34122-Abdul Razique Khan 34123-Deepak Kumar 34124-Sanjeev Kumar

Agenda
History
Overview Key Players

Revenue and Shares

Challenges

Trends

Timeline of Retailing in India

Organized Vs Unorganized Retail Sector

Organized Retail Sector

Unorganized Retail Sector

Organized Vs Unorganized Retail Sector

Factor Organized Retail Sector Unorganized Retail Sector
Traditional form of retailing

Definition

Modern form of retailing

Examples

Hypermarket, Retail chain Mom n Pop stores, hand etc. cart, pavement vendors etc 3% 97%

Market Share

Market Growth

35%

6%

Challenges

Poor supply chain management, aggressive expansion etc.

Use of labour intensive technology, lack of government support etc.

About Retail

Revenue and Share of Verticals

Food and beverages Clothing and Textile

Consumers Durables
Jewellery and Watches Home Decor

Beauty Care
Footwear Books, Music and Gifts

US$ 231,951 million: 74.41% US$ 29,024 million: 9.31% US$ 15,171 million: 4.87% US$ 13,390 million: 4.30% US$ 9,463 million: 3.04% US$ 6,854 million: 2.20% US$ 3,268 million: 1.05% US$ 2,610 million: 0.84%

Major players in Indian Retail Sector

FUTURE GROUP
Founder and group CEO Mr. Kishore Biyani Inception 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

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 wings

with futuristic expansion plans to meet the challenges of the retail industry
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 store

for the families.

Reliance Retail Ltd.

RRL serves over 2.5 million customers every week Licensing agreements with leading worldwide brands like Roxy, Timberland, Hamleys etc. In 2011, RRL has already opened 90 new stores. Targeting 784 small indian towns with population greater than 50000 Challenges faced : Staff Lack of knowledge about products Reliance fresh controversy

TATA VenturesTRENT
Westside: offers clothes, footwear and accessories for men,

women and children, along with furnishings, artifacts and a range of home accessories.

Star Bazaar: staple foods, beverages, health and beauty

products, vegetables, fruits, dairy and non-vegetarian products.

over 100,000 titles in books and music, and also stocks movies, toys, gift items and stationery. customers in towns across India.

Landmark: books and music category, this chain has a range of

Fashion Yatra: quality fashion at low prices to value conscious

Choupal Sagar
Unique rural hypermarket Offers multiple facilities under one roof Provides services such as training, soil testing, health

clinic, cafeteria, banking, investment services, fuel station etc Around 30 Choupal Sagars have commenced operations in M.P., U.P, Maharashtra, and further scale up plans are on.

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 that happens

Growth Drivers & Barriers

Growth Drivers
Consumption

Barriers to Entry
Regulatory barriers Fragmented Suppliers Lack of infrastructure Supply Chain Complexities Lack of skilled Human Resource Differential Taxation System Labor Legislation Clustering of Malls

Boom, Higher

Incomes Favorable Demographics Changing Lifestyles and Preferences Real estate boom Manufacturing Reforms Reduction in import dutiesoffering

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

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

Enterprises, Walmart, the worlds largest retail company, is still waiting for the multi-brand retail sector in India to open for foreign direct investment (FDI). Aditya Birla Retail, which runs stores under the More brand, plans capital 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 tied up with realty major DLF

Continued
Retail chain Shoppers Stop has increased prices of its

products by 6-7 per cent from April this year in order to offset 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 Big

Bazaar

Emerging trends
The Indian Organized retail sector will grow up to 10%

of total retailing by 2012.

The most encouraging format now would be the

hypermarts.
The hypermart format would be further encouraged with

the emergence of new enterants.

Continued
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 of department 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