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Indias retail market has more than doubled in size to USD 311.7billion in 2006-07. Sector revenues increased by about 93.5% between 2000 and 2006, translating to an average
intense competition.
segment accounting for 63 percent share in the Rs.1,330,000 crore (USD 300 Billion) Indian retail market. Only 2percent of this segment was organised in 2007, as per India Food Report 2008. food retailing business which accounts for 10% of the GDP. 8% of the employment.
Highlights
Size U.S$70bn
(85mn tons).
In production of fruit India ranks 3rd after Brazil and
china.(50mn tons).
Highly Unorganise sector.
Formats
Convenience Stores Supermarkets Hypermarkets Cash & Carry (C & C) Stores
Forward integration
Raw material
Manufacturing
Distribution
Retailing
End Consumer
Top 5 company Food Bazaar Subhiksha Food world Trinethra Vishal Retail
Revenue 1900 cr. approx 1480 cr. approx 300 cr. 274cr. 603cr.
Enablers
Favorable demographics. Growing middle class. Improved logistics. Rise in working population.
Impediments
Lack of cold storage and warehousing facility. Lack of industrial status. High real state cost. Extensive wastage.
Q1. Which Retail brand strikes in our mind first when you think for grocery shopping ?
Percentage(%)
Spencers 25%
15% 20%
35% 30%
.5 to 1 hour 40%
2 to 4 k.m. 45%
55%
55%
Malls 40%
30% 35%
20% 15%
Wife 15%
Friends 20%
Cash 50%
Recommendation
Good weekly sales and loyalty programs should be
concentrated. People dont like to spend too much time on shopping. Thus better accessible store & loyalty is recommended. Location play very crucial role & thus mode of transportation. If retailer wants to promote in house brand & international brand , they must have to show there wide presence. People consider both product assortment & convince. Thus store must consider its product quality and SKUs.