RETAIL SECTOR

MALINI
DEEPIKA
SADIK
SRIRAM


RETAILING -SKY IS THE LIMIT

Retail comes from the French word retaillier, which
refers to "cutting off, clip and divide.
Retail marketing try to discover the understanding
of the peoples motives and interests.
A moral obligation to observe customers behavior
as well as customers also observe the marketers
behavior.
CONSUMPTION = DEVELOPMENT
ORIGIN
Early Trade:

Peddlers and Producers:

Early Markets:
- LO KASS The 1
st
person to open Chain of
shops in China over 2200 years ago.

First Retail Self Service Store:
- Groceteria in Los Angels.
- Albert Gerrand(1915).
- 1
st
documented self service store.


CATEGORIES

Food & Beverage Store:
Grocery Stores.
Specialty food stores.
Beer, vine and liquor stores.

Clothing & Accessories Stores:
Clothing, shoes , luggage and leather good stores.
Jewelry.

Building Material, Garden Equipment Stores.



Merchandise Store:
Miscellaneous Retail Store.
Sporting Goods, Hobby, Book & Music Store.
Furniture ,Home Furnishing & electronic
appliance Stores.

Motor Vehicles:
Automobile dealers.
Auto parts , accessories and tire stores.
Gasoline stations.






CHANGING PARADIGM
TYPES OF RETAIL SECTOR
Professionally managed
has a accounting
transparency with proper
usage accounting standards.
These include the corporate
backed hypermarkets and
retail chains.
According to a survey by AT
Kearney ,only a Rs. 20,000
crore segment of the market
is ORGANIZED.


Owner lacks technical &
accounting standardization
For example, owner manned
general stores, convenience
stores, hand cart and
pavement vendors, etc.
According to a survey by AT
Kearney , an overwhelming
proportion of the Rs.
400,000 crore retail market
is UNORGANISED.

ORGANIZED RETAIL UNORGANIZED RETAIL
TYPES OF RETAIL SECTOR
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
US INDIA
unorganised
Organised
Source: The Great Indian Retail Story, 2009.

RETAILING FORMATS IN INDIA

MALLS: Ranges from 60,000 sq ft to 7,00,000 sq ft
and above. Examples include Shoppers Stop,
Piramyd, and Pantaloon.
SPECIALTY STORES: focusing on specific market
segments and have established themselves
strongly in their sector. Kids Kemp, Music World .
DISCOUNT STORES: As the name suggests,
discount stores or factory outlets, offer discounts on
the MRP through selling in bulk.


DEPARTMENT STORES: Large stores ranging
from 20000-50000 sq. ft, catering to a variety of
consumer needs. Reliance Fresh, More.
HYPER MARTS/SUPERMARKETS: Large self
service outlets, catering to varied shopper needs
are termed as Supermarkets. ranging from of 3,500
sq ft to 5,000 sq ft. having a strong focus on food &
grocery and personal sales.
CONVENIENCE STORES: Small stores 400-2,000
sq. feet located near residential areas. Prices are
slightly higher due to the convenience premium.



4 PS IN RETAIL SECTOR
Product.
Place.
Promotion.
Price.
RETAIL SECTOR GROWTH IN INDIA
Source: Datamonitor
CEO MIKE DUKE

COMPETITORS
In North America
Kmart, Target, ShopKo and Meijer,
Canada
Zellers, The Real Canadian Superstore and Giant Tiger
Mexico
Comercial Mexicana and Soriana.
UK
Tesco.
WAL MART
Founded by Sam Walton in 1962, incorporated on
October 31, 1969, and listed on the New York Stock
Exchange in 1972.

It is the world's largest public corporation by
revenue, according to the 2008 Fortune Global 500.

In accordance with its global strategy, it proposed a
50:50 joint venture with Bharti Enterprises targets
up to 25 percent lower prices than wholesalers.

WALMART SUCCESS
Empowering associates.
Maintain technology superiority.
Build loyalty among associates, customers, and
suppliers.
Global Expansion for new market opportunity.
Effective use of logistics management.


FINANCIAL STATUS
In 2008, Wal-Mart was 67th most profitable
corporation.


