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Retail Domain Study
A presentation by PGPM Class of 2009, SPJIMR, Mumbai


Sameer | Sivaram | Mihir | Chetan | Prashant
Facts and Figures
India
•   10% of GDP
•   8% employment to nation’s workforce
•   Market in value – $460 billion USD
•   ...
Emerging Market
               7.00, 11%

                                18.00, 28%
  7.00, 11%                          ...
Key Retail Functions
•   Demand Forecasting
•   Procurement
•   Logistics and Warehousing
•   Category Management
•   Pric...
Window of Opportunity




11/20/2009             Retail Domain Study   5
             Source:
Outsiders in India?




11/20/2009      Retail Domain Study   6
Impact on Indian Economy
• Unemployment concern:                            • FDI Regulations:
  Large scale liberalizatio...
Risk & Challenges
•   Current recession resulting into very low footfalls
•   Liquidity under pressure
•   Working capital...
Dynamic Retail Environment
    Recent Market Dynamics                                      Today's Challenge
             ...
Push tool to Pull Platform


Producer          Retail             Consumer
Experiences                             Organis...
Better Store Experience => Better
  Wallet Share
                                                                         ...
Future of Retail– A world of
extremes                   Ultra Efficient, Integrated Enterprises & value webs



          ...
Trends – Cutting Costs




11/20/2009     Retail Domain Study   13
Trends in coming days

Sales growth to decline on cutback of consumer spending

Customer loyalty will be critical

Custome...
IT in Retail – Key Priorities
                                    Multichannel
                                    converg...
Happy Shopping




11/20/2009   Retail Domain Study   16
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Domain Study- Retail

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presentation done by my friends on Retail. Good info presented, if you are interested in retail- then its a must read.

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Transcript of "Domain Study- Retail"

  1. 1. Retail Domain Study A presentation by PGPM Class of 2009, SPJIMR, Mumbai Sameer | Sivaram | Mihir | Chetan | Prashant
  2. 2. Facts and Figures India • 10% of GDP • 8% employment to nation’s workforce • Market in value – $460 billion USD • Organized Retail – $43.8 billion USD Global • Speciality Retail most lucrative – 80% of industry group value • Europe Accounts for 34% of global retailing • Global market is $ 11,326 billion USD and will grow to $ 14,347 billion USD by 2013 11/20/2009 Retail Domain Study 2
  3. 3. Emerging Market 7.00, 11% 18.00, 28% 7.00, 11% China India TOP EMERGING MARKET BY Australia VOLUME (MAY 08 - NOV 08) Russian Federation 8.00, 12% Poland Turkey 14.00, 22% 651.80, 9.12% 10.00, 16% 2301.00, 1147.10, 32.18% 16.04% Russian Federation Republic of Korea TOP FIVE EMERGING MARKET BY Brazil VALUE IN $M (MAY 08 - NOV 08) Australia China 1174.80, 16.43% 1874.90, 26.22% 11/20/2009 Retail Domain Study 3
  4. 4. Key Retail Functions • Demand Forecasting • Procurement • Logistics and Warehousing • Category Management • Pricing • Promotion 11/20/2009 Retail Domain Study 4
  5. 5. Window of Opportunity 11/20/2009 Retail Domain Study 5 Source:
  6. 6. Outsiders in India? 11/20/2009 Retail Domain Study 6
  7. 7. Impact on Indian Economy • Unemployment concern: • FDI Regulations: Large scale liberalization might As apart of India‘s ongoing affect adversely, the economic reforms, foreign unorganized retail sector in retailers are allowed to own 51 near term percent of single-brand outlets • Modernization and • Emergence of India as retail employment opportunities in sourcing hub long term • Rural retailing holds the key • Expansion of manufacturing for growth of bottom part of sector pyramid • Benefits to Indian agriculture 11/20/2009 Retail Domain Study 7
  8. 8. Risk & Challenges • Current recession resulting into very low footfalls • Liquidity under pressure • Working capital on rise • Decline in inventory turnover • Real estate availability and high rental costs • Crowding in unattractive locations • Inability to compete with traditional retailers • Over reliance on debt funding • Improperly developed malls & under trained staff • Underdeveloped supply chain & infrastructure • Protests against organized retailers 11/20/2009 Retail Domain Study 8
  9. 9. Dynamic Retail Environment Recent Market Dynamics Today's Challenge Low/ negative inflation Macro - Constrained top-line Global economic downturn Economy growth Geo-political shocks Slowing population growth Downward margin Consumer Shifting spending patterns pressure Greater information access Globalized competition Competition Market saturation and Increased operational consolidation complexity Blurring of business models 11/20/2009 Retail Domain Study -9- 9
  10. 10. Push tool to Pull Platform Producer Retail Consumer Experiences Organised Services Informed Social Products Connected Retailing Material Consumer 11/20/2009 Retail Domain Study 10
  11. 11. Better Store Experience => Better Wallet Share Financial Impact Pain Points Enabling Solution Value to Retailers $$ Customer-level Anonymous Mobile Marketing • Basket size Consumer Shoppers +20% Consumer Lifetime • Frequency +15% Management Lack of Loyalty Digital Signage Profitability •Wallet share +35% Price Sensitivity Assisted Selling Wallet share Turnover HR portal Top customer • Ramp time -30% Retention • Employee Employee High Labour Costs Store Manager Portal retention +20% Empowerment Employee Flexibility • Productivity Training Costs Employee sales +40% Cost variability assistance Store level inventory Assortment Manual Processes •Data accuracy Localization T-log Extraction +80% Optimized Inventory visibility • Error rates -80% Store NMROI Collaborative • Transaction Operations Lack of Local costs -20% 11/20/2009 product Retail Domain Study sold before % 11 Assortment requirements paid
  12. 12. Future of Retail– A world of extremes Ultra Efficient, Integrated Enterprises & value webs Consumers Retailers •“Super shoppers” armed •Dominance of mega-retailers with ubiquitous information •Proliferation of focused access specialists • Maximizing personal •Failure of undifferentiated, satisfaction based on diverse mid-tier competitors value drivers Consumer Product Companies •Accelerated consolidation •Global vs. local operational complexity •Strong competition from private brands •Mid-tier brands squeezed out There would be a consumer marketplace of tremendous complexity, with big winners and losers 11/20/2009 Retail Domain Study 12
  13. 13. Trends – Cutting Costs 11/20/2009 Retail Domain Study 13
  14. 14. Trends in coming days Sales growth to decline on cutback of consumer spending Customer loyalty will be critical Customer experience will be the key Short term Investments (<12 months) will be top priority Large scale and lengthy projects will be put on the back burner 11/20/2009 Retail Domain Study 14
  15. 15. IT in Retail – Key Priorities Multichannel convergence Customer Optimization service in stores Supply Chain Merchandising Data Foundation renewal (GDS) 11/20/2009 Retail Domain Study 15
  16. 16. Happy Shopping 11/20/2009 Retail Domain Study 16

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