INDIAN RETAIL INDUSTRY

(Recession to Ripening)

Presented by : Retail Group ITM-MBA-09

Indian Retail Growth Parameters 
   

Disposable income Favourable demographics Changing lifestyle Growth of middle class segment High potential for penetration into urban and rural markets

Industry-wise Impact of Recession

Organized retail penetration which was expected to touch 16 % by 2010 is likely to trace 10.4% only

Barriers to Retail Growth
‡ Poor Supply Chain Infrastructure ‡ Absence of a mature third party Logistics Industry ‡ Fragmented Supply Base ‡ Skyrocket Rentals
Rentals Eating into profit margins of retailers

Strategies adopted by Pantaloon retail 
    

Toughen Internal efficiencies Decode Consumer Behavior Entering into alliance and leveraging expertise Innovation of categories, services and business models Building a competent supply chain management systems Venturing into under penetrated market i.e. Rural

Private Label as a power play

Quick Showcase of Future of Indian Retail

Retail Industry: Total Retail Organized

2010 20

2015 27

1.0(5%) 3.0(11%)

Figures : in lakh crores

Pantaloon Retail

Source: annual report Pantaloon retail

Source: annual report Pantaloon retail

Source: annual report Pantaloon retail

Pantaloon V/S Reliance

Inter Company Comparison

Rural India as a Future Market
Reliance Retail Triveni (Khushali bazzar) Godrej Agrovet (Aadhar) (Fresh & Fresh Plus)

Tata ITC (E chaupal) (Tata Kisan Sansar)

HUL (Shakti)

DCM (Haryali Kissan Bazzar)

M&M (Shubhlabh)

Source : Company Websites