NEWSBYTESGovernment Announces 51 % FDI in Retail and backtracks due to opposition pressureWHY THE WORLD WANTS TO INVEST IN RETAIL IN INDIAAccording to a research report named ‘Retail Sector inIndia’ by Research and Markets, Indian retail sectoraccounts for 22 per cent of the countrys gross domesticproduct (GDP) and contributes to 8 per cent of the totalemployment. The report further highlighted thathypermarkets (currently accounting for 14 per cent ofmall space) will witness immense progress in the Indianlandscape.
THINK (RETAIL)Market Map all the words and companies that come to your mind when you hear the word RETAIL.. TAKE !10 MINUTES. Do it in your notebook
LETS TAKE A WALK INTO THE RETAIL INDUSTRY AND SEE HOW MUCH YOU HAVE MAPPED IS IN LINE WITH HOW IT REALLY IS>>>
GLOBAL PLAYERS- EYE ON INDIA Global players plans to have their presence in India Wal- Mart has already signed a JV with Bharti Enterprises to set up stores Tesco has a service center in Bangalore. Metro AG has cash & carry stores af. The Govt. of India currently allows a foreign player to enter the market in JV with an Indian partner More global luxury brands to enter India.
THE RETAIL SCENARIO IN INDIA The Rs 18,673 billion (US$ 401 billion) Indian retail market entails only 6 per cent of itself as organised retail segment as of 2010, according to Booz and Co (India) Pvt Ltd. The Business Monitor International (BMI) India Retail Report forecasts that the total retail sales will grow from US$ 411.28 billion in 2011 to US$ 804.06 billion by 2015.
India is one of the most Attractive Retail Markets 1. Consumer spending & retail sales are declining in home markets 2. GDP in emerging markets is expected to continue to grow, albeit at a slower rate 3. The larger, more resilient emerging markets are at the top of the Global retail development index mapped AT Kearney, A retail consulting firmTHE GRDI is brought by ATKearney , A global Management consulting firm
The A.T.Kearney GRDI1. India is ranked number one, followed by Russia and China in the eighth annual Global Retail Development IndexTM, a study of retail investment attractiveness among 30 emerging markets.2. Published since 2001, the GRDI helps retailers prioritize their global development strategies by ranking the retail expansion attractiveness of emerging countries based on a set of 25 variables including economic and political risk, retail market attractiveness, retail saturation levels, and modern retailing sales area and sales growth.3. The GRDI focuses on opportunities for mass merchant and food retailers, which are typically the bellwether for modern retailing concepts in a country.
Major Industry Players - GLOBAL Walmart , USA Carrefour, France Metro AG, Germany Seven & I Holdings Col, Ltd, Japan Woolworths, Australia Baillian, Brillaince Group, China Coop Italia, Italy
Major Industry Players -INDIA Future Group Shopper’s Stop Trent – Westside RPG Spencer Reliance Retail Aditya Birls – MORE Metro Cash & Carry
AD FACTORSONE KI CHIDIYAhttp://www.youtube.com/watch?v=5vMaGPmh1ywFUTURE GROUP , CORPORATE FILMhttp://www.youtube.com/watch?feature=endscreen&NR=1&v=EcQMNGWK2nEIBM RFID COMMERCIAL FUTURE MARKEThttp://www.youtube.com/watch?v=eob532iEpqkMicrosofts Vision for Future retailhttp://www.youtube.com/watch?v=AJL_oivIMhQ&feature=related
RETAILING STRATEGY IN INDIA• Strategy most important in India – Diverse country• What may sell in the north may not sell in the south under the same brand name• Successful retailers have always been region specific in India• Nilgiris-south ; Sabka Bazaar , Nirula’s- Delhi & NCR• Although the same group might own different formats in different regions• Also different formats are adapted for tier 2 cities and Metros• A strategy like Wal-mart unlikely to work out here• Kashmir to Kanyakumari – same product in all segments not possible
INDIAN SCENE -VIS-À-VIS GLOBAL SCENARIO• The global market is more standardized• Whereas India is a much more diversified market so a region specific approach required• The Indian Markets are currently booming with more purchasing power• Whereas no other market in the world is experiencing this growth leaving alone China• India : Potentially huge; 96% unorganized retail market to be tapped• Other retail markets have slowed down especially in comparison to India & China
