The document provides an overview of the growing retail industry in India. Some key points:
- India's retail market is projected to reach $1.3 trillion by 2020 from $672 billion in 2016 growing at a CAGR of 24.5%. Modern retail is expected to grow from $60 billion to $180 billion during 2015-2020.
- Consumer expenditure is estimated to reach $3.6 trillion by 2020 compared to $627.69 billion in 2016 growing at a CAGR of 17.94%. The FMCG market is projected to increase to $103.7 billion by 2020 from $49 billion in 2016.
- Online retail revenue is projected to grow to $60 billion by 2017 and $
The Indian retail sector is growing rapidly due to rising incomes and quality of life in urban areas. While foreign investment is restricted, domestic retailers and foreign investors are eager to enter the market. Various retail formats from other countries are being adopted in India. The industry is analyzed using PEST and Porter's Five Forces. Organized retail is booming but traditional stores still dominate. The future of the sector looks promising as India has a large population and expanding middle class with growing purchasing power.
The document presents information on the retail industry in India. It discusses the types of retail formats in India, including organized and unorganized sectors. It notes that the organized retail sector accounts for only 4.6% of the Indian retail market. Several key players in apparel, electronics, and general retail are mentioned along with details about their store formats, locations, and positioning. Future projections estimate the Indian retail industry will grow to Rs. 990,037 Cr by 2010 with organized retail growing at 25-30% annually.
The document provides an overview of the retail industry in India. Some key points:
- India has a booming $300 billion retail market that is growing at 25-30% annually.
- Organized retail currently accounts for 5% of the market but is predicted to reach 15-20% by 2010.
- Several major retail companies like Tata, RPG Group, and Pantaloon Retail are expanding rapidly in India.
- Factors driving growth include a rising middle class, increased spending, urbanization, and favorable demographics with many young consumers.
The Indian retail industry has emerged as one of the fastest growing industries, accounting for over 10% of GDP. The market size is expected to reach $1.3 trillion by 2020 from $600 billion in 2015 growing at 12% annually. Modern trade is projected to expand at 20% per year. E-commerce sales are forecasted to reach $55 billion by 2018 and $220 billion by 2025. The growth is driven by rising incomes, urbanization, foreign investment, and the government's support through initiatives like GST. Both organized and unorganized retailers will need to collaborate to tap opportunities in rural markets and leverage digital channels.
The retail industry in India has evolved from traditional barter and kirana stores to modern retail formats like supermarkets and hypermarkets. It currently accounts for 24% of India's GDP and is the fifth largest retail market in the world, though organized retail makes up only 5-7% of the sector. Major players in Indian retail include Pantaloons, Shoppers Stop, and Trent. The industry faces opportunities for growth from rising incomes and urbanization, but also challenges from a fragmented supply chain and lack of infrastructure.
The document discusses the Indian retail industry. It defines retail as the sale of goods and services from businesses to end users. Retail is the last link between consumers and manufacturers. The retail sector in India is worth $394 billion and is one of the fastest growing in the world. However, over 96% of Indian retail is still unorganized. The document outlines the history and evolution of retail in India from early barter systems to modern formats like supermarkets and malls. Key factors driving growth in the organized retail sector are also discussed.
The document provides an overview of the retail industry in India. Some key points:
- The retail market in India is projected to grow from $672 billion in 2017 to $1.1 trillion by 2020, making it one of the fastest growing markets globally.
- Modern retail is also expanding rapidly, expected to double in size over the next three years, growing from $13.51 billion in 2016 to $26.67 billion by 2019.
- Food and grocery accounts for the largest share (around 66%) of retail revenues in India currently, followed by apparel. Organized retail still makes up a small portion (around 7%) of the total retail market, indicating significant room for growth.
The document summarizes key aspects of the organized retail sector in India. It outlines various retail formats including hypermarkets, department stores, supermarkets, and specialty stores. It notes trends in the sector such as the emergence of franchise models, rural retailing joint ventures, and collaboration between retailers. It also discusses investments, expansion plans, the policy framework, strengths, weaknesses, opportunities, and threats for organized retail in India.
This document discusses emerging retail trends in India. It notes that tier 2 cities and towns are seeing increased disposable incomes and spending on consumer goods. Retailers are introducing stores like supermarkets and hypermarkets in these areas. Mall development is also growing in smaller cities and towns. Additionally, as social integration increases, retail chains may be able to expand across India, adapting to various local cultures. The future will see models tailored for urban and rural markets.
This document discusses the history and evolution of retail in India. It begins with a brief overview of how retail has traditionally functioned in India through small family-owned shops and open-air markets. It then outlines the emergence of organized retail in India in the late 19th century with the establishment of large markets in major cities. The document further explores the transformation of retail in India over the last few decades with the growth of retail chains, shopping malls, and the entry of foreign retailers into the Indian market. It concludes by categorizing the various retail formats currently operating in India, including traditional, established, and emerging modern formats.
Indian Retail Industry Presentation 060109Workosaur.com
The document discusses the growth of the retail market in India. It notes that the Indian retail market is the fifth largest globally and is estimated to grow significantly by 2010 and 2015. Modern retail is increasing its share of the total retail market in India and is expected to reach 22% by 2010. Food and beverages accounts for the largest share, over 74%, of the total retail market in India. The transition from traditional to modern retailing formats is underway, fueled by growing economic activity in urban India.
Global Overview & Prospects of Retailing in IndiaDhrumil Shah
The document provides an overview of the global and Indian retail industry. Globally, retail is the 5th largest industry projected to reach $20 trillion by 2017, with most growth in Asia. In India, retailing has evolved from barter systems and small kirana stores to include malls and large franchises. Retail provides employment for over 18 million Indians. Prospects for the Indian retail industry are promising as incomes rise and e-commerce grows, with the sector expected to benefit further from large foreign retailers entering the market.
The unorganized retail sector in India consists of small family-run shops and accounts for over 95% of retail in the country. It is characterized by traditional low-cost retailing formats and kirana stores that are convenient and offer personalized service. However, organized retail is growing with the entry of multinational companies and offering lower prices and a wider range of products. While the unorganized sector faces more competition and rising costs, it still has advantages in terms of proximity, traditional customer mindsets, and relationships.
