m Poonam Shinde

m Shruti Lakham
m Kiran Gowda
m Samrat Saha
m Ameya Dhumal
V
  

m Ãhat is DzRetailingdz?
m Traditional Retailing in India
m Retail evolution in India
m Retailing in India
m Retailing go hand in hand with Indian Economy
m Recession & Retailing
m Retailing in India down the years

Õ
Õ
M 

   
mÃhat is DzRetailingdz?
m Traditional Retailing in India
m Retail evolution in India
m Retailing in India
m Retailing go hand in hand with Indian Economy
m Recession & Retailing
m Retailing in India down the years

Õ
Õ
Ã 
 

m Definition: Retailing is the set of activities that
markets, products or services to final consumers for
their own, personal or household use. It does this by
organizing their availability on a relatively large scale
and supplying them to customers on a relatively small
scale.
m In short Dzpurchasing products or services in larger
volumes and sell it to many customers in smaller parts
in systematic mannerdz

Õ
Õ
M 

   
m Ãhat is DzRetailingdz?

mTraditional Retailing in
India
m Retail evolution in India
m Retailing in India
m Retailing go hand in hand with Indian Economy
m Recession & Retailing
m Retailing in India down the years

Õ
Õ
M
 
 
   
M
 
 
   
m Started from barter system, markets in fairs/melaas,
weekly markets
m Unorganized retail markets & retailers
m Small baniyas/kiranas at every corner of the road
m Sellerǯs market
m The industry getting organized since last decade
m Organized retail industry grown from early 1990

Õ
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m Ãhat is DzRetailingdz?
m Traditional Retailing in India

mRetail evolution in
India
m Retailing in India
m Retailing go hand in hand with Indian Economy
m Recession & Retailing
m Retailing in India down the years

Õ
Õ

 
   
m Increase in the young working population
m Hefty pay-packets
m Migration of rural population to urban areas
m Increasing working-women population
m Increase in disposable income and customer aspiration
m Increase in expenditure for luxury items
m Increasing use of credit/debit cards

Õ
Õ
p

   
 


m Ghange in the consumersǯ behavior
m Ghange has come in the consumer due to
m Increased income
m Ghanging lifestyles
m Patterns of favorable demography
m Gonsumers want to shop at a place where he can get
food, entertainment and shopping all under one roof

Õ
Õ
Y 



    
 


m èth largest Retail market across the globe
m Ranked the 2nd most emerging market
m Gurrent share in GDP is 12%
m Gurrent share in overall employment 8%
m Liberalization & globalization policy
m Growing at a pace of 2è% p.a.
m More players entering into the market
m Buyerǯs market

Õ
Õ
M 

   
m Ãhat is DzRetailingdz?
m Traditional Retailing in India
m Retail evolution in India

mRetailing in India
m Retailing go hand in hand with Indian Economy
m Recession & Retailing
m Retailing in India down the years

Õ
Õ

   
m Organization of industry started since early 1990
m Unorganized market: Rs. è83000 cr.
m Organized market: Rs. èè000 cr.
m 8 times growth in organized retailing between 2000-2009
m Over 4000 new modern Outlets in the last 3 years
m Over è0 lacs sq. ft. of mall space under development

Õ
Õ
 
   
m Top 3 modern retailers control over 7.è lacs
sq. ft. of retail space i.e. 1è% of total space
m Over 4 lacs shoppers walk through their
doors every week
m Food & Apparel dominate the share in retail
product categories
m FMGG is the fastest moving product
category

Õ
Õ
î


  
m Future Group m Reliance
m Shopperǯs Stop m Nilgiris
m Gafé Goffee Day m Pyramid
m Subhiksha m The Loot
m Ãestside m Apna Bazaar
m Planet M m Spinach
m Archies m Lifestyle
m Globus m Grossword
m Next m D-Mart

To be continuedǥ. Õ
Õ
    
  


6


     
 

Food and beverages 231,9è1 74.41
Glothing and Textile 29,024 9.31
Gonsumers Durables 1è,171 4.87
Jewellery and Ãatches 13,390 4.30
Home Décor 9,463 3.04
Beauty Gare 6,8è4 2.20
Footwear 3,268 1.0è
Books, Music and Gifts 2,610 0.84

Õ
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Branded Stores Exclusive showrooms Gomplete range available
either owned or franchised for a given brand, certified
out by a manufacturer. product quality

Focus on a specific Greater choice to the

Specialty Stores consumer need, carry most consumer, comparison
of the brands available between brands is possible

