Trends in Indian Retail Sector

TODAY WE’LL HAVE FUN - N ALSO WE’LL LEARN !!!

• Evolution of Indian Retailing

• What is Retailing
• Retail Formats
• Retail Statistics
• Major Players in Indian Retail Industry
• What are the opportunities like in Retail Sector
Industry Evolution
Industry Evolution
Industry Evolution
Industry Evolution
Industry Evolution
 Industry Evolution

Later Titan successfully created an organized retailing

 Industry Evolution
The latter half of the 1990s saw a fresh wave of Pure Retailers.
For Music
Crossword and Fountainhead in books.
Post 1995 onwards saw an emergence of shopping
centers,

Emergence of hyper and super markets trying to

provide customer with 3 V’s - Value, Variety and
Volume

Expanding target consumer segment: The Sachet

revolution - example of reaching to the bottom of the
pyramid.
 Retailing formats in India

 Malls:

Ranges from 60,000 sq ft to 7,00,000 sq ft and

above. They lend an ideal shopping experience
with an amalgamation of product, service and
entertainment, all under a common roof.
Examples include Shoppers Stop, Piramyd,
Pantaloon, SJS, Central.
 Retailing formats in India

 Specialty Stores:
Chains such as the Bangalore based Kids Kemp,
the Mumbai books retailer Crossword, RPG's
Music World and the Times Group's music chain
Planet M, are focusing on specific market
segments and have established themselves strongly
in their sectors.
Specialty Stores:
23 months ago: Managing Director of The Walt Disney Company (India), Rajat Jain, (L),
holds a balloon as chairman of RJ Corporation, Ravi Jaipuria (R).
Disney Consumer Products to source and market Disney character branded greeting cards,
stationary, arts and craft and party products through specialty stores
Specialty Stores:
 Retailing formats in India

 Discount Stores:
As the name suggests, discount stores or factory
outlets, offer discounts on the MRP through
selling in bulk reaching economies of scale or
excess stock left over at the season. The product
category can range from a variety of perishable/
non perishable goods
Discount Stores:
 Retailing formats in India

 Department Stores:
Large stores ranging from 20000-50000 sq. ft,
catering to a variety of consumer needs. Further
classified into localized departments such as
clothing, toys, home, groceries, etc.
 Retailing formats in India
 Hypermarts /Supermarkets:
Large self service outlets, catering to varied
shopper needs are termed as Supermarkets.

Super Markets can further be classified in to mini

supermarkets typically 1,000 sq ft to 2,000 sq ft and
large supermarkets ranging from of 3,500 sq ft to
5,000 sq ft. having a strong focus on food &
grocery and personal sales.
 Retailing formats in India

Convenience Stores:
These are relatively small stores 400-2,000 sq. feet
located near residential areas. They stock a limited
range of high-turnover convenience products and
are usually open for extended periods during the
day, seven days a week. Prices are slightly higher
due to the convenience premium.
 Retailing formats in India

CASH AND CARRY

RETAIL FDI ISSUE

Food and non food items to professional business ,

institutions, restaurants and local retailers
 Worlds Costliest
Perfumes
Clive Christian: The Imperial Majesty

Only ten bottles were

designed from exclusive
Baccarat crystal decorated
with 18 carat gold and 5
carat white diamond.

The Imperial Majesty cost

$215,000 for 16.90 ounces
bottle and was available
only for the Christmas
holiday season of 2005. OR
4,96,153.8 INR for 30 ML.

Clive Christian; made in the UK.

 LUXURY RETAILING

Vertu Cobra Cellphone: $310,000.

(1Crore 48 Lac 88 Thousand Indian Rs.Only )

Features Justify The Price?

Convenience Stores:
 Retailing formats in India

MBO’s :
Multi Brand outlets, also known as Category Killers,
offer several brands across a single product category.
These usually do well in busy market places and
Metros.
RURAL RETAILING
Major Players in Indian Rural Retail
 1000 In Store
Demonstrators at Dealer
counters in Rural Cities

Mobile Van at Kasargod

Cookery Classes at
different locations for
Rural Housewives

Promotion of Sampoorna
TV’s
DCM Sriram Consolidated Ltd. (DSCL)
Hariyali Bazaars

GODREJ AGROVET LTD

Mahindra Shubhlabh Services Ltd (MSSL), a subsidiary of

Mahindra and Mahindra Ltd
 Triveni Khushali Bazaar (TKB)

Empowering Women Consumers – Shakti Case Study

KISAN SEVA KENDRA -
IOC

ITC's eChoupal Initiative

 Recent Trends contd.
Recent changes:

Trial & Error:

Pantaloon Retail India
Fashion Station (popular fashion),
Blue Sky (fashion accessories),
aLL (fashion apparel for plus-size individuals),
Collection i (home furnishings),
Depot (books & music) and
Ezone (Consumer electronics).
 Recent Trends contd.
Recent changes:
Emergence of Wholesale Clubs

Land mark group also operates

multiple formats such as
hypermarket (Max),
departmental store (Lifestyle),
Shoe mart and Funcity8 etc.
 Recent Trends contd.
Recent changes:
Emergence of Private-Label Brands:
Food Bazaar have made the transition
from just a grocery retailer to developing emotional
bonding with shoppers by providing some value
added services to the shoppers.
Live chakki:
Fresh Juice
counter:
Live dairy:
Live kitchen:
 Recent Trends contd.
Recent changes:

Category Killer: A New Concept

imported from U.S.:
In India, Mega- Mart is one sort of category killer
which sells apparel products

e-Retailing:
 Recent Trends contd.
Recent changes:
e-Retailing:
Electronic Retailing

Easybuymusic.com
 Recent Trends contd.
Recent changes:
Technology

RFID
Security
 Recent Trends contd.
Recent changes:

Issues in Catalog Retailing

 Low Start Up Cost
 Evolution of Multi-Channel Offering

-Electronic Channel, Stores

 Increasing Mail Costs
 Clutter from other Catalogs
 Road Ahead
Finally, it is not the format that gives business sustainability
rather it has to deliver the value to the customer.

marketer has to address family sensibilities more rigorously to

woo Indian customers.

Indian customers have become more sensitive to quality,

customer service and status.

He/She is ready to pay, sometimes, astronomical sums

provided their needs are satisfied. They are basically looking
for an experience which is more of cognitive than physical. In
brief, Jo Dikhta Hai Wo Hi Bikta Hai.
 Sources
 AT Kearny
 Forrester Research 2006
 KPMG-FICCI Report
 http://www.indiainbusiness.nic.in/
 Lakshmi Narayanaswamy (203/43) Mudit Sharma (222/43)
 FDI in Retail Sector in India, Arpita Mukherjee, Nitisha Patel, ICRIER Publication,pg.31
 India Retail Hand book ,ICICI and AC Neilson , ORG Marg ( 2006)
 Living it Up, India Today, August, 22,2005, pp.86
 Marketing White Book (2006), Business World, pp.237,114-115.
 Non-Store Retailing, Retailing in India, Euro monitor Report, 2006
 Retailing in Punjab: 2010 and beyond (2006), An image & CII study.