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Modern Trade is just 5-6 % in India. While Regular Trade is95 %

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Still, Modern Trade is Creating a Significant I !act"

Modern trade currently accounts for 10% of the total household purchases in India.

"Modern trade channel is playing a significant role in promoting branded food items in India.

Especially for specialty and premium food brands. It attracts the right kind of target audience" -

Chittaran an !har CE# of I$C oods.

&s per the 'hopper $rends study released by (ielsen a fifth of Indian urban shoppers )*1 per cent+

are no, regular Modern $rade shoppers.

& recent (ielsen study e pects Indian shoppers to increase spending on MC at modern retail to

/ billion or about s*2 300 crore by *01 from /1.4 billion or s 4 500 crore in *011.

Modern trade format seems to be the gro,th dri6er for the packaged foods segment in urban India

this year. Categories such as breakfast cereals noodles soft drinks ams coffee edible oils

soups and milk food drinks are gro,ing *0% faster in modern trade bet,een 7anuary and &pril this

year as compared to the corresponding period in *010 according to data from leading market

research agency IM 8.

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#ne Reason for $ro th in Modern Trade is$ro th of &MC$ Industr' as Whole.

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Chart sho ing gro th of &MC$ Industr'

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Reasons for o(erall gro th in &MC$ Industr'

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Reasons for o(erall gro th in &MC$Industr'

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Increased S!ending, due to (arious reasons thus leads to $ro th in Industr'as Whole.

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Consumer E penditure )In s. per household per month+

9ousehold *00: *003 *004 *005 *010 *011Cou!le ith children )*,+55 )6, )+,66 )+,+9* ),69 *,9*9

Cou!le ithout children /9,/9* )), )) )),995 ) ,/*) ) ,6 )6,) /

Single !arent fa il' )/,) ) ,9 )*, 65 )*,9 9 )6,96 ) ,69)

Single !erson / ,6* /5,5) /5, /5, ) /+,// /+,66*

#ther )), *) )5,)9 )6, +) )6,*6+ )9,9 ),9++

&6erage 11 5;0 12 31* 1 3 ; 1 42 15 ;0 *1 *40

Source" 0 1a!er 1u2lished on 3e(elo! ent of Modern Retailing in India" It4s I !acts on3istri2ution and 1rocure ent et or s and Changing Consu !tion 1attern at IIM 0h eda2ad.

Written 2' 1i'ush 7u ar Sinha, Sri ant $o hale, Sujo Tho as.

Ta2le Sho ing 8ousehold :!enditures 1er Month ;In IndianRu!ees

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/)/ /)) /) /)* /)/

5///

)////

)5///

////

5///

*////

*5///

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5///

$ross 3is!osa2le Inco e 1er8ousehold

0n esti ated increase in gross dis!osa2le inco e !er household ould result in increased!urchase.

$ra!h Sho ing sti ated $ross 3is!osa2le Inco e 1er 8ousehold 1erMonth"

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#ne reason for esti ated increase in gross household dis!osa2le inco e is that,Indian 1o!ulation is still 'oung, hich results into ore an !o er, = ore dis!osa2le

inco e.

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$ro th in 8ousehold inco e ould result into shift of Classes.

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Rise of dis!osa2le inco e in the hands of educated 'outh ould thus create a significantde and for &MC$ 1roducts = that too in 8ealth > &ood 3rin s = S in > 8ealth Care

1roducts.

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Thus, 2ased u!on earlier entioned esti ates = reasons? it is esti ated that ModernTrade ould e:!and = gro &our &old in the follo ing u!co ing 'ears.

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Conclusion @8T Mil should 2e !ro oted = ar eted through Modern Trade as it is a !re iu

health !roduct focusing on u!!er iddle class = high class target audience. Modern

Trade 1laces attracts such target audience ith high dis!osa2le inco e.

Modern Trade also sho s !otential gro th in itself hich ould increase !roduct

e:!osure through Modern Trade a ong !eo!le.

It has 2een seen that Modern Trade &or at is the gro th dri(er for !ac aged foods

seg ent ;Refer Slide *, 1oint 5

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Thank you.