This document provides an overview of the competitive landscape of the retail industry in India. It notes that retail is a growing sector in India, expanding at 20-25% annually. The industry employs over 18 million people. While 97% of the retail market is unorganized, organized retail is growing and includes large Indian retailers like Pantaloon Retail and Future Group as well as international chains like KFC, Nike, and McDonald's. The document discusses the market segmentation in India, competitive environment, positioning of retailers in the Indian market, retail formats, and SWOT analysis of the industry. It concludes that modern retail in India could be worth $175-200 billion by 2016 due to market growth, supportive policies, and

1. competitive landscape of the retail industry
in India
Presented By
Presented By
Saurav Kishor
Saurav Kishor

2. Introduction
Interesting facts on retail
 Retail is a sunrise sector in the Indian business world Growing at 20 -25 %
per annum (Source: Mckinsey Report)
 5th Largest Market in the world by economic value
 Contribution of India’s GDP more than 15%
 Indian retail industry spreads over more then 6 million outlets (2.6 million
urban and 3.6 million in rural)
– Every 10th billionaire is a retailer.
– 25 of the top 50 Fortune 500 companies are in Retail.
– In India the Retailing Industry provides employment to over 18 m people,
second largest after agriculture.
– 1 out of every 25 families in India are engaged in the business of retailing
– 72% of Indian population staying in rural market.
– In India Per Capita square feet area under retail is just 2 sq. ft. or 0.2 sq. m.
– Source: CII Conference on Retailing

3. Market Segmentation
 A market segment consists of a group of customers who share a similar
set of needs and wants.
• It means dividing the market into similar sub-markets by understanding
the needs and expectations of customers.
• It is the first step in applying the marketing strategy.
 For Example
1. Titan Offer their watches in 4 brands for different customers
characteristics
Titan, Sonata, Times & Fast Track.
2. Future Group operate in 4 Different stores formats depending on the
category of the customers .
Big Bazar, Pantaloon, Central, Loot

4. Competitors
Some Key retails of India
• Big Bazar
• More.
• Reliance
• India Bulls
• Spencer’s
• Life style
• Future group
• Central and
• Etc….
Foreign companies who
already in Business
• KFC
• Pizza Hut
• Rebook
• Nike
• Subway
• United Colors of Benetton
• Adidas
• McDonald's and
• Etc…..

5. Positioning in Indian market
 FMCG Company Procter & Gamble (P&G) is planning to invest more
than Rs 1,500 crore (US$279.4 million) over a period of time in its
unlisted Indian arm P&G Home Products to ramp up operations in
the country
 US-based accessories manufacturer Fossil Inc has proposed to
invest Rs 20 crore (about $4.5 million) in India in a fully owned
single brand retail venture
 Pavers England to invest $20 million in its Indian single brand retail
strategy
 Wal-Mart, Carrefour and Tesco are interested in entering the
Indian market in front-end operations
 French retail giant Auchan Group to open franchise stores in India
 Brooks Brothers to invest Rs 6.22 crore ( Rs1=0.02 UD$) IKEA
proposes to bring in Rs 10,500 crore of foreign direct investment
(FDI), the largest in the category so far ( Rs1=0.02 UD$)

6. Indian retailers
A 2012 PWC report states that modern retailing has a 5% market share in India with about $27
billion in sales, and is growing at 15 to 20% per year. There are many modern retail format and
mall companies in India.
Indian Retail Group Market Reach in 2011 and Notes
Pantaloon Retail
65 stores and 21 factory outlets in 35 cities, 2 million
square feet space
Shoppers Stop 51 stores in 23 cities, 3.2 million square feet space
Spencers Retail 200 stores in 45 cities, 1 million square feet space
Reliance Retail
708 mart and supermarkets, 20 wholesale stores in 15
cities, 508 fashion and lifestyle
1206 crore (US$200 million) per month sales in 2013
Bharti Retail
74 Easyday stores, plans to add 10 million square feet by
2017
Birla More 575 stores nationwide
Tata Trent 59 Westside mall stores, 13 hypermarkets
Lifestyle Retail 15 lifestyle stores, 8 home centers
Future Group
193 stores in 3 cities, one of three largest supermarkets
retailer in India by sales
916 crore (US$150 million) per month sales in 2013

7. Retail formats in India
 Unorganized retailing refers to the
traditional formats of low- cost
retailing
 for example,
• the local corner shops,
• owner manned general stores,
• pan/beedi shops, convenience stores,
• hand cart
• pavement vendors
 Organized retailing refers to trading
activities undertaken by licensed
retailers, that is, those who are
registered for sales tax, income tax,
etc.
 These includes,
• The publicly traded supermarkets,
corporate-backed hypermarkets and
retail chains,
• and also the privately owned large
retail businesses.
Retail
Unorganized 97 % Organized 3%

8. Swat Analysis
Strength
• Products are cheaper than the
market price.
• Technology intensive industry
• Variety in products
• Demographic favor Strength
• Rising disposable income
• Urbanization
• Shopping convenience
• Low labor cost of skilled ones
• Plastic card revolution
Weakness
• Has not yet trapped the whole market.
• Facing problems due to political
environment
• Less conversion level
• Customer loyalty Weakness
• Policy related issues
• Limited consumer insight
• Inadequate human resources
• Taxation hurdle
• Underdeveloped supply chain
• Lack of adequate facilities

9. Swat Analysis
Opportunities
• Kids and teens retailing segment
• Percolating down
• Rural retailing
• Sectors for high growth potential
OPPORUNITY
• Locational advantage
• Falling real estate cost
• E-retailing
• Franchising
Threats
• Shopping culture
• Political issues
• Social issues
• Lack of differentiation among the malls
THREATS that are coming
• Poor inventory turns and stock availability
measures

10. Conclusion
• Modern Retail in India could be worth US$
175-200 billion by 2016.
• The Future is Promising; The Market is
growing, government policies are becoming
more favourable and emerging technologies
are facilitating operations.

11. Thank you