The document discusses the Indian retail sector. It outlines the evolution of retail in India from barter systems to modern organized retail chains and malls. It also discusses key players in the Indian retail space, factors driving growth in the sector, challenges faced, and strategies adopted by major retailers like Kishore Biyani to succeed in India.
The key drivers of growth in the Indian retail industry are growing consumer demand and increased retailer investments. On the consumer side, factors include a rising population, especially in the earning 15-60 age group, growing urbanization, and increased plastic money usage. On the retailer side, organized retail is expected to reach $230 billion by 2010 due to large investments by retailers to expand operations and enter new cities. Shortening the traditional multi-level supply chain is also benefiting consumers and retailers.
The document discusses the Indian retail industry and the impact of the recession. It notes that organized retail penetration is expected to reach only 10.4% by 2010 compared to earlier projections of 16% due to the recession. The barriers to retail growth in India are listed as poor supply chain infrastructure, absence of third party logistics, fragmented supply base, and high rental costs. Major retailers like Pantaloon are adopting strategies such as improving efficiencies, understanding consumer behavior, building supply chain systems, and entering rural markets. Private labels are also seen as an important strategy. The future of Indian retail is projected to see the total retail market grow to 27 lakh crores by 2015 with organized retail reaching 11% penetration, up from
This document summarizes a case study on the organized Indian retail sector. It covers topics like the significance of the Indian organized retail sector, the background of Indian retail, examples of organized retail in other countries, and the competitive environment in the Indian retail sector. The case study analyzes factors influencing the success of organized retailers in India using Porter's Five Forces model. It concludes that the Indian retail market poses unique challenges compared to other countries and organized retailers must adapt to local conditions to gain competitive advantage.
The document provides an overview of the retail industry in India. Some key points:
- The Indian retail market is expected to reach $1.3 trillion by 2020 from $672 billion in 2016 growing at a CAGR of 24.5%. Modern retail is projected to grow from $60 billion to $180 billion during 2015-2020.
- Organized retail penetration is low at 8% currently but expected to reach 13% by 2019. Food and grocery accounts for the largest share at 66.3% of retail revenues by 2020.
- Key growth drivers include rising incomes, increasing consumer expenditure, and expansion of retail infrastructure in India. The retail sector is poised for strong growth over the coming years.
The document provides an overview of the retail industry in India. Some key points:
- The retail market in India is expected to reach $1.3 trillion by 2020 from $672 billion in 2016 growing at a CAGR of 24.5%. Modern retail is projected to grow from $60 billion to $180 billion during 2015-2020.
- Organized retail penetration is low at 8% currently but expected to reach 13% by 2019. Food and grocery accounts for the largest share at 66% of retail revenues by 2020.
- Major players in the industry include Reliance Retail, Aditya Birla Retail, Pantaloon Retail, Shoppers Stop and Future Group.
The document provides an overview of the retail industry in India. Some key points:
- The Indian retail market is expected to reach $1.3 trillion by 2020 from $672 billion in 2016 growing at a CAGR of 24.5%. Modern retail is projected to grow from $60 billion to $180 billion during 2015-2020.
- Organized retail penetration is low at 8% currently but expected to reach 24% by 2020 presenting significant growth opportunities. Food and grocery accounts for the largest share at 66% of retail revenues by 2020.
- Major players in the industry include Reliance Retail, Aditya Birla Retail, Trent, Shoppers Stop and Future Group. The industry is
The document provides an overview of the retail industry in India. Some key points:
- The Indian retail market is expected to reach $1.3 trillion by 2020 from $672 billion in 2016 growing at a CAGR of 24.5%. Modern retail is projected to grow from $60 billion to $180 billion during 2015-2020.
- Organized retail penetration is expected to increase to 24% by 2020 from 8% in 2015 as income levels rise and consumers demand greater quality and selection. Food and grocery accounts for the largest share at 69% of the retail market.
- Major players in the industry include Reliance Retail, Aditya Birla Retail, Pantaloon Retail
The document summarizes the evolution and current state of the Indian retail industry. It discusses key players and market size, noting that the industry accounts for 10% of India's GDP and is expected to nearly double to $1 trillion by 2020. Modern retail is expanding twice as fast as traditional retail. The future of retail in India is highlighted by growing e-commerce, with online retail expected to be on par with physical stores within five years. Large investments from international companies are expected to further boost the retail sector.
The document provides an analysis of the retail industry in India and focuses on Big Bazaar as a case study. It discusses the size and key players of the Indian retail industry. Some of the key drivers of change include favorable demographics, rising incomes, and urbanization. Big Bazaar is analyzed in terms of its company details, stakeholders, value system, resources, competition and strategies. It finds that Big Bazaar targets the middle and upper middle class in India and sees opportunities in the growing organized retail sector and evolving consumer preferences.
The retail market in India is projected to grow substantially over the next few years, reaching $1.1 trillion by 2020 from $672 billion in 2017. Modern retail is also expected to double in size during this period. Consumption expenditure is projected to increase to $3,600 billion by 2020 from $1,595 billion in 2016. Food and grocery accounts for the largest share of retail revenues at around 66% in 2020. While the Indian retail market offers significant opportunities, organized retail currently accounts for only around 10% of the total retail industry, indicating substantial scope for further expansion.
The document provides an overview of the retail market in India. Some key points:
- The retail market in India is projected to grow from $672 billion in 2017 to $1.1 trillion by 2020, making it one of the fastest growing retail markets in the world.
- Modern retail is also expanding rapidly, expected to grow from $13.51 billion in 2016 to $26.67 billion by 2019.
- Food and grocery accounts for the largest share of retail revenues at around 66% in 2020, followed by apparel. Organized retail still makes up a small portion, estimated at 10% by 2020 compared to 93% unorganized trade.
- Rising incomes, growing consumer demand,
- The Indian retail market is projected to grow from US$ 672 billion in 2017 to US$ 1.1 trillion in 2020, making it one of the fastest growing markets in the world. Modern retail is also expected to double in size over the next three years.
