RETAIL SECTOR(new)

8/7/2019 RETAIL SECTOR(new)

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RETAIL SECTOR

ANISH

NIDHI

PRIYANKA

USHA

BHUSHAN


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RETAILING -SKY IS THE LIMIT

Retail comes from the French word retaillier,which refers to "cutting off, clip and divide.

Retail marketing try to discover theunderstanding of the peoples motives andinterests.

A moral obligation to observe customersbehavior as well as customers also observethe marketers behavior.

CONSUMPTION = DEVELOPMENT


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CATEGORIES

Food & Beverage Store:

Grocery Stores.

Specialty food stores.

Beer, vine and liquor stores.

Clothing & Accessories Stores:

Clothing, shoes , luggage and leather good stores. Jewelry.

Building Material, Garden Equipment Stores.


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Merchandise Store: Miscellaneous Retail Store.

Sporting Goods, Hobby, Book & Music Store.

Furniture ,Home Furnishing & electronicappliance Stores.

Motor Vehicles: Automobile dealers.

Auto parts , accessories and tire stores.

Gasoline stations.


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TYPES OF RETAIL SECTOR

Professionally managed has aaccounting transparency withproper usage accounting

standards.

These include the corporatebacked hypermarkets andretail chains.

According to a survey by AT

Kearney ,only a Rs. 20,000crore segment of the market isORGANIZED.

Owner lacks technical &accounting standardization

For example, owner mannedgeneral stores, conveniencestores, hand cart andpavement vendors, etc.

According to a survey by ATKearney , an overwhelmingproportion of the Rs. 400,000

crore retail market isUNORGANISED.

ORGANIZED RETAIL UNORGANIZED RETAIL


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TYPES OF RETAIL SECTOR

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

US IND IA

unorganised

Organised

Source: The Great Indian Retail Story, 2009.


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RETAILING FORMATS IN INDIA

MALLSMALLS:: Ranges from 60,000 sq ft to7,00,000 sq ft and above. Examples include

Shoppers Stop, Piramyd, and Pantaloon. SPECIALTYSTORESSPECIALTYSTORES:: focusing on specific

market segments and have establishedthemselves strongly in their sector. KidsKemp, Music World .

DISCOUNTSTORESDISCOUNTSTORES::As the namesuggests, discount stores or factory outlets,

offer discounts on the MRP through selling inbulk.


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DEPARTMENTDEPARTMENT STORESSTORES:: Large stores ranging from20000-50000 sq. ft, catering to a variety of consumerneeds. Reliance Fresh, More.

HYPERHYPER MARTS/SUPERMARKETSMARTS/SUPERMARKETS:: Large self service outlets, catering to varied shopper needs aretermed as Supermarkets. ranging from of 3,500 sq ftto 5,000 sq ft. having a strong focus on food &grocery and personal sales.

CONVENIENCECONVENIENCE STORESSTORES:: Small stores 400-2,000sq. feet located near residential areas. Prices areslightly higher due to the convenience premium.


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4 PS IN RETAIL SECTOR

Product.

Place.Promotion.

Price.


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RETAIL SECTOR GROWTH IN

INDIA

Source: Datamonitor


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CEOCEO MIKE DUKEMIKE DUKE


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COMPETITORS In North America

Kmart, Target, ShopKo and Meijer,

Canada Zellers, The Real Canadian Superstore and

Giant Tiger

Mexico Comercial Mexicana and Soriana.

UK Tesco.


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WALMART Founded by Sam Walton in 1962,

incorporated on October 31, 1969, and listedon the New York Stock Exchange in 1972.

It is the world's largest public corporation byrevenue, according to the 2008 FortuneGlobal 500.

In accordance with its global strategy, it proposed a 50:50 joint venture with BhartiEnterprises targets up to 25 percent lower

prices than wholesalers.


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WALMART SUCCESS Empowering associates.

Maintain technology superiority.

Build loyalty among associates,customers, and

suppliers.

Global Expansion for new marketopportunity.

Effective use of logistics management.


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FINANCIAL STATUS In 2008, Wal-Mart was 67th most

profitable corporation.

For the fiscal year ending January31, 2008, Wal-Mart reported a netincome of $12 billion on $340billion of sales revenue (3.5% profitmargin).


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CEO KISHORE BIYANI


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PANTALOON Company has crossed $1 billion turnover mark during

the year under review.

12 million square feet of retail space in 71 cities andtowns and 65 rural locations across India.Headquartered in Mumbai (Bombay), PantaloonRetail employs around 30,000 people.

A front runner in retail with over 2.7 million squarefeet of retail space.

21 departmental stores.


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COMPETITORS Shoppers Stop.

RPG Retail (Foodworld,Musicworld)

Reliance Fresh.

Subhiksha Trading Services. TATA groups(Lifestyle,Westside)

Birlas More.


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LINES OF BUSINESS

Fashion

General Merchandise

Electronics Furniture

E-tailing

Wellness

Malls Investment & Savings


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SUCCESS FACTORS

Entrepreneur led, professionally managedand experienced team.

Strong projects and operations capabilities. Vast range of lifestyle and value retailing

products and services.

Strong distribution and logistics network andsupply chain.

Large base of loyal customers.


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FINANCIAL GROWTH

One-year comparative graph with BSE


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SWOTANALYSIS


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STRENGTH Consumer spending increasing at 11%

annually.

2nd largest contributor to GDP afteragriculture at 20%.

Mall Mania.

Increase in spending per capita Income. The increasing share of young population

in total population of India.

Media.


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WEAKNESS

Lack of huge investments for

expansion. Lack of good infrastructure.

Lack of proper logistics.

Cost of business operations is very

high in India.


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OPPORTUNITIES

India ranks 1st for top international

destination for retail investment.

U.S $ 350 billion retail market.

4th largest economy in purchasing termsafter US, china & Japan.

Expected to increase to 15-18% by 2011. Employment(2 million jobs by 2010).

Huge Untapped market.


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THREATS

Poor monsoons and low GDP Growth couldaffect consumer spending drastically .

Price sensitive market.

Thefts.

Increase in Competition.(More competition

reduce demand & price.) Unavailability of qualified personnel to

support exponential growth in retail.

Security Concerns.


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SUPPORTIVE SECTORS

IT.

Media.

Real Estate.

Tourism.


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STRATEGY The hypermarket would be selling theproducts on EDLP (every day low price)

basis at prices 15-20 percent lower thanmarket prices.

Buying products from the first level

suppliers.

Shift of advertising from product

awareness to product preference .


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FUTURE PERCEPTIVE FDI approval.

Increasing at a rate of 10% yearly.

India will have 600 new shopping centers by 2010.

Food is the most dominating sector and is growing ata rate of 9% annually.

Providing employment to 8 per cent of the nations

workforce.


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PROJECTED RETAIL GROWTH


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CONCLUSION

o Indias GDP growth of 10% in 2007-08,reflecting the booming economy of the

country.o The sector is on a high growth trajectory

and is expected to grow by more than

27%over the next 5 to 6 years.o Retail sales in India are hovering around

33-35% of GDP as compared to around20% in the US.


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THANK

YOU

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RETAIL SECTOR(new)