


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POPULATION BY AGE GROUP


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PROFILE

Credit Cards zoomed: 3.2 to 12 million in 5

years

Domestic retail spend Rs 15,96,802 crorewith 6% growth

Organized retail spend about Rs 1,00,000

crore

Indian consumer worlds youngest

China will witness rapid ageing in next 20 yrs


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CHANGING PREFERENCES

2% Joint families = nuclear families / year

DINK presence now significant

shop till you drop syndrome

Very Rich = 6.2 million households

Consuming Class = 90.9 million households

Aspirants + Destitute = significant reduction


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Food & Grocery raising rural incomes

Increase in number of working women

6 out of 10 households have a postliberalization child

Easy bank finance

Capital expenditure gets converted torevenue expenditure

Easier luxury acceptance


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Image is important, but up to a point

Demographics assume greater power

Organics getting fashionable

value gets re-defined: no compromise on

principles


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STICKINESS PROGRESSION MODEL

PROFITS

SALES

BIG SPENDER

SPENDER

BROWSER

PASSER-BY

LOY

ALSHOPPER

IN-STORE

CONVERSION

TICKET SIZE


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MULTI FORMAT RETAILERS


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R P G

1996: Foodworld, division of Spencer JV with Jardine Matheson US (Dairy Farm

Intnl)

By 2005 Foodworld T. O. Rs. 3 billion Health & Glow in pharma and beauty care

2003 Music World with three formats

Music World DestinationMusic World Express

Music World Unplugged


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R P G

2000 Spencer JV with DFI: Great Wholesale

Club Ltd but called Giant (now Spencer

Retail Limited)

Spencers formats

Spencer Hyper

Spencer Super

Spencer Daily

Spencer Fresh


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FUTURE GROUP

Food

Fashion Footwear

Home solutions

Consumer electronics

Books and music

Telecom and I T

E-tailing

Leisure

Entertainment

Financial prod &services

PANTALOON


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FUTURE GROUP

Pantaloons

Central

Blue Sky

aLL

Big Bazar

Food Bazar

Fashion Station

Beauty & Health Malls

Depot

Star & Sitara

Manipal Health

Systems

Talwalkars

Home Solutions Retail

EZone

Electronic Bazar Collection I

Furniture Bazar


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FUTURE GROUP

VERTICALS

FUTURE RETAIL

FUTURE CAPITAL

FUTURE BRANDS

FUTURE SPACE

FUTURE MEDIA FUTURE LOGISTICS


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TATA

Trent (Westside)

Trent JV with DLF

JV with Woolworths

Infiniti Retail (Croma)

Star India Bazar

Landmark Titan JV with TIDCO


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K RAHEJA CORP

Shoppers Stop

Shoppers Stop JV with Mothercare

Shoppers Stop JV with MAC (Estee Lauder)

Crossword

Home Stop

Caf Brio Desi Caf


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OTHER IMPORTANT GROUPS

Piramyd Retail

Niligiris

Subhiksha Trinethra

Vishal Retail Group

Reliance Retail BPCL (In and Out)


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KEY DRIVERS

Demographic changes

E-Commerce

M-commerce Technology: biometrics, RFID etc

Fluid retail segments

Economic changes: (a) rising income (b)increased per capita spending (c)

infrastructure improvements


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FORMATS


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MAJOR RETAIL FORMATS

SUPERMARKETS

Self-service store with a range of food and

household articles Convenient location near residences

Products at lower prices

Appealing surroundings, hygienic ambience,better display compared to neighborhood

kirana


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HYPERMARKET

Supermarket with features of department

store

Outskirts of large towns

Very wide product range

Big discount store with 60% food and 40%

nonfood


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DISCOUNT STORE

Type of Dept. Store with lower prices

Wide range of branded goods

Buy in bulk with deep discounts Concept still new in India


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SPECIALITY STORES

Single category

Large selection rangeCONVENIENCE STORES

Open 24 x 7

Essential FMCG food, personal care day-to-day

KIOSKS & FOOD COURT COUNTERS

iipm rm 2 retail growth & formats 32

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