Large stores having a wide

variety of products,
organized into different
One stop shop catering to
Department Stores departments such as
varied/ consumer needs.
clothing, house wares,
furniture, appliances, toys,
etc.
Õ
Õ
 0

   

0
  
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Extremely large self-service One stop shop catering to

Supermarkets
retail outlets varied consumer needs

Stores offering discounts on

the retail price through
Discount Stores Low Prices
selling high volumes and
reaping economies of scale

Larger than a supermarket,

sometimes with a Low prices, vast choice
Hyper- mart warehouse appearance, available including services
generally located in quieter such as cafeterias.
parts of the city

Õ
Õ
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all self-service for ats

Gonvenient location an
Gonvenience stores locate in cro e r an
exten e operating ho rs.
areas.

An enclos re having
ifferent for ats of in- Variety of shops availa le
hopping Malls
store retailers, all n er to each other.
one roof.

Õ
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m SGM is a channel of distribution
m SGM connects manufacturer with Retailer
m Gurrently SGM is fragmented in Indian
Retail market, especially in food & grocery
category
m Ãarehouses play crucial role in SGM
m Road, Rail & Air: key mediums in SGM

Õ
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mBar Goding and Scanners
mPayment
mInternet

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mERP System
mGRM Systems
mAdvanced Planning and Scheduling Systems

   




mStore Site Location
mVisual Merchandising
Õ
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 ’ 


   

 
 


m Gurrent share in overall employment 8%

m Expected to increase the share to 9-10% by
2010
m The largest sector after the agricultural in
terms of employment
m Gurrent direct employment: 4 Gr.
m Gurrent in-direct employment: 20 Gr.
m Scope of better exposure to the international
standards
Õ
Õ
M 

   
m Ãhat is DzRetailingdz?
m Traditional Retailing in India
m Retail evolution in India
m Retailing in India

mRetailing go hand in hand

with Indian Economy
m Recession & Retailing
m Retailing in India down the years

Õ
Õ

     
  ’
m Indian Economy:
m 2nd fastest growing economy in the world
m Potential to be the third largest economy in terms of
GDP in next few years
m Ranks high amongst the top 10 FDI destinations of
the world
m Introduction of Value Added Tax or VAT and tax reforms
m High degree of professionalism and corporate ethics
m Highly educated English speaking young workforce
m Vibrant and multi cultured cities
m Huge opportunity exists, especially in semi-rural and
rural areas
m Fastest growing tourist market in Asia
Õ
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FDI (Foreign Direct Investment)

Indiaǯs globalization & liberalization policy
has opened the doors for FDI

Õ
Õ
 £ 
0     ’
m Brings investments, technology, management
policies and resources

m Need larger FDI to increase GDP

m Potential industries in India-

Infrastructure, IT, Automobiles, Leather, Textiles, Ge
ms & Jewellery, Financial sectors & Retail

m Key factors affecting FDI: Market potential &

accessibility, Political stability, Market
infrastructures, Easy currency conversion Õ
Õ
 Ã   
m Developing economy

m Huge & diversified market

m Demand is greater

m Low salaried employees

m Low wage workers

m Abundant human resources

m Big private economy Õ
Õ

"    

0    
m Resource Ghallenge:
m Huge no. of resources in terms of
manpower, working capital, infrastructure, etc.
m Underexploited/unexploited resources in rural
areas
m Limited resources in urban areas
m Political Ghallenge:
m Limited support from political front
m Not encouraging policies for FDI
m Proper plan to increase FDI capital in Indian
Economy Õ
Õ
"    

0    
m Equity Ghallenge:
m Developing at very fast rate
m Development are uneven, unstructured
m More emphasis on urban areas
m Social equality & balanced growth
m Federal Ghallenge:
m Implementation of policies, rules & regulations
towards FDI
m Uneven Govt. policies across the country
m Benefits to certain cities & states only
m Other challenges:
Õ
Õ
"    

0    
m Other challenges:
m Poverty reduction
m Trade liberalization
m Banking & Insurance sector liberalization

More the FDI, more the growth

Õ
Õ
 u
 

0 
m Improved human capital:
m Labor based industries
m More professional, trained & skilled worker
m Improves quality over quantity

m Gompetition effect:
m Launching new products/brands in the market
m Increasing competitions, benefits customers
m Improves standard of products/services
m Improves productivity of Indian companies
Õ
Õ
 u
 

0 
m Manufacturing employment:
m Generates employment in the industry
m Enhances productivity of labor
m Demand in the market generates more production

m New technology:
m To overcome competition, better quality of
products
m Again attracts more FDI

Larger FDI can develop rural Indian market and help

to bring socio-economic growth with stability Õ
Õ
M 

   
m Ãhat is DzRetailingdz?
m Traditional Retailing in India
m Retail evolution in India
m Retailing in India
m Retailing go hand in hand with Indian Economy

mRecession & Retailing

m Retailing in India down the years

Õ
Õ
    

m Foot-falls has decreased drastically
m Supply is more Demand is less
m Low spending on Mktg. campaigns
m Gustomer retention has become a challenge
m Gut-throat competition to retain customer
m No affect on Food category, formats like Food Bazaar
m Adversely affected on categories
like, luxury, jewellery, consumer durables
m New plans are kept on hold

Õ
Õ
M 

   
m Ãhat is DzRetailingdz?
m Traditional Retailing in India
m Retail evolution in India
m Retailing in India
m Retailing go hand in hand with Indian Economy
m Recession & Retailing

mRetailing in India down

the years
Õ
Õ
"      
  


m No brand loyalty among customers
m Ghanging customer behavior
m Gustomers want to eat, shop & entertainment under
one roof
m Lack of retail space, due to high infrastructure cost
m Less Development in rural areas
m Mushrooming malls in urban areas
m Trained & skilled manpower
m Restricted FDI policies
m Discounting has become habit for customers
m Strong negotiation power of customers
Õ
Õ
   
  

  0


m Expected to grow @ 10% p.a. by 2010
m Expected to cross Rs. 1000 billion in terms of revenue
by 2010
m FDI will be allowed up to è1%
m Lots of big foreign players to enter in India, such as
Ãal-mart, Metro, Tesco, Garrefour, etc.
m More employment generation in future
m Hypermarkets will evolve big time
m Hypermarkets will encourage entry of Transnational
companies
Õ
Õ
  
  

  0

#



 


Hyderabad Goimbatore
Ahmedabad Mumbai
Pune Ghennai
Bangalore Delhi NGR
Nagpur Luckhnow

Õ
Õ
 "  
 

Big Bazaar
&
Reliance Retail

Õ
Õ
m Big Bazaar is part of Indiaǯs largest retailer Future Group
m Falls into a category of Hyper market
m Future Group has presence in multiple businesses in the
consumption space:
m Gonsumer Finance
m Gapital
m Insurance
m Retail Media
m Mall development
m Logistics
m Brand Development Õ
Õ
 u u

m First organized mega retail store in India

m BB stores were launched in 2001 simultaneously at
Hyderabad, Kolkata & Bangalore
m Today we have more than 11è BB stores across the
country
m BB is a major success along with Food Bazaar
m Attracts at least 100 million of customer every year.
m Typical BB store offers over 1,60,000 products across
several categories.
m Ghanged the definition of Retailing in India
Õ
Õ
 u u

u u 0
No. of stores 11è
Parent Group Future Group
GEO, Managing Director Mr. Kishore Biyani
Tagline Is se sasta aur achha kahin nahi
TG Family, especially House-wives

Õ
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Rivalry
among
Gompetitors

Bargaining Threats of the

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Buyer Industry
GOMPETITIVENE
SS

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supplier
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Rivalry among Gompetitors Reliance Retail, Aditya Birla Group,
Vishal Retail , Bharti & Ãal-mart, etc.
Threats of the Entrants FDI policy not favorable for international
players. Domestic conglomerates looking to
start retail Ghains. International players
looking to Foray India.
Bargaining Power of supplier It varies depending upon the target
Segment. The unorganized sector has a
dominant position. There are few players
who have a slight edge over others on
account of being established players and
enjoying brand distinction.
Õ
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Bargaining power of buyers Gonsumers are price sensitive.
Availability of more choice.
Threat of substitutes Unorganized retail market, new foreign
players entering in Indian market

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Big Ãish All the population Process

Baby Registry & Married couple , Promotion

Marriage waiting for marriage.
Registry
Ãomen Forum Ãomen Public Relation

Interior decorator and Those customer who People

dress designer will be are very specific about
appointed in all the their decision
store.

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Networking through All loyal customer , E-Marketing

Internet other net user

Religion Gorner All the aesthetic people Product Mix

Adhar Ȃ Rural centric 720 million consumers Place

Market across 627000 villages.

Tie up with IPL Sports lover Promotion

Improving quality of Prevailing as well as Product

Product Prospect customer.

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