The document provides an overview of the retail market in India. Some key points:
- The Indian retail market is projected to grow from an estimated $795 billion in 2017 to $1,200 billion by 2021. Modern retail is expected to double in size over the next three years.
- Total consumer expenditure in India is expected to reach nearly $3,600 billion by 2020 from $1,824 billion in 2017, driving growth in the retail sector.
- Organized retail currently accounts for only about 9% of the market, indicating significant scope for expansion. Traditional retail still dominates but organized retail is growing at 20-25% annually.
- Factors like rising incomes, changing consumer preferences
Retail Marketing in Rural India – Factors in Favour and StrategiesDr. Amarjeet Singh
Retail industry now accounting for 10% of the
country’s GDP undergoes dynamic changes boosting its
growth still further. The sector grows impressively leading
to production of wide range of products and services.
Rural markets provide great scope for marketers due to
increased revenue and purchase power of the rural
population in India. The rural income is expected to
increase faster due to government policies supporting
agriculture and the earning population that has
temporarily moved out of rural villages to cities for
employment in non-agricultural sectors. Technology in
agriculture has helped to produce quality crops and the
market is ready to give high prices for such products.
Around 60% of the students in the colleges are first
generation graduates who have moved out of their villages
for tertiary education. Thus the life style, likes and
preferences of the rural population keeps changing.
However the huge rural segment is much different from
that of the urban segment and the marketers need to
approach with sustained efforts and special models. The
highly fragmented rural segment’s needs are majorly filled
by unorganized family run Kirana stores and Maligai
shops. The share of organised retail in the country has
risen by 60% and the same is expected to have impact on
the rural market as well. The paper focuses on the growth
of retail market in India, the emerging factors in favour of
rural retail and suggests strategies for rural retailing.
Retail Marketing in Rural India – Factors in Favour and StrategiesDr. Amarjeet Singh
Retail industry now accounting for 10% of the
country’s GDP undergoes dynamic changes boosting its
growth still further. The sector grows impressively leading
to production of wide range of products and services.
Rural markets provide great scope for marketers due to
increased revenue and purchase power of the rural
population in India. The rural income is expected to
increase faster due to government policies supporting
agriculture and the earning population that has
temporarily moved out of rural villages to cities for
employment in non-agricultural sectors. Technology in
agriculture has helped to produce quality crops and the
market is ready to give high prices for such products.
Around 60% of the students in the colleges are first
generation graduates who have moved out of their villages
for tertiary education. Thus the life style, likes and
preferences of the rural population keeps changing.
However the huge rural segment is much different from
that of the urban segment and the marketers need to
approach with sustained efforts and special models. The
highly fragmented rural segment’s needs are majorly filled
by unorganized family run Kirana stores and Maligai
shops. The share of organised retail in the country has
risen by 60% and the same is expected to have impact on
the rural market as well. The paper focuses on the growth
of retail market in India, the emerging factors in favour of
rural retail and suggests strategies for rural retailing.
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
2. Table of Content
Advantage India…………………..….…….. 5
Market Overview and Trends………...…….7
Strategies adopted……………....…………15
Growth Drivers……………………......…....18
Key Industry Organisations……….……....29
Useful Information……….……….......…....31
Executive Summary…………………..……..3
Opportunities.....…………………………...26
3. For updated information, please visit www.ibef.orgRetail3
EXECUTIVE SUMMARY
Retail market in India (US$ billion)
795
1,200
0
500
1,000
1,500
2017E 2021F
Modern retail market in India (US$ billion)
13.51
26.67
0
10
20
30
2016 2019F
Consumer expenditure in India (US$ billion)
Notes: CAGR - Compound Annual Growth Rate, F- Forecast, E - Estimated
Source: Ernst and Young, Price Waterhouse Cooper, Economic Times, MRRSIndia.com and Assocham - The Associated Chambers of Commerce and Industry of India, Consumer Leads
report by FICCI and Deloitte - October 2018
1,824
3,600
0
1,000
2,000
3,000
4,000
2017 2020F
Rising income and demand for quality products to boost consumer
expenditure.
Total consumption expenditure is expected to reach nearly US$
3,600 billion by 2020 from US$ 1,824 billion in 2017.