i MARKET nsightWHAT KEEPS THIS INDUSTRY TICKING? India’s economic Purchasing power of New products in the development as a the consumer market whole The employment Only 4% of the opportunities that Commercial Real market unorganized this industry Estate development – lot of work left to possesses be done The sales figures – India s changing consumption pattern
Drivers for Growth Growing Growing Disposable Rising ExplosionConsumer Economy Income Incomes of Media Class
Discounted Pricing Expanding Longer to US and Store Abroad timings StrategiesDominate Wide rangeLocation of goods Saturday 10 Foot rule Morning Meet
Discounted Pricing Talks to Bazaar like people and atmosphere community in stores leaders Walks streets Strategies and Bazaars to Wide rangeidentify product stacking in new of goods stores Believes in Appointing taking quick category decisions managers
THE BEST LAID PLANS A unique aspect of the Retail Industry are the strategies revolving around the location planning of retail store. Retail Giants go through a lot of discussion before settling down on specific locations for each retail store. Based on such research and groundwork only then do they assess the kind of profit that can be generated in the future course of business.For the next twenty Minutes , we will break you into teams of 6 people each. And in your groups… you will discuss• Discuss on what are the points to be kept in mind while deciding on the location for a shopping mall.• Make a list of different types of locations and their description of real estate cost.. LETS DICUSS WHAT YOU HAVE COME UP WITH
LETS SEE HOW CLOSE YOUR APPROACh is to reality..
TYPES OF LOCATIONS High Street Location Very Busy with high customer traffic Has an array of retail stores in small sizes Has stores that are generally found in clusters based on product categories High real – estate rentals Brigade Road, Bangalore
Destination/Freestanding Location Destination does not have a high footfall rate May not be a commercial retail area Low real – estate rentals Neighborhood Stores May have a large parking area
Shopping Center/Mall Location Has an existing mall traffic Has a clean Environment Has a designated parking area Medium to High rental cost Forum Mall, Hosur Road
It Happened in India: The Story of Pantaloons, Big Bazaar, Central and the Great Indian Consumer Kishore Biyani writes about his struggles, his work philosophy and inspires you with stories and tips . This is a simple inspiring read and it could also help you make an impact in the Indian retail business. Its insightful even if you plan to build a career in retail.
Retailing: OverviewRetail is one of the largest, most dynamic parts of the world economy.• In good economic times, jobs in the retail sector are numerous and many entry-levelpositions are easy to get.•Even during economic contractions, when some retailing sectors suffer, others--likegroceries, drugstores, and discounters--continue to thrive.•Careers in retail are people-oriented, fast-paced, and have room for creativity.• Retailing jobs are worth taking a good look at, particularly if you are looking for aservice-oriented, entrepreneurial profession.• The options are many including store management, buying, merchandising andcentral management.•Theres also the booming area of e-tailing (online retail).•If you have an interest in technology, marketing and retail, these may be the retailingjobs for you. 34
VENDOR PARTNERS RETAIL Research Logistics and supply chainB2B Marketing IT & ITES FMCG 35
Retailing: Skills & Talents People skills: High Sales skills: High Communication skills: High Analytical skills: Low Ability to synthesize: Medium Creative ability: Medium Initiative: High Work hours: 35-65/week 37
Retailing: Facts & Trends1. Internet Retailing is Huge2. Recession is hurting the high end3. Category killers usually dominate either on price, selection, store appearance or, better yet, all three 38
RETAIL CAREER TIP# 1Each retail firm has its own approach to similar processes. Don’t assume. Ask questions? 39
What are the major challengesAbnormal hoursThe negative impression about retailing is that retailers work long hours and for relatively low reward. There is a lot of truth to that impression. some work schedules may not be the typical 9 to 5, Monday through Friday schedule of other professions.Pay is low to begin withMBA is not a requirement to enter the profession 42