SlideShare a Scribd company logo
PRESENTED BY-PAWAN KR. CHOUDHARY
CM-II,PRN-DM16C32
Retail sector overview
 The Indian retail industry has emerged as one of the
most dynamic and fast-paced industries due to the
entry of several new players.
 It accounts for over 10% of the country’s Gross
Domestic Product (GDP) and around 8% of the
employment.
 India is the world’s ninth-largest global destination in
fdi confidence index.
 India ranked third on net retail sales.
SECTOR INFORMATION
66.3
8.7
8
5.2
2.7
3.6 1.2
5.4
Food & Grocery Apparel
Jewellery Consumer dubarbles & IT
Pharmacy Furniture & Furnishing
Footwear Others
Source: Technopak, Indian Retail Market January 2013, Deloitte, A Report on ‘Changing trends: gems & jewellery
industry’ by Onicra, TechSci Research
Retail formats in India
Mono/exclusive
branded retail shops
Exclusive showrooms
owned or franchised
by a manufacturer.
Multi-branded retail
shops
Focus on particular
product categories
and carry most of the
brands available
Convergence retail
outlet
Display most of
convergence as well
as consumer or
electric products
E-retailers
It is an online
shopping facility for
buying and selling
products and services
Growth
The retail sector in India is emerging as one
of the largest sectors in the economy
The total market size was estimated to be
around USD600 billion in 2015, thereby
registering a CAGR of 7.45 per cent since
2000.
Retail industry is expected to grow to USD1.3
trillion by 2020, registering growth at a CAGR
of 7.46 per cent between 2000-2015 0
200
400
600
800
1000
1200
2013 2014 2015 2016 2017
MARKET SIZE(US$)
MARKET SIZE(US$)
CAGR-
7.9 %
SOURCE-WWW.IBEF.ORG
Reasons for growth
Demand drivers
• Rising income levels
• Increased
urbanization
• Growing aspiration
levels and appetite to
experiment
• Credit availability
Supply drivers
• New entrants
• Expansion plans of
existing players
• Infrastructure
augmentation
• Emergence of new
categories
Road Ahead
 E-commerce is expanding steadily in the country.
Customers have the ever increasing choice of products
at the lowest rates.
 Both organized and unorganized retail companies have
to work together to ensure better prospects for the
overall retail industry.
PORTER’S FIVE FORCES ANALYSIS
Competitive Rivalry
• Entry of foreign players in the market & e-retailers
have intensified competition
• Customers’ low switching cost increases competition
• The Indian retail sector is highly fragmented, which
increases competition
Threat of New Entrants
• Entry as a retailer is quite
simple. However, players need
to establish strong distribution
channels & achieve economies
of scale to compete
Substitute Products
Threat of substitute
products is low. However,
customers may purchase
products from a local store
instead of purchasing from a
retailer
Bargaining Power of
Suppliers
Bargaining Power of
Customers
Retailers have low
switching costs, which
make the supplier power
low. Larger retailers can
easily switch to different
suppliers.
The consumers are price
sensitive & have
information about the
product & its price • Low
switching cost gives
customers high
bargaining power
FAB India
Parent Company FAB India Overseas Pvt. Ltd
Category Apparel and Accessories
Sector Lifestyle and Retail
Tagline/ Slogan Celebrate India
USP Completely Indian products
Company Snapshot
 Fabindia is India's largest private platform for
products that are made from traditional
techniques, skills and hand-based processes.
 Fabindia links over 55,000 craft based rural
producers to modern urban markets.
 Fabindia's products are natural, craft based,
contemporary, and affordable.
About FAB India
http://www.fabindia.com
Garments Accessories Home linen Home furnishings
Home products Floor coverings Personal products Organics
Products
Segment
Men, women who want to buy complete Indian
products.
Target Group Urban, upper and middle class families.
Positioning Lifestyle brand which is Indian at heart.
STP
s
• The brand has maintained its Indianness with the authenticity of hand-woven fabric for
over years
• the brand strongly believes in word of mouth marketing which has proved very effective
as the brand does not advertise
w
• The brand is losing out on attracting new customers as it hugely depends on
repeat purchases
• Limited global penetration despite huge potential in NRI market
o
• The brand needs to tap the potential of organic foods by creating awareness
about their merits.
• Geographic expansion in US and UK with huge Indian population
T
• Unorganized local players can be a serious threat to the brand
• Consumers tilt towards foreign brands in the lifestyle segment
Recent News
14
• Fabindia in fresh row for calling its fabrics Khadi
• Ethnic wear brand Fabindia faces fresh challenges over using the term khadi to describe its fabrics
owing to the raw material used and the weaving pattern employed in their creation.
NSE
Fabindia plans to launch Indian herbal tea in China
• It was the British who introduced tea in India from China. Now, Fabindia is trying to take Indian
herbal tea to the land of the dragon.
http://economictimes.indiatimes.com
Strength :
 Growing domestic market,
 increase in number of malls
 Democracy provides a stable economic and social
environment, putting international players at ease
 Easy credit facility and plastic card revolution is
increasing the purchasing power, particularly of the
younger generations.
Opportunities :
 Increasing demand for brands from the middle class
 Research and new product development can help the
companies to move across the value chain
 Rural India is almost untouched, presenting tremendous
opportunity
Weakness :
 Predominance of unorganized sector
 Technological obsolescence in the supply chain
 Taxation hindrances:
 VAT and multiple tax levies.
Threats :
 Increased competition in the domestic market
 Cheaper import
 Changing Government’s policy on FDI
 Price of land and lease rentals are high while margins are
low
53%
27%
15% 5%
Apparel Segmentation
Casual
Sports
Formal
Ethnic
20%20%
20%
15%
15%
10%
Source-www.ibef.com
1. Cotton Emporium
2. Khadi Gram Udyog
3. Good Earth
Traditional Retail Cycle: Modern Retail Cycle:
PLC
www.google.com
Fab india overseas private ltd.