- Organised retail penetration is low in India currently at around 7% but is estimated to reach 10% by 2020, indicating significant room for growth. Food and grocery accounts for around 66% of retail revenues in India currently.
- The retail sector in India is seeing increasing interest from global retailers looking to enter the market given its high growth potential. Several global brands have announced plans to open new stores or expand operations in India.
- The Indian retail market is projected to grow from US$ 672 billion in 2017 to US$ 1.1 trillion in 2020. The modern retail market in India is expected to grow from US$ 70.45 billion in 2016 to US$ 111.25 billion in 2019.
- Food and grocery accounts for the largest share of retail revenues in India at an estimated 66.3% by 2020. Organized retail penetration is estimated to increase from 7% in 2016-17 to 10% by 2020 while unorganized retail will still hold the majority share.
- The retail sector in India presents significant growth opportunities due to rising incomes, increasing consumerism, and expansion to smaller cities, attracting many global retailers to the
The document provides an overview of the retail market in India. Some key points:
- The retail market in India is projected to grow from $672 billion in 2017 to $1.1 trillion by 2020 due to rising incomes and consumer spending.
- Modern retail is also expanding rapidly, expected to double in size over the next three years to $111.25 billion by 2019.
- Food and grocery accounts for the largest share (66%) of retail revenues in India. The organized retail sector is growing but still relatively small compared to unorganized retail.
The document provides an overview of the retail market in India. Some key points:
- The retail market in India is projected to grow from US$ 70.45 billion in 2016 to US$ 111.25 billion in 2019. Modern retail is expected to double in size over the next three years.
- Organized retail makes up only around 9% of the total retail market currently, indicating significant room for growth. This share is estimated to reach 18-20% by 2020.
- Food and grocery accounts for the largest share (around 66%) of retail revenues in India currently. Apparel and jewelry are other major segments.
- Several international retailers are expanding aggressively in India, attracted by the country
The retail market in India is growing rapidly and is projected to increase from $70.45 billion in 2016 to $111.25 billion in 2019. Modern retail is also expanding, estimated to grow from $13.51 billion in 2016 to $26.67 billion over the same period. Food and grocery accounts for the largest share of retail revenues at 66.3% in 2020. Currently, organized retail makes up only about 9% of the total retail market, indicating significant room for growth as organized retail is estimated to reach 19% by 2020. Unorganized traditional retail still dominates the market but organized retail is growing at 20-25% annually.
The retail sector in India is growing rapidly and attracting significant foreign investment. Retail market size in India is projected to grow from US$70.45 billion in 2016 to US$111.25 billion in 2019. Organized retail currently makes up only around 10% of the market, indicating significant growth potential. Food and grocery accounts for the largest share of retail revenues at around 66%. The strong growth fundamentals and increasing urbanization in India provide opportunities for both domestic and international retailers.
According to "Tata Strategic Management Group (TSMG) " The organized Food & Grocery retail in India could grow to Rs. 1750 Billion (at current prices) by 2015 representing ~11% of overall F&G sales.However to achieve that, The Indian retail faces several economic structural challenges both across the demand side and supply side.This presentation by BCG analyses some of indian retail trends these sectors-
The document summarizes insights from interviews with 20 leaders of top Indian retailers on key trends in the retail industry in India over the next 5 years. The trends discussed are: 1) Continued certainty of growth in the Indian retail market driven by factors like rising incomes and urbanization; 2) The increasing reality of digital transformation and its impact on customer expectations and behavior; 3) The challenge of developing capabilities to meet new customer demands in areas like omni-channel retail, talent management and supply chain optimization; 4) The growing importance of economics and profitability given rising costs and competitive pressures; and 5) The need for retailers to fundamentally transform rather than incremental changes to capitalize on growth opportunities and adapt to disruptions.
The document summarizes insights from interviews with 20 leaders of top Indian retailers on key trends in the retail industry in India over the next 5 years. The trends discussed are: 1) Continued certainty of growth in the Indian retail market driven by factors like rising incomes and urbanization; 2) The increasing reality of digital transformation and its impact on customer expectations and behavior; 3) The challenge of developing critical capabilities to meet customer needs in areas like omni-channel retail, talent management and supply chain optimization; 4) The growing importance of economics and profitability given rising costs and competitive pressures; and 5) The need for retailers to undertake a transformation, not just incremental changes, to capitalize on growth opportunities and adapt to a changing landscape
The document discusses trends in the Indian retail industry based on interviews with 20 retail leaders and analysis from BCG and RAI. It finds that while Indian retail is certain to grow due to rising incomes and consumerism, retailers must reinvent themselves for the digital reality and develop new capabilities to provide seamless omni-channel experiences. Retailers will need to rewrite their approach fundamentally to deal with challenges like talent management, supply chain optimization, and funding transformation in a competitive landscape.
The document provides an overview of the FMCG sector in India. It discusses key trends such as the growing FMCG market in India, which is expected to reach $103.7 billion by 2020 growing at a CAGR of 20.6%. It notes that household and personal care makes up 50% of the FMCG market. The rural FMCG market is growing rapidly and expected to reach $100 billion by 2025. Top FMCG companies like ITC, HUL, and Dabur have reported increased sales in recent years, indicating strong growth in the sector.
The retail market in India is projected to grow from US$ 672 billion in 2017 to US$ 1.1 trillion by 2020. Food and grocery accounts for the largest share of retail revenues at around 66% in 2020. Organized retail is still in a nascent stage, accounting for around 10% of the total retail market currently, though it is growing rapidly compared to unorganized retail. Rising income levels, changing consumer preferences, and increasing penetration of organized retail into smaller cities are driving growth in the Indian retail sector.
Tamil Nadu has a strong and growing economy, as evidenced by its GSDP which grew at a CAGR of 11.46% between 2011-12 and 2018-19, reaching Rs. 16.06 trillion (US$ 222.58 billion) in 2018-19. The state has a diversified industrial base and thriving services sector, especially in IT/ITeS. It also has robust infrastructure including roads, ports, airports, and an emphasis on further infrastructure development. With various initiatives like Vision 2023, Tamil Nadu aims to boost its economy and attract significant domestic and foreign investments over the coming years.