Indian retail one of the fastest growing markets in the world due to
economic growth.
India is the world’s fifth largest global destination in the retail space.
Retail market in India is projected to grow from an estimated US$
795 billion in 2017 to US$ 1,200 billion in 2021F.
India’s modern retail to double in size over the next three years.
The modern retail market in India is expected to grow from US$
13.51 billion in 2016 to US$ 26.67 billion in 2019.
4. For updated information, please visit www.ibef.orgRetail4
EXECUTIVE SUMMARY
Revenue from online retail in India (US$ billion)
FMCG market in India (US$ billion)
Source: indiaretailing.com, eMarketer
Notes: CAGR - Compound Annual Growth Rate, F – forecast,, All the years denote calendar year, ^ - FY18
Robust consumption, rural markets to augment FMCG market.
FMCG market expected to increase to US$ 103.7 billion by 2020
from Rs 3.4 lakh crore (US$ 52.75 billion) in FY2018.
Increasing participation from foreign and private players to boost
retail infrastructure.
India's online retail sector grows 23 per cent to US$ 17.8 billion in
2017.
Online retail sales is forecasted to grow at the rate of 31 per cent
year-on-year to reach US$ 32.70 billion in 2018.
Revenue generated from online retail is projected to grow to US$ 60
billion by 2020.
13.00 14.50
17.80
32.70
60.00
0
10
20
30
40
50
60
70
2015 2016 2017 2018F 2020 E
49.00 52.75
103.70
0
20
40
60
80
100
120
2016 2018^ 2020 F
6. For updated information, please visit www.ibef.orgRetail6
ADVANTAGE INDIA
Healthy economic growth, changing
demographic profile, increasing
disposable incomes, changing consumer
tastes and preferences are driving growth
in the organised retail market in India.
Rapid urbanisation with increasing
purchasing power has led to growing
demand.
Retail space demand is expected to
increase at the rate of 81 per cent to 7.8
million sq ft in 2018.
Collective efforts of financial houses and
banks with retailers are enabling
consumers to go for durable products with
easy credit.
Foreign retailers are continuously entering
the Indian market.
Cumulative FDI inflow in retail as of June
2018 stood at US$ 1.42 billion.
As of September 2018, Samara Capital
and Amazon acquired More.
About 51 per cent FDI in multi-brand retail.
100 per cent FDI in single-brand retail
under the automatic route.
Goods and Service Tax (GST) was
introduced as a form of single unified tax
system.
To provide a level-playing field to
stakeholders, the government is planning
to synchronise policies of retail, FMCG
and e-commerce within a single policy
framework.
ADVANTAGE
INDIA
Source: Report of the Task force on Financing Plan for Ports, Government of India, JLL report
Note: FY – Indian Financial Year (April–March), NMDP – National Maritime Development Programme, FDI – Foreign Direct Investment, MMT – Million Metric Tonnes,
8. For updated information, please visit www.ibef.orgRetail8
EVOLUTION OF RETAIL IN INDIA
Source: Technopak Advisors Pvt Ltd, BCG
Pre 1990s 1990-2005 2005-2010 2010 onwards
Manufacturers opened their
own outlets.
Pure-play retailers realised the
potential of the market.
Most of them in apparel
segment.
Substantial investment
commitments by large Indian
corporate.
Entry in food and general
merchandise category.
Pan-India expansion to top
100 cities.
Repositioning by existing
players.
Cumulative FDI inflow from
April 2000 to June 2018, in the
retail sector, reached US$ 1.42
billion.
Retail 2020: Retrospect,
Reinvent, Rewrite.
Movement to smaller cities and
rural areas.
More than 5–6 players with
revenues over US$ 1 trillion by
2020.
Large-scale entry of
international brands.
Approval of FDI limit in multi-
brand retail up to 51 per cent.
Rise in private label brands by
retail players.
Sourcing and investment rules
for supermarkets were relaxed.
E commerce has emerged as
one of the major segments.
100 per cent FDI in single
brand retail under the automatic
route.
9. For updated information, please visit www.ibef.orgRetail9
RETAIL FORMATS IN INDIA
Mono/exclusive
branded retail shops
Multi-branded retail
shops
Convergence retail
outlets
E-retailers
Exclusive showrooms owned or franchised
out by a manufacturer.
