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Agenda: Situation Analysis

Retailing: Introduction Evolution of Retail Industry Indian Retail Market Analysis & Summary SWOT Analysis Challenges Competition

Key To Success

Retailing: Introduction
Retail has played a major role world over in
increasing productivity across a wide range of consumer goods and services economy, both in terms of contribution to GDP and share in the total employment.

Retailing is one of the important sectors of an


INTRODUCTION

India is the fifth largest retail market in the


world

The Indian retailing sector is at an inflection

point. It is set to enter a new growth trajectory owing to rising household consumption and the entry of corporate entities and global retailers.

Evolution of Retail Industry


Traditionally retailing in India can be traced to -


An overview

Weekly Markets Village Fairs & Melas. The emergence of the neighborhood Kirana stores catering to the convenience of the consumers Era of government support for rural retail: Indigenous franchise model of store chains run by Khadi & Village Industries Commission The latter half of the 1990s saw a fresh wave of entrants with a shift from Manufactures to Pure Retailers. Emergence of hyper and super markets trying to provide customer with 3 Vs Value, Variety and Volume
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Evolution of Indian retail


Historic/Rural Reach Traditional/Pervasiv e Reach Government Supported

Modern Formats/ International

Exclusive Brand Outlets Hyper/Super Markets Department Stores Shopping Malls Khadi & Village Stores Cooperatives Convenience Stores /Kiranas Weekly Markets Village Fairs Melas
Source of Entertainment Neighborhood Stores/Convenience Availability/ Low Costs / Distribution Shopping Experience/Efficiency

*
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Top Player Of Retail- Worldwide

Rank Retailer
Top retailer

Home Country U.S.A. U.S.A U.S.A. U.S.A. U.S.A.

1 Wal-Mart Stores, Inc. 2 Home Depot, Inc. 3 The Kroger Co. 4.Costco 5 Target

Major player of Indian Retail


Shoppers' Stop Westside (Trent) Pantaloon (Big Bazaar) Lifestyle RPG Retail (Food world, Music world) Crossword Wills Lifestyle Globus Piramals ( Pyramid & Crosswords) Ebony Retail Holdings Ltd.

Retailers Of India

MARKET ANALYSIS

INDIAN RETAIL MARKET ANALYSIS &


SUMMARY
Market Analysis

TARGET MARKET
MARKET TREND

MARKET DEMOGRAPHICS
MARKET GROWTH
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Indian Retail Market Analysis & Summary

Indian retail

Retailing in India can be classified under two broad headings: Organized and Unorganized. Currently, the size of Indian retail sector is US$ 410billion with unorganized retail. Organised retail trade accounts for merely 4% of the total retail trade and is expected to grow at the rate of 30% to 40%. The sector can be broadly divided into two segments: Value retailing, which is typically a low margin-high volume business (primarily food and groceries) and Lifestyle retailing, a high margin-low volume business (primarily apparel, footwear, etc).

Organised Retail Market


Organised retail pie Segment % contribution Textile and apparel 38.9 Food and beverages 10.5
Consumer durables Segmentation Home solutions Jwellery and watches Books, music and gifts Pharma Others 9.0 6.7 6.3 3.2 2.1 23.3

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TARGET MARKET
A segment of consumers that is most likely to purchase the products and services offered by a particular retailer When defining the target market, retail organizations generally identify demographic, socioeconomic, and psychographic characteristics, and then use that data to focus and guide their marketing, advertising, promotion, and merchandising efforts.

MARKET TARGET

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MARKET TRENDS
The whole concept of shopping has altered in terms of format and consumer buying behavior, ushering in a revolution in shopping in India. Modern retail has entered India as seen in sprawling shopping centers, multi-storied malls and huge complexes offer shopping, entertainment and food all under one roof.

MARKET TRENDS

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MARKET DEMOGRAPHICS
CONTEXT Socio-demographic TYPE OF INFORMATION Population composition and distribution Households and family formation Health and health services Learning and educational services Housing conditions Peace and order status National accounts Labor force participation Wages Household income and expenditure patterns Poverty Political structure Political participation Relevant laws, statutes, policies Predominant social structure Gender roles in the household Time use Decision- making patterns in the 13 household

Economic activity

Socio-cultural and political

*Data from NCAER

MARKET GROWTH
It is estimated that the retailing industry is likely to
grow up to $427 billion by 2010 and US$637 billion by 2015 and that organized retail could account up to a share as high as 20%-22% of this market. MARKET GROWTH

Organized retail will grow at a significant CAGR of

around 50% till 2011 mainly due to the investments of more than $30 billion budgeted by big and small players in the organized retail sector over coming five to seven years. Organized retail sector has witnessed a CAGR of around 35% over the past five years and currently accounts for about 1.5% of the countrys GDP.

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MARKET RETAIL GROWTH

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SWOT Analysis

Strength

Products are cheaper than the market price. Technology intensive industry Variety in products Demographic favor Rising disposable income Urbanization Shopping convenience Low labor cost of skilled ones Plastic card revolution

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SWOT Analysis

Weakness

Has not yet trapped the whole market. Facing problems due to political environment Less conversion level Customer loyalty Policy related issues Limited consumer insight Inadequate human resources Taxation hurdle Underdeveloped supply chain Lack of adequate facilities

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SWOT Analysis

OPPORUNITY

Kids and teens retailing segment Percolating down Rural retailing Sectors for high growth potential Locational advantage Falling real estate cost E-retailing Franchising

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SWOT Analysis


THREATS

Shopping culture Political issues Social issues Lack of differentiation among the malls that are coming Poor inventory turns and stock availability measures

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CHALLENGES IN RETAIL SECTOR


The organized retail industry in India is facing
competition from the unorganized sector. pressure on prices. CHALLENGES

Intensifying competition is exerting downward


The industry is facing a severe shortage of Supply chain management.
talented professionals, especially at the middlemanagement level.

Lack of adequate infrastructure.


Differential tax rates.
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KEY TO SUCCESS

Success Points

Price Customer Delight Schemes Availability of all types/ brands Quality of products

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THANK YOU

Presented By

KUMAR RAMA SHANKAR HRD-09-6134

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