Indian Retail Sector Ppt Tmrw

8/4/2019 Indian Retail Sector Ppt Tmrw

1/23

34122-Abdul Razique Khan

34123-Deepak Kumar

34124-Sanjeev Kumar


2/23

AgendaHistory

Overview

Key Players

Revenue and Shares

Challenges

Trends


3/23


4/23

Timeline of Retailing in India


5/23

Organized Vs Unorganized Retail Sector

Organized Retail Sector Unorganized Retail Sector


6/23

Organized Vs Unorganized Retail Sector

Factor Organized Retail Sector Unorganized Retail

Sector

Definition Modern form of retailing Traditional form ofretailing

Examples Hypermarket, Retail chain

etc.

Mom n Pop stores, hand

cart, pavement vendors etc

Market Share 3% 97%

Market Growth 35% 6%

Challenges Poor supply chainmanagement, aggressiveexpansion etc.

Use of labour intensivetechnology, lack ofgovernment support etc.


7/23

About Retail


8/23

Revenue and Share of Verticals Food and beverages US$ 231,951 million: 74.41%

Clothing and Textile US$ 29,024 million: 9.31%

Consumers Durables US$ 15,171 million: 4.87%

Jewellery and Watches US$ 13,390 million: 4.30%

Home Decor US$ 9,463 million: 3.04% Beauty Care US$ 6,854 million: 2.20%

Footwear US$ 3,268 million: 1.05%

Books, Music and Gifts US$ 2,610 million: 0.84%


9/23

Major players in Indian Retail Sector


10/23

FUTURE GROUP

Founder and group CEO Mr. KishoreBiyaniInception in 1987-Manz Wear Pvt. Ltd.

Retail presence in 85 cities, 65 rural cities& employs over 35000 people directly.

Pantaloons

Big Bazaar Central E-Zone Food Bazaar


11/23

Shoppers Stop The foundation of Shoppers' Stop was laid on October 27, 1991 by the

K. Raheja group of companies

28 retail outlets across the country and is planning to spread its wingswith futuristic expansion plans to meet the challenges of the retailindustry

With a Gross Retail Turnover of Rs. 8996 million, Shopper's Stop has

become the highest benchmark for the Indian Retail Industry.

Has progressed from a single brand shop to a Fashion & Lifestyle storefor the families.


12/23

Reliance Retail Ltd.

RRL serves over 2.5 million customers every week

Licensing agreements with leading worldwide brands likeRoxy, Timberland, Hamleys etc.

In 2011, RRL has already opened 90 new stores.

Targeting 784 small indian towns with populationgreater than 50000

Challenges faced :Staff Lack of knowledge about productsReliance fresh controversy


13/23

TATA VenturesTRENT

Westside: offers clothes, footwear and accessories for men,women and children, along with furnishings, artifacts and arange of home accessories.

Star Bazaar: staple foods, beverages, health and beautyproducts, vegetables, fruits, dairy and non-vegetarian products.

Landmark: books and music category, this chain has a range ofover 100,000 titles in books and music, and also stocks movies,

toys, gift items and stationery.

Fashion Yatra: quality fashion at low prices to value consciouscustomers in towns across India.


14/23

Choupal Sagar

Unique rural hypermarket

Offers multiple facilities under one roof Provides services such as training, soil testing, health

clinic, cafeteria, banking, investment services, fuelstation etc

Around 30 Choupal Sagars have commencedoperations in M.P., U.P, Maharashtra, and furtherscale up plans are on.


15/23

Government Policies 51% FDI allowed in single-brand formats

100% FDI in cash-and-carry format under FIPB.

NO FDI in multi-brand stores ( like Wal-Mart)

Trends indicate that the FDI would open up in retail sector,

however political consensus has to be reached before thathappens


16/23

Growth Drivers Barriers to EntryConsumption Boom, HigherIncomes

Favorable Demographics

Changing Lifestyles andPreferences

Real estate boom

Manufacturing Reforms

Reduction in import duties-offering

Regulatory barriers

Fragmented Suppliers

Lack of infrastructure

Supply Chain Complexities Lack of skilled HumanResource

Differential Taxation System

Labor Legislation Clustering of Malls

Growth Drivers & Barriers


17/23

Challenges for retail sector

Severe cost pressure largely related to property rentals Internet retailing still to pick up in India

Low share of organized retailing

Trained manpower shortage is a challenge facing the organized

retail sector in India. Poor infrastructure

Unorganized & poor supply chain


18/23

Recent news Four years after announcing its wholesale joint venture with Bharti

Enterprises, Walmart, the worlds largest retail company, is stillwaiting for the multi-brand retail sector in India to open for foreigndirect investment (FDI).

Aditya Birla Retail, which runs stores under the More brand, planscapital spending of 2.5 billion rupees ($55.3 million) during the fiscal

year that ends in March 2012.

New York-based high-end fashion retailer Saks Fifth Avenue has tiedup with realty major DLF


19/23

Continued Retail chain Shoppers Stop has increased prices of its

products by 6-7 per cent from April this year in order tooffset the 10 per cent excise duty imposed on branded

apparel in the Budget 2011-12.

Walmart in talks to pick up stake in Future Group's BigBazaar


20/23

C t


21/23

Cont nue

Retailing in India is witnessing a huge revamping

exercise India is rated the fifth most attractive emerging retail

market: a potential goldmine.

As per a report by KPMG the annual growth ofdepartment stores is estimated at 24%

Ranked second in a Global Retail.

The share of modern retail is likely to grow from its

current 2 per cent to 15-20 percent over next decade


22/23


23/23

Indian Retail Sector Ppt Tmrw

Documents

Transcript of Indian Retail Sector Ppt Tmrw