Complete range available for a given
brand, certified product quality.
Focus on particular product categories and
carry most of the brands available.
Customers have more choices as many
brands are on display.
Display most of convergence as well as
consumer/electronic products, including
communication and IT group.
One-stop shop for customers; many
product lines of different brands on display.
It is an online shopping facility for buying
and selling products and services; the
facility is widely used for electronics, health
and wellness.
Highly convenient as it provides 24X7
access, saves time and ensures secure
transaction.
Source: Aranca Research
Note: IT - Information Technology
10. For updated information, please visit www.ibef.orgRetail10
COMPETITIVE LANDSCAPE IN INDIAN RETAIL
SECTOR
Departmental stores Hypermarkets
Supermarkets/
convenience stores
Specialty stores
Cash and carry
stores
Pantaloon has 209
stores.
Westside operates
126 stores as of
May 2018.
Shoppers Stop has
83 stores in India,
as of 2018.
As of FY18,
Reliance Retail
launched ‘Trends’ in
this format and
currently has more
than 3,300 stores
across India.
Pantaloon Retail is
the leader in this
format, with 259 Big
Bazaar stores and
online franchisees.
Aditya Birla Retail
(More
Hypermarket)- 20
stores.
HyperCITY (19
stores), Trent,
Spencer’s (Spencer
Hyper), and
Reliance are other
players.
Aditya Birla Retail-
More Supermarket
(523 stores).
Spencer’s Daily
(120 stores).
Reliance Fresh (502
stores).
REI 6Ten (350
stores).
Big Bazaar (259
stores).
Titan Industries is a
large player, with
438 World of Titan,
200 Tanishq and
470 Titan Eye+
shops.
Vijay Sales, Croma
and E-Zone are into
consumer
electronics.
Landmark and
Crossword focus on
books and gifts.
Metro started the
cash and carry
model in India; the
company operates
24 stores across
Mumbai, Kolkata,
Delhi, Punjab,
Hyderabad and
Bengaluru.
As of FY18,
Reliance Retail
operates 43 cash
and carry stores
called ‘Reliance
Market’.
Retail
Source: Company websites, Press Release
11. For updated information, please visit www.ibef.orgRetail11
STRONG GROWTH IN THE INDIAN RETAIL INDUSTRY
Note: *CAGR for 2000-2016, F – Forecast, E – Estimated
Source: indiaretailing.com, BMI Research, Consumer Leads report by FICCI and Deloitte - October 2018
The retail sector in India is emerging as one of the largest sectors in
the economy.
The total market size of Indian retail industry reached an estimated
US$ 795 billion in 2017. It is forecasted to increase to US$ 1,200
billion by 2021 and 1,750 billion by 2026.
India will become a favourable market for fashion retailers on the
back of a large young adult consumer base, increasing disposable
incomes and relaxed FDI norms.
Visakhapatnam port traffic (million tonnes)Market size over the past few years (US$ billion)
204
238
278
321
368
424
518
490
534
600
641
672
1,200
1,750
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2000
2002
2004
2006
2008
2010
2012
2013
2014
2015
2016
2017
2021F
2026F
*CAGR 10.97%
12. For updated information, please visit www.ibef.orgRetail12
ORGANISED RETAIL IN NASCENT STAGE
Source: BCG , KPMG- indiaretailing.com, Deloitte Report, Winning in India’s Retail Sector, Centre for Digital Financial Inclusion (CDFI) report, Crisil, Consumer Leads report by FICCI and
Deloitte - October 2018
88%
9%
3%
Traditional retail Organised retail E-commerce*
Significant scope for expansion
Note: E – estimate, F – Forecast, * - e-commerce market here refers to sale of products and services through electronic transactions, home shopping is considered a part of e-commerce
The Indian retail market is in its nascent stage; traditional retail, organised retail and e-commerce players accounted for an estimate of 88 per cent,
nine per cent and three per cent, respectively of the market during 2017.
The organised retail market in India is growing at a CAGR of 20-25 per cent per year.
In 2021, it is projected that and traditional retail penetration would hold a major share of 75 per cent, organised retail penetration share would reach
18 per cent and e-commerce retail penetration would reach seven per cent.
