Indian Retail Market – Major Categories

Clothing and Apparel

Fashion Accessories Footwear Jewellery

Eyewear Timewear Food and Grocery Food Services

Home and Interiors Leisure Entertainment

and GamingConsumer Electronics

Mobile and Telecom Pharmacy Beauty and

Personal Care Fitness

Retail Categories – Relevant DataRetail Categories

(2012)Total Market (in Rs.

Cr.)Modern Retail (in Rs.

Cr.)Share of Modern

Trade to Total Retail

Clothing and Apparel 2,20,000 74,000 34

Fashion Accessories 10,998 1,375 12

Footwear 24,132 9,300 38

Jewellery 1,28,000 12,800 10

Eyewear 33,000 2,427 7

Timewear 9,000 4,700 52

Food and Grocery 17,12,000 24,300 1

Food Service 1,34,058 16,000 12

Retail Categories – Relevant DataRetail Categories

(2012)Total Market (in Rs.

Cr.)Modern Retail (in Rs.

Cr.)Share of Modern

Trade to Total Retail

Home and Interiors 81,200 11,900 15

Leisure 28,993 5,200 18

Entertainment and Gaming 72,710 7.050 10

Consumer Electronics 95,000 19,000 20

Mobile and Telecom 1,62,664 24,000 15

Pharmacy 85,000 4,000 5

Beauty and Personal Care 50,000 6,650 13

Fitness 3,300 870 26

Total (in Rs. Cr.) 28,50,055 2,23,572 7.8

Total (in billion US$) 518 41

Modern Retail

Registered company / firm Income tax / Sales tax payer Structured employment Technology driven front end and back end Product display, store layout and

ambience based on principles of visual merchandising

Replicable and scalable concept Unique brand identity which is fiercely

guarded

Modern Retail Pie

Retail Category Percentage Share Retail Category Percentage Share

Clothing and Apparel 33 Home and Interiors 5

Fashion Accessories 1 Leisure 2

Footwear 4 Entertainment and Gaming 3

Jewellery 6 Consumer Electronics 8

Eyewear 1 Mobile and Telecom 11

Timewear 2 Pharmacy 2

Food and Grocery 11 Beauty and Personal Care 3

Food Service 7 Fitness 1

Drivers of Retail Change in India

Demographic Factors

Share in world population: 17.6% Largest number of young people in the world (50%

population below 25 years and 62% in the working age group of 16 to 59 years)

Social Factors

Emergene of nuclear families Higher propensity to spend and thus per

capitaconsumption is higher House hold size has decreased despite increase in

population (5.57 in 1991 to 5.08 in 2011) DISK and DINK families

Changing Income Profiles

High growth in the past years (except from 2008 onwards)

Per capita income increased from Rs. 5809 (2001-02) to Rs. 10,810 (2011-12)

Share of high income households is on the rise (Rs 1-5 lakh annualy @ 9%, Rs. 5 – 10 lakhs annualy @ 12% and above Rs 10 lakh annualy @ 15% between 2001-02 and 2010-11)

With rise in income, private consumption expenditure grew at 8.2% between 2005-06 and 2011-12

Rising income brought about change in consumption from basic food items to non-food items and discretionary purchases (52% in 1999-2000 to 59% in 2009-10)

Rural India experiencing similar trends – big opportunity for modern retail trade

Drivers of Retail Change in India

Drivers of Retail Change in India – Consumption Growth

Average Real Consumption Growth from 2005-06 to 2009-10 (y.o.y.)

Category Growth % Category Growth %

Communication 28.5 Personal transport equipment 8.6

Refrigerator, cooking and washing appliances 23.4 Overall PFCE 8.2

Equipment, paper and stationary 15.7 Furniture, furnishing and repair 7.4

Hotels and restaurants 13.7 Beverages 6.3

Clothing 11.9 Tobacco and its products 5.3

Footwear 11.8 Education 3.1

Personal goods 9.1 Food 2.0

Other factors:

The changing role of womenIncreased credit friendlinessIncreased penetration of plastic money (CAGR of 26% between

2003-04 and 2010-11)Rapid urbanisation

Drivers of Retail Change in India

Market size: Rs. 2,20,000 croresModern retail component: Rs. 74,000 croresMens' wear: 42%Womens' wear:39%Kids' wear: 19%

Trends

Biggest retail segment in modern retail International brands eye the country as a viable otion to

enter Amongst highest growth categories Rapid penetration into Classes I and II towns Discerning customer w.r.t. occasion wear and western

clothing

Category Dynamics – Apparel and Clothing

Category Dynamics – Apparel and Clothing

Sr. No.

Department Stores (Multi Brand Outlets)

1. Globus

2. Lifestyle

3. Pantaloons

4. Shoppers Stop

5. Westside

6. Reliance Trends

Sr. No. Apparel Retail (Single Brand Outlets)

1. Benetton

2. Allen Solly

3. Arrow

4. Biba

5. Louis Philippe

6. Levi's

7. Marks and Spencer

8. Van Heusen

9. Wills Lifestyle

10. Park Avenue

Market size: Rs. 17,12,000 croresModern retail component: Rs. 24,300 crores

Trends

Demand for fresh/home made and value consciousness will remain though convenience segment will increase

High value and bargain driven but demand for luxury food to increase

Convenience and price differentials will motivate consumers to travel greater distance to travel to a modern outlet

Private lables and organic products are slated to growHealth food segment will growHighest potential category

Category Dynamics – Food and Grocery

Category Dynamics – Food and Grocery

Sr. No. Food and Grocery

1. Big Bazaar

2. D - Mart

3. Easyday

4. Hypercity

5. Food Bazaar

6. More

7. Nature's Basket

8. Reliance Fresh

9. Spar

10. Spencer's

11. Star India Bazaar

Market size: Rs. 1,34,058 croresModern retail component: Rs. 16,000 crores

Trends

Tremendous potential for niche categoriesConsumer is ready to experiment with and experience various

cuisines, regional or globalLocalisation in terms of offerings, menu, products and pricing

Category Dynamics – Food Service

Category Dynamics – Food ServiceSr. No. Food Service

1. Haldiram

2. Yum Restaurants India (Pizza Hut, KFC, Taco Bell)

3. Barista

4. Cafe Coffee Day

5. Baskin Robbins

6. McDonalds

7. Dominos

8. Nirula's

9. Subway

10. Yo! China

11. Blue Foods (Spaghetti Kitchen, Copper Chimney, Gelato Italiano, etc.)

12. Speciality Restaurants (Mainland China, Oh! Calcutta, Sigree, etc.)

Market size: Rs. 1,62,664 croresModern retail component: Rs. 24,000 crores

Trends

Intense MarketGlobally, 2 to 5 key players in service providing, in India there

are 8 to 10Mobile handset has become a part of fashion and handset

changing frequency is increasingOnly 70% of the total mobile connections in India are estimated

to be actually active, and about 15% of the subscribers use multiple SIMs, thus stagnating future growth of subscribers

Category Dynamics – Mobile and Telecom

Category Dynamics – Mobile and Telecom

Sr. No. Mobile and Telecom

1. Aircel

2. Airtel

3. Reliance iStore

4. The Mobile Store

5. Uninor

6. Univercell

7. Virgin Mobile (Tata Docomo)