Post on 29-Mar-2015
Agriculture Officer Batch 2009, Agriculture Officer Batch 2009, Belapur, MumbaiBelapur, Mumbai
RETAIL REVOLUTION IN INDIA , IMPACT ON AGRICULTURE AND AGRICULTURE
LENDING, ROLE OF MARKETING IN TAPPING GROWTH OPPORTUNITY
Presented by-
Mr. S. Bagada Mr. R. R. Kumar
Dr. R. Somnathe Mr. D. R. Kamdi
Mr. Rakesh Kumar Mr. S. R.. Nalawade
Ms. Shweta Prasad Ms. Suriyasree.S
Ms. Jeyashree.G
AGENDA…AGENDA…
INTRODUCTIONINTRODUCTION GROWTH OF RETAIL IN INDIAGROWTH OF RETAIL IN INDIA CHANGING SCENERIO OF SUPPLY CHANGING SCENERIO OF SUPPLY
CHAINCHAIN IMPACT OF RETAIL ON AGRICULTURE IMPACT OF RETAIL ON AGRICULTURE
& AGRICULTURE LENDING& AGRICULTURE LENDING ROLE OF MARKETING IN TAPPING ROLE OF MARKETING IN TAPPING
GROWTH OPPORTUNITYGROWTH OPPORTUNITY CONCLUSIONCONCLUSION REFERENCESREFERENCES
INTRODUCTIONINTRODUCTION
India is fifth most attractive India is fifth most attractive emerging retail market: a potential emerging retail market: a potential goldmine.goldmine.
Indian retail is largest among all Indian retail is largest among all industries(200 billion $).industries(200 billion $).
10% - India’s GDP.10% - India’s GDP. Growth rate – 20-25%Growth rate – 20-25% 8% - employment 8% - employment Potentiality to grow 427 billion $ by Potentiality to grow 427 billion $ by
2010 and 637 billion $ by 2015.2010 and 637 billion $ by 2015.
INTRODUCTION CONTD….
RETAIL FORMATS IN INDIARETAIL FORMATS IN INDIA Malls Malls Speciality stores Speciality stores Discount storesDiscount stores Department storesDepartment stores Hypermarts / SupermartsHypermarts / Supermarts Convenience storesConvenience stores Multi brand outlets Multi brand outlets
INTRODUCTION CONTD….
Types of RetailersTypes of RetailersSmall/
Medium Size Retailer
Large scale Retailers
Consumer Co-op Stores
Direct Mktg/Channel less Retailing
1. Mobile Retailers, Hawkers.
2. Convenience stores.
3. Specialty Stores
1.Super Market.
2.Departmental Stores.
3.Discount stores.
4.Manufacturer’s
Showroom
5.Super stores.
(Combination Stores,Hypermarkets)
1.Co-op stores.
2 .Sahakari Bhandars.
1.In home Selling.
2.Telemarketing.
3.Mail Order sale.
4.Vending Machine
GROWTH OF RETAIL IN INDIAGROWTH OF RETAIL IN INDIA
INDUSTRY REVOLUTIONINDUSTRY REVOLUTION Retailing in India can be traced to emergence Retailing in India can be traced to emergence
of the neighborhood "Kirana " stores catering of the neighborhood "Kirana " stores catering to the convenience of the consumers. to the convenience of the consumers.
Era of government support for rural retail: Era of government support for rural retail: Indigenous franchise model of store chains Indigenous franchise model of store chains run by Khadi & Village Industries run by Khadi & Village Industries Commission Commission
1980s experienced slow change as India 1980s experienced slow change as India began to open up economy. began to open up economy.
Textiles sector with companies like Bombay Textiles sector with companies like Bombay Dyeing, Raymond's, S Kumar's and Grasim Dyeing, Raymond's, S Kumar's and Grasim first saw the emergence of retail chains first saw the emergence of retail chains
GROWTH OF RETAIL IN INDIA GROWTH OF RETAIL IN INDIA CONTD…CONTD…
1990s saw a fresh wave of entrants with a 1990s saw a fresh wave of entrants with a shift from Manufactures to Pure Retailers. shift from Manufactures to Pure Retailers.