The unorganised retail sector in India has huge untapped potential for adopting digital mode of payments, as 63 per cent of the retailers are
interested in using digital payments like mobile and card payments.
75%
18%
7%
2017E
US$ 795
billion
US$ 1,200
billion
2021F
13. For updated information, please visit www.ibef.orgRetail13
SECTOR’S HIGH GROWTH POTENTIAL IS
ATTRACTING INVESTORS
FDI Confidence Index 2018
2.09
1.82
1.81
1.77
1.76
1.72
1.7
1.66
1.58
1.57
1.56
1.53
0
0.5
1
1.5
2
2.5
UnitedStates
Canada
Germany
UnitedKingdom
China
Japan
France
Australia
Switzerland
Italy
India
Singapore
Source: AT Kearney 2017 FDI Confidence Index
Note: FDI - Foreign Direct Investment
India has occupied a remarkable position in global retail
rankings; the country has high market potential, low economic
risk and moderate political risk.
India’s high growth potential compared to global peers has
made it more favourable. India is expected to become the
world's third-largest consumer economy, reaching US$ 400
billion in consumption by 2025, according to a study by Boston
Consulting Group.
In FDI Confidence Index, India ranks 11th (after U.S., Canada,
Germany, United Kingdom, China, Japan, France, Australia,
Switzerland and Italy).
India is ranked first in the Global Retail Development Index
2017, backed by rising middle class and rapidly growing
consumer spending.
14. For updated information, please visit www.ibef.orgRetail14
RISING PROMINENCE OF ONLINE RETAIL
Online retail in India (US$ billion)
13.00 14.50
17.80
32.70
60.00
73.00
0
10
20
30
40
50
60
70
80
2015 2016 2017 2018F 2020 F 2022F
Source: MasterCard Worldwide Insights 4Q 2010, ANAROCK, ASSOCHAM, UN Report 'The power of 1.8 billion‘, Nasscom annual guidance 2018, RedSeer Consulting, eMarketer
Notes: APMEA - Asia/ Pacific, Middle East and Africa, F- Forecast
Online retail business is the next generation format which has high potential for growth. Currently, it is estimated to be a US$ 50 billion
opportunity. After conquering physical stores, retailers are now foraying into the domain of e-retailing. It had a market size of US$ 18 billion in
2017 and is forecasted to reach US$ 32.70 billion by 2018.
Online retail market is estimated to reach US$ 60 billion by 2020. The online retail market sales is forecasted to grow at the rate of 31 per cent
year-on-year to reach US$ 32.70 billion in 2018. It is projected to reach US$ 73.00 billion by 2022F.
India's ecommerce industry's sales rose 40 per cent year-on-year to reach Rs 9,000 crore (US$ 1.5 billion) during the five-day sale period ending
September 24, 2017, backed by huge deals and discounts offered by the major ecommerce companies. It is forecasted to reach US$ 53 billion by
2018.
The government plans to allow 100 per cent FDI in e-commerce, under the arrangement that the products sold must be manufactured in India to
gain from the liberalised regime.
Indian E-Commerce Market (US$ billion)
39
50
100
200
0
20
40
60
80
100
120
140
160
180
200
2017 2018F 2020F 2026F
16. For updated information, please visit www.ibef.orgRetail16
STRATEGIES ADOPTED
The Future Group will set up 4000 “neighbourhood” retail stores in the next 3-5 years as a part of its focus on small
stores. The brand will increase the number of stores from 538 in March 2017 to 1000 by September 2018.
To improve consumer outreach Amway India will open 25 new Xpress Pick and Pay (XPP) stores in India.
On August 09, 2018 IKEA world's largest furniture retailer opened its first retail store in Hyderabad and it plans to open
24 more stores by 2025.
Flipkart to expand its online grocery services ‘Supermart’ in 5-6 major cities by 2018, due to increasing rivalry from
Alibaba-backed BigBasket, SoftBank-funded Grofers and Amazon India.
Bata India will invest Rs 1 billion (US$ 1.49 million) to upgrade facilities, and refurbish stores. They aim to set up 100 own
and 50 franchise stores by 2018.
