Big Bazar

Indian retail on the fast track

•The Indian retail market is the fifth-largest retail
destination globally. It is estimated to grow from US$
385 billion in 2007–08 to US$ 405 billion by 2009–10
and to US$ 573 billion by 2012–13.
•The Indian retail industry has been growing at a
compound annual growth rate (CAGR) of 28 per cent
for the last five years and provides employment to 8
per cent of India‘s working population.
•Higher disposable incomes, easy availability of credit
and high exposure to media and brands has increased
the average propensity to consume considerably over
the years.
 Transition from traditional to modern
retailing

•With a share of over 95 per cent of total

retail revenues, traditional retailing
continues to be the backbone of the Indian
retail industry.
•Over 12 million small and medium retail
outlets exist in India, the highest in any
country.
•Traditional retail is highly pronounced in
small towns and cities, with a primary
presence of neighbourhood 'kirana' stores,
push-cart vendors, 'melas' and 'mandis'.
•Organised retailing is growing at an
aggressive pace in urban India, fuelled by
burgeoning economic activity.
•An increasing number of domestic and
international players are setting up base in
the country and expanding their business
to tap this growing segment.
INDIA Large, untapped potential for
organised retail
 FDI up to 100 per cent is allowed under the automatic route for cash and carry wholesale
trading and export trading, and FDI up to 51 per cent is allowed with prior government approval
for retail trade in single-brand products. However, FDI in retailing of goods under multiple
brands, even if the goods are produced by the same manufacturer, is not allowed under the
current guidelines.

Strategic Distribution Franchisee Cash and carry Manufacturing Joint ventures

license route wholesale
agreements retailing

This route An international This entry route 100 per cent FDI A company can International
involves a company can is widely used is allowed in establish its firms can enter
foreign set up a by many wholesale manufacturing into agreements
company distribution international trading, which unit in India with domestic
entering into a office in India brands, who opt involves along with players and set
licensing and supply for the master building a large standalone up base in India.
agreement with products to franchise route distribution retailing outlets. The share of
a domestic local retailers. and the regional network. MNCs is
retailer or Franchisee franchise route restricted to 49
partnering with outlets can also for an entry into per cent in this
Indian be set up by this India. route.
promoter- route.
owned
companies.
 Emergence of India as a retail
sourcing hub
• Riding on a strong manufacturing industry, India is fast emerging as an
important global sourcing hub for top international brands
• Walmart has been sourcing a variety of products from India for more than
20 years. Walmart‘s office in Bangalore serves as Walmart‘s global
procurement hub for the sourcing of merchandise from India and Sri
Lanka to Walmart stores and Sam‘s Clubs (owned and operated by
Walmart) globally
• Unilever sources a major part of its FMCG products from its wholly-owned
Indian subsidiary, Hindustan Lever Ltd
• Adidas, Next and Calvin Klein are expected to follow suit, with Adidas
opening its first office in Bangalore.
• LG Electronics plans to invest US$ 50 million to enhance manpower and
R&D in India in 2009.
• Samsung intends to double its R&D team in India to 4,000 by 2010 for
strengthening product development and providing customised technology
for the domestic market.
 Emerging rural retailing
• ITC Choupal Saagar: There are 24
outlets in operation and ITC plans to
increase the number to 100 by 2010.
• DSCL‘s Hariyali Kisan Bazaar: It has
over 302 outlets cross eight states —
Haryana, Punjab, Uttar Pradesh,
Rajasthan, Chhattisgarh, Madhya
Pradesh, Maharashtra and Andhra
Pradesh.
• Indian Oil Corporation‘s Kisan Seva
Kendra: These offer fuel, agri-
produce, FMCG and value-added
services across a network of over
1,400 outlets.
• Reliance Retail and Pantaloon Retail:
The two companies are likely to
venture more aggressively into the
rural retailing space.
 luxury market
• Affluent households account for just
about 4.5 per cent of the national
population, but account for more
than 22 per cent of total retail sales,
adding US$ 62,340 million to
revenues.
• The number of affluent households
are projected to increase to 8.5 per
cent in 2010–11, translating into a
retail opportunity worth US$ 152,000
million.
• Delhi and Mumbai are the prime
contributors to the luxury retail
space, and these cities have the
highest density of luxury brand
outlets.
• Players in this retail space have
aggressive expansion plans in the
pipeline, with investor confidence
reinforced by booming sales.
• In order to boost sales and to increase
their presence, international luxury
retailers are entering into partnerships
with Indian players. For example, DLF
has entered into a joint venture with
Armani and Reliance Industries has
entered into agreement with Marks &
Spencer.
• However, the locations of these outlets
are typically limited to five-star hotels
and high-end mall spaces, with limited
footfalls and consumer exposure.
 Future Group
• Future Group is the country's leading retail business group that
caters to the entire Indian consumption space. It operates through
six verticals:
• Future Retail (encompassing all lines of retail business),
• Future Capital (financial products and services),
• Future Brands (all brands owned or managed by group companies),
• Future Space (management of retail real estate),
• Future Logistics (management of supply chain and distribution)
• Future Media (development and management of retail media
spaces). 

