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Emergning Trends in Retail Formats

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Trends in Indian Retail Sector
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8/7/2019 Emergning Trends in Retail Formats

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Trends in Indian Retail Sector

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TODAY WE’LL HAVE FUN - N ALSO WE’LL LEARN !!!

• Evolution of Indian Retailing• What is Retailing

• Retail Formats• Retail Statistics• Major Players in Indian Retail Industry• What are the opportunities like in Retail Sector 

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Industry Evolution

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Ind

ustr

yEv

olu

tion

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Industry Evolution

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Later Titan successfully created an organized retailing

Industry Evolution

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The latter half of the 1990s saw a fresh wave of Pure Retailers.

Industry Evolution

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Crossword and Fountainhead in books.

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Post 1995 onwards saw an emergence of shoppingcenters,

Emergence of hyper and super markets trying to

provide customer with 3 V’s - Value, Variety andVolume

Expanding target consumer segment: The Sachet

revolution - example of reaching to the bottom of thepyramid.

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Retailing formats in India

Malls:

Ranges from 60,000 sq ft to 7,00,000 sq ft andabove. They lend an ideal shopping experience

with an amalgamation of product, service andentertainment, all under a common roof.Examples include Shoppers Stop, Piramyd,Pantaloon, SJS, Central.

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Specialty Stores:

Chains such as the Bangalore based Kids Kemp,

the Mumbai books retailer Crossword, RPG'sMusic World and the Times Group's music chain

Planet M, are focusing on specific market

segments and have established themselves strongly

in their sectors.

Retailing formats in India

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Specialty Stores:

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23 months ago: Managing Director of The Walt Disney Company (India), Rajat Jain, (L),

holds a balloon as chairman of RJ Corporation, Ravi Jaipuria (R).

Disney Consumer Products to source and market Disney character branded greeting cards,

stationary, arts and craft and party products through specialty stores

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Specialty Stores:

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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

Retailing formats in India

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Discount Stores:

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Department Stores:

Large stores ranging from 20000-50000 sq. ft,

catering to a variety of consumer needs. Further classified into localized departments such asclothing, toys, home, groceries, etc.

Retailing formats in India

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Hypermarts /Supermarkets:

Large self service outlets, catering to variedshopper needs are termed as Supermarkets.

Super Markets can further be classified in to minisupermarkets typically 1,000 sq ft to 2,000 sq ft andlarge supermarkets ranging from of 3,500 sq ft to

5,000 sq ft. having a strong focus on food &grocery and personal sales.

Retailing formats in India

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Convenience Stores:

These are relatively small stores 400-2,000 sq. feetlocated near residential areas. They stock a limited

range of high-turnover convenience products andare usually open for extended periods during theday, seven days a week. Prices are slightly higher due to the convenience premium.

Retailing formats in India

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Retailing formats in India

CASH AND CARRY

RETAIL FDI ISSUE

Food and non food items to professional business ,

institutions, restaurants and local retailers

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W ld C tli t

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Worlds Costliest

Perfumes

Only ten bottles were

designed from exclusive

Baccarat crystal decorated

with 18 carat gold and 5

carat white diamond.

The Imperial Majesty cost

$215,000 for 16.90 ouncesbottle and was available

only for the Christmas

holiday season of 2005. OR 

4,96,153.8 INR for 30 ML.

Clive Christian; made in the UK.

Clive Christian: The Imperial Majesty

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Vertu Cobra Cellphone: $310,000.

(1Crore 48 Lac 88 Thousand Indian Rs.Only )

Features Justify The Price?

LUXURY RETAILING

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Convenience Stores:

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RURAL RETAILING

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Major Players in Indian Rural Retail

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Mobile Van at Kasargod

1000 In Store

Demonstrators at Dealer 

counters in Rural Cities

Promotion of Sampoorna

TV’s

Cookery Classes at

different locations for 

Rural Housewives

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Hariyali Bazaars 

GODREJ AGROVET LTD

Mahindra Shubhlabh Services Ltd (MSSL), a subsidiary of 

Mahindra and Mahindra Ltd

DCM Sriram Consolidated Ltd. (DSCL)

Triveni Khushali Bazaar (TKB)

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Triveni Khushali Bazaar (TKB)

Empowering Women Consumers – Shakti Case Study

KISAN SEVA KENDRA -

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KISAN SEVA KENDRA -

IOC

ITC's eChoupal Initiative

Recent Trends contd

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Recent changes:Recent changes:

Recent Trends contd.

Trial & Error:

Pantaloon Retail India

Fashion Station (popular fashion),Blue Sky (fashion accessories),

aLL (fashion apparel for plus-size individuals),

Collection i (home furnishings),

Depot (books & music) andEzone (Consumer electronics).

Recent Trends contd

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Recent changes:Recent changes:

Recent Trends contd.

Land mark group also operates

multiple formats such as

hypermarket (Max),

departmental store (Lifestyle),

Shoe mart and Funcity8 etc.

Emergence of Wholesale Clubs

Recent Trends contd

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Recent changes:Recent changes:

Recent Trends contd.

Food Bazaar have made the transition

from just a grocery retailer to developing emotional

bonding with shoppers by providing some valueadded services to the shoppers.

Emergence of Private-Label Brands:

Live chakki:

Fresh Juicecounter:

Live dairy:

Live kitchen:

Recent Trends contd

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Recent changes:Recent changes:

Recent Trends contd.

Category Killer: A New Concept

imported from U.S.:

In India, Mega- Mart is one sort of category killer 

which sells apparel products

e-Retailing:

Recent Trends contd

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Recent changes:Recent changes:

Recent Trends contd.

e-Retailing:

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Easybuymusic.com

Electronic Retailing

Recent Trends contd

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Recent changes:Recent changes:

Recent Trends contd.

RFID

Security

Technology

Recent Trends contd

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Issues in Catalog Retailing

Low Start Up Cost Evolution of Multi-Channel Offering

  -Electronic Channel, Stores

Increasing Mail Costs

Clutter from other Catalogs

Recent changes:Recent changes:

Recent Trends contd.

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Road Ahead

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Finally, it is not the format that gives business sustainability

rather it has to deliver the value to the customer.

marketer has to address family sensibilities more rigorously to

woo Indian customers.

Indian customers have become more sensitive to quality,

customer service and status.

He/She is ready to pay, sometimes, astronomical sums

provided their needs are satisfied. They are basically lookingfor an experience which is more of cognitive than physical. In

brief, Jo Dikhta Hai Wo Hi Bikta Hai.

Road Ahead

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Sources

AT Kearny

Forrester Research 2006

KPMG-FICCI Report

http://www.indiainbusiness.nic.in/

Lakshmi Narayanaswamy (203/43) Mudit Sharma (222/43)

FDI in Retail Sector in India, Arpita Mukherjee, Nitisha Patel, ICRIER Publication,pg.31

India Retail Hand book ,ICICI and AC Neilson , ORG Marg ( 2006)

Living it Up, India Today, August, 22,2005, pp.86

Marketing White Book (2006), Business World, pp.237,114-115.

Non-Store Retailing, Retailing in India, Euro monitor Report, 2006

Retailing in Punjab: 2010 and beyond (2006), An image & CII study.


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