Source: Company website, News Articles
It is imperative for a retailer to have a strong distribution and logistic network to succeed in this sector. Players follow a
distribution network that suits them the best. For example, Shoppers Stop follows a “hub and spoke” model for its
distribution network to increase efficiency and productivity.
Certain retailers adopt ‘first price right’ approach. Retailers do not offer discounts under this strategy: they directly
compete on the selling price by offering a best price without any markdowns.
Lowering prices
Cafe Coffee Day (CCD) aims to expand its business by adding about 100 stores every year to have a network of around
2,500 stores in the next seven to eight years.
The Future Group will set up 4000 “neighbourhood” retail stores in the next 3-5 years as a part of its focus on small
stores. The brand will increase the number of stores from 538 in March 2017 to 1000 by September 2018.
To improve consumer outreach Amway India will open 25 new Xpress Pick and Pay (XPP) stores in India in 2018.
On August 09, 2018 IKEA world's largest furniture retailer opened its first retail store in Hyderabad and it plans to open
24 more stores by 2025.
Flipkart to expand its online grocery services ‘Supermart’ in 5-6 major cities by 2018, due to increasing rivalry from
Alibaba-backed Big Basket, SoftBank-funded Grofers and Amazon India.
Expansion
Retailers are opting for many channel to maximise sales, Omni-channel retailing is being adopted by many retailers in
India. For example, Shoppers Stop is making efforts to be an omni-channel retailer. Ezone has launched an online
platform, which has led to increase in sales.
As of September 2018, V-Mart Retail aims to expand its business with omni-channel strategy to reach customers through
online retail.
Omni-channel
retailing
It is imperative for a retailer to have a strong distribution and logistic network to succeed in this sector. Players follow a
distribution network that suits them the best. For example, Shoppers Stop follows a “hub and spoke” model for its
distribution network to increase efficiency and productivity.
Strong distribution
and logistic
network
As of October 2018, Procter & Gamble India (P&G India) launched Innovation Sourcing Fund, a multimillion-dollar fund to
invest in Indian start-ups.
Collaborative
growth
17. For updated information, please visit www.ibef.orgRetail17
STRATEGIES ADOPTED
Source: International
Most retailers have advanced off-season sales from 15 days to a month with discounts of 20-70 per cent on certain
products. Also higher discounts and other value-added services for members.
Offering discounts
Companies offer innovative value-added services, like customer loyalty programmes and happy hours on shopping
deals. Offers for senior citizens, contests for students and lottery gains are now very common.
Offering value-
added services
To keep customers on shop floors for a longer time and increase conversions, retailers are now pitching to partner with
manufacturers, service providers, financial companies, etc. to create a buzz around certain product categories.
Leveraging
partnerships
Critical components of supply chain planning applications help retailers to maintain profit margins.Innovative solutions
like performance management, frequent sales operation management, demand planning, inventory planning, production
planning and lean systems can help retailers to get advantage over competitors.
Strong supply
chain
To diversify the product offerings and tab the growing luxury retail segment, retailers are forming joint ventures with
foreign luxury brands. Reliance Brands Ltd. formed a joint venture with Bally, a Swiss luxury brand, to exclusively market
its products in India.
Joint Ventures
To create perception that their store brands to have consistent and comparable quality and availability in relation to
branded products. Retailers are providing more assortments for private level brands to compete with supplier's brand.
New product development, aggressive retail mix and everyday low pricing strategy help to get edge over supplier's
brand.
Changing the
perception
Indian retailers use hyper-personalisation models based on behavioral data, brands performance, demographic
preference and pin codes as marketing strategy which boosts sales.
Hyper-
Personalisation
Online retail segment offers cash-on-delivery and manufacturers’ warranty to boost e-retailing in consumer durable
sector.
Cash-on-delivery is the most preferred payment option with over 30 per cent of buyers opting for it in India.
Cash-on-Delivery
19. For updated information, please visit www.ibef.orgRetail19
GROWTH DRIVERS FOR RETAIL IN INDIA
Growth Drivers
Easy consumer
credit and increase in
quality products
Favourable
demographics
Brand
consciousness
Rise in income
and purchasing
power
Change in
consumer mindset
20. For updated information, please visit www.ibef.orgRetail20
GROWTH DRIVERS FOR RETAIL IN INDIA
India’s per capita GDP increased to Rs 98,867 (US$ 1,534.01) in FY18 from Rs 93,888 (US$ 1,399.43).
