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Retail Market in India Home Furnishings Market Overview Key Players in Home Furnishing Market
Summary
Indian retail market is growing rapidly driven by increased economic growth and high private consumption. Indian retail market is estimated to be US$ 336 Billion and is expected to reach US$ 590 Billion by 2012. Share of organized which is currently estimated to 3.5% is expected to reach 16% by 2012. Large investments to the tune of US$ 35 Billion is expected in the Indian retail market. Most of the investments would happen in the hypermarket and supermarket segments leading to increased competition in this segment.
Summary
Urban home furnishing retail market is estimated to be Rs 9,300 Cr. (US$ 2.3 Billion). The market is expected to reach Rs 20, 000 Cr (US$ 5 Billion) by 2012. Institutional home furnishing market in India is estimated to be Rs 530 Cr (US$ 132 Million) and is expected to reach Rs 1,000 Cr (US$ 250 Million) by 2012. Bed and Bath contribute to two third of the market (Rs 6,600 Cr.). Current and upholstery market is currently estimated to be Rs 2,000 Cr. Only 6% of the home furnishing market is currently organized. Most of the organized players focusing on bed and bath. Curtain and Upholstery still dominated by regional players like Jagdish Store, Bharat Furnishing, Pride etc.
Presentation Structure
Retail Market in India Home Furnishings Market Overview Key Players in Home Furnishing Market
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2005
Projections of 8% sustainable real GDP growth rate till 2020 promise high growth potential for Indian Retail
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2006
13,245 10.7%
9.4% 10,000 8,000 6,000 4,367 4,000 2,630 2,000 China India Russia Brazil UK Japan US
Source :Central Statistical Organization (CS0)
3.7%
2.8% 2,374
2.3%
916
979
1,068
9.4% growth rate makes India the second fastest growing economy in the world
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80% 55% 2005-06 40% 21% 20% 13% 14% 6% 0% Tourist Arrivals
Source: Govt.of India
2006-07
Food Apparel Beverages Footwear Consumer durables Appliances Stationery Kitchen utensils Furniture Furnishings Sports goods Health & Beauty Personal Care Jewellery Timing
Transport
Retail US$ 336 Billion (59%) Non Retail US$ 234 Billion (41%)
Source: Central Statistical Organization (CS0) Conversion rate: 1 US$ = 40.86 Rs.
*All figures are in nominal terms after taking into account inflation
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282
Supermarkets 34%
Hypermarkets 32%
*other formats include specialty stores in Apparel, Footwear, Watches, Furniture & Furnishings , Toys, Convenience formats etc Source: Various Sources
Presentation Structure
Retail Market in India Home Furnishings Market Overview Key Players in Home Furnishing Market
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Organized Market
Unorganized Market
General Retailers
Hypermarket
Street Markets
Department Stores
Others
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Presentation Structure
Retail Market in India Home Furnishings Market Overview Key Players in Home Furnishing Market
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Lifestyle plans to invest $500-million on expansion plans till 2010 to expand in retail, hyper-markets, leisure and hospitality businesses in India.
It would add 26-Lifestyle and 10-Home Centers by 2010 end
Piramyd Retail Ltd, plans to have around 25 Piramyd Megastores by 2009 from the current 7 stores, requiring an investment of Rs 20 crore in each store Big Bazaar plans to increase its store count to 120 by June 2008 and 225 by 2010
Plans to reach a turnover of Rs 5,000 crore by June 2008 from the current Rs 2000 Crores
Vishal Mega Mart currently has 70 stores across the country and has plans to increase its retail space in one million square feet by adding 43 more stores by 2008 end
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Seasons furnishings:
Has tied up with a host of international brands for sale in India
The brands that the group will introduce as an exclusive franchisee include Fabricut from the US, Jero from Paris & Warwick from the UK. All the brands will be sold at international prices at Seasons exclusive outlets called Club Class The brands will be positioned at a premium level and priced between Rs. 5,000 and Rs. 50,000 per meter
Apart from the new format, the group is also expanding its existing manufacturing and retail capacities and plans to get into some new product categories, such as velvet furnishings Expanding to gain ground in the international market. Has tied up with leading Asian retail chains, including Serbantic in Indonesia and Singapore, Fella Interiors in Malaysia, and Shell Canvas in the Philippines. Is also in talks with some other retail majors for getting into Dubai, Sharjah, Abu Dhabi and Jordan
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Disclaimer
The contents of this presentation are based on information generally available to the public from sources believed to be reliable. No representation is made that it is timely, accurate or complete. Milagrow has taken due care and caution in compilation of data as this has been obtained from various sources including which it considers reliable and first hand. However, Milagrow does not guarantee the accuracy, adequacy or completeness of any information and it is not responsible for any errors or omissions or for the results obtained from the use of such information and especially states that it has no financial liability whatsoever to the subscribers / users of this report. The information herein, together with all estimates and forecasts, can change without notice.
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