India has become the second largest steel producer in the world in 2018. Steel production and capacity in India have grown rapidly over the past decade, with capacity reaching 137.98 million tonnes in 2017-18. Consumption has also increased steadily, driven by growth in infrastructure, automotive, and other sectors. The government has implemented policies like the National Steel Policy to encourage further capacity growth to 300 million tonnes by 2030-31. Low per capita consumption compared to other countries also provides significant potential for further demand growth.
The document provides an overview of India's services sector, including:
1) The services sector contributes over 50% of India's GDP and grew at 12.75% in 2018-19, demonstrating its importance as the key driver of India's economic growth.
2) India has a large skilled workforce and is a global outsourcing hub, commanding a 55% share of the global sourcing market, which has helped establish the country as a leading provider of technology and digital services.
3) The government is working to further develop the services sector through initiatives like 'Startup India' and reforms that make India an attractive investment destination for both domestic and foreign investors.
The document provides an overview of the real estate sector in India. It discusses that the real estate sector is expected to reach $1 trillion by 2030 and contribute 13% of India's GDP by 2025. Rapid urbanization is driving demand for residential and commercial real estate space. The residential segment contributes around 80% of the sector currently. Government policies like Housing for All and Smart Cities are further boosting growth.
Rajasthan has experienced strong economic growth in recent years. Between 2011-12 and 2018-19, the state's Gross State Domestic Product grew at a compound annual growth rate of 11.37% to reach $128.1 billion. The tourism industry in Rajasthan is thriving, with over 47.5 million tourist arrivals in 2017, and the state is a leading producer of agro-based products. Rajasthan also has immense potential for renewable energy generation from solar and wind sources.
Indian Railways is the third largest rail network in the world by size. It saw strong revenue growth over the past decade, with freight accounting for over 65% of revenues in FY19. Freight and passenger traffic have both increased steadily in recent years. Various modernization initiatives are underway to upgrade infrastructure and technology. Private sector participation is being encouraged to augment rail connectivity and capacity.
India has the third largest installed power capacity in the world at 356.10 GW as of March 2019. It is the third largest producer and consumer of electricity globally. India has achieved 100% household electrification and aims to increase renewable energy capacity to 175 GW by 2022. Thermal energy accounts for over 63% of total installed capacity, while renewable sources account for 21.8%. The power sector in India is growing rapidly and offers many opportunities for investment and development.
Nagaland has a Gross State Domestic Product (GSDP) of around 0.24 trillion Indian rupees in 2017-18, growing at a CAGR of 11.83% between 2011-12 and 2017-19. The per capita GSDP in 2017-18 was 113,549 rupees, growing at a CAGR of 10.66% in the same period. Nagaland's Net State Domestic Product (NSDP) in 2016-17 was 0.19 trillion rupees, growing at 15.72% between 2011-12 and 2016-17. The per capita NSDP in 2016-17 was 90,168 rupees, growing at 12.
Meghalaya has the highest rainfall in India and diverse soil types that support agriculture. The state has strong potential in floriculture, bamboo processing, and medicinal plants due to its biodiversity. Meghalaya also has large hydroelectric power potential and abundant mineral resources. The state aims to promote industries like agro-processing, horticulture, minerals and tourism to create opportunities for its population.
- The Indian infrastructure sector is experiencing significant growth due to rising government investments and initiatives such as allocating Rs 4.56 lakh crore for infrastructure in the FY 2019-20 budget.
- Private sector participation is increasing across segments like roads, power and airports. Infrastructure sectors like power transmission and renewable energy will drive future investments.
- Improving connectivity through initiatives like Bharatmala Pariyojana and Sagarmala will boost infrastructure growth. 100% villages connectivity through roads is expected by 2019 under PMGSY.
The document provides an overview of the media and entertainment industry in India. Some of the key points from the document are:
- The Indian media and entertainment industry is growing rapidly at a CAGR of 12-13% and is expected to reach Rs. 3.73 lakh crore by 2022.
- Television is the largest segment with a market size of Rs. 740 billion in 2018, expected to reach Rs. 955 billion by 2021. Digital media, animation and VFX, and online gaming are among the fastest growing segments.
- Advantages for the industry in India include rising incomes, evolving lifestyles, a large young population, increasing digitization, and government support through
- The manufacturing sector is a major employer in India and aims to provide 25% of GDP and 100 million new jobs by 2022. It has grown at a CAGR of 4% between FY12-19 and contributes significantly to India's exports.
- The document discusses India's advantage in manufacturing including a large domestic market, favorable demographics, and government initiatives like Make in India. Key sub-sectors, growth drivers and the evolution of the sector are also outlined.
- Recent trends show growth in production, IIP, capacity utilization and exports, indicating the sector is expanding. The government has implemented various policies to develop manufacturing and make India a global hub.
Manipur has a flourishing bamboo processing industry as it is one of India's largest bamboo producing states. It also has a strong handicrafts industry, being home to the highest number of handicraft units and artisans in North East India. Handlooms is the largest cottage industry in Manipur. The state has strong potential for border trade opportunities through Moreh town, which is India's only land route for trade with Myanmar and Southeast Asia. Manipur is also home to the Ema Bazaar, one of India's largest markets run exclusively by women. Due to its natural beauty and biodiversity, Manipur is a popular tourist destination known as the "Switzerland of the East".
The document provides an overview of the economy of Himachal Pradesh, India. Some key points:
- Himachal Pradesh has a strong economic growth rate, with its GSDP reaching Rs. 1.52 trillion (US$21.04 billion) in 2018-19 growing at 11.09% annually.
- The state has a diverse economy with key sectors being tourism, agriculture, and hydroelectric power. Agricultural production and tourism visitor numbers are increasing.
- Himachal Pradesh has a large hydroelectric power potential and is becoming a major hub for hydroelectricity in India, though only around 40% of its potential has been harnessed so far.
Gujarat has experienced high economic growth rates in recent years.