Indian consumers are now shifting more towards premium brands by paying more for value and service.
Consumer
preferences
Factors like young demographic composition, increasing personal disposable income, more preference towards
affordable luxury and rising middle class population are developing preferences for specific brands.
Brand
Consciousness
Consumers have become more comfortable using online services due to demonetisation.
Online retail segment provides various credit and payment options driven by increasing internet penetration, speed, 24-
hour accessibility and convenient and secured transactions.
Consumer
Finance
Opportunities
Source: News Articles, Ministry of Statistics and Programme Implementation
Department of Industrial Policy and Promotion (DIPP) approved three foreign direct investments (FDI), Mountain Trail
Food, Kohler India Corporation, and Merlin Entertainments India in the single brand retail sector.
The DIPP has approved two FDI proposals worth more than Rs 400 crore (US$ 62.45 million) within the retail sector.
FDI Approvals
Beccos, a South Korean designer brand is set to enter the Indian market with an investment of about Rs 1.00 billion
(US$ 14.25 million) and open 50 stores by June 2019.
Walmart Investments Cooperative U.A has invested Rs 2.75 billion (US$ 37.68 million) in Wal-Mart India Pvt Ltd.
India’s retail sector attracted Rs 9.5 billion (US$ 147.40 million) investments in FY18, at a growth rate of 35 per cent
year-on-year from Rs 7 billion (US$ 104.34 million) in FY17.
Investments
21. For updated information, please visit www.ibef.orgRetail21
1,302.18
1,482.19
1,674.40
1,854.99
2,039.36
2,611.01
2,848.23
-
500
1,000
1,500
2,000
2,500
3,000
FY12 FY13 FY14 FY15 FY16 FY17 FY18
945.9
1,058.0
1,179.3
1,288.6
1,403.0
1,982.7
2,134.8
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400
FY12 FY13 FY14 FY15 FY16 FY17 FY18
INCOME GROWTH TO DRIVE DEMAND FOR
ORGANISED RETAIL
Source: IMF
Visakhapatnam port traffic (million tonnes)GDP at current prices (US$ billion) Visakhapatnam port traffic (million tonnes)GDP per capita at current prices (US$)
Multiple drivers are leading to strong growth in Indian retail through a consumption boom.
Significant growth in discretionary income and changing lifestyles are among the major growth drivers of Indian retail.
Easy availability of credit and use of ‘plastic money’ have contributed to a strong and growing consumer culture in India.
Acceptance and usage of e-retailers by consumers are increasing due to convenience and secured financial transactions.
Expansion in the size of the upper middle class and advertisement has led to greater spending on luxury products and high brand consciousness.
In FY18, GDP at current prices was US$ 2,848.23 billion and GDP per capita at current prices was US$ 2,134.8.
22. For updated information, please visit www.ibef.orgRetail22
FDI POLICY DETAILS ON SINGLE AND MULTI-BRAND
RETAIL IN INDIA
Minimum investment cap is US$ 100 million.
30 per cent procurement of manufactured or processed products must be from SMEs.
Minimum 50 per cent of total FDI must be invested in backend infrastructure (logistics, cold storage,
soil testing labs, seed farming and agro-processing units).
Removes middlemen and provides better price to farmers.
Development in retail supply chain system.
50 per cent of jobs in retail outlet could be reserved for rural youth and a certain amount of farm
produce could be required to be procured from poor farmers.
To ensure the Public Distribution System (PDS) and Food Security System (FSS), the government
reserves the right to procure a certain amount of food grains.
It will keep food and commodity prices under control. It will also cut agricultural waste as mega
retailers would develop backend infrastructure. Consumers will receive higher quality products at
lower prices and with better service.
Products to be sold under the same brand internationally. Sale of multi-brand goods is not allowed,
even if produced by the same manufacturer.
100 per cent FDI allowed in single-brand retail under the automatic route.
Single brand retail entities have been allowed to set off their incremental sourcing of goods from India
for global operations during the initial five years starting from the 1st April of the year of the opening
of first store, as against the compulsory sourcing requirement of 30 per cent of purchases from India.
