Retail : An Industry with better prospects

Vythnathan.MB. Arch; PGP ACM; Dip SCM (UK)

Deputy General ManagerWT Retail Services

# 1 Embassy Icon Annexe, Infantry RoadBangalore-560008

Email : vythnathan@wtretailindia.com

Retailing

Buying & Selling of goods/services!

Timely delivery of goods/services demanded by consumers !

Timely delivery of goods/services at competitive & affordable price range for the consumers!

A commercial transaction in which a buyer intends to consume the goods/ service through personal/ family/household use!

India Retail

• 5th Largest Retail Destination globally

• Currently at $353 billion to reach $543.2 billion by

2014 at a rate of 10-20% CAGR

• Contribution to GDP at about 10%

• Organized sector: Currently at 5% and to reach 18% by 2015

Reference : BMI India Retail Report Q3’10

Retail Formats in India

Hypermarkets/ Supermarkets

SPAR, Spencers

Departmental Stores

Shoppers Stop, M&S, Lifestyle, Westside

Convenience Stores

24X7, Easy day, In & Out

Discount Stores

Mega mart, My dollar, Cantabil

Category Killers/ Big Box Retailers

Reliance Digital, Croma

Mom & Pop Stores

Kiranas

Specialty Stores

Crossword, Raymonds, Khadims

Shopping Malls

Familiar Retail Chains

Factors influencing the Growth

Stable Economy( 7.8%)

Population expansion & Expanding consumer base( middle & upper middle) to

tier 2 & 3 cities

Rapid construction of organized retail

infrastructure

Rising working population

specifically women

Increased disposable income

& customer aspirations

Improved customer mobility

Shopping Malls

14%

25%

9%

29%

23%

Forecasted distribution of Malls

NCR North

East West

South

Mall Management

Operations Management

Marketing Management

Retail Management

Accounting Management

• Only 5% is organized in India against 70-80% in matured markets like Europe, Australia, US

• Real Stock to attain 95 million sft by 2014 from 41 million

• 300 shopping malls to be operational from 2013

Key Skills

• Business Management• Relationship Management• Risk Management• Finance• Sales & Marketing

Challenges

Shortage of trained manpower

Low retail management skills

FDI Restrictions

Complicated Taxation Policies

Shortage of retail study options

Inadequate back-end infrastructure

Future

• Organized retail to reach $50 billion by 2011

• Shopping centres to grow at a CAGR of 18.9%

• Rural market to dominate the sector

• Third party logistics market to reach $20 billion by 2011

• Apparel with food & grocery to dominate-mass grocery retail to increase by 154% to reach $15.29 bn by 2014

• Entertainment sector to rise up

Reference : BMI India Retail Report Q3’10

Vistas in Retail for budding Managers!!

Advertising & Sales Promotions

Market Research

Strategy & Brand Development

Accounting

Store Operations

Supply Chain Management

Merchandising

Inventory Control

Customer Relations

Marketing & SalesConsumer Behavior

Franchising & Retail Leasing

Shopping Centre Management

Case Study & Discussions

Thank you!!