BY

SMITPAL SINGH
92-MBA-09
PRESENTATION
ON
WHAT IS THIS PRESENTATION ABOUT
This PRESENTATION provides detailed information about the growth of
retailing industry in India.
It examines the growing awareness and brand consciousness among
people across different socio-economic classes in India and how the
urban and semi-urban retail markets are witnessing significant growth.
It explores the role of the Government of India in the industry. Its growth
and the need for further reforms.
In India the vast middle class and its almost untapped retail industry are
the key attractive forces for global retail giants wanting to enter into
newer markets, which in turn will help the India Retail Industry to grow
faster.
The presentation includes growth of retail sector in India, strategies,
strength and opportunities of retail stores, retail format in India, recent
trends, and opportunities and challenges.
This presentation concludes with the likely impact of the entry of global
players into the Indian retailing industry. It also highlights the challenges
faced by the industry in near future
PRESENT SCENERIO
The India Retail Industry is the largest among all the
industries, accounting for over 10 per cent of the
countrys GDP
and around 8 per cent of the employment.
The Retail Industry in India has come forth as one of the
most dynamic and fast paced industries with several
players entering the market.
But all of them have not yet tasted success because of
the heavy initial investments that are required to break
even with other companies and compete with them.
The India Retail Industry is gradually inching its way
towards becoming the next boom industry.

THE INDIAN RETAIL SCENE
India is the country having the most unorganized retail
market.
Traditionally it is a familys livelihood, with their shop in
the front and house at the back, while they run the retail
business.
More than 99% retailers function in less than 500
square feet of shopping space.
Global retail consultants KSA Technopak have
estimated that organized retailing in India is expected to
touch Rs 45,000 crore in the year 2009-10.
The Indian retail sector is estimated at around Rs
10,00,000 crore, of which the organized sector accounts
for a mere 2 per cent indicating a huge potential market
opportunity that is lying in the waiting for the consumer-
savvy organized retailer.

CONTD..
Purchasing power of Indian urban consumer is growing and
branded merchandise in categories like Apparels, Cosmetics,
Shoes, Watches, Beverages, Food and even Jewellery, are
slowly becoming lifestyle products that are widely accepted by
the urban Indian consumer.
Indian retailers need to advantage of this growth and aiming to
grow, diversify and introduce new formats have to pay more
attention to the brand building process.
The emphasis here is on retail as a brand rather than retailers
selling brands. The focus should be on branding the retail
business itself.
In their preparation to face fierce competitive pressure, Indian
retailers must come to recognize the value of building their own
stores as brands to reinforce their marketing positioning, to
communicate quality as well as value for money.
Sustainable competitive advantage will be dependent on
translating core values combining products, image and reputation
into a coherent retail brand strategy
STRATEGIES, TRENDS AND
OPPORTUNITIES 2009

Retailing in India is gradually inching its way toward becoming the next
boom industry.
The whole concept of shopping has altered in terms of format and
consumer buying behavior, ushering in a revolution in shopping in India.
Modern retail has entered India as seen in sprawling shopping centres,
multi-storied malls and huge complexes offer shopping, entertainment
and food all under one roof.
The Indian retailing sector is at an inflexion point where the growth of
organized retailing and growth in the consumption by the Indian
population is going to take a higher growth trajectory.
The Indian population is witnessing a significant change in its
demographics.
A large young working population with median age of 24 years, nuclear
families in urban areas, along with increasing workingwomen population
and emerging opportunities in the services sector are going to be the key
growth drivers of the organized retail sector in India.


GROWTH OF RETAIL SECTOR IN INDIA
Retail and real estate are the two booming sectors of
India in the present times.
And if industry experts are to be believed, the prospects
of both the sectors are mutually dependent on each
other.
Retail, one of Indias largest industries, has presently
emerged as one of the most dynamic and fast paced
industries of our times with several players entering the
market.
Accounting for over 10 per cent of the countrys GDP
and around eight per cent of the employment retailing in
India is gradually inching its way toward becoming the
next boom industry.

THE TRENDS THAT ARE DRIVING THE GROWTH OF
THE RETAIL SECTOR IN INDIA ARE

Low share of organized retailing
Falling real estate prices
Increase in disposable income and customer
aspiration
Increase in expenditure for luxury items (CHART)

TRENDS IN RETAILING
The retailing configuration in India is fast
developing as shopping malls are increasingly
becoming familiar in large cities.
When it comes to development of retail space
specially the malls, the Tier II cities are no longer
behind in the race.
If development plans till 2007 is studied it shows
the projection of 220 shopping malls, with 139
malls in metros and the remaining 81 in the Tier II
cities.
The government of states like Delhi and National
Capital Region (NCR) are very upbeat about
permitting the use of land for commercial
development thus increasing the availability of land
for retail space; thus making NCR render to 50% of
the malls in India.

