- The retail market in India is projected to reach $1.3 trillion by 2020, with organized retail penetration currently at only 8% and unorganized at 92%. - Over time, the retail sector has evolved from pure-play retailers and manufacturer-owned outlets in the 1990s to include large-scale entry of international brands and increased FDI between 2005-2010 and beyond. - Major players in the competitive landscape include Pantaloons, Westside, HyperCITY, Spencer's, Reliance Fresh, Big Bazaar, Titan Industries, and Crossword, among others. - Emerging technologies like augmented and virtual reality, as well as initiatives to reduce queuing times, present both challenges and opportunities

1. RETAIL

2. Around 10% of
India’s GDP
FDI Confidence
Index, India
ranks 8th
By 2020, retail market
in India is projected
to reach US$ 1.3
trillion
Market size
estimated - US$
672 billion
Organized Retail
Penetration - 8% and
unorganized players -
92%
Source: Ernst & Young, Price Waterhouse Cooper, Economic Times, TechSci Research
Introduction

3. INITIATION CONCEPTUALIZATION EXPANSION CONSOLIDATION
• Pure-play
retailers
realized the
potential of
the market
• Manufacturers
opened their own
outlets
• Movement to
smaller cities and
rural areas
• Large-scale entry
of international
brands
• FDI in single-
brand retail and
multi-brand retail
up to 100% and
51% respectively
Pre 1990s 1990–05 2005–10 2010 onward
• Entry in food and
general
merchandise
category
• Pan-India
expansion to top
100 cities
Source: Technopak Advisors Pvt Ltd, BCG, TechSci Research
Evolution

4. Departmental
stores
Hypermarkets
Supermarkets
Specialty
stores
Cash and
carry stores
Source: Company websites, Press Release
Competitive Landscape
• Pantaloons
• Westside
• HyperCITY
• Spencer’s
stores
• Reliance
Fresh
• Big Bazaar
• Titan
Industries
• Crossword
• Metro
• Reliance

5. High
Price sensitive
Low switching cost
gives customers high
bargaining power
Bargaining Power of
Buyers
Medium
Entry is quite simple
Need of strong
distribution channels
Threat of New
Entrants
High
Foreign players and e-
retailers
Retail sector is highly
fragmented
High
customers may
purchase products
from a local store
Threat of SubstitutesPositive Impact
Neutral Impact
Negative Impact
Porter’s Five Force Framework
Analysis
Competitive Rivalry
Low
Larger retailers can
switch to different
suppliers
Bargaining Power of
Suppliers
Source: Technopak Advisors Pvt Ltd, BCG, TechSci Research

7. Source: Ibef July 2017and CII-BCG Study (Mint)
Retailing Challenges
2015

8. Source: BCG CCI Digital Influence Study
Digital Influence
Penetration of
the population
Conversion from
digital footprint
to digital
purchase
Average
number of
online buyer

9. Operational Innovation
Cross Docking System
• Deployment of new ways to
achieve a higher level of
performance
• Receiving products from
multiple suppliers and sorting
them for outbound shipments to
retail stores and distribution
centers

10. Source: CII-BCG Study (Mint
Retailing Opportunity
2020
Category Online share by
2019 (in %)
Groceries <1
Home 8
Beauty 8
Clothes and shoes 10-12
Books and media 13-15
Electronics 25-30
Travel >60

11. • Workforce Attrition
• Lack of skilled manpower
• Stress in Working Culture
• Lack of Formal Education
1
2
3
4
HR Challenges

12. HR Concerns

13. Refurbished Goods
Two years ago
25% of products were
returned
ONLINE RETAILERS
CONTAIN PRODUCT
RETURNS AT 11-12%
Average of 5% in bricks
and mortar
>25% for items like
clothing , shoes and
jewellery
Premium charge of
20-25% for reverse
logistics
Rate Of Product Return
Challenges
Source: tech.economictimes.indiatimes.com

14. VR Retail
AR Trials
AR
Demonstration
Magic Mirror
Augmented & Virtual
Reality

15. Augmented Reality
Source: vr.google.com, augment.com, eonreality.com and kantarretail.com

16. Augmented Reality
Source: vr.google.com, augment.com, eonreality.com and kantarretail.com

17. Shopping at big malls is becoming a daily activity
Huge rush at malls/stores on holidays and weekends
Bill is prepared using bar code reader
A time consuming process and results in long queues
Queuing Challenges

18. Enter into
the store
Shop your
items
Scan the
products
RFID in
one-go
Receive
the bill
generated
Direct
payment
Quit Queuing

19. Income- 70%
Urbanization 9%
Spend /capita 25-30%
Overall Retail - 12%
Organized Retail -20%
E-commerce- 40-50%
Demographics Annual Growth
Source: CII-BCG Study (Mint)
By 2020

20. For Further Query
• Shruti Nair
• https://www.linkedin.com/in/shruti-nair-
69620ab4/
• Subhadra Maurya
• https://www.linkedin.com/in/subhadra-
maurya-2940965a/

21. Thank You
Shruti Nair