HIGHLIGHTS OF

INDIAN RETAIL INDUSTRY 2012

BIG STRATEGIC MANAGEMENT CONSULTANTS

JAN, 2012 3, Hindustan Kohinoor Complex, L.B.S Road, Vikhroli (W), 400 083 Tel 022 67427821-29 URL: www.big-consultants.com

CONTENTS

1. India Economic Overview

2. Understanding the Retail Industry

3. Retail Industry Overview

4. Major Players in Retail Industry

5. About BIG Strategic Management Consultants

BiG Strategic Management Consultants

India is among the top 15 countries in the global economy in terms of GDP at current prices.

INDIAN ECONOMIC SCENARIO

Indian economy with has

20.0 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 2007 GDP growth
Source: Indian Economic Survey 2010-11

emerged

remarkable

17 15

rapidity from the slowdown caused by the global financial crisis 2007-09. All economies the faced advanced deep

15
13

14

9.6

9.3

6.5
4.8

8.0 6.8

8.0

9.4 8.6

economic crisis , as the world

GDP dropped
2009.

by 1.3% in

The signs of recovery have

3.6

been witnessed from fourth quarter of 2010. The Indian economy which

2008

2009 PCI growth

2010

2011

has also been impacted by the global turmoil, posted a

Inflation (WPI)

growth of 8.6% in FY 2010-11.

BiG Strategic Management Consultants

CONTENTS

1. Indian Economic Overview

2. Understanding the Retail Industry

3. Retail Industry Overview

4. Major Players in Retail Industry

5. About BIG Strategic Management Consultants

BiG Strategic Management Consultants

Indian retail industry is second largest employer after Agriculture, employing more than 35 million people with wholesale trade generating additional 5.5 million employment more.

UNDERSTANDING RETAIL INDUSTRY

Retail Industry

Organized Retailing (7%)

Major Segments Food Consumer durables Leisure and entertainment Health, beauty and pharma Fashion Fashion

Unorganized Retailing (93%)

accessories Furniture Telecom

Books and music

BiG Strategic Management Consultants

CONTENTS

1. Indian Economic Overview

2. Understanding the Retail Industry

3. Retail Industry Overview

4. Major Players in Retail Industry

5. About BIG Strategic Management Consultants

BiG Strategic Management Consultants

Indian Retail Market has grown at CAGR of 10% in the past six years.

INDIAN RETAIL MARKET

The Indian retail market is currently estimated at USD 396 billion. Food segment contributes largest part of total value of retail market, followed by fashion, leisure & entertainment and

fashion accessories.
India's organized retail space is evolving fast and achieve penetration level of 7%, which signifies huge potential growth. Indian luxury market currently stands at USD 3.5 billion and expected to grow to make India the twelfth-largest luxury retail market in the world by 2015.

500 400 300 200 100 0

Indian Retail Market

396 218
CAGR 10%

Indian Retail Market Segment

1% 4% 2% 4% 3% 6% 8%
Food Fashion Leisure & entertainment Fashion accessiries Consumer durables

2005 Billion USD

Source: Deloitte

2011

10%

62%

Health, beauty & pharma Furniture Telecom Books & music

BiG Strategic Management Consultants

The share of organised retail in the total Indian retail trade pie is projected to grow at 40 per cent per annum.

GROWTH DRIVERS

The 1.2 billion strong population has been growing at 1.3%, much above the world average growth rate of 1.2%. This population surge is bound to show repercussions in various sectors..

Growth of personal disposable income has increased consumer spending habits. Total retail spending is expected to double in the next five years.

The customer mind set is gradually shifting from low price to better convenience, high value and a better shopping experience

Emergence of concepts such as quick and easy loans, EMIs, loan through credit cards, has made purchasing possible for Indian consumers

Real estate development in the country, for example, the construction of mega malls and shopping malls, is augmenting the growth of the organized retail business

BiG Strategic Management Consultants

There is high brand consciousness among the youth; 60% of Indias population is below the age of 30 leading to popularization of brands and products.