- Gujarat's GSDP grew at a CAGR of 13.55% from 2011-12 to 2016-17, reaching Rs. 11.62 trillion (US$ 173.24 billion) in 2016-17.
- The state's per capita GSDP increased from Rs. 101,075 (US$ 2,108) in 2011-12 to Rs. 178,043 (US$ 2,654) in 2016-17, registering a CAGR of 11.99%.
The document provides an overview of India's gems and jewellery sector. Some key points:
- India is a major player in global gems and jewellery trade, contributing about 7% to India's GDP and employing over 4.6 million people.
- India is the world's largest cut and polished diamond exporter, exporting over 75% of global polished diamonds. It also processes over $23 billion worth of diamonds annually.
- Exports of cut and polished diamonds and gold jewellery have registered steady growth in recent years. Imports have also increased at a CAGR of nearly 8% between 2004-2018.
- The sector is adopting strategies like expanding retail networks, providing financing options
The engineering and capital goods industry in India is growing rapidly. The turnover of the capital goods industry reached $70 billion in 2017 and is forecasted to reach $115.17 billion by 2025. Electrical equipment production is also growing and is expected to reach $100 billion by 2022, up from $27.3 billion in 2017-18. The engineering research and design segment is also expanding, with revenues projected to increase from $28 billion in FY18 to $42 billion in FY22. Growth is being driven by increasing industrialization, infrastructure development, and capacity expansion across various core sectors in India.
Major e-commerce players in India have adopted strategies like expanding into new categories like groceries and used goods, acquiring analytics startups to improve pricing and positioning, and launching ancillary services like payments, logistics and video streaming. They have also introduced subscription models and personalized experiences to provide extra benefits and tailor their offerings to individual customer needs and interests.
Delhi has experienced strong economic growth, with its gross state domestic product increasing at a compound annual growth rate of 12.41% between 2011-12 and 2018-19. The real estate sector has been an important contributor to the state's economy. Delhi also has a growing tourism industry, owing to its historical and cultural attractions. The state government is working to improve infrastructure and implement policies to facilitate industrial development and attract investment across various sectors.
Chhattisgarh has a strong mineral production base and is a leading producer of coal and iron ore in India. It is the only state that produces tin concentrates. The state has emerged as a preferred investment destination and has witnessed strong growth in the agriculture sector. Key sectors driving growth include minerals, power, agriculture and tourism. Chhattisgarh aims to further develop its infrastructure, promote industries and boost skill development to achieve its vision of becoming an industrialized state.
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This presentation provides an in-depth exploration of urban land markets, focusing on their defining characteristics and influencing factors. It covers the concept and types of urban land markets, and delves into the governance structures that regulate these markets. Additionally, the presentation includes a comprehensive PESTEL analysis with real-world examples to enhance understanding of the various factors impacting urban land markets.
3. 33MAY 2017
Consumer expenditure
estimated to be USD3.6 trillion
by 2020 vis-à-vis USD0.627
trillion in 2016
For updated information, please visit www.ibef.org
EXECUTIVE SUMMARY … (1/2)
RETAIL
Source: Ernst & Young, Price Waterhouse Cooper, Economic Times, TechSci Research
Notes: CAGR - Compound Annual Growth Rate, F- Forecast
CAGR: 54.75%
CAGR: 17.94.%
Rising income & demand for
quality products to boost
consumer expenditure
Indian retail one of the fastest
growing markets in the world
due to economic growth
India’s modern retail to be 3
times in next 5 years
By 2020, retail market in India
is projected to reach USD1.3
trillion from USD672 billion in
2016
The modern retail market is
expected to grow from USD60
billion to USD180 billion during
FY15-FY20
CAGR: 24.5%
60
180
FY15 FY20F
USD billion
USD billion
USD billion
672
1300
FY16 FY20F
627.69
3600
FY16 2020
4. 44MAY 2017 For updated information, please visit www.ibef.org
EXECUTIVE SUMMARY … (2/2)
RETAIL
Source: indiaretailing.com, TechSci Research
Notes: CAGR - Compound Annual Growth Rate, E - Estimate
CAGR: 63.4%
CAGR: 32.8%
Robust consumption, rural
markets to augment FMCG
market
Increasing participation from
foreign & private players to
boost retail infrastructure
Rising number of tier-2 & tier-3
cities to enhance supermarket
space in the country
FMCG market expected to
increase to USD103.7 billion by
2020 from USD 49 billion in
2016
Revenue generated from online
retail is projected to grow to
USD60 billion by 2017 &
USD70 billion by 2020 from
USD6 billion in 2015
Supermarkets to total 8,500 by
2016 from 500 in 2006
USD billion
USD billion
49
103.7
2016 2020F
CAGR: 20.6%
6
60
70
FY16 FY17E FY20E
500
8,500
2006 2016E
2006 2016E
6. 66MAY 2017
Growingdemand
For updated information, please visit www.ibef.org
ADVANTAGE INDIA
Source: Ernst & Young, Technopak, TechSci Research; Notes: SITP - Scheme for Integrated Textile Park, FDI -
Foreign Direct Investment, 2021; E - Estimated figure for 2020,
ASEAN - Association of Southeast Asian Nations
Demand potential
• Healthy economic growth, changing
demographic profile, increasing
disposable incomes, changing
consumer tastes and preferences are
driving growth in the organised retail
market in India
• Rapid urbanisation with increasing
purchasing power has led to
growing demand
Innovation in financing
• Collective efforts of financial houses &
banks with retailers are enabling
consumers to go for durable products with
easy credit
• In January 2016, Bank of India announced
reduction in rate of interest on retail loans
offered by the bank.