For e.g. Food World, Subhiksha and Nilgiris in For e.g. Food World, Subhiksha and Nilgiris in food and FMCG; Planet M and Music World in food and FMCG; Planet M and Music World in music; Crossword and Fountainhead in books. music; Crossword and Fountainhead in books.
Post 1995 onwards saw an emergence of Post 1995 onwards saw an emergence of shopping centers. shopping centers.
Targeted to provide a complete destination Targeted to provide a complete destination experience for all segments of society experience for all segments of society
Emergence of hyper and super markets trying Emergence of hyper and super markets trying to provide customer with 3 V’s - Value, Variety to provide customer with 3 V’s - Value, Variety and Volume.and Volume.
GROWTH OF RETAIL IN INDIA GROWTH OF RETAIL IN INDIA CONTDCONTD……
GROWTH OF RETAIL IN INDIA GROWTH OF RETAIL IN INDIA CONTD…CONTD…
FACTORS FOR GROWTH OF ORGANISED FACTORS FOR GROWTH OF ORGANISED RETAIL SECTORRETAIL SECTOR
Growth of Indian Economy: Second fastestGrowth of Indian Economy: Second fastest Emerging opportunities in service sectorEmerging opportunities in service sector Capital no longer a constraint – easy loansCapital no longer a constraint – easy loans Increase in the young working populationIncrease in the young working population Increasing working women population Increasing working women population Hefty pay pocketsHefty pay pockets Nuclear families in urban areasNuclear families in urban areas Changing Cultural HabitsChanging Cultural Habits Middle class dwelling revampedMiddle class dwelling revamped
CONTD ..,CONTD ..,
Multiple drivers leading to a consumption Multiple drivers leading to a consumption boom: boom:
Favorable demographics Favorable demographics
Growth in incomeGrowth in income
Increasing population of working womenIncreasing population of working women
Raising aspirations: Value added goods Raising aspirations: Value added goods salessales
CONTD..,CONTD..,
Rural markets emerging as a huge Rural markets emerging as a huge opportunity for retailersopportunity for retailers reflected in the reflected in the share of the rural market across most categories share of the rural market across most categories of consumption of consumption
ITC is experimenting with retailing through its ITC is experimenting with retailing through its e-Choupal and Choupal Sagar rural e-Choupal and Choupal Sagar rural hypermarkets. hypermarkets.
HLL is using its Project Shakti initiative HLL is using its Project Shakti initiative leveraging women self-help groups to explore leveraging women self-help groups to explore the rural market. the rural market.
CHANGING SCENERIO OF SUPPLY CHAIN
IMPACTS ON AGRICULTURE IMPACTS ON AGRICULTURE AND AGRICULTURE LENDINGAND AGRICULTURE LENDING
Corporate investment in retail is likely Corporate investment in retail is likely to be multifaceted .to be multifaceted .
• On Supply chain starting from the On Supply chain starting from the farmers to the SME goods to consumers.farmers to the SME goods to consumers.
• Agricultural front , the organised Agricultural front , the organised retailers are providing farmers with retailers are providing farmers with inputs.inputs.
• Has increased the net realisations of Has increased the net realisations of farmers with disintermediation for farmers with disintermediation for middlemen.middlemen.
To provide the cheapest & best To provide the cheapest & best produce, organised retail could help the produce, organised retail could help the Indian farmers directly & banks Indian farmers directly & banks indirectly in agri. Lending .indirectly in agri. Lending .
Investment into cold storage chain Investment into cold storage chain will result in significant efficiency on will result in significant efficiency on supply chain.supply chain.