HIGHLIGHTS OF OPPORTUNITIES
Indian household spending on food is one of the highest in the world with 48% of income spent on food and grocery With growing urbanization and consumerism and acceptance to modern retail this sector exhibit huge untapped potential Demand for readymade and western outfits is growing at 40-45% annually Apparel Retail Critical success factors are to deliver affordable and accessible fashion, provide value added services to sustain consumers Pharmacy retailing in India is largely dominated by traditional / local chemists

Food and Grocery Retail

Beauty and Wellness

Modern retailer is increasingly moving from pure-play pharma to health and beauty care
Current market size of consumer durables is USD 6.5 billion and is estimated to grow at a CAGR of 18% Consumer durable market consist of consumer appliances and consumer electronic This category has recently witnessed modern retailers setting up home furnishing sections in hypermarkets or start-up specialty stores This category faces stiff competition from small traditional retailers as well as individual carpenters / furnishers

Consumer Durable

Furniture and Furnishings

BiG Strategic Management Consultants

Indias rural economy constitutes 45 per cent of its GDP.

HIGHLIGHTS OF OPPORTUNITIES

Gems and Jewellery

Branded jewellery has rapidly acquired a niche over the past few years. Increasing purchasing power and disposable income of Indias middle class has resulted in growth of this industry

Setting up logistics and supply chain infrastructure Supply Chain Import of know how and logistics techniques from developed retail countries

IT Infrastructure

IT is the enabler behind communication, collaboration with suppliers, and an efficient supply chain

Potential tie-ups with universities and setting up dedicated retail institutes Manpower Utilize experience of international retailers to train local talent With per capita income having grown by 50 per cent over the last 10 years, rural India is set to Rural Retail witness an economic boom, which promises appreciable growth in rural markets.

BiG Strategic Management Consultants

CONTENTS

1. Indian Economic Overview

2. Understanding the Retail Industry

3. Retail Industry Overview

4. Major Players in Retail Industry

5. About BIG Strategic Management Consultants

BiG Strategic Management Consultants

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Presence of more than 40,000 franchisees(across sectors) in India validates that Franchise model has adopted well to Indian market conditions.

COMPETITIVE LANDSCAPE

Major Players
Tata Group

Store Brands (Product)

Landmark (books and music), Croma(multi-brand electronics), World of Titan (watches), Tanishq (jewellery), Titan Eye+ (eye wear), Westside (lifestyle retail store), Star Bazaar (hypermarket chain), Fashion Yatra(family fashion store) Central (shopping mall), Big Bazaar (hypermarket), Pantaloons (fashion outlet), Blue Sky (sunglasses), Brand Factory (multi-brand readymade garments), KB's Fair Price (essential products), Navaras(jewellery), Planet Store (multi-brand sports and lifestyle speciality retail), aLL(fashion garments), Ethnicity (Indian ethnic wear), Home Town (home needs), eZone(electronics), Furniture Bazaar (home furniture), Electronics Bazaar (under Big Bazaar, electronics stores), Home Bazaar (satellite version of Home Town), Collection I (lifestyle furniture), Gen M & One Mobile (mobile phones), M-Port (electronics), Shoe Factory (footwear) and Depot (books and music) Reliance Fresh (neighbourhood store), Reliance Mart (supermarket), Reliance Super (mini-mart), Reliance Digital (consumer durables and information technology), Reliance Trends (apparel and accessories), Reliance Wellness (health, wellness and beauty), iStore(Apple products), Reliance Footprint (footwear), Reliance Jewels (jewellery), Reliance TimeOut(books, music and entertainment), Reliance AutoZone (automotive products and services) and Reliance Living (home ware, furniture, modular kitchens and furnishings) Spencers (multi-format retail store), Music World ( music and home video store) and Books & Beyond (book store) Shoppers Stop (clothing, accessories, fragrances, cosmetics, footwear and home furnishing store), Crossword (book store), InorbitMall (fashion, lifestyle, food and entertainment) and Hyper City (hypermarket)

Future Group

Reliance Group

RPG Group

K Raheja Group
Source: IBEF

BiG Strategic Management Consultants

CONTENTS

1. Indian Economic Overview

2. Understanding the Retail Industry

3. Retail Industry Overview

4. Major Players in Retail Industry

5. About BIG Strategic Management Consultants

BiG Strategic Management Consultants

13

HOW CAN

HELP?

Business Strategy & Start-up Assistance Competitive Positioning and Acquiring Larger Market Share and Brand Image Building

GROWTH

Analyzing the Current Retail Industry in India.

Market Research for foraying into new Business Segments and Financial Management.

TechnoEconomic Analysis of New Business Segments & Leveraging Traditional approach with Modern Technology.

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BiG Strategic Management Consultants

Thank You