Retail In India

Dear Indians……it’s your

world after all.
 India – A Vibrant Nation
• More than a billion people
• Land area of 2.97 Sq. KM
• Stable Democratic Environment
• Independent Judiciary and Vibrant Media
• Most Richly Endowed Agricultural Nation in
Asia
• One Tenth of World’s Arable Land. 169
Million Hectares (more than China)
• One Fifth of World’s Irrigated Land(56
Million Hectares).
• Cost Line of 8000 KM, Vast Marine Wealth,
10 Major Ports.
 India- A Trillion Dollar
Market
• $ 690 billion GDP in 2005-06 :
Services(54%), Agriculture(20%),
Industry(26%)
• $ 1 trillion GDP in 2010-11:
Services(56.6%), Agriculture(15.3%),
Industry(28.1%)
Estimates given by
Planning Commission
 Indian Human Resource
• 237 University- 8000 Colleges – 7.1
Million Students
• Degree Level Professional Institutes
A. Engineering-351
B. Medicine:-246
• Scientific and technical personnel-3.8
million
 Cattle/Marine/Milk Sector
• Sixth In Poultry production(842
Million)
• 53% of world’s buffalo and 43% of
world’s sheep
• 7th largest in marine landings(5.8
million tonnes)
• Largest producer of milk(84.5 million
tonnes)
 Indian Agriculture
• India, one of the world’s largest food producer.
• China: 856 million tonnes
• USA: 608 million tonnes
• India: 601 Million tonnes
• Second largest producer of fruits(46.64 million tonnes)
after Brazil.
• Second largest producer of vegetables(78.19 million
tonnes), after China(13% of the world production)
• 1st rank in the production of milk, pulses and tea in the
world
• 2nd rank in the production of fruits, rice, wheat,
vegetables, sugarcane in the world.
• 3rd rank in the production of coarse grains and edible
oilseeds in the world.
Growth of Retail- Change Confluence
Causing The Tipping Point in
Consumption

Tech Comfort of Changing Shapes

“Strong” India
Masses of Income
Getting Stronger
Spreading Distribution

India’s Step Change in

Rural India’s Consumption
Tipping Point
Metamorphosi Comfort and
s Aspirations

Sophisticating of
Growth of Self- Generational Middle Class
Employed Transition Consumer
Strivers
 Affluence Layers Based On
Income
Income Classes Annual Household % of Indian
Income(Rs ‘000) Households in each
Deprived < 90 income
71.90 class

Aspirers 90-200 21.90

Seekers 200-500 4.80
Strivers 500-1000 0.91
Near Rich 1000-2000 0.29
Clear Rich 2000-5000 0.11
Sheer Rich 5000-10,000 0.02
 Changing Shapes of Income
Distribution-Rural India
1995-6 2001-2 2005-6 2009-10
Upper 2.1 3.6 5.2 8.1
Upper 3.1 4.1 5.0 6.5
Middle
Middle 8.6 10.1 13.7 22.3
Lowe Middle 29.00 39.5 43.5 42.5
Lower 57.2 42.7 32.5 20.6

Figures are in percent

 Changing Shapes of Income
Distribution- Urban India
1995-6 2001-2 2005-6 2009-10
Upper 7.3 16.7 23.6 35.9
Upper 9.6 13.7 15.0 16.3
Middle
Middle 20.3 23.6 23.4 21.7
Lowe Middle 34.8 31.7 28.1 21.4
Lower 27.9 14.3 9.9 4.7

Figures are in percent

 Consumer Stratification by
Income and Expenditure
% of Population National Income Consumption
by Income Share of Each by Expenditure
Percentile % Share%

Top 10% 34.1 30.0

Next 30% 36.1 36.6

Next 60% 29.7 33.4

All Indian Household Spends
Segment % Share of Wallet
Food & Grocery 35.90%
Rent & Utilities 13.60%
Education 6.20%
Fuel & Transport 6.20%
Apparel & Accessories 5.20%
Savings & Investment 4.10%
Communication 4.10%
Books, Stationery &Music 3.00%
Servicing of Loans 2.70%
Eating out & entertaintenment 2.30%
Toiletries & Personal Care 2.70%
Cable & Internet 1.90%
Footweer 1.80%
Consumer Durables 1.70%
Jewellery & Semi-precious stones 1.40%
Vacations 1.60%
OTC Drugs & Nutrition/Healthcare 1.40%
Toys & gifting items 1.40%
Homecare & Fabric Wash 1.20%
Household Help 1.10%
Mobile Phones 0.80%
Home Furniture & Furnishing 0.50%
Sec “A” Household Spends
Segment % Share of Wallet
Food & Grocery 32.80%
Rent & Utilities 13.10%
Education 6.20%
Fuel & Transport 6.80%
Apparel & Accessories 5.00%
Communication 4.90%
Savings & Investment 5.40%
Books, Stationery &Music 2.60%
Servicing of Loans 3.30%
Eating out & entertaintenment 2.30%
Toiletries & Personal Care 2.00%
Cable & Internet 2.00%
Footweer 1.80%
Consumer Durables 1.60%
Jewellery & Semi-precious stones 1.50%
Vacations 1.80%
OTC Drugs & Nutrition/Healthcare 1.20%
Toys & gifting items 1.40%
Homecare & Fabric Wash 1.10%
Household Help 1.90%
Mobile Phones 0.90%
Home Furniture & Furnishing 0.50%
Sec “B” Household Spends
Segment % Share of Wallet
Food & Grocery 35.60%
Rent & Utilities 13.40%
Education 6.60%
Fuel & Transport 6.30%
Apparel & Accessories 5.40%
Communication 4.30%
Savings & Investment 4.00%
Books, Stationery &Music 3.00%
Servicing of Loans 2.60%
Eating out & entertaintenment 2.50%
Toiletries & Personal Care 2.00%
Cable & Internet 1.80%
Footweer 1.80%
Consumer Durables 1.80%
Jewellery & Semi-precious stones 1.50%
Vacations 1.50%
OTC Drugs & Nutrition/Healthcare 1.40%
Toys & gifting items 1.50%
Homecare & Fabric Wash 1.10%
Household Help 0.80%
Mobile Phones 0.80%
Home Furniture & Furnishing 0.50%
Sec “C” Household Spends
Segment % Share of Wallet
Food & Grocery 39.60%
Rent & Utilities 14.30%
Education 5.80%
Fuel & Transport 5.80%
Apparel & Accessories 5.20%
Communication 3.20%
Savings & Investment 2.80%
Books, Stationery &Music 3.30%
Servicing of Loans 2.30%
Eating out & entertaintenment 2.10%
Toiletries & Personal Care 2.10%
Cable & Internet 2.00%
Footweer 1.70%
Consumer Durables 1.30%
Jewellery & Semi-precious stones 1.40%
Vacations 1.50%
OTC Drugs & Nutrition/Healthcare 1.50%
Toys & gifting items 1.40%
Homecare & Fabric Wash 1.30%
Household Help 0.50%
Mobile Phones 0.70%
Home Furniture & Furnishing 0.40%
Thank
you