Policy support
• About 51 per cent FDI in multi-brand retail
• FDI of up to 100 per cent in single-brand
retail and for cash & carry (wholesale)
trading & exports
• Introduction of Goods & Service Tax (GST)
as a single unified tax system from next
fiscal year
• To provide a level-playing field to
stakeholders, the government is planning
to synchronize policies of retail, FMCG &
e-commerce within a single policy
framework
Increasing investments
• Foreign retailers are continuously
entering the Indian market
• Cumulative FDI inflow in retail for
December 2016 stood at USD935.74
million;
• 100 per cent cash & carry operations are
gaining significance in India with
Thailand’s Siam Makro being the latest
entrant in this space, following Metro,
Walmart & Booker
2016
Market
Value:
USD672
billion
2020E
Market
Value:
USD1.3
trillion
Advantage
India
RETAIL
8. 88MAY 2017
For updated information, please visit www.ibef.org
EVOLUTION OF RETAIL IN INDIA
Source: Technopak Advisors Pvt Ltd, BCG, TechSci Research
RETAIL
• Manufacturers
opened their own
outlets
• Pure-play retailers
realised the
potential of the
market
• Most of them in
apparel segment
• Substantial investment
commitments by large
Indian corporate
• Entry in food &
general merchandise
category
• Pan-India expansion
to top 100 cities
• Repositioning by
existing players
Initiation
Conceptualisation
Expansion
Consolidation
• Cumulative FDI inflow from April 2000 to
December 2016, in the retail sector,
reached USD935.74 million
• Retail 2020: Retrospect, Reinvent, Rewrite.
• Movement to smaller cities & rural areas
• More than 5–6 players with revenues over
USD1 trillion by 2020
• Large-scale entry of international brands
• FDI in single-brand retail up to 100 per cent
from 51 per cent
• Approval of FDI limit in multi-brand retail up
to 51 per cent
• Rise in private label brands by retail
players
• Sourcing & investment rules for
supermarkets were relaxed
• E commerce has emerged as one of the
major segments
Pre 1990s
1990–05
2005–10
2010 onward
9. 99MAY 2017 For updated information, please visit www.ibef.org
Source: TechSci Research
Note: IT - Information Technology
RETAIL
Mono/exclusive
branded retail shops
Multi-branded retail
shops
Convergence retail
outlets
Exclusive showrooms owned or
franchised out by a manufacturer
Complete range available for a
given brand, certified product
quality
Focus on particular product
categories & carry most of the
brands available
Customers have more choices as
many brands are on display
Display most of convergence as
well as consumer/electronic
products, including
communication & IT group
One-stop shop for customers;
many product lines of different
brands on display
E-retailers
It is an online shopping facility for
buying & selling products &
services; the facility is widely
used for electronics, health &
wellness
Highly convenient as it provides
24X7 access, saves time &
ensures secure transaction
RETAIL FORMATS IN INDIA
10. 1010MAY 2017 For updated information, please visit www.ibef.org
KEY PLAYERS IN INDIAN RETAIL INDUSTRY
Source: TechSci Research
RETAIL
Grocery Food and beverage Department stores Pharmacy
Books, music and
gifts
Retail
11. 1111MAY 2017 For updated information, please visit www.ibef.org
COMPETITIVE LANDSCAPE IN INDIAN RETAIL SECTOR
Source: Company websites, Press Release, TechSci Research
RETAIL
Departmental stores Hypermarkets
Supermarkets/
convenience stores
Specialty stores Cash & carry stores
• Pantaloon has
104 stores
• Westside
operates 86
stores
• Shoppers Stop
has 81 stores in
India, as of 2016
• As of 2016,
Reliance Retail
launched ‘Trends’
in this format &
currently has
nearly 3383
stores across
India
• Pantaloon Retail
is the leader in
this format, with
512 Big Bazaar
stores & online
franchisees
• Aditya Birla Retail
(More
Hypermarket)- 20
stores
• HyperCITY (16
stores), Trent,
Spencer’s
(Spencer Hyper),
& Reliance are
other players
• Aditya Birla
Retail- More
Supermarket (499
stores)
• Spencer’s Daily
(134 stores)
• Reliance Fresh
(700 stores)
• REI 6Ten (350
stores)
• Big Bazaar (512
franchisees
stores)
• Titan Industries is
a large player,
with 430 World of
Titan, 174
Tanishq & 336
Titan Eye+ shops
• Vijay Sales,
Croma & E-Zone
are into consumer
electronics
• Landmark &
Crossword focus
on books & gifts
• Metro started the
cash & carry
model in India; the
company
operates 16
stores across
Mumbai, Kolkata,
Delhi, Punjab,
Hyderabad &
Bengaluru
• As of 2016,
Reliance Retail
has opened 45
cash and carry
stores and is
planning to setup
300 more till
2019.
Retail
12. 1212MAY 2017 For updated information, please visit www.ibef.org
KEY STRATEGIES OF INDIAN RETAILERS
Source: KPMG International 2011, TechSci Research
RETAIL
Multiple franchisee model Rural retailing
Collaborative model for
international products
Vertical integration
Collaboration for back-end
resource sharing
Increasing market reach
Innovation in new retail formats Direct sourcing arrangements Focus on private labels
13. 1313MAY 2017 For updated information, please visit www.ibef.org
STRATEGIES ADOPTED BY INDIAN RETAILERS FOR SALES MAXIMISATION
Source: KPMG International, TechSci Research
RETAIL
Offering discounts
• Most retailers have advanced off-season sales from 15 days to a month with discounts of 20-70 per
cent on certain products
• Higher discounts & other value-added services for members
Lowering prices
• Certain retailers adopt ‘first price right’ approach. Retailers do not offer discounts under this
strategy: they directly compete on the selling price by offering a best price without any markdowns
Offering value-added
services
• Companies offer innovative value-added services, such as customer loyalty programmes & happy
hours on shopping deals
• Offers for senior citizens, contests for students & lottery gains are now very common
Leveraging partnerships
• To keep customers on shop floors for a longer time & increase conversions, retailers are now
pitching to partner with manufacturers, service providers, financial companies, etc. to create a buzz
around certain product categories
Strong supply chain
• Critical components of supply chain planning applications help retailers to maintain profit margins
• Retailers develop innovative solutions for managing the supply chain problems
• Innovative solutions like performance management, frequent sales operation management,
demand planning, inventory planning, production planning & lean systems can help retailers to get
advantage over competitors
Joint Ventures
• To diversify the product offerings & tab the growing luxury retail segment, retailers are forming joint
ventures with foreign luxury brands. Reliance Brands Ltd. formed a joint venture with Bally, a Swiss
luxury brand, to exclusively market its products in India
14. 1414MAY 2017 For updated information, please visit www.ibef.org
STRONG GROWTH IN THE INDIAN RETAIL INDUSTRY
RETAIL
Source: BCG Retail 2020, Ernst & Young, Deloitte,
indiaretailing.com, Economist Intelligence Unit, Euro monitor,
TechSci Research
Notes: CAGR - Compound Annual Growth Rate, E - Estimated
Market size over the past few years (USD billion)The retail sector in India is emerging as one of the largest
sectors in the economy
The total market size was estimated to be around USD600
billion in 2015, thereby registering a CAGR of 7.45 per cent
since 2000.