INDUSTRY EVOLUTION

Traditionally retailing in India can be traced to
The emergence of the neighborhood Kirana
stores catering to the convenience of the consumers
Era of government support for rural retail: Indigenous
franchise model of store chains run by Khadi & Village
Industries Commission
1980s experienced slow change as India began to open
up economy.
Textiles sector with companies like Bombay Dyeing,
Raymond's, S Kumar's and Grasim first saw the
emergence of retail chains
Later Titan successfully created an organized retailing
concept and established a series of showrooms for its
premium watches
CONTD..
The latter half of the 1990s saw a fresh wave of entrants
with a shift from Manufactures to Pure Retailers.
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 all segments of society
Emergence of hyper and super markets trying to provide
customer with 3 Vs - Value, Variety and Volume
Expanding target consumer segment: The Sachet
revolution - example of reaching to the bottom of the
pyramid.
At year end of 2000 the size of the Indian organized
retail industry is estimated at Rs. 13,000 crore


RETAILING FORMAT IN INDIA
Malls:
The largest form of organized retailing today. Located mainly in metro
cities, in proximity to urban outskirts. Ranges 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,
and Pantaloon.
Specialty Stores:

Chains such as the Bangalore based Kids Kemp, the Mumbai books
retailer Crossword, RPG's Music World and the Times Group's music
chain Planet M, are focusing on specific market segments and have
established themselves strongly in their sectors.

DISCOUNT STORES
As the name suggests, discount stores or factory
outlets, offer discounts on the MRP through selling
in bulk reaching economies of scale or excess
stock 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.
Departmental Stores are expected to take over the
apparel business from exclusive brand showrooms.
Among these, the biggest success is K Raheja's
Shoppers Stop, which started in Mumbai and now
has more than seven large stores (over 30,000 sq.
ft) across India and even has its own in store brand
for clothes called Stop.

HYPER MARTS/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 of 3,500 sq ft to 5,000
sq ft. having a strong focus on food & grocery and
personal sales.
CONVENIENCE STORES:
These are relatively small stores 400-2,000 sq. feet
located near residential areas. They stock a limited
range of high-turnover convenience products and are
usually open for extended periods during the day, seven
days a week. Prices are slightly higher due to the
convenience premium


MBO
Multi Brand outlets, also known as Category Killers, offer
several brands across a single product category. These
usually do well in busy market places and Metros.



INDIAS NUMBER OF DOMESTIC GROCERY
CHAINS AND EARLY FOREIGN ENTRANTS

RECENT TRENDS
Retailing in India is witnessing a huge revamping exercise as
can be seen in the graph
India is rated the fifth most attractive emerging retail market: a
potential 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
developing countries drawn up by AT Kearney.
Multiple drivers leading to a consumption boom:
Favorable demographics
Growth in income
Increasing population of women
Raising aspirations: Value added goods sales
Food and apparel retailing key drivers of growth

CONTD..
Organized retailing in India has been largely an urban
Phenomenon with affluent classes and growing number of
double-income households.
More successful in cities in the south and west of India. Reasons
range from differences in consumer buying behavior to cost of
real estate and taxation laws.
Rural markets emerging as a huge opportunity for retailers
reflected in the share of the rural market across most categories
of consumption
ITC is experimenting with retailing through its e-Choupal and Choupal
Sagar rural hypermarkets.
HUL is using its Project Shakti initiative leveraging women self-help
groups to explore the rural market.
Mahamaza is leveraging technology and network marketing concepts to
act as an aggregator and serve the rural markets.
IT is a tool that has been used by retailers ranging from
Amazon.com to eBay to radically change buying behavior across
the globe.
E-tailing slowly making its presence felt.

RETAIL SALES IN INDIA
CHALLENGES & OPPORTUNITIES

Retailing has seen such a transformation over the past
decade that its very definition has undergone a sea change.
No longer can a manufacturer rely on sales to take place by
ensuring mere availability of his product.
Today, retailing is about so much more than mere
merchandising. Its about casting customers in a story,
reflecting their desires and aspirations, and forging long-
lasting relationships.
As the Indian consumer evolves they expects more and more
at each and every time when they steps into a store.
Retail today has changed from selling a product or a service
to selling a hope, an aspiration and above all an experience
that a consumer would like to repeat.
For manufacturers and service providers the emerging
opportunities in urban markets seem to lie in capturing and
delivering better value to the customers through retail. For
instance, in Chennai CavinKares LimeLite, Maricos Kaya
Skin Clinic and Apollo Hospital
CONCLUSION
The retail sector has played a phenomenal role throughout the world in
increasing productivity of consumer goods and services.
It is also the second largest industry in US in terms of numbers of
employees and establishments.
There is no denying the fact that most of the developed economies are
very much relying on their retail sector as a locomotive of growth.
The India Retail Industry is the largest among all the industries,
accounting for over 10 per cent of the countrys GDP and around 8 per
cent of the employment.
The Retail Industry in India has come forth as one of the most dynamic
and fast paced industries with several players entering the market.
But all of them have not yet tasted success because of the heavy initial
investments that are required to break even with other companies and
compete with them.
The India Retail Industry is gradually inching its way towards becoming
the next boom industry.

THANK YOU