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PRESENTED BY: -

IRFAN BALSANIA B07

DIPINDER CHADHA B 08

RIZWAN QURESHI B 37

KUMAR NAIR B 31

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Retailing

Worlds largest private industry

US$ 6.6 trillion sales annually

Indian retailing Largest employer after agriculture - 8%* of

population

Highest outlet density in world

Around 12 mn outlets

Still evolving as an industryLong way to go

An overview

Retailing: An overview

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Wal-Mart

Topmost global Fortune 500 company(3Consecutive Years)

Annual Sales of over US$ 250 bn Indias two largest retail player turnover

around US$ 158 mn (Bata) and US$ 102 mn(Shoppers Stop)

An overview

Retailing: An overview

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Weekly Markets

Village FairsMelas

Convenience StoresMom andPop/Kiranas

PDS OutletsKhadi Stores

Cooperatives

Exclusive BrandOutletsHyper/Super MarketsDepartment StoresShopping Malls

Traditional/Pervasive Reach

GovernmentSupported

Historic/RuralReach

Modern Formats/International

Evolution of Indian retail

Source ofEntertainment

NeighborhoodStores/Convenience

Availability/ LowCosts /

Distribution

ShoppingExperience/Efficiency

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Informal retailing Sector Typically small retailers.

Evasion of taxes

Difficulty in enforcing tax collectionmechanisms

No monitoring of labor laws

Formal Retailing Sector

Typically large retailers

Greater enforcement of taxation

mechanisms High level of labor usage monitoring

Indian retail

Evolution of Indian retail

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Chain store format

High street format

Destination format

Convenience store format

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Family store

Specialty store

Department store

Super market

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Super store

Shopping mall

Hyper market

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Discount format

Every day low price(EDLP)format

Category killer format

Factory outlet format

Single-price domination format

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Stopover store format

Kiosk

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Corporate Houses

Tatas: Tata Trent

RPG group: Food World, Health andGlow, etc

ITC: Wills Life Style

Rahejas(ShoppersStop),Hiranandani(Haiko), DLF(DT cinemas) etc.

Dedicated brand outlets

Nike, Reebok, Zodiac etc

Multi-brand outlets

Vijay Sales, Croma etc

Manufacturers/ Exporters

Pantaloons, Bata, Weekender

Indian retail

Categories of Indian retail

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Modern Format retailers Supermarkets (Foodworld)

Hypermarkets (Big Bazaar)

Department Stores (S Stop)

Specialty Chains (Ikea)

Company Owned Company Operated

Traditional Format Retailers

Kiranas: Traditional Mom and Pop Stores

Kiosks

Street Markets Exclusive /Multiple Brand Outlets

Indian retail

Classifying Indian retail

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Hypermarket

Big Bazaar Giants

Shoprite

Star

Department store Lifestyle

Pantaloons Pyramids

Shoppers Stop

Trent

Entertainment Fame Adlabs

Fun Republic Inox

PVR

Indianretailers

Large Indian retailers

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Greater per capita income

Increase in disposable income of middleclass households

20.9%* growth in real disposable income in99-03.

Growing high and middle income population

Growing at a pace of over 10%* per annumover last decade

Affordability growth

Falling interest rates

Easier consumer credit

Greater variety and quality at all pricepoints

Indianconsumer

The changing Indian consumer

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The urban consumer

Getting exposed to international lifestyles

Inclined to acquiring asset

More discerning and demanding than ever

No longer need-based shopping

Shopping is a family experience

Changing Mindset

Increasing tendency to spend

Post Liberalization children coming of age

100 mn 17-21 year olds*. Tend to spendfreely.

Greater levels of education

Indianconsumer

The changing Indian consumer

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Low domestic competition

Because of fragmented nature of industry

Lack of exposure to global best practices

Low entry barriers for unorganized retailing

Moderate entry barriers for organized

retailing

Wholesale system under-invested leading to20-40% wastage

Non level playing field issues Wide differences in treatment of small and

large retailers

IndustryChallenges

Challenges in the Industry

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Real Estate Costs

Supply Chain Inconsistency

Poor Infrastructure

Lack of Skilled Manpower

issues

Challenges

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Market size

Current market size is roughly US$ 286 bn*

96% of the 12 Million stores are less than 500

Sq. ft. Sales from large format stores would rise by

24-49%**

Formal and modern format retailing wouldenjoy rapid growth

Anticipatedgrowth

Opportunities

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Growth determining factors

Government Policy

Infrastructure development GDP growth

Employment generation and job creation

Growthfactors

Growth factors

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India ranked 1st in the Global A.T KearneyRetail Development Index

India

Russia

China

AdvantageIndia

The Indian advantage

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Thank you