Post on 15-Jul-2015
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Agenda: Situation Analysis
Retailing: Introduction
Evolution of Retail Industry
Indian Retail Market Analysis & Summary
SWOT Analysis
Challenges
Competition
Key To Success
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• Retail has played a major role world over in
increasing productivity across a wide range of
consumer goods and services
• Retailing is one of the important sectors of an economy, both in terms of contribution to GDP and share in the total employment.
• India is the fifth largest retail market in the world
• The Indian retailing sector is at an inflection point. It is set to enter a new growth trajectory owing to rising household consumption and the entry of corporate entities and global retailers.
INTRODUCTION
Retailing: Introduction
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Traditionally retailing in India can be traced to -
• Weekly Markets Village Fairs & Melas.
• The emergence of the neighborhood ‘Kirana’
stores catering to the convenience of the
consumers
• Era of government support for rural retail:
Indigenous franchise model of store chains run by
Khadi & Village Industries Commission
• The latter half of the 1990s saw a fresh wave of
entrants with a shift from Manufactures to Pure
Retailers.
• Emergence of hyper and super markets trying to
provide customer with 3 V’s -
Value, Variety and Volume
An overview
Evolution of Retail Industry
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Weekly Markets
Village Fairs
Melas
Convenience Stores
/Kiranas
Khadi & Village
Stores
Cooperatives
Exclusive Brand Outlets
Hyper/Super Markets
Department Stores
Shopping Malls
Traditional/Pervasiv
e Reach
Government
Supported
Historic/Rural
Reach
Modern Formats/
International
Evolution of Indian retail
Source of
EntertainmentNeighborhood
Stores/Convenience
Availability/ Low
Costs /
Distribution
Shopping
Experience/Efficiency
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Rank Retailer Home Country
1 Wal-Mart Stores, Inc. U.S.A.
2 Home Depot, Inc. U.S.A
3 The Kroger Co. U.S.A.
4.Costco U.S.A.
5 Target U.S.A.
Top retailer
Top Player Of Retail- Worldwide
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• Shoppers' Stop
•Westside (Trent)
•Pantaloon (Big Bazaar)
•Lifestyle
•RPG Retail (Food world, Music world)
•Crossword
•Wills Lifestyle
•Globus
•Piramals ( Pyramid & Crosswords)
•Ebony Retail Holdings Ltd.
Retailers Of
India
Major player of Indian Retail
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• INDIAN RETAIL MARKET ANALYSIS & SUMMARY
• TARGET MARKET
• MARKET TREND
• MARKET DEMOGRAPHICS
• MARKET GROWTH
Market
Analysis
MARKET ANALYSIS
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Retailing in India can be classified under twobroad headings: Organized and Unorganized.
Currently, the size of Indian retail sector is US$410billion with unorganized retail.
Organised retail trade accounts for merely 4%of the total retail trade and is expected togrow at the rate of 30% to 40%.
The sector can be broadly divided into twosegments: Value retailing, which is typically alow margin-high volume business (primarilyfood and groceries) and Lifestyle retailing, ahigh margin-low volume business (primarilyapparel, footwear, etc).
Indian retail
Indian Retail Market Analysis & Summary
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Segmentation
Organised Retail Market Organised retail pie
Segment % contribution
Textile and apparel 38.9
Food and beverages 10.5
Consumer durables 9.0
Home solutions 6.7
Jwellery and watches 6.3
Books, music and gifts 3.2
Pharma 2.1
Others 23.3
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A segment of consumers that is most likely
to purchase the products and services
offered by a particular retailer
When defining the target market, retail
organizations generally identify
demographic, socioeconomic, and
psychographic characteristics, and then
use that data to focus and guide their
marketing, advertising, promotion, and
merchandising efforts.
MARKET
TARGET
TARGET MARKET
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The whole concept of shopping has altered
in terms of format and consumer buying
behavior, ushering in a revolution in
shopping in India. Modern retail has
entered India as seen in sprawling shopping
centers, multi-storied malls and huge
complexes offer shopping, entertainment
and food all under one roof.
MARKET
TRENDS
MARKET TRENDS
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MARKET DEMOGRAPHICS
*Data from NCAER
CONTEXT TYPE OF INFORMATION
Socio-demographic Population composition and distribution
Households and family formation
Health and health services
Learning and educational services
Housing conditions
Peace and order status
Economic activity National accounts
Labor force participation
Wages
Household income and expenditure
patterns
Poverty
Socio-cultural and political Political structure
Political participation
Relevant laws, statutes, policies
Predominant social structure
Gender roles in the household
Time use
Decision- making patterns in the
household
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•It is estimated that the retailing industry is likely to
grow up to $427 billion by 2010 and US$637 billion by
2015 and that organized retail could account up to a
share as high as 20%-22% of this market.
•Organized retail will grow at a significant CAGR of
around 50% till 2011 mainly due to the investments of
more than $30 billion budgeted by big and small
players in the organized retail sector over coming
five to seven years. Organized retail sector has
witnessed a CAGR of around 35% over the past five
years and currently accounts for about 1.5% of the
country’s GDP.
MARKET
GROWTH
MARKET GROWTH
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• Products are cheaper than the market
price.
• Technology intensive industry
• Variety in products
• Demographic favor
• Rising disposable income
• Urbanization
• Shopping convenience
• Low labor cost of skilled ones
• Plastic card revolution
Strength
SWOT Analysis
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• Has not yet trapped the whole market.
• Facing problems due to political
environment
• Less conversion level
• Customer loyalty
• Policy related issues
• Limited consumer insight
• Inadequate human resources
• Taxation hurdle
• Underdeveloped supply chain
• Lack of adequate facilities
Weakness
SWOT Analysis
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• Kids and teens retailing segment
• Percolating down
• Rural retailing
• Sectors for high growth potential
• Locational advantage
• Falling real estate cost
• E-retailing
• Franchising
OPPORUNITY
SWOT Analysis
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• Shopping culture
• Political issues
• Social issues
• Lack of differentiation among the malls
that are coming
• Poor inventory turns and stock
availability measures
THREATS
SWOT Analysis
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•The organized retail industry in India is facing…
competition from the unorganized sector.
•Intensifying competition is exerting downward
pressure on prices.
•• The industry is facing a severe shortage of
talented professionals, especially at the middle-
management level.
•Supply chain management.
•Lack of adequate infrastructure.
•Differential tax rates.
CHALLENGES
CHALLENGES IN RETAIL SECTOR
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Price
Customer Delight
Schemes
Availability of all types/ brands
Quality of products
Success Points
KEY TO SUCCESS
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