indian retailing scene

8/6/2019 Indian Retailing Scene

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CONTENTS..

Meaning and definition of Retailing

Overview of the Indian retail industry. Various formats of Retailing.

Categories of Indian Retailing.

History and evolution of organized retailing in the context

of pre and post 90s era.

Recent trends in retailing.


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Definition of Retailing

Retailing can be defined as

set of activities involved in selling goods and services to

ultimate consumers for

personal consumption.


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Overview of Indian Retailindustry


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Retail is the 2nd largest sector in India. It contributes 10 to 11% in GDP.

India is the 9th

largest retail market in the world. Estimated that retail markets in India will grow from USD 394 bn in

2005 to USD 608.9 bn in 2009. Total retail market in India is growing at CAGR (compound Annual

Growth Rate) of 5.5% to USD 374 bn in 2015 The organized retail pie is dominated by clothing, textiles and fashion

accessories (40%) followed by food and grocery (19%). The overall retail market is dominated by food & Groceries which

accounts for 3/4th of the same. Current Size of Organized Retail is only US $9 billion, Above 3% of the

total size. Expected to grow by 30-35% growth rate per annum


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Conti

Retailing in India is witnessing a huge revamping exercise

India is rated the fifth most attractive emerging retail market: apotential goldmine.

Estimated to be US$ 200 billion, of which organized retailing (i.e.modern trade) makes up 3 percent or US$ 6.4 billion

As per a report by KPMG the annual growth of department stores is

estimated at 24%

Ranked second in a Global Retail Development Index of 30 developingcountries drawn up by AT Kearney.


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Various formats of Retailing


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Malls:

The largest form of organized retailing today.

Located mainly in metro cities, in proximity to urban outskirtsRanges from 60,000 sq ft to 7,00,000 sq ft and above.They lend an ideal shopping experience with an amalgamation of

product, service and entertainment, all under a common roof.Examples include Shoppers Stop, Piramyd, Pantaloon.

Specialty Stores:

Chains such as the Bangalore based Kids Kemp, the Mumbaibooks retailer Crossword, RPG's Music World and the TimesGroup's music chain Planet M,

are focusing on specific market segments and have establishedthemselves strongly in their sectors.


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Discount Stores:

Discount stores or factory outlets, offer discounts on the MRP

through selling in bulk reaching economies of scale or excessstock left over at the season.The product category can range from a variety of perishable/ non

perishable goods.

Department Stores:

Large stores ranging from 20000-50000 sq. ft,catering to a variety of consumer needs.Further classified into localized departments such as clothing,

toys, home, groceries, etc.

Conti..


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Conti

Hypermarts/Supermarkets:

Large self service outlets,

catering to varied shopper needs are termed as Supermarkets.These are located in or near residential high streets.These stores today contribute to 30% of all food & grocery

organized retail sales.Super Markets can further be classified in to mini supermarkets

typically 1,000 sq ft to 2,000 sq ft and large supermarkets

ranging from of3,500 sq ft to 5,000 sq ft.having a strong focus on food & grocery and personal sales.


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Indian Retailing falls into 3categories


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Retailing in India was witnessedbefore a long back..


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The face of Pre-1990

neighborhood Kirana stores

Era of government support for rural retail

1980s experienced slow change as India began to open up economy.

Textiles sector with companies like Bombay Dyeing, Raymond's, SKumar's and Grasim first saw the emergence of retail chains

Later Titan successfully created an organized retailing concept andestablished a series of showrooms for its premium watches


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Conti

The latter half of the 1990s saw a fresh wave of entrants with a shiftfrom Manufactures to Pure Retailers.

For e.g. Food World, Subhiksha and Nilgiris in food and FMCG; PlanetM and Music World in music; Crossword and Fountainhead in books.


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POST1995..

Post 1995 onwards saw an emergence of shopping centers, mainly in urban areas, with facilities like car parking

targeted to provide a complete destination experience for allsegments of society (departmental store)

Emergence of hyper and super markets trying to provide customerwith 3 Vs - Value, Variety and Volume

Expanding target consumer segment: The Sachet revolution

At year end of 2000 the size of the Indian organized retail industry isestimated at Rs. 13,000 crore


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Retailer Trends

PowerfulVulnerable

System DrivenOwner Operated

Technology IntensiveUnsophisticated

Retail Brand ManagersMerchants

Innovative FormatsTraditional Grocers etc

Organised / GlobalIndividual / Local

Getting Stronger /Consolidated

Fragmented

NowBefore.


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Merchants to BrandManagers

Private labels Eg Food World, Nilgiris, Shoppers Stop.

Not Just Cheap

Up market . Price close to premium brands Greater profits and leverage

Differentiate stores from competitors

Ambience & Shopping Experience

Better recruitment of professional

Increase in salaries to employees

Retailers are Moving from

Market Driven to Market Driving


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Consumer Trends

Urbanization Higher disposable income

Awareness of alternatives Emergence of new young Indian

Demand for Convenience / Service Free Door Delivery. Ready to eat / Cook, Entertainment for

Kids. Touch Feel & Buy

Demand for Fresh We need that Ever Green ,Frozen Fresh, Real Good

Value oriented Respond well to consumer offers


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New formats, consolidation

Mega projects (> 1 Million sq. ft.) being planned in major metros

Future Group (Pantaloon) planning to develop a 2 Million sq. ft.

flagship mall in Mumbai

Unitechs Great India Place in Noida: 1.4 Million sq. ft. project

Phase II of Inorbit Mall, Mumbai to add 0.5 Million sq. ft. making

total area of development 1 Million sq. ft.


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Conti

Specialty malls already in place & many more in the offing

Factory Outlet malls - Brand Factory (Bangalore) Luxury malls DLF Emporio (New Delhi) Womens malls Eva (Bangalore) Interiors & exteriors Ishanya (Pune) Jewellery Gold Souk (Gurgaon), Fort Knox (Kolkata) Wedding malls Shagun Wedding Mall (Kolkata)


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Growth is the only evidence

of Life!!!!!!

indian retailing scene

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