Retail industry is expected to grow to USD1.3 trillion by
2020, registering growth at a CAGR of 7.46 per cent
between 2000-2015
CAGR: 7.46%
204 238 278 321 368
424
518 490 534
600
1300
2000 2002 2004 2006 2008 2010 2012 2013 2014 2015 2020E
15. 1515MAY 2017 For updated information, please visit www.ibef.org
Source: Technopak, Indian Retail Market January 2013, Deloitte,
A Report on ‘Changing trends: gems & jewellery industry’ by Onicra, TechSci Research
Notes: E- Estimated
By 2020, food & grocery segment is expected to account for 66 per cent of the total revenues in the retail sector, followed
by apparel segment
Demand for Western outfits & readymade garments has been growing at 40–45 per cent annually; apparel penetration is
expected to increase to 30-35 per cent by 2015
RETAIL
FOOD & GROCERY ACCOUNT FOR LARGEST SHARE IN REVENUES IN INDIA
66.30%
8.70%
8.00%
5.20%
2.70%
3.60% 1.20% 5.40%
Food & Grocery
Apparel
Jewellery
Consumer dubarbles & IT
Pharmacy
Furniture & Furnishing
Footware
Others
FY20E
16. 1616MAY 2017 For updated information, please visit www.ibef.org
ORGANISED RETAIL IN NASCENT STAGE … (1/2)
Source: KPMG,
Indian Retail Next growth Story 2014, TechSci Research
RETAIL
Organised retail penetration (2019)
Organised Retail Penetration (ORP) in India is low (8 per cent) in 2015 compared with that in other countries, such as the
US (85 per cent). This indicates strong growth potential for organised retail in India
In 2019, it is estimated that organised retail penetration share would reach 13 per cent & unorganised retail penetration
would hold a major share of 87 per cent.
Demand drivers
• Rising income levels
• Increased
urbanisation
• Growing aspiration
levels and appetite to
experiment
• Credit availability
Supply drivers
• New entrants
• Expansion plans of
existing players
• Infrastructure
augmentation
• Emergence of new
categories
Drivers of organised retail
87%
13%
Unorganised retail
penetration
Organised retail
penetration
17. 1717MAY 2017 For updated information, please visit www.ibef.org
RETAIL
ORGANISED RETAIL IN NASCENT STAGE … (2/2)
Source: BCG ,
KPMG- indiaretailing.com, Deloitte Report,
Winning in India’s Retail Sector, TechSci Research
Notes: ‘Mom-and-pop’ stores are small stores that are typically owned
and run by members of a family
Significant scope for expansion
The Indian retail market is in its nascent stage;
unorganised players accounted for 92 per cent of the
market during 2015
There are over 15 million mom-and-pop stores
Between FY15-20, organised retail in India is expected to
witness a CAGR of 24.57 per cent
Organised retail is expected to account for 24 per cent of
the overall retail market by 2020 8 %
24 %
92 %
76 %
2015 2020
Organised trade Unorganised trade
18. 1818MAY 2017 For updated information, please visit www.ibef.org
ORGANISED RETAIL (GROWTH ACROSS CATEGORIES)
RETAIL
Source: Ministry of Statistics and Programme Implementation, A Report on ‘Retail reforms in India’ by PwC, TechSci Research
Note: ORP - Organised Retail Penetration
Organised retail penetration and key trends across categories
Retail category
Category share as
a % of total market
2014-15
ORP (%)
Approx. gross
margin (%)
Key trends
Food & beverage 69-70 2-3 3-14
Large market and low ORP presents
robust opportunities
Clothing & textile 11-13 17-20 35-50
High margins, increased preference for
branded apparel
Consumer durables 4-5 15-20 10-20
Wide range of price points & good-after
sales service are key differentiators
Home décor & furnishing 3 5-6 40-50
Housing boom and increasing aspiration
levels are driving demand
Beauty, personal care 8-11 6-10 20-40
Growth driven by new product launches,
consumers’ aspirations & expansion
plans of organised players
Footwear 2 16-17 25-35
Lifestyle brands are increasing their
product offerings & formats
Others 3-4 9-30 10-15 Pharmacy retail, stationery retailers, etc
19. 1919MAY 2017
GROWTH EXPECTED ACROSS PRODUCT CATEGORIES AND FORMATS … (1/2)
For updated information, please visit www.ibef.org
Source: Technopak Advisors Pvt Ltd,
Knightfrank, Cushman & Wakefield Research
Notes: - NCR, Mumbai, Kolkata and Chennai,
Bangalore, Pune and Hyderabad
RETAIL
City- Wise Share in Upcoming Mall Supply: 2016-
2018
Online Grocery Market Size Across Countries
2015
(USD Billion)
41
15
12
7
9
7
3 2 1 0.6
Online grocery market is in its nascent stage & in 2015, the online
grocery market stood at USD0.6 billion which shows that there is a
lot of scope for improvement in the coming years for the online
grocery market to grow.
Growing e-commerce sector is augmenting the growth of online
grocery market
Indian grocery market is expected to be world’s 3rd largest by
2016, with an estimated revenue of USD 566 billion.