For the fiscal year ending January 31, 2008,
Wal-Mart reported a net income of $12
billion on $340 billion of sales revenue
(3.5% profit margin).


CEO KISHORE BIYANI
PANTALOON
Company has crossed $1 billion turnover mark
during the year under review.

12 million square feet of retail space in 71 cities and
towns and 65 rural locations across India.
Headquartered in Mumbai (Bombay), Pantaloon
Retail employs around 30,000 people.

A front runner in retail with over 2.7 million square
feet of retail space.

21 departmental stores.



COMPETITORS
Shoppers Stop.
RPG Retail (Foodworld, Musicworld)
Reliance Fresh.
Subhiksha Trading Services.
TATA groups(Lifestyle,Westside)
Birlas More.

LINES OF BUSINESS
Fashion - Pantaloons, Central, aLL, Brand Factory, Blue
Sky, Top 10, Fashion Station, Lee Cooper (JV),
General Merchandise - Shoe Factory, Navras,
Electronics Bazaar, Furniture Bazaar, KB'S FAIR PRICE
Electronics - eZone, Electronic Bazzaar, STAPLES(JV)
Furniture - Collection i, Furniture Bazaar, Home Bazaar
E-tailing (Online Shopping) - www.futurebazaar.com
Wellness - Star & Sitara, Tulsi
Malls - Central (Bangalore, Hyderabad, Pune, Mumbai,
Vadodara, Gurgaon, Indore)
Investment & Savings - Insurance: ULIP, Pension,
Endowment etc.

SUCCESS FACTORS

Entrepreneur led, professionally managed and
experienced team.
Strong projects and operations capabilities.
Vast range of lifestyle and value retailing products
and services.
Strong distribution and logistics network and supply
chain.
Large base of loyal customers.

FINANCIAL GROWTH
One-year comparative graph with BSE
SWOT ANALYSIS
STRENGTH
Consumer spending increasing at 11% annually.
2nd largest contributor to GDP after agriculture at
20%.
Mall Mania.
Increase in spending per capita Income.
The increasing share of young population in total
population of India.
Media.













WEAKNESS

Lack of huge investments for expansion.
Lack of good infrastructure.
Lack of proper logistics.
Cost of business operations is very high in
India.

OPPORTUNITIES

India ranks 1st for top international
destination for retail investment.
U.S $ 350 billion retail market.
4th largest economy in purchasing terms after US,
china & Japan.
Expected to increase to 15-18% by 2011.
Employment(2 million jobs by 2010).
Huge Untapped market.

THREATS


Poor monsoons and low GDP Growth could affect
consumer spending drastically .
Price sensitive market.
Thefts.
Increase in Competition.(More competition reduce
demand & price.)
Unavailability of qualified personnel to support
exponential growth in retail.
Security Concerns.
PEST ANALYSIS
POLITICAL


Strong opposition to FDI in Indias retail sector.

Taxation policy VAT.

Low access to banking facilities.




ECONOMIC

GDP Growth.

Foreign Investments.

Money Supply.

Inflation.



SOCIAL

Corporate Social Responsibility.

Environmental Safety.

Ease of shopping.




TECHNOLOGY

Online Shopping.

Retail media networks(RMN).

ERP System.

CRM System.


SUPPORTIVE SECTORS

IT.

Media.

Real Estate.

Tourism.
STRATEGY
The hypermarket would be selling the products on
EDLP (every day low price) basis at prices 15-20
percent lower than market prices.

Buying products from the first level suppliers.

Shift of advertising from product awareness to
product preference .
FUTURE PERCEPTIVE
FDI approval.

Increasing at a rate of 10% yearly.

India will have 600 new shopping centers by 2010.

Food is the most dominating sector and is growing
at a rate of 9% annually.

Providing employment to 8 per cent of the nations
workforce.







PROJECTED RETAIL GROWTH


CONCLUSION

o Indias GDP growth of 10% in 2007-08, reflecting the
booming economy of the country.
o The sector is on a high growth trajectory and is expected
to grow by more than 27%over the next 5 to 6 years.
o Retail sales in India are hovering around 33-35% of GDP
as compared to around 20% in the US.


THANK YOU