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Fab india overseas private ltd.

  • 1. PRESENTED BY-PAWAN KR. CHOUDHARY CM-II,PRN-DM16C32
  • 2. Retail sector overview  The Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the entry of several new players.  It accounts for over 10% of the country’s Gross Domestic Product (GDP) and around 8% of the employment.  India is the world’s ninth-largest global destination in fdi confidence index.  India ranked third on net retail sales.
  • 3. SECTOR INFORMATION 66.3 8.7 8 5.2 2.7 3.6 1.2 5.4 Food & Grocery Apparel Jewellery Consumer dubarbles & IT Pharmacy Furniture & Furnishing Footwear Others Source: Technopak, Indian Retail Market January 2013, Deloitte, A Report on ‘Changing trends: gems & jewellery industry’ by Onicra, TechSci Research
  • 4. Retail formats in India Mono/exclusive branded retail shops Exclusive showrooms owned or franchised by a manufacturer. Multi-branded retail shops Focus on particular product categories and carry most of the brands available Convergence retail outlet Display most of convergence as well as consumer or electric products E-retailers It is an online shopping facility for buying and selling products and services
  • 5. Growth The retail sector in India is emerging as one of the largest sectors in the economy The total market size was estimated to be around USD600 billion in 2015, thereby registering a CAGR of 7.45 per cent since 2000. Retail industry is expected to grow to USD1.3 trillion by 2020, registering growth at a CAGR of 7.46 per cent between 2000-2015 0 200 400 600 800 1000 1200 2013 2014 2015 2016 2017 MARKET SIZE(US$) MARKET SIZE(US$) CAGR- 7.9 % SOURCE-WWW.IBEF.ORG
  • 6. Reasons for growth Demand drivers • Rising income levels • Increased urbanization • Growing aspiration levels and appetite to experiment • Credit availability Supply drivers • New entrants • Expansion plans of existing players • Infrastructure augmentation • Emergence of new categories
  • 7. Road Ahead  E-commerce is expanding steadily in the country. Customers have the ever increasing choice of products at the lowest rates.  Both organized and unorganized retail companies have to work together to ensure better prospects for the overall retail industry.
  • 8. PORTER’S FIVE FORCES ANALYSIS Competitive Rivalry • Entry of foreign players in the market & e-retailers have intensified competition • Customers’ low switching cost increases competition • The Indian retail sector is highly fragmented, which increases competition Threat of New Entrants • Entry as a retailer is quite simple. However, players need to establish strong distribution channels & achieve economies of scale to compete Substitute Products Threat of substitute products is low. However, customers may purchase products from a local store instead of purchasing from a retailer Bargaining Power of Suppliers Bargaining Power of Customers Retailers have low switching costs, which make the supplier power low. Larger retailers can easily switch to different suppliers. The consumers are price sensitive & have information about the product & its price • Low switching cost gives customers high bargaining power
  • 9. FAB India Parent Company FAB India Overseas Pvt. Ltd Category Apparel and Accessories Sector Lifestyle and Retail Tagline/ Slogan Celebrate India USP Completely Indian products Company Snapshot
  • 10.  Fabindia is India's largest private platform for products that are made from traditional techniques, skills and hand-based processes.  Fabindia links over 55,000 craft based rural producers to modern urban markets.  Fabindia's products are natural, craft based, contemporary, and affordable. About FAB India
  • 11. http://www.fabindia.com Garments Accessories Home linen Home furnishings Home products Floor coverings Personal products Organics Products
  • 12. Segment Men, women who want to buy complete Indian products. Target Group Urban, upper and middle class families. Positioning Lifestyle brand which is Indian at heart. STP
  • 13. s • The brand has maintained its Indianness with the authenticity of hand-woven fabric for over years • the brand strongly believes in word of mouth marketing which has proved very effective as the brand does not advertise w • The brand is losing out on attracting new customers as it hugely depends on repeat purchases • Limited global penetration despite huge potential in NRI market o • The brand needs to tap the potential of organic foods by creating awareness about their merits. • Geographic expansion in US and UK with huge Indian population T • Unorganized local players can be a serious threat to the brand • Consumers tilt towards foreign brands in the lifestyle segment
  • 14. Recent News 14 • Fabindia in fresh row for calling its fabrics Khadi • Ethnic wear brand Fabindia faces fresh challenges over using the term khadi to describe its fabrics owing to the raw material used and the weaving pattern employed in their creation. NSE Fabindia plans to launch Indian herbal tea in China • It was the British who introduced tea in India from China. Now, Fabindia is trying to take Indian herbal tea to the land of the dragon. http://economictimes.indiatimes.com
  • 15. Strength :  Growing domestic market,  increase in number of malls  Democracy provides a stable economic and social environment, putting international players at ease  Easy credit facility and plastic card revolution is increasing the purchasing power, particularly of the younger generations. Opportunities :  Increasing demand for brands from the middle class  Research and new product development can help the companies to move across the value chain  Rural India is almost untouched, presenting tremendous opportunity Weakness :  Predominance of unorganized sector  Technological obsolescence in the supply chain  Taxation hindrances:  VAT and multiple tax levies. Threats :  Increased competition in the domestic market  Cheaper import  Changing Government’s policy on FDI  Price of land and lease rentals are high while margins are low
  • 16.
  • 18. 1. Cotton Emporium 2. Khadi Gram Udyog 3. Good Earth
  • 19. Traditional Retail Cycle: Modern Retail Cycle: PLC www.google.com