58.49%
5.66%
0.00%
0.00%
15.09%
16.98%
3.77%0.00%
NCR
Bengaluru
Chennai
Hyderabad
Pune
Mumbai
Kolkata
Ahmedabad
20. 2020MAY 2017 For updated information, please visit www.ibef.org
Source: Knightfrank, Technopak Advisors Pvt Ltd,
Cushman & Wakefield Research, Euromonitor International
RETAIL
GROWTH EXPECTED ACROSS PRODUCT CATEGORIES AND FORMATS … (2/2)
Break-up of all mall space by format (FY15)
India’s ‘grocery’ retail segment is the world’s most attractive
Apparels is the largest retail segment, accounting for 22 per
cent in 2014–15
22%
14%
13%
9%
8%
8%
6%
6%
6%
5% 3%
Apparels
Departmental Store
Food & Beverages
Home & Lifestyle
Entertainment
Supermarket
Electronics
Watches & Jewellery
Personel Care
Others
Footware
21. 2121MAY 2017 For updated information, please visit www.ibef.org
SIGNIFICANT GLOBAL POSITIONING OF INDIAN RETAIL SECTOR
Source: Dun and Bradsheet, AT Kearney, Indian Retail Market September 2011, Times of India, TechSci Analysis
RETAIL
India is among the highest in the world in terms of per capita retail store availability. India’s strong growth fundamentals, along
with increased urbanisation & consumerism, offer immense scope for retail expansion for foreign players
With the allowance of 100 per cent FDI in single brand retail investor sentiment will get further push
n June 2016, Amazon Inc. has announced to invest an additional USD3 billion in India operations, thereby reaching investment
to over US$ 5 billion. Moreover, in 2016, Amazon witnessed growth of 160 per cent in the seller base, over 2015 & attracted
1,40,000 sellers in India
In May 2016, Aditya Birla Fashion & Retail Limited (ABFRL) announced to acquire exclusive online & offline rights of Forever
21, an American fast fashion brand, in the Indian market.
In October 2016, CapitaLand, a listed company in Singapore, announced plans to open 2 more malls in India by the end of
2019.
World's largest private equity manager, Blackstone Group, entered India's retailing sector by setting up a fully owned
subsidiary, Nexus Malls. The new entity will own & manage shopping centres in the country.
Diageo, world’s largest spirits maker plans to open a new business services centre in Bengaluru & give employment to 1,000
people, by end of 2017
British brand ‘Marks & Spencer’ plans to open 10 new stores annually, under its joint venture business with Reliance Retail by
2017.
With an investment of USD 148.74 million, Amway India plans to open 50 retail stores in the country by 2018, for enhancing
direct & online sales of its products.
Various established brands have started their expansion in East India, namely in cities of Bihar, Orissa, Assam & Jharkhand,
thereby increasing the retail space supply from 3 million in 2014 to 5.5 million square feet in 2016.
Bang and Olufsen, a Danish-based stereo system speaker maker, plans to set up its 1st flagship store in Delhi, and is planning
to open 8-10 standalone stores in Chandigarh, Hyderabad, Ahmedabad, Ludhiana and Kolkata in this fiscal year.
22. 2222MAY 2017 For updated information, please visit www.ibef.org
SECTOR’S HIGH GROWTH POTENTIAL IS ATTRACTING INVESTORS
RETAIL
Source: AT Kearney 2015 FDI Confidence Index, AT Kearney 2016, TechSci Analysis
Notes: FDI - Foreign Direct Investment
FDI Confidence Index 2016India has occupied a remarkable position in global
retail rankings; the country has high market potential,
low economic risk & moderate political risk
In FDI Confidence Index, India ranks 9th (after United
States, China, Canada, Germany, UK, Japan,
Australia & France)
India’s net retail sales are quite significant among
emerging & developed nations; the country is ranked
3rd (after China & Brazil)
Overall, given its high growth potential, India
compares favourably with global peers among foreign
investors
With investment of around USD511.76 billion, the 1st
half of 2016 witnessed the highest annual private
equity (PE) in the retail sector, since 2008.
1.57
1.60
1.60
1.63
1.73
1.73
1.75
1.80
1.82
2.02
Singapore
India
France
Australia
Japan
United Kingdom
Germany
Canada
China
United States
23. 2323MAY 2017 For updated information, please visit www.ibef.org
RISING PROMINENCE OF ONLINE RETAIL … (1/2)
Source: MasterCard Worldwide Insights 4Q 2010, PWC e commerce in India report,
ASSOCHAM, TechSci Research
Notes: APMEA - Asia/ Pacific, Middle East and Africa, E- Estimated, F- Forecast
RETAIL
E-commerce industry in India (USD billion)
Online retail business is the next generation format which has high potential for growth in the near future. After conquering
physical stores, retailers are now foraying into the domain of e-retailing
With growth in the e-commerce industry, online retail is estimated to reach USD70 billion by 2020 from USD 3 billion in 2014
The government plans to allow 100 per cent FDI in e-commerce, under the arrangement that the products sold must be
manufactured in India to gain from the liberalised regime
According to ASSOCHAM, the value of online retail purchases made by consumers in India is projected to cross USD100
million by 2017.
In 2016, online retail industry of the country registered a growth of 12 per cent, over the previous year, with the revenue
reaching USD14.5 billion.
Online retail in India (USD billion)
3 6
60
70
2014 2015 2017E 2020E
22
30
100
2015 2016 2020F
24. 2424MAY 2017 For updated information, please visit www.ibef.org
RETAIL
Source: UN Report 'The power of 1.8 billion'
The key drivers of online retail are a young population aided by easier access to credit & payment options, increasing internet
penetration and speed, 24-hour accessibility & convenient & secured transactions
Online retailers continue promotional prices in the market, offering a significant boost to e-retailing in consumer durable sector
Options like cash-on-delivery & manufacturers’ warranty add fuel to this rage. Cash-on-delivery is the most preferred payment
option with over 30 per cent of buyers opting for it in India
The computer peripherals, cameras, mobiles & lifestyle segments account for a majority of total purchases
E-commerce companies such as Flipkart Internet Pvt. Ltd. & Amazon India are leading the race of scouting commercial real estate
space for warehousing
RISING PROMINENCE OF ONLINE RETAIL … (2/2)
26. 2626MAY 2017 For updated information, please visit www.ibef.org
PORTER’S FIVE FORCES ANALYSIