Retail Industry - Mm6feb

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RETAIL INDUSTRY

Global scenario
Global E-commerce retail
 In 2019, e-retail sales
accounted for 14.1 percent of
all retail sales worldwide. This
figure is expected to reach 22
percent in 2023.

Global e-retail sales reached


3.5 trillion U.S. dollars in 2019.
India is the fastest growing
retail market, followed by Spain
and China
Indian Retail overview
• India ranked No. 2 in
Global Retail
Development Index Notable players in Indian
(GRDI) in 2019. Retail Industry
• Retail is India's largest 1. Reliance Retail
industry, currently 2. Tata Group
accounting for over 10% 3. Raymond Group
of the country's GDP 4. Aditya Birla Fashion
and 8% of total & Retail Ltd
employment. 5. Future Retail Ltd
•  India ranked 63rd in
World Bank’s Doing
Business 2019.
• India is the fifth largest
preferred retail
destination globally.
Current market size
• In 2018, the retail industry was Re ta il

US$ 950 billion.


Ma rke t s iz e o v e r the p a s t fe w ye a rs (US $ b illio n )

1,750
1,200
• In 2020, it increased to US$
M a rke t
Siz e

672
641
600
534
518

490
424
368
2006 321
2004 278
2002 238
2000 204

2021F

2026F
2008

2010

2012

2013

2014

2015

2016

2017
1100 billion. FMCG m a rke t in In d ia (US $ b illio n) S e g m e n t S h a re fo r 2 0 1 7 E

Tra d itio n a l

• In 2021, it is expected to
3% re ta il
1 0 3 .7 0
9%

Se c t o r 5 2 .7 5
Org a n is e d re ta il

Co m p o s it io n 4 9 .0 0
88%
E-c o mm e rc e *

2016 FY1 8 20 2 0 F

increase to US$ 1200 billion.


No te : F – Fo re c a s t, E – E s tim a te

In d ia n E-Co mm e rc e Ma rke t (US $ b illio n ) Onlin e re ta il in In d ia (US $ b illio n )

84
7 3. 0 0

Ke y 60 .00

Tre n d s
39
33 32 .70

20 17 .80
14 1 3. 0 0 14 .50

20 14 20 15 20 17 20 18 20 21 20 15 2 016 20 17 20 18F 20 20F 2 022 F

1 00 p e r c e n t
S in g le B ra n d Re ta il

Re la x
s o u rc in g a n d
Go ve rn m e n t in v e s tm e n t
ru le s fo r
In it ia t iv e s s u p e rm a rke ts
FDI
5 1 p e r c e nt
Multi B ra n d Re ta il
MARKET SHARE
Reliance retail
It has a widest distribution network by reaching over 750000 retailers across the country.
It consists of various sub brands like
◦ Reliance Fresh
◦ Reliance Smart
◦ Reliance Market (52 stores)
◦ Reliance Digital
◦ Jio stores
◦ Reliance Trends (777 stores)
◦ Reliance Footprint
◦ Reliance Jewels

It also has partnerships with many revered international brands such as Diesel, Superdry, Hamleys, Ermenegildo
Zegna, Marks and Spencer, Paul & Shark, Thomas Pink, Kenneth Cole, Brooks Brothers, Steve Madden, Payless
Shoe source, Grand Vision and many more.
Reliance Retail reported a turnover of Rs.
1,30,566 crore for the financial year 2019.
As on 30th Sep 2019, Reliance Retail operates
10,901 stores across 6,700+ cities with a retail
area of over 24.5 million sft.
Mukesh Ambani-owned Reliance Retail's latest
valuation stands at $34 billion 
STORES ACROSS INDIA
No. of Stores
12,000

10,000

8,000

6,000 No. of Stores


10415
4,000

2,000 1511
543
2714
176 264 214 77 293 156
0
Future Avenue Trent Ltd Vmart V2 Retail Shoppers ABRL ABFRL Reliance Spencer
Retail Supermarts Stop Retail Retail
Ltd.
Type of retailing
Unorganized retailing refers to the traditional formats of low
cost retailing for example, the local kirana shops, paan-bidi shops,
convenience store, hand cart and pavement vendors
Organized retail is a sector which consists of the companies which
are associated with production or sales of goods and services that
operates as private limited organizations which are governed by
companies act. For e.g. Big bazaar, Wal-Mart etc
E-tailing is the sale of goods and services through the Internet. E-
tailing can include business-to-business (B2B) and business-to-
consumer (B2C) sales of products and services. For e.g. Amazon,
Flipkart etc
Market capitalization
The recent data taken from money control.
Walmart India
Acquisition of Flipkart in 2018 for $16 billion
28 B2B Cash and Carry stores under the brand name of
Best price.
2 Fulfillment centers, One in Mumbai and the other in
Lucknow.
The FCs creates over 1500 direct & indirect local jobs,
develops SME suppliers, and enables small businesses to
succeed.
Walmart India(Contd.)
`Best Price' Stores cater to the needs of different business customers by providing relevant products
and solutions to individual segments.
These customers are
1. Resellers
2. Offices and Institutions
3. Hotels, Restaurants and Caterers
GDP CONTRIBUTION
Industry to be prepared for changing economic conditions.
Expected real GDP growth to slow to 1.6 percent from 2.3
percent in 2019.
Real consumer spending growth to slow to 2.2 percent in
2020 from 2.5 percent in 2019
Q1 (2019) Q3(2019)
REAL GDP(%) 3.1 1.9

At $886 billion, the Indian retail market is growing at a


double-digit 10% CAGR and will reach close to $1.57 trillion.
HOME DEPOT
INTRODUCTION
Home depot founded by Bernard Marcus, Arthur Blank ,Ron Brill and Pat Farrah in 1978.

Specilaise in Home appliances ,Tools , Hardware, Builder Hardware ,Lumber, Building


Materials, Paint, Plumbing, Flooring, Garden supplies and plants.

It operates as a big box format stores model .


Under third quarter of 2019 in November 2019 the reported sales reported was 27.2
billion which increased to 3.5% .
The company earned about 2.8$ billion dollar from its operations. In the 3 rd quarter of
2019.
CERTAIN STRATEGIES USED BY HOMEDEPOT

BETTER STORES>MORE STORES .

THOUGHTFUL AQUISITIONS.
(ASQUITY WAS PURCHASED IN JAN
2019).

APT USE OF MOBILE PHONES.

GROUNDWELL.

CONNECTING TO A NOBEL CAUSE.


ONLINE AND OFFLINE MEDIUM

OFFLINE MEDIUM:
◦ Start with the store assets you already have.
◦ Trade shows

Eg: Anthropologie.

◦ Market your products through key partnership.

Online medium:

◦ Websites, Applications and Online stores


◦ Influencer marketing.
◦ Referral campaign.
◦ Integration between offline and online stores
Growth of Organized retail
Reasons for growth
• Growth of middle class consumers:
• Increase in the number of working women
•Value for money
•Emerging rural market
•Entry of corporate sector
•Entry of foreign retailers
• Rise in income
•Rise of consumerism
Thank You

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