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Prof.P.C.Mehra
 |etail Marketing Management
|etailing ± Consists of those business
activities involved in the sale of goods &
services to consumers for their personal,
family or household use ± the final stage
in the distribution processR
The word µretail¶ is derived from a French
word à
 àmeaning ³to cut a piece
off´ or ³break bulk´
. |


 


Manufacturer

Wholesaler

|etailer

Consumers
 
  |


G The   
   for selling & feedback

G Ômpact on the economy

G ^ 
 in various locations

G ^venue to study consumer     




G ^venue for imaginative   

G uuying thru touch, feel & comparison 

  

  

G uuys in bulk,   

G Ônduces  

 |

  

G Ôndia is the 4th largest economy in the world in Purchasing Power Parity terms after
US^, China & Japan.

G ^ccording to one estimate the retailing industry in Ôndia is estimated at USD 205b
(|s.230,000 Crore) growing at 5% p.a. Worldwide retail sales are estimated at $7 trillion

G Ôf it maintains a growth rate of 10% it will be worth $300 b with 1 m jobs & 10 m Sq.ft. of
constructed space in the next 10 years

G ^ccording to ^TKearney, in 2000 the |etailing industry was estimated to be |s.400,000

crore and set to achieve |s.800,000 crore by 2005 at a growth rate of 20% p.a

G Organized |etail was worth only about |s.20,000 crore (2000) and expected to grow to
|s.160,000 crore by 2005.

G 96% of the retail outlets are said to be smaller than 500 sq ft in area amounting to
approx 2 sq ft per capita when compared to 16 sq ft in the US.

G ^ccording to a McKinsey report ± j  

    à  j
 à 
à  
 jà 
 
 

 º º




G ^n average retail mall is 1 ± 1.5 lac sq.ft

G ^verage investment per mall |s.30 cr

G ^verage rate of return @ 18-20%

G Cities other than uombay / Delhi are far more attractive for
retail malls growth
 X
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G 12 m retail outlets in the country (Mexico has 1.18m)
G Density of outlets 5.5/1000 persons
G uata ± Ôndia¶s largest retail chain has a   ,
whereas Walmart has !  

G |atio of land space cost to GDP in Ôndia is the highest in the world:
Mumbai 115
uangalore 52
Singapore 12
Tokyo 9
Sydney 6
Kaula Lumpur 2

G Organized retail industry in Ôndia is only 2% as against 50% in Malaysia.

 X
  |

  
°


G 93 malls are planned in the next 2 years across 14* cities all Ôndia, 39 in
2005 and 54 in 2006 with additional 29m sq ft retail space
G uy 2010, 300 malls are expected to become operational in the country.
G NC| to boast of 50 malls in the next 2 years with retail space in excess of
22m sq ft.
G Mumbai will have 42 malls with retail space of 19m sq ft
G uangalore will have 14 malls with 6m sq ft
G Kolkatta will have 13 malls with retail space of 4m sq ft.

G *14 cities«..NC|, Mumbai, uangalore, Hyd, Kolk, Pune, Lucknow,

Ôndore, Jpr, Ludh, Cochin, Chand, Chennai, ^hmd,
  X
  |


uooks, music &
Jewellery & gifts Mobile handsets
watches 3% 3%
7%
Others
Catering
4%
services
7%

Furniture &
furnishings
8%

Footwear
9%
Clothing & textile
39%

Consumer
durables Food & grocery
9% 11%

º

! KS^ Technopak |esearch

 |
 "# $ % 
"& ' |
 "# $ % 
"& ,

*
 º
 *


( (
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&&(

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 &(
# 

(
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# 

&+(

ºà 


à à
º à 
 $ % 
  ! -
 
)  ^ . /
0

-
 & ' & X^ & ' & X^

NC| 14 18
& 3.35 6.67  1

Mumbai 7 14 & 2.45 4.60 21 '

uangalore 5 1 1.06 0.50 1'

Hyderabad 3 4 2 0.74 0.65 1
+

Kolkata 2 1
0.45 0.70 1'

Pune 2 6 ! 0.41 2.20 &1 

Lucknow 2 1
0.34 0.40 12

Ôndore 1 -  0.30 - 1

Jaipur 1 1 & 0.20 0.25 1'

Ludhiana 1 1 & 0.20 0.20 1

Cochin - 2 & - 0.85 1!'

Chandigarh - 2 & - 0.40 1

Chennai 1 2
0.40 0.65 1 '

^hemadabad - 1  - 0.65 1 '

X^
+ ' +
+1+ !12& &!1 &

º

± ÔCÔCÔ Property Services |esearch

Ô
 

 


ºà 


à à
º à 
 3
|
4   
l  à 

 The NC| is set to witness the ›
 à ›in the Vasant
Kunj«.DLF Place with 850,000 sq ft area.
 Consist of twin properties«The Promenade & The Emporia
providing holistic family entertainment and shopping.
 Will house the largest multiplex (74,000 sq ft) and food court
(65,000 sq ft) with parking for 2700 cars.
 Promises to bring together Ônternational brands and offer an
Ônternational shopping experience.
 Land sold by DD^ for |s.409 Crore, along with another piece of
land for |s.330 crore for another mall.
  

  

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à à
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 4  678469

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 ^ - 

G Ôndia is among the last ^sian economy to liberalize the retail

sector

G Thailand, Malaysia, Taiwan ± 40% of all consumer goods

are sold through organized retailers

G Ôn China more than a 10th of all consumer goods are sold

through modern retail formats.

G FDÔ is encouraged all over ^sia.

 X
  |

 º
^ 
-
 
Organized. |et Traditional |et.
 Malaysia 50% 50%
 Thailand 40% 60%
 Philippines 35% 65%
 Ôndonesia 25% 75%
 China 20% 80%
 S.Korea 15% 85%
 Ôndia 02% 98%
 #
^ 

G No policy concerning retail sector, no political consensus

G FDÔ not permitted, expected to open up selectively

G |ed tape ± 12/15 clearances & the license |^J still prevail

G Land ownership laws have made real estate prohibitive,

not scarcity of space.

G Future growth is technology driven & Ôndia is far behind on

logistics & supply chain (it has taken McDonald¶s 5 years to
established acceptable levels of arrangements)
 -  


an overview
 London¶s West End, most expensive destination
globally (rentals $ 179/sq ft)
 Tokyo Ônner CuD (rentals $131/sq ft) ranks 2
 Tokyo Outer CuD (rentals $123/ sq ft) ranks 3
 Mumbai (rentals $57/ sq ft) global rank 23
 Midtown Manhattan (rentals $53.70) ranks 27
 Delhi (rentals $43/ sq ft) global rank 33

 Î à›j lÎ

 *<ºº===

 Starbucks eyes partner for Ôndia

 Debenhams plans stores in Delhi, Gurgaon
 McDonald¶s to set up 100 restaurants in 2 years
 Pantaloon to set up flagship store for home
management products
 Tiffany, Louis Vitton, Hermes Saks 5th ^venue line up
for Ôndia
 G^P, H&M expected to set up shop
 |etail FDÔ buzz draws Walmart honcho
 M&S, Metro too keen on Ôndia