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RETAIL GROWTH
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ORGANISED RETAIL 2006
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TOTAL RETAIL 2006
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Y-O-Y TOTAL RETAIL GROWTH (3 YEARS)
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Y-O-Y ORGANIZED RETAIL GROWTH
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THE SCENARIO
FDI will touch $ 10 billion
Infrastructure investment $130 billion
1000 FIIs already operating in India FIIs have bought shares worth Rs. 13,27,521
crores
FIIs have sold shares worth Rs. 11,14,219crores
Unorganized retail is about 15 million
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THE SCENARIO
Large groups like ITC, Reliance, Rahejas, Tata,
Jubilant etc have infused money
Additional 700 million sq. ft. space needed by2011
Most of the growth will come from 1000 Tier
II towns and major rural hubs
Most states have agreed on direct sales from
farmers to organized retail
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THE RURAL SCENARIO
Rural Markets are the flavor of the season
Problems:
Erratic weather conditions
Crop failures Inadequate irrigation methods
Rural debt
Rural-Urban spending 9:11
55% retail spending @ $260 billion
50% market potential is in rural
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CONSUMER STRENGTH
Rural: 720 million consumers across 627000
villages
17% villages have 50% strength and 60%wealth
100,000 villages need to be attacked
DCM Haryali Kisan Bazar, Godrej Aadhars, ITCChaupal Sagars, Tata Kisan Sagars, etc are
already there
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CONSUMER TRENDS
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POPULATION BY AGE GROUP
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PROFILE
Credit Cards zoomed: 3.2 to 12 million in 5
years
Domestic retail spend Rs 15,96,802 crorewith 6% growth
Organized retail spend about Rs 1,00,000
crore
Indian consumer worlds youngest
China will witness rapid ageing in next 20 yrs
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CHANGING PREFERENCES
2% Joint families = nuclear families / year
DINK presence now significant
shop till you drop syndrome
Very Rich = 6.2 million households
Consuming Class = 90.9 million households
Aspirants + Destitute = significant reduction
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CHANGING PREFERENCES
Food & Grocery raising rural incomes
Increase in number of working women
6 out of 10 households have a postliberalization child
Easy bank finance
Capital expenditure gets converted torevenue expenditure
Easier luxury acceptance
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CHANGING PREFERENCES
Image is important, but up to a point
Demographics assume greater power
Organics getting fashionable
value gets re-defined: no compromise on
principles
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STICKINESS PROGRESSION MODEL
PROFITS
SALES
BIG SPENDER
SPENDER
BROWSER
PASSER-BY
LOY
ALSHOPPER
IN-STORE
CONVERSION
TICKET SIZE
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MULTI FORMAT RETAILERS
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R P G
1996: Foodworld, division of Spencer JV with Jardine Matheson US (Dairy Farm
Intnl)
By 2005 Foodworld T. O. Rs. 3 billion Health & Glow in pharma and beauty care
2003 Music World with three formats
Music World DestinationMusic World Express
Music World Unplugged
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R P G
2000 Spencer JV with DFI: Great Wholesale
Club Ltd but called Giant (now Spencer
Retail Limited)
Spencers formats
Spencer Hyper
Spencer Super
Spencer Daily
Spencer Fresh
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FUTURE GROUP
Food
Fashion Footwear
Home solutions
Consumer electronics
Books and music
Telecom and I T
E-tailing
Leisure
Entertainment
Financial prod &services
PANTALOON
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FUTURE GROUP
Pantaloons
Central
Blue Sky
aLL
Big Bazar
Food Bazar
Fashion Station
Beauty & Health Malls
Depot
Star & Sitara
Manipal Health
Systems
Talwalkars
Home Solutions Retail
EZone
Electronic Bazar Collection I
Furniture Bazar
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FUTURE GROUP
VERTICALS
FUTURE RETAIL
FUTURE CAPITAL
FUTURE BRANDS
FUTURE SPACE
FUTURE MEDIA FUTURE LOGISTICS
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TATA
Trent (Westside)
Trent JV with DLF
JV with Woolworths
Infiniti Retail (Croma)
Star India Bazar
Landmark Titan JV with TIDCO
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K RAHEJA CORP
Shoppers Stop
Shoppers Stop JV with Mothercare
Shoppers Stop JV with MAC (Estee Lauder)
Crossword
Home Stop
Caf Brio Desi Caf
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OTHER IMPORTANT GROUPS
Piramyd Retail
Niligiris
Subhiksha Trinethra
Vishal Retail Group
Reliance Retail BPCL (In and Out)
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KEY DRIVERS
Demographic changes
E-Commerce
M-commerce Technology: biometrics, RFID etc
Fluid retail segments
Economic changes: (a) rising income (b)increased per capita spending (c)
infrastructure improvements
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FORMATS
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MAJOR RETAIL FORMATS
SUPERMARKETS
Self-service store with a range of food and
household articles Convenient location near residences
Products at lower prices
Appealing surroundings, hygienic ambience,better display compared to neighborhood
kirana
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MAJOR RETAIL FORMATS
HYPERMARKET
Supermarket with features of department
store
Outskirts of large towns
Very wide product range
Big discount store with 60% food and 40%
nonfood
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MAJOR RETAIL FORMATS
DISCOUNT STORE
Type of Dept. Store with lower prices
Wide range of branded goods
Buy in bulk with deep discounts Concept still new in India
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MAJOR RETAIL FORMATS
SPECIALITY STORES
Single category
Large selection rangeCONVENIENCE STORES
Open 24 x 7
Essential FMCG food, personal care day-to-day
KIOSKS & FOOD COURT COUNTERS