IMPACTS ON AGRICULTURE AND IMPACTS ON AGRICULTURE AND AGRICULTURE LENDING AGRICULTURE LENDING CONTD…CONTD…
Entry of retail giants leads to Entry of retail giants leads to -greater investment in farm technology -greater investment in farm technology
(Bharti, Pepsi,Reliance)(Bharti, Pepsi,Reliance) -Aggregate demand for bank credit -Aggregate demand for bank credit -Help bankers in credit expansion & -Help bankers in credit expansion &
monitoring .monitoring . Contract farming spreads very fastContract farming spreads very fast - Farmers to get better price- Farmers to get better price - Improves farm production through - Improves farm production through
modern techniquesmodern techniques
IMPACTS ON AGRICULTURE AND IMPACTS ON AGRICULTURE AND AGRICULTURE LENDING AGRICULTURE LENDING CONTD…CONTD…
ROLE OF MARKETING IN ROLE OF MARKETING IN TAPPING GROWTH TAPPING GROWTH OPPORTUNITYOPPORTUNITY
Importance of Marketing.Importance of Marketing. Organisations around the world Organisations around the world
strive to develop products and strive to develop products and services that appeal to their services that appeal to their customers customers
Aim to differentiate their offering in Aim to differentiate their offering in the increasingly-crowded global the increasingly-crowded global marketplace.marketplace.
Customers satisfaction should be the Customers satisfaction should be the ultimate objective of marketingultimate objective of marketing
ROLE OF MARKETING IN ROLE OF MARKETING IN TAPPING GROWTH TAPPING GROWTH
OPPORTUNITYOPPORTUNITY
Finance for contract farming in Agri Business Finance for contract farming in Agri Business
wherever possible. wherever possible.
Identify Supply chain in contract farming activity.Identify Supply chain in contract farming activity.
Finance all the players of supply chain such as Finance all the players of supply chain such as
processor, distributor, logistics, retailers, farmers etc.processor, distributor, logistics, retailers, farmers etc.
Identify the Missing links in the supply chain. Identify the Missing links in the supply chain.
Finance the Missing links and try to cover under one Finance the Missing links and try to cover under one
umbrella umbrella
Promote cross selling.Promote cross selling.
FARMER
CONSUMER
DEALERS OF SEEDS,
FERTILISERS, PESTICIDES, ETC.
Backward linkages
WHOLESALERRETAILER
Forward linkagesBANK
STRATEGIES TO TAP THE STRATEGIES TO TAP THE GROWTH OPPORTUNITIESGROWTH OPPORTUNITIES
Effective deployment of agriculture Effective deployment of agriculture officers with special target .officers with special target .
Finance entire commodity chain from Finance entire commodity chain from farmers to retailers. farmers to retailers.
Targeting standard accounts of other Targeting standard accounts of other banks. banks.
Taking partnership route to drive Taking partnership route to drive growth in agriculture.growth in agriculture.
Thrust on investment credit. Thrust on investment credit.
STRATEGIES TO TAP THE STRATEGIES TO TAP THE GROWTH OPPORTUNITIES GROWTH OPPORTUNITIES
CONTD…CONTD…Innovative & need based Innovative & need based productsproductsBanks need to prepare big ticket Banks need to prepare big ticket loan loan Linkage on the lines of farm to Linkage on the lines of farm to forkforkPromotion of channel credit Promotion of channel credit through corporate customers .through corporate customers .
CONCLUSIONCONCLUSION
The huge potential in Agriculture sector & lack of sufficient rural & semi urban branches in private sector banks, the Nationalised Banks has huge scopes..
It is certain that the competitive battlefield of bankers will shift in the near future.
Let us take AGRI. LENDINGS to a higher growth trajectory through new strategies and After all, the colour of money has always been green in India.
REFERENCESREFERENCES Indian Retail Industry-Its Growth, Indian Retail Industry-Its Growth, Challenges And Opportunities- An Challenges And Opportunities- An Article by Dr.M. Dhanabhakyam.Article by Dr.M. Dhanabhakyam. Financing Agriculture-A Journal of Financing Agriculture-A Journal of Agriculture & Rural Development, Jan-Agriculture & Rural Development, Jan-Feb-2008 Issue.Feb-2008 Issue.Morgan Stanley Research Publication, Morgan Stanley Research Publication, Nov.24, 2006 Economics.Nov.24, 2006 Economics.Retail Revolution- The Indian Partner, An Retail Revolution- The Indian Partner, An Article by Sanjeev Chaturvedi, IILM- Article by Sanjeev Chaturvedi, IILM- Business School, Delhi.Business School, Delhi.
THANK YOUTHANK YOU