100 per cent FDI in retail trading of food products manufactured or produced in India.
Liberalisation of FDI is expected to give a boost to ease of doing business and Make in India.
51 per cent FDI in
multi -brand retail
Status: Policy passed
100 per cent FDI in
single brand retail
Status: Policy passed
23. For updated information, please visit www.ibef.orgRetail23
INDIAN RETAIL IS SET TO BENEFIT FROM FDI POLICY
Benefits of FDI
in Indian retail
Infrastructure
investment
Benefiting Indian
manufacturers
Increase in employment
Wholesale cash
and carry trading
Single brand
product retailing
Multi-brand,
front-end retail
Sector
Removing middlemen
Automatic
Automatic
Foreign Investment and
Promotion Board
Entry route
100%
100%
51%
Technological
advancement
FDI limit
24. For updated information, please visit www.ibef.orgRetail24
NEW GOODS AND SERVICE TAX (GST) WOULD
SIMPLIFY TAX STRUCTURE
Goods and Service Tax (GST) as a
unified tax regime is expected to lead to
a re-evaluation of procurement and
distribution arrangements.
Removal of excise duty on products
would result in cash flow improvements.
Elimination of tax cascading is expected
to lower input costs and improve
profitability.
Application of tax at all points of supply
chain is likely to require adjustments to
profit margins, especially for distributors
and retailers.
The CII survey 2018, a survey of over
200 businesses about one year of GST
indicated moderate retail inflation due to
GST.
Tax refunds on goods purchased for
resale implies a significant reduction in
the inventory cost of distribution.
Distributors are also expected to
experience cash flow from collection of
GST in their sales, before remitting it to
the government at the end of the tax-
filing period.
Changes need to be made to
accounting and IT systems in order to
record transactions in line with GST
requirements.
Appropriate measures need to be taken
to ensure smooth transition to the GST
regime through employee training,
compliance under GST, customer
education and inventory credit tracking.
Goods and
Service Tax
(GST)
Source: Aranca Research
Note: CII: Confederation of Indian Industry
25. For updated information, please visit www.ibef.orgRetail25
RECENT M&A DEALS IN THE INDIAN RETAIL SECTOR
Acquirer name Target name Year Deal type
Future Enterprises Ltd LivQuik Technology (India) Pvt.
Ltd
October 2018 Acquisition (55 per cent)
Amazon and Samara Capital More September 2018 Acquisition
Reliance Retail Ventures Ltd
(RRVL)
Genesis Colors Ltd (GCL), GLF
Lifestyle Brands, Genesis La
Mode, Genesis Luxury Fashion
Pvt Ltd, GML India Fashion and
GLB Body Care
September 2018 Acquisition
Walmart Flipkart May 2018 Acquisition
Future Group HyperCity October 2017 Acquisition
Berger Paints Chugoku Marine Paints April 2017 Collaboration
Myntra InLogg April 2017 Acquisition
Flipkart owned Myntra HRX August 2016 Acquisition
Myntra MotoGP August 2016 Collaboration
Aditya Birla Fashion and Retail Forever 21 (India Business) May 2016 Acquisition
Idein Ventures Infurnia Jan 2016 Joint Venture
Paytm Near.in Dec 2015 Acquisition
Morgan Stanley Flipkart June 2015 Private Equity
InnoVen Capital Sportsbiz Private Limited July 2015 Private Equity
Snapdeal Exclusively.in Feb 2015 Acquisition
Source: Bloomberg and Thomson ONE Banker, News Articles
27. For updated information, please visit www.ibef.orgRetail27
GROWTH VALUE PROPOSITION
Source: KPMG International 2011
DemandFactors
Indian retail opportunity
SupplyFactors
Rising incomes and purchasing power.Higher brand consciousness.
Changing consumer preferences
and growing urbanisation.
Growing young population
and working women.
Growing aspiration levels and
appetite to experiment.
Credit availability.
Easy availability of credit.
Rapid real estate and
infrastructure development.
R&D, innovation and
new product development.
Development of supply chain
improving efficiency.
Emergence of new categories. Expansion plans of existing players.
