TRENDS IN RETAIL

The DLF Experience

 The Indian Story
 10th largest economy in the world based on GDP

 7.5% GDP growth forecasted over 2005-2007

 Real estate sector growing at 30% per annum and one of the largest
employer – a key contributor to GDP

 Residential market is 80% of the total real estate market

 Gap between supply and demand in residential market is 41 billion

sq.ft.

 Office space demand of 66 million sq.ft. for IT industry over next 5

years
 Real Estate in India projected to be USD 50 billion in 2008

 Organized retail space demand of 40 million sq.ft. over next 3-4 years

 India is ranked the 5th largest retail destination across the globe

 Consumerism – the order of the day, which is fueling the growth in

both the commercial as well as the retail sector

 Globalization of Indian Economy

 Indian Retail Scenario
 Total Private Consumption Expenditure in India – 375 Billion USD

 Retail Sale – 205 Billion USD (55%)

 Organized Retail – 6.2 Billion USD (3%)

 Retailing – 35% of GDP

 Outlet Estimates – Over 12 Million

 Format – Only 4% larger than 500 sq.ft.

 Second Largest Employer after Agriculture

 Retailing in India
 Emergence of modern retail formats

 Increased pressure on opening up FDI in retail sector

 Rapid Evolution of New-age Young Indian Consumers

 Rapidly increasing middle class

 Rising Incomes levels

 Increased Awareness Level among Consumers

 Exposure to International Brands

 Retail Space is no more a constraint for growth

 Malls in India

 A decade ago - not a single mall

 A year ago - less than half a dozen

 Today - 40-50 malls

 2 years from now – 300-500 malls

 Barriers
 Barriers to FDI which limits entry of global players and limits
exposure to best international practices

 Lack of industry status which restricts financing and therefore the

growth and scaling is limited

 Poor Infrastructure which restricts retail growth, creates supply

chain bottlenecks and increases wastage of farm produce
 The Way Ahead

 India is amongst the least saturated of all major global markets in terms of
penetration of modern retailing formats

 Many strong regional and national players emerging across formats and
product categories

 Most of these players are now gearing up to expand rapidly after having
gone through their respective learning curves

 Real Estate Developers are also moving fast through the learning curve to
provide qualitative environment for the consumers

 The Shopping Mall formats are fast evolving

 Partnering among Brands, retailers, franchisees, investors and malls

 Improved Infrastructure
 Conclusion

The demanding assertive Indian consumer is now sowing the seeds

for an exciting retail transformation that has already started
bringing in larger interest from International Brands / formats.
With the advent of these players, the race is on to please the Indian
consumer and its time for the Indian Consumer to sit back and
enjoy the hospitality of being treated like a King.