Post on 14-May-2015
transcript
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)