28. For updated information, please visit www.ibef.orgRetail28
AMPLE GROWTH OPPORTUNITIES IN INDIAN RETAIL
INDUSTRY
India is the fifth largest preferred retail destination globally.
The sector is experiencing exponential growth, with retail development taking place not just in major cities and metros,
but also in Tier-II and Tier-III cities.
Large number of
retail outlets
In FY18, rural consumption rose by 9.7 per cent while the urban spending grew at 8.6 per cent.
Rural markets
offer significant
growth potential
The organised Indian retail industry has begun experiencing an increased level of activity in the private label space.
In April 2018, the organised retail sector is forecasted to witness strong growth in the coming years.
The share of private label strategy in the US and the UK markets is 19 per cent and 39 per cent, respectively, while its
share in India is just 6 per cent. Stores like Shopper Stop, Lifestyle generates 15 to 25 per cent revenues from private
label brands.
Private label
opportunities
India‘s price competitiveness attracts large retail players to use it as a sourcing base.
Global retailers such as Walmart, GAP, Tesco and JC Penney are increasing their sourcing from India and are moving
from third-party buying offices to establishing their own wholly-owned/wholly-managed sourcing and buying offices.
Sourcing base
Luxury retailing is gaining importance in India. This includes fragrances, gourmet retailing, accessories and jewellery
among many others.
The Indian luxury market stood at around US$ 18.6 billion in 2016 from US$ 14.7 billion in 2015 , thereby registering a
growth of 26.5 per cent.
Luxury market of India is expected to grow to US$ 30 billion by the end of 2018 from US$ 23.8 billion in 2017 supported
by growing exposure of international brands amongst Indian youth and higher purchasing power of the upper class in tier
2 and 3 cities, according to Assocham.
Luxury retailing
Notes: FMCG - Fast Moving Consumer Goods
Source: Aranca Research, Nielsen, Jefferies report
30. For updated information, please visit www.ibef.orgRetail30
INDUSTRY ORGANISATIONS
Visakhapatnam port traffic (million tonnes)Retailers Association of India The Franchising Association of India
Address: A-13, Kailash Colony
New Delhi – 110048
Tel: 91- 11- 2923 5332
Fax: 91- 11- 2923 3145
Website: www.fai.co.in
Address: 111/112, Ascot Centre,
Next to Hotel Le Royal Meridien, Sahar Road, Sahar,
Andheri (E),
Mumbai – 400099.
Tel: 91- 22 - 28269527 - 28
Fax: 91- 22- 28269536
E-mail: info@rai.net.in
Website: www.rai.net.in
32. For updated information, please visit www.ibef.orgRetail32
GLOSSARY
FDI: Foreign Direct Investment
FMCG: Fast Moving Consumer Goods
FY: Indian Financial Year (April to March)
So FY10 implies April 2009 to June2010
IT: Information Technology
MoU: Memorandum of Understanding
MT: Million Tonnes
MTPA: Million Tonnes Per Annum
SEZ: Special Economic Zone
US$: US Dollar
Wherever applicable, numbers have been rounded off to the nearest whole number
33. For updated information, please visit www.ibef.orgRetail33
EXCHANGE RATES
Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)
Year INR INR Equivalent of one US$
2004–05 44.95
2005–06 44.28
2006–07 45.29
2007–08 40.24
2008–09 45.91
2009–10 47.42
2010–11 45.58
2011–12 47.95
2012–13 54.45
2013–14 60.50
2014-15 61.15
2015-16 65.46
2016-17 67.09
2017-18 64.45
Q1 2018-19 67.04
Q2 2018-19 70.18
Year INR Equivalent of one US$
2005 44.11
2006 45.33
2007 41.29
2008 43.42
2009 48.35
2010 45.74
2011 46.67
2012 53.49
2013 58.63
2014 61.03
2015 64.15
2016 67.21
2017 65.12
Source: Reserve Bank of India, Average for the year
34. For updated information, please visit www.ibef.orgRetail34
DISCLAIMER
India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared by Aranca in consultation
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This presentation is for information purposes only. While due care has been taken during the compilation of this presentation to ensure that the
information is accurate to the best of Aranca and IBEF’s knowledge and belief, the content is not to be construed in any manner whatsoever as a
substitute for professional advice.
Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in this presentation and nor do
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Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any
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