The document discusses the Indian retail market and organized retail's growth potential. It notes that while India's total retail market generates $470 billion annually, only $27 billion comes from organized retail currently. However, organized retail is forecasted to nearly double to $400 billion by 2020. The document also provides information on Benetton India, the advantages of international brands and concept stores, and includes the company's financial data which shows increases in revenues but decreases in profits and margins. It concludes that India's retail market is still in a nascent stage with opportunities in suppliers, logistics, staffing, and increased consumer awareness.
2. Indian Retail Market
• 2011 Indian retail market generates sales of
about $470 billion a year, of which a
minuscule $27 billion comes from organized
retail such as supermarkets.
• The Economist forecasts that Indian retail will
nearly double in economic value, expanding
by about $400 billion by 2020
• A.T. Kearney estimates India's organized retail
had a 31% share in clothing and apparel
4. What makes retailing work?
1. Disposable income of the consumer
2. Improved life style
3. Understanding of investment i.e value for
money
4. Providing home delivery to the consumer
5. Situated in a convenient location
6. Providing an excellent ambience to the
consumer.
5. DCM-BENETTON
• Benetton India Private Limited is based in
Gurgaon, India
• The company also includes brands such as
– Sisley for fashion wear,
– Playlife for leisurewear and
– Killerloop for street wear.
7. Why Concept Stores?
• To capitalize on new category launches so as
to understand the taste of different segments.
– Demand & Brand growth
• Concept store
– Segmenting customers i.e niche segment
• Baby-on-Board
• Accessories
• Adults-Only
8. Company’s Financial Data
• Total net operating revenues increased with 20.06%
• PROFIT of the period decreased -8.82%
• Return on equity (Net income/Total equity) went
from -25.48% to -27.77%
• Return On Asset (Net income / Total Asset) went
from -16.46% to -21.01%
9. • Net Profit Margin (Net Income/Net Sales)
went from -12.09% to -10.96%
• Debt to Equity Ratio (Total Liabilities/Equity)
was 1.32 compared to 1.54
• Current Ratio (Current Assets/Current
Liabilities) went from 2.02 to 1.92
10. Nascent stage
• Quality product supplers
• Logistics
• Sales staff
• Less awareness
• More malls to come