The Indian retail sector is a rapidly evolving industry, valued at approximately USD 300 billion, with only 4.6% organized retail, dominated primarily by food and grocery stores. Despite restrictions on foreign direct investment, various domestic and global players are planning expansions into smaller towns and the organized retail market is expected to grow significantly. Key players in the market include Pantaloon, Big Bazaar, and various international retailers such as Walmart and Tesco, indicating a competitive landscape with a shift towards urban and rural opportunities.

2. INDIAN RETAIL LANDSCAPEINDIAN RETAIL LANDSCAPE
FORMATS OF INDIAN RETAILFORMATS OF INDIAN RETAIL
TYPES OF RETAILTYPES OF RETAIL

3.  One of the world’s largest industry
exceeding US $ 9 trillion
 47 Global Fortune 500 companies
& 25 Asia's Top 200 companies are
retailers
 Dominated by developed
countries.
 US, EU & Japan constitutes 80% of
world retail sales
 Biggest player in India, Pantaloon’s
total group sales is about equal to
2 Wal-Mart super centers annual
revenues
38%
27%
13%
8%
3% 2% 9%
USA EU Japan China
India Russia Others

4.  Highly evolved US market has Wal-Mart taking only 8% market
share
 UK market has Tesco with only 13.4% market share
 China market still does not have a clear leader
USA = US$ 2,350 Bn UK = US$ 406 Bn China = US$ 313 Bn

5.  Total retail contribution in World GDP is 27%
 Organized retail in US accounts for 22% of
GDP
 Share of organized retail in developing
markets ranges between 20% to 55%
 Retail markets are organizing faster
 In developed markets, dominant player (Wal-
Mart in US, Tesco in UK) has a significantly
higher share; enjoying up to 8-13% market
share
 Departmental stores growth is declining while
‘All-under-one-roof’ & ‘neighborhood’
convenience is gaining strength

6.  Indian Retail - dominated by unorganized
sector
 Approximately 2 million Mom and Pop Shops
 Share of organized retail sector is only 4.6%
 FDI in the retail sector not permitted to protect
local retailers (excepting for single brand &
cash and carry formats. In this FDI is 51%.)
 Indian retail sector is one of the least
concentrated in the world.
 The top five companies hold a combined
market share of less than 2%
 India is third largest market in Asia and
Oceania, behind Japan and China.

7. Indian retail is dominated by food & grocery which contributes > 65% of
Rs 9.3t retail market, almost 99% of this is dominated by kirana stores.
In Rs 00 crores

8.  In India, clothing retail accounts for 36% of organised retail
business. According to a report global apparel, accessories &
luxuries market is likely to grow by 4.5% annually and Asia
Pacific region is anticipated to acquire leadership position by
2011. Apparel sector in India poses a lot of challenges to a
marketer. So far India’s share in world apparel trade has been
insignificant (less than 3%). World garment trade is estimated at
around 195 Billion US$ annually. The Biggest manufacturer &
supplier is China producing over 50 billion $, followed by Mexico
which produces over 8 billion and followed by many countries
like India, Sri Lanka and Bangladesh, being the third place
countries making and exporting garments worth 5 - 6 billion $
annually.

9. Store nameStore name PantaloonPantaloon Mega-Mega-
martmart
LifestyleLifestyle WestsideWestside WillsWills
LifestyleLifestyle
MaxMax
PositioningPositioning FamilyFamily
storestore
Value forValue for
moneymoney
Value pricingValue pricing Style &Style &
affordabilityaffordability
EnjoyingEnjoying
the changethe change
FamilyFamily
ShoppingShopping
DestinationDestination
FormatFormat
TypeType
MultibrandMultibrand Ex.Ex.
ArvindArvind
MillsMills
MultibrandMultibrand Ex. TataEx. Tata
trent gr.trent gr.
Ex. ITCEx. ITC MultibrandMultibrand
Floor sizeFloor size 28000sq.ft.28000sq.ft. 5000sq.5000sq.
Ft.Ft.
50000sq. Ft.50000sq. Ft. 15000-15000-
30000sq.30000sq.
Ft.Ft.
LocationLocation C.G.road,C.G.road,
AhmedabaAhmedaba
dd
DriveDrive
roadroad
AhmedabAhmedab
adad
SatelliteSatellite
road,Ahmedabroad,Ahmedab
adad
C.G.roadC.G.road
AhmedabadAhmedabad
C.G.road,C.G.road,
AhmedabadAhmedabad
GallopsGallops
mall,mall,
AhmedabadAhmedabad
CategoriesCategories Apparel,Apparel,
accessorieaccessorie
ss
Apparel,Apparel,
furnishinfurnishin
gg
Apparel,Apparel,
accessoriesaccessories
StyledStyled
clothingclothing
RelaxedRelaxed
wear, bodywear, body
carecare
productproduct
Footwear,Footwear,
accessoriesaccessories

