Indian Retail Industry

OVERVIEW OF RETAIL INDUSTRY

 Fifth largest retail industry in the world.

 Type of retail sector: 1- Organize

2- unorganized
 Expected to Growth 25% to 30% annually

 India has positive economic factors that helps in growing of retail

industry, such as strong gdp growth, higher disposable income,

increase in proportional income
 We would be concentrating on organize retail industry.
PHASES OF EVOLUTION

Weekly Markets, Village and Rural Melas

source of entertainment and commercial exchange

Convenience stores, Mom-and-pop / Kirana shops

Neighborhood stores/convenience

PDS outlets, Khadi stores, Cooperatives

Government supported

Exclusive brand outlets, hypermarkets and supermarkets, department stores and

shopping malls
 Modern formats
TYPES OF RETAIL INDUSTRY

 Organized Retail:

 Accounts nearly 5% of retail industry

 Expected to grow at 40% compound annual growth rate (CAGR)
 From us $20 billion to us $ 75billion (2010-2015)
 Market share is expected to reach 15% (2015)

 Unorganized Retail:

 This sector is estimated to have nearly 85% market share in 2015.

 Study by Indian Council For Research On International Economic
Relations(ICRIER) -
 This sector, dominated by small and medium enterprises, will remain
pertinent.
ORGANIZED RETAIL INDUSTRY

 Rural Retail
 Rural India accounts for roughly 70% of the population.
 Two-Third’s of country’s consumers live in rural areas and almost half of the
national income is generated here.

 Urban Retail
 This segment comprises of residents in metros and tier-II cities.
 Follows' trends like: supermarket, hypermarket, mall’s.
 Huge buying potential is there in these areas.

 E-Retailing
 E-retailing is shopping through the Internet and other media forms. It can be
described as transactions that are conducted over an electronic network,
where the buyer and merchant are not at the same physical location.
FORMATS OF RETAIL

 Hypermarkets  Supermarkets

 Shopping malls  Departmental stores

 Vending  Convenience stores

 Category killers  Discount stores

 Specialty stores  Mom-and-pop stores

 Kiosks
FUTURE GROWTH ASPECT

 The industry is expected to grow at a pace of 25-30% annually.

 Real state stock will reach to 95 million sq ft till 2012.

 During 2010-12, around 55 million sq ft of retail space will be ready in:

 Mumbai & Pune

 NCR
 Bangalore
 Kolkata
 Chennai
 Hyderabad

 The total retail sales will grow US$ 543.2 billion by 2014.
 FUTURE PROSPECT OF RURAL RETAIL

 It is expected to Rs 240, 000 crore by 2015 (CII)

 It will grow at a compounded annual growth rate of 5.1% during next two
decades.

 It will reach today’s urban level till 2017.

 Rural market will nearly triple till 2025 creating a vast potential of $577bn.
Factor for growth of rural retail

Three important contributors for the decline

in rural poverty are:

Government Investment:

Rural Employment Guarantee Scheme

Bharat Nirman Plan

Diversification of rural economy

 Improvements within agriculture sectors

SWOT ANALYSIS OF RETAIL INDUSTRY

 STRENGTH
 Changing consumer habits and lifestyles

 Shopping convenience

 Rising disposable income

 WEAKNESS
 Underdeveloped supply chain

 Limited consumer insight

 Inadequate human resources

SWOT ANALYSIS OF RETAIL INDUSTRY

 Opportunity
 Rural Retailing

 Potential for investment

 Location advantage

 Threat
 Political issues

 Social issues

 Inflation
 Retail industry players

 Urban retail:
 E-tailing
 Shoppers' Stop
 Pantaloon (Big Bazaar)
 Lifestyle
 E-bay India
 Westside (Trent)  Hindustan Link
 RPG Retail (Food world, Music world)  India Mart
 Wills Lifestyle
 Future Bazaar
 Rural retail:

 Hariyali (kisan bazar)

 Itc (e-chopal/ chopal sagar)
 Godrej (aadhar)
 Hul( project shakti)
KEY PLAYERS

 Players that our group will be focusing on:

 Urban Retail Players

 PANTALOON
 ADITYA BIRLA
 RELIANCE GROUP

 Rural Retail Players

 HARIYALI KISAN BAZAR

 ITC E-CHOPAL
 AADHAR
URBAN RETAIL PLAYER’S

SWOT ANALYSIS
PANTALOON

 Pantaloon is a part of future group founded by kishore biyani.

 The company operates over 16 million square feet of retail space with 1000
stores across 73 cities, has over 30,000 employees.

 It deals with:

 Food & Grocery: Big Bazaar, Food Bazaar

 Home Solutions: Hometown, Furniture Bazaar
 Consumer Electronics: e-zone
 Books, Music & Gifts
 Health & Beauty Care: Star Sitara
 E-tailing: Futurebazaar.com
PANTALOON

 STRENGTH
 Changing consumer habits and lifestyles

 Shopping convenience

 Rising disposable income

 WEAKNESS
 Underdeveloped supply chain

 Limited consumer insight

 Inadequate human resources

PANTALOON

 Opportunity
 Rural Retailing

 Potential for investment

 Location advantage

 Threat
 Political issues

 Social issues

 Inflation
RURAL RETAIL PLAYER’S

SWOT ANALYSIS