• The group's flagship company, Pantaloon Retail (India) Limited

Some of its leading retail formats include, Pantaloons, Big Bazaar,
Central, Food Bazaar, Home Town, EZone, Depot, Health & Beauty
Malls and online retail format
 Future Group
• Big Bazaar is a chain of department stores in India, currently with 75
outlets. It is owned by the Pantaloon Retail India Ltd, Future Group. It
works on the same economy model as Wal-Mart and has considerable
success in many Indian cities and small towns. The idea was pioneered by
entrepreneur Kishore Biyani, the CEO of Future Group. Currently Big
Bazaar stores are located only in India. It is the biggest and the fastest
growing chain of department store and aims at being 350 stores by the
end of year 2010.
• Future Group’s Kishore Biyani in the race to take over the assets of cash-
strapped Vishal Retail Ltd (VRL) has queered the pitch for buyout private
equity fund Texas Pacific Group (TPG),
• Pantaloon Retail (India) Limited, is India’s leading retailer that operates
multiple retail formats in both the value and lifestyle segment of the
Indian consumer marker. Headquartered in Mumbai (Bombay), the
company operates over 5 million square feet of retail space, has over 450
stores across 40 cities in India and employs over 18,000 people. 
 Factors that Shaped Big Bazaar
• Influence of Sarvana Stores Located in Theyagraya
Nagar, Chennai and opened its 1st store in 2001 in
Kolkata, 2nd in Hyderabad and 3rd in Bangalore in span
of 22 days.
• Observing Customers Regularly
• Imbibed Entrepreneurial Spirit in Organization
• Building on Core Values & Nurturing Relationships
• Use of Technology, Scenario-Planning & Story-Telling
• Design Management
• Back-end Operations, Supply Chain
 Big Bazar
• The front-end operations will be further
divided in three categories, Big Bazaar
Express with store area less than 40,000 sq.
ft., Standard Big Bazaar with store area
between 40,000 to 75,000 sq. ft., and Big
Bazaar Supercentres with store area more
than 75,000 sq. ft. . Future Group is also
planning to distribute financial products like
consumer loans and insurance through Big
Bazaar outlets
 Big Bazar
• The group's joint venture partners include Italian insurance
major, General i, French retailer ETAM group, US-based
stationary products retailer, Staples and UK-based Lee Cooper
and India-based Talwalkar's, Blue Foods and Liberty Shoes. 
• Future group derives significant economies of scale in managing
their supply chain. With more than 170000 products, the
company maintains a strong supplier relationship in a
partnership mode,
• Future Logistics now handles two-and-a-half million SKUs (or
stock keeping units) a day across the Future Group's various
retail formats around the country. By 2010, this number is
expected to increase to more than 30 million SKUs a day
 Big Bazar
• The tag-line is "Is se sasta aur accha aur kahin
nahi". They work on the model of economics
of scale. There pricing objective is to get
"Maximum Market Share". The various pricing
techniques used at Big Bazaar are-
• Value Pricing (EDLP - Every Day Low Pricing)
• Promotional Pricing
• Differentiated Pricing
• Bundling
 Big Bazar
• Big Bazaar stores are located in 50 cities with 75
outlets.Big Bazaar has presence in almost all the major
Indian cities. They are aggressive on their expansion
plans.
• Big Bazaar started many new and innovative cross-sell
and up-sell strategies in Indian retail market. The
various promotion techniques used at Big Bazaar
include "saal ke sabse saste teen din", Future Card (the
card offers 3% discount), Shakti Card,
• Brand Endorsement by M. S. Dhoni, Exchange Offer -
‘Junk Swap Offer', Point-of-Purchase Promotions.
Thank You