10.  Future group- big bazaar, food bazaar,
pantaloons etc.
 Reliance retail- marks & spencer
 RPG group- spencer
 Bharti-walmart
 Tata tesco- star bazaar

11.  Parsvnath retail
 Subhiksha retail
 Vishal mega mart retail
 Shoppers’ stop

12. The share of organized retail in total retail pie is set to increase from
about 3% to 8 – 10 % by 2010.

13.  Hyper market- more than 75000
square feet
 Super market- less than 75000
square feet
 Neighborhood store- 3500 to 5000
square feet
 Kirana store

14. 
Malls:
The largest form of organized retailing today. Located mainly
in metro cities, in proximity to urban outskirts. Ranges from
60,000 sq ft to 7,00,000 sq ft and above. They lend an ideal
shopping experience with an amalgamation of product,
service and entertainment, all under a common roof.
Examples include Shoppers Stop, Piramyd, and Pantaloon.
Specialty Stores:
Discount Stores:
As the name suggests, discount stores or factory outlets, offer
discounts on the MRP through selling in bulk reaching
economies of scale or excess stock left over at the season.
The product category can range from a variety of
perishable/ non-perishable goods.
Mar 21, 2015 14

15. 1. Food Category: Supermarkets,discount stores,
fresh product outlets, speciality stores,
convenience stores and off-price retailers.
2. Restaurants: Apna Ghar, old formats coexist
(Ghanteewala Halwai, Natraj Café, Giani ka
falooda)
3. Health and Beauty Products: LIFESPRING HEALTH
& BEAUTY PLACE (Health Foods at Beauty
Products, Eye Care at Life Spring )
4. Clothing and Footwear Retailers: Kala Niketan,
THE LOFT, Shoppers’ Stop, Pantaloon, Trent, Home
Furniture and Household Goods Retailers
5. Durable Goods Retailers :Vivek’s
6. Petro-Retailing in India: Bharat Petroleum
7. Retail Banking: Multi-Channel Distribution,Call
Centres (support services), Technology, Rural
exposure
8. Leisure industry

16.  In fact, the Indian rupee has a very
high purchase power parity
compared to its international
exchange value
 The domestic purchasing power of a
US dollar in the US is closer to the
purchasing power of six rupees in
India, for equivalent goods and
services
 As a result, India ranks fourth richest
nation in the world, on purchase
power parity terms, despite being
having low per capita national
income

17.  Existing players expanding to smaller towns
› Number of existing players like Big Bazaar,
Shopper’s Stop, Piramyd are planning expansion in
smaller cities
 Indian business houses in retail
› Many business houses are planning retail entry /
expansion either on their own or through
partnerships
 Global Players planning entry in India
› Some of world’s largest retailers - evaluating entry in
India including Wal-Mart, Carrefour,Tesco, IKEA,
Best Buy, Lowe's, Kingfisher Group, Auchan,
Woolworth, NTUC etc.
› Shop Rite, Metro, Marks & Spencers, & Spar are
already here
› Some have setup Sourcing / Back-office centers
e.g. Tesco, Wal-Mart, etc.
 Rural opportunity - becoming interesting for
organized retailers

18. 943
990
1040
1092
1146
1203
1264
28
35
44
55
68
85
107
0
200
400
600
800
1000
1200
1400
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
Rs'000Cr
0
20
40
60
80
100
120
Rs'000Cr
Total Retailing Market ( Rs '000 Cr) Organized Retailing (Rs '000 Cr)
 Indian retail industry ~ Rs 990,037 Cr (USD 300 bn), growing at 5-6% p.a.Indian retail industry ~ Rs 990,037 Cr (USD 300 bn), growing at 5-6% p.a.
 Organised retail industry ~ Rs 35,000 Cr (USD 7.7 bn), growing at 25-30%Organised retail industry ~ Rs 35,000 Cr (USD 7.7 bn), growing at 25-30%
p.a.p.a.

19.  Lack of right formats catering to needs
especially “All Under One Roof” formats
 Absence of single trusted player with pan-
India presence
 No investment in supply-chain infrastructure.
 Sole focus on front-end with minimal back-
end linkages (DC, logistics, cold chain,
vendor & farmer development, etc.)
 Inconsistent availability, quality & pricing
 Transactional approach, minimal focus on
customer service over the life-cycle

20. THANK YOU
Mar 21, 2015 20