The food and grocery (F&G) market is the biggest retail segment in India. It touches up to Rs 17,12,000 crore currently and will expand to touch Rs 27,41,961 in 2015. India has a vast population. So, Retail market in India is a huge market. As we can see 60% of the market is retail based. Even apparel market couldn't cross 8%. The three main steps to modern retail market can be understood by block diagram : HAATS, MANDIS, BANIA SHOPS - APNA BAZAAR, KENDRIYA BHANDAAR - SUBHIKSHA , MORE , SPENCER’S. The transformation of food and grocery market took place by some factors. The customer profile is nowadays an important factor for market scenario. The competitors are the reflection of present market scenario. Some retailers who are competitor to each other. Industry growth rate in Food and grocery retail industry is expected to have a grow @ 30 % In 2011 the total growth was US $ 70 billion, it is expected to have around US $ 150 billion in 2025. Advertisement is a long known strategy of food and retail market. some of the examples might enlighten the importance. Even Loyalty programs too are very old strategies of sellers. These are some examples. Modern & new technology: in the organized food & grocery retail computerized billing counters can be seen. Moreover some of the big retail stores like big bazaar use modern technology and techniques for managing their supply chain. Like: VRM (Vendor Relationship Management) and ERP (Enterprise Resource Planning). As we can see here, most of the food and grocery retail market is unorganized. Yet the food and grocery segment is the highest contributor to the retail sector with maximum contribution coming from traditional retailing.

1. PRESENTATION ON
FOOD & GROCERY SECTOR IN INDIA
By Arijit Ghosh, Saikat Biswas, Bidyut Mondal & Rounak Basu
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2. OVERVIEW - SECTOR ANALYSIS
• MARKET SIZE - The food and grocery (F&G) market is the
biggest retail segment in India.
• GROWTH - The total food and grocery retail market has
been growing at a CAGR of 14 percent and is estimated to
grow at 17 per cent per annum by 2015.
• The food and grocery segment is the highest contributor to
the retail sector (60%) with minimum penetration of
organized Retailing.
• Hypermarkets and supermarkets are the best suited retail
structure for this segment.
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3. RETAIL MARKET IN INDIA
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4. Till 1990
• HAATS, MANDIS, BANIA SHOPS
THE EVOLUTION
1990’s
• APNA BAZAAR, KENDRIYA BHANDAAR
2000-2011
• SUBHIKSHA , MORE , SPENCER’S
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5. CHANGES IN MODERN TIMES
NOT STACKED
200 Sq.Ft. LOCATION
ONLY DRY ITEMS
DAILY ITEMS ONLY
DIS.ON TOTAL COST
NO PARKING
NO LOYALTY
PROGRAMS
NO USE OF
TECHNOLOGY
WELL STACKED ITEMS
CLEAN ENVIROINMENT
FRESH STOCK
MORE VARIETY
LESS PRICE
PARKING FACILITY
LOYALTY
PROGRAMS
BARCODE SYSTEM
TRANSFORMATION
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6. CURRENT SCENARIO
CUSTOMER PROFILE:
Husband &
wife both
working
Lives in metro
city or tier 1
city
Owns a Car
High
disposable
income
Likes Mall
Culture
Brand
Conscious
Age group 20-
40
Reads
newspaper &
Uses internet
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7. COMPETITOR ANALYSIS:
KIOSKS SABZI MANDI KIRANA SHOP STREET VENDORS
CURRENT SCENARIO
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8. INDUSTRY GROWTH RATE: Food and grocery retail
industry is expected to have a grow at a rate of 30 %
2011
• US $ 70 billion
2025 • US $ 150 billion
CURRENT SCENARIO
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9. STRATEGIES EMPLOYED
STRATEGIES FOR PROMOTION: ADVERTISEMENTS
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10. STRATEGIES EMPLOYED
STRATEGIES FOR RETENTION: LOYALTY PROGRAMS
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11. TECHNOLOGY USED
MODERN & NEW TECHONOLOGY: In the organized food & grocery retail
COMPUTERIZED BILLING COUNTERS can be seen.
Moreover some of the big retail stores like big bazaar use modern
technology AND techniques for managing their supply chain.
ENTERPRISE RESOURCE PLANNING(ERP)
VENDOR RELATIONSHIP MANAGEMENT(VRM)
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12. ORGANIZED & UN-ORGANIZED RETAILING
The food and grocery segment is the highest contributor to the
retail sector with maximum contribution coming from traditional
retailing.
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13. Unorganiz
ed
92%
Organized
8%
Distribution
Food &
Grocery
60%
Other
40%
Market Segmentation
1.6
8.8
0
5
10
FY12 FY16
Expected Sales Growth (USD Bn) •Globally, e-grocery market is growing nearly 7 times
faster than on-ground format
•India is the sixth largest grocery market in the world
•Indian e-grocery market growing at a rate of 19% YoY
•30-40% of the business will be in the online retail
space in the next 5 years
Source: Technopak, Deloitte report, D’Essence analysis
E- GROCERY MARKET IN INDIA
E-COMMERCE
13
Indian
Retail
Market,
$500 Bn

14. INTEGRATED SUPPLY CHAIN MODEL
Customer Order gets
processed at
Warehouse
Online Portal
Call Center
Whole Seller Manufacturer
Procurement
Deliver it to
Customer
Source: D’Essence analysis
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15. MARKET OPPORTUNITIES
IN FOOD AND GROCERY RETAIL
• Indian household spending on food is one of
the highest in the world.
• Acceptance to modern retail this sector
exhibit huge untapped potential.
• Which gives a wider scope for the upcoming
Retailers to tap the untapped segment.
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16. ETOP: Environmental Threat and
Opportunity Profile
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Environmental Sectors Nature of
Impact
Impact of each sector
Economic
Growing affluence among urban
consumers, rising disposable
incomes & living standards
Market
Organized sector a virtual
oligopoly, overall industry growth
rate not encouraging,
International
Global imports growing but India’s
share shrinking
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17. 17
Environmental Sectors Nature of
Impact
Impact of each sector
Political
Political Pressures, Local antisocial
Regulatory
Government assistance, such as
government-backed loans and
subsidies, imposing regulations
that increase costs,
Social
Changes in social values and
trends impact, socially responsible
business practices,
ETOP: Environmental Threat and
Opportunity Profile
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18. 18
Environmental Sectors Nature of
Impact
Impact of each sector
Supplier
Collaboration Becomes Key To
Success For Retailers And
Suppliers.
Technological
The difference between the
winners and losers in retail
increasingly comes down to one
factor: tech savvy.
ETOP: Environmental Threat and
Opportunity Profile
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19. SOME OF THE KEY PLAYERS
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20. Right now there is no particular type of retailer that perfectly suits
the market.
- Toshifumi Suzuki
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