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  • Oranized Retail - Final 1

    Transféré par

    Abhinandan Sahoo
    26 vues11 pages
    The document summarizes the evolution and current state of the retail sector in India. It notes that the sector has evolved from traditional rural markets and kirana stores to modern retail formats influenced by international chains. Organized retail now makes up 8% of the total retail market size in India, which was over $500 billion in size in 2012-2014 and growing at 20% annually. Food and grocery is the largest segment within organized retail. Major retailers use a hub-and-spoke business model to source from farmers and suppliers and distribute to multiple retail outlets. Key factors driving future growth of organized retail in India include expanding infrastructure, rising incomes, urbanization, and policy changes allowing more foreign direct investment in retail.

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    The document summarizes the evolution and current state of the retail sector in India. It notes that the sector has evolved from traditional rural markets and kirana stores to modern retail formats influenced by international chains. Organized retail now makes up 8% of the total retail market size in India, which was over $500 billion in size in 2012-2014 and growing at 20% annually. Food and grocery is the largest segment within organized retail. Major retailers use a hub-and-spoke business model to source from farmers and suppliers and distribute to multiple retail outlets. Key factors driving future growth of organized retail in India include expanding infrastructure, rising incomes, urbanization, and policy changes allowing more foreign direct investment in retail.

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    © All Rights Reserved
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    26 vues11 pages

    Oranized Retail - Final 1

    Transféré par

    Abhinandan Sahoo
    The document summarizes the evolution and current state of the retail sector in India. It notes that the sector has evolved from traditional rural markets and kirana stores to modern retail formats influenced by international chains. Organized retail now makes up 8% of the total retail market size in India, which was over $500 billion in size in 2012-2014 and growing at 20% annually. Food and grocery is the largest segment within organized retail. Major retailers use a hub-and-spoke business model to source from farmers and suppliers and distribute to multiple retail outlets. Key factors driving future growth of organized retail in India include expanding infrastructure, rising incomes, urbanization, and policy changes allowing more foreign direct investment in retail.

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    sur 11

    Retai

    l
    Sector in
    India

    Evolution of Retailing in India


    Historic/Rural
    Reach

    Traditional/Pervasi
    ve Reach

    Government
    Supported

    Modern Formats/
    International

    Exclusive Brand Outlets


    Hyper/Super Markets
    Department Stores
    Shopping Malls
    PDS Outlets
    Khadi Stores
    Cooperatives

    Convenience Stores
    Mom and Pop/Kiranas

    Weekly Markets
    Village Fairs
    Melas
    Source of
    Entertainmen
    t

    Neighborhood
    Stores/Convenie
    nce

    Availability/
    Low Costs /
    Distribution

    Shopping
    Experience/Efficienc
    y

    Sector Overview: Indian Retail Sector

    > USD 500 billion

    > 20% growth

    Total Sales

    from 2012-2014

    8%
    Organized Retail
    Sector Share in India

    Global Retail Developmen


    Index

    Sector Rank of India

    Sector Overview: Indian Retail Sector

    Indian Retail Sector: Segmentation


    Indian Organized Retail Sector
    Consumer Electonics
    Pharmacy
    Jewellery
    Food Service
    Telecom
    Apparel
    Others
    Food & Grocery
    0%

    10%

    20%

    30%

    Geographical distribution of Retail Outlets


    Metros

    Mini Metros

    Tier 1

    40%

    50%

    Gujarat

    60%

    70%

    8%

    Tier 2 & below


    Tamil Nadu

    15%

    8%

    Uttar Pradesh

    8%

    Andhra Pradesh

    8%

    45%
    29%
    11%

    Maharashtra
    0%

    12%
    2%

    4%

    6%

    8%

    10%

    12%

    14%

    Indian Organized Retail Sector: Food &


    Grocery Stores

    Organized Retailers Business Model


    Outlet A
    Farmers

    Companie
    s/ CFA
    Agents

    Outlet B

    Central
    Wareho
    use

    Importers

    Others

    Custome
    rs

    Processi
    ng Unit/
    Packagi
    ng unit
    Outlet C

    Outlet D

    Customer
    Relationships

    Key Activities

    Key Partners
    Farmers
    Companies

    Includes
    planning,
    purchase and
    control to
    optimize
    product depth
    and mix to
    satisfy TG

    Shopping
    Ambience
    Larger
    Variety

    C& F Agents
    Importers
    Distributors

    Value
    Propositions

    Key Resources
    Shelf Space
    Higher Variety
    Financial
    Strength

    Providing
    access to
    multiple
    brand
    Creating a
    shopping
    experience

    Global

    Brands
    around the
    world

    Channels

    Convenience

    Outlets

    Cost
    Advantage

    Cost structure
    Fixed Store Cost / Variable Store
    Rental & maintenance

    Customer
    Segments

    Strivers
    Seekers

    B2B Business

    Revenue Streams
    Major revenues from food & grocery

    Variable cost in terms of payment to


    farmers, companies, etc

    FMCG, Consumer Durables

    Variable Employee, store development


    cost.

    Net Profit: 10-12%

    Net Sales: 1.25-1.5 crores per month

    Organized Retail STP


    Segmentation
    Tier

    Annual Disposable
    Income

    Tag

    Description

    Tier
    1

    >10 lakh

    Globals

    Rich execs, businessmen & nouveau


    rich

    Tier
    2

    5-10 lakh

    Strivers Urban professionals & govt


    employees

    Tier 2-5 lakh


    Seekers Fresh college grads, med-scale
    3
    businessmen
    Positionin Description
    Organized Retail
    Tier
    90k-2 lakh
    Aspirer Small shopkeepers, farmers
    g
    4
    s
    Strategy
    Tier
    <90k Includes planning,Deprive
    and to
    Unskilled
    workers
    Merchandi
    purchaseLow
    andskill
    control
    Generally
    top
    5
    d
    se
    optimize product depth
    and mix to satisfy
    notch
    Manageme TG
    nt
    Store
    Image

    Mental picture of the store-ads, services,


    layout, personnel & product quality, depth
    and breadth

    Better tapped by
    organized sector

    Personnel

    Help build customer loyalty and store image

    More professional

    Organized Retail Key Business Drivers

    Business Driver
    Infrastructure
    Economic
    environment
    Demographic factors
    FDI in retail
    Real-estate growth
    Consciousness among
    customers
    Urbanization
    Household income
    increase
    Retail ancillary
    development
    Availability of

    Rank
    1
    2
    3
    4
    5
    6
    7
    8
    9

    Organized Retail Competitive Landscape


    Key Players
    Pantaloon Retail (Future GroupBig Bazaar)

    Current Situation

    Shoppers Stop (K Raheja)

    3.21 million ft2 retail space, 23 cities, 51 stores

    Spencers Retail(RPG)

    1 million ft2, 45 cities, 200 stores

    Lifestyle Retail (Landmark)


    Bharti Retail

    Lifestyle stores- 15, Home Centres- 8


    Easyday stores- 74 (will invest $2.5 billion to add 10 million ft 2 of retail space by
    2020)

    Reliance Retail

    700 stores, Revenue- 7,600 crore

    More (ABG)

    575 stores, Revenue- 2,000 crore

    Star Bazaar (Tata Trent)

    Westside stores- 59, Starbazaar hypermarkets- 13, Landmark bookstores- 26

    2 million ft2 retail space, 35 cities, 65 stores, 21 factory outlets

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