Indian retail Industry

Indias retail market has more than doubled in size to USD 311.7billion in 2006-07. Sector revenues increased by about 93.5% between 2000 and 2006, translating to an average

annual growth rate of 13.3%.

Market witnessing a migration from traditional retailing to modern/organized retailing

formats, with an explosive proliferation of malls and branded outlets.

Organized retail segment contributes to over USD 12.9 billion of retail revenues, with

penetration growing from 3% in 2004-05 to 4.15% in 2005-06.

Share of organized retail is projected to grow to USD 43.8 billion out of the total retail sector

revenues projected at USD 460.6 billion in 2010-11.

Modern retailing outlets are increasingly matching up to global standards and witnessing

intense competition.

Contribution of different verticals

Indian Food Industry

Food and Grocery constitutes the largest retail

segment accounting for 63 percent share in the Rs.1,330,000 crore (USD 300 Billion) Indian retail market. Only 2percent of this segment was organised in 2007, as per India Food Report 2008. food retailing business which accounts for 10% of the GDP. 8% of the employment.

Organise V/s Unorganise

Major Categories in food industry

Processed food Fruit and vegetables Dairy Wheat and grain Poultry

Highlights

Size U.S$70bn

Employ 1.6mn people

Indian food processing industry

5th largest industry in India

Share in world trade 1.7%

Industry is highly unorganized

Fruits and Vegetable

India ranks 2nd in production of vegetables.

(85mn tons).
In production of fruit India ranks 3rd after Brazil and

china.(50mn tons).
Highly Unorganise sector.

Formats
Convenience Stores Supermarkets Hypermarkets Cash & Carry (C & C) Stores

Forward integration
Raw material

Manufacturing

Distribution

Retailing

End Consumer

Major Retailer In Food Segment

Top 5 company Food Bazaar Subhiksha Food world Trinethra Vishal Retail

Revenue 1900 cr. approx 1480 cr. approx 300 cr. 274cr. 603cr.

No. of store 140 860 80 170 105

Source: Business world

Enablers
Favorable demographics. Growing middle class. Improved logistics. Rise in working population.

Impediments
Lack of cold storage and warehousing facility. Lack of industrial status. High real state cost. Extensive wastage.

Q1. Which Retail brand strikes in our mind first when you think for grocery shopping ?
Percentage(%)

SRS Value Bazaar 10% More 15% Food Bazaar 30%

Spencers 25%

Reliance Super 20%

Q2. How often you go for shopping of grocery ?

No. of Person
Everyday Once in a week Fortnightly Once in month

15% 20%

35% 30%

Q3. How much time you spend in your shopping?

No. of Person

1 to 1.5 hour 25%

>.5 hour 35%

.5 to 1 hour 40%

Q4. How much distance on travel for your shopping ?

No. of Person
More than 8 k.m. 5%
4 to 8 k.m. 20% 1 to 2 k.m. 30%

2 to 4 k.m. 45%

Q6. Which brand prefer when you buy grocery ?

Chart Title
In house brands National brands International brands

20% 25% 20% 25%

55%
55%

Q7. From where did you prefer to buy food products ?

No. of Person

Malls 40%

Traditional Market 25%

Neighborhood Market 35%

Q8. Which factor you consider most while selecting a store ?

No. of Person
Price Quality Product Assortment Convenience

30% 35%

20% 15%

Q9. Who buys grocery for you home?

No. of Person

Wife 15%

Himself decide 40% Family (If unmarried) 25%

Friends 20%

Q10. Which payment mode you prefer for bill payment ?

No. of Person

Credit card 30%

Cash 50%

Debit card 20%

Recommendation
Good weekly sales and loyalty programs should be

concentrated. People dont like to spend too much time on shopping. Thus better accessible store & loyalty is recommended. Location play very crucial role & thus mode of transportation. If retailer wants to promote in house brand & international brand , they must have to show there wide presence. People consider both product assortment & convince. Thus store must consider its product quality and SKUs.