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 people’s motives and
interests.
 A moral obligation to observe customer’s
behavior as well as customers also observe
the marketer’s behavior.
 “CONSUMPTION = DEVELOPMENT”
 ORIGIN
 Early Trade:

 Peddlers and Producers:

 Early Markets:
- LO KASS – The 1st person to open Chain of shops in China

over 2200 years ago.

 First Retail Self Service Store:

- Groceteria in Los Angels.
- Albert Gerrand(1915).
- 1st 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
ORGANIZED RETAIL UNORGANIZED RETAIL
 Professionally managed has a  Owner lacks technical &
accounting transparency with proper accounting standardization
usage accounting standards.  For example, owner
 These include the corporate backed manned general stores,
hypermarkets and retail chains. convenience stores, hand
 According to a survey by AT cart and pavement
Kearney ,only a Rs. 20,000 crore vendors, etc.
segment of the market is ORGANIZED.
 According to a survey by AT
Kearney , an overwhelming
proportion of the Rs.
400,000 crore retail market
is UNORGANISED.
TYPES OF RETAIL SECTOR
100%
90%
80%
70%
60%
50%
40%
30% unorganised
20% Organised
10%
0%
US INDIA

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 P’S 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.
 WAL MART 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.

 Forthe 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)
 Birla’s 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 India’s 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 nation’s

workforce.
PROJECTED RETAIL GROWTH
 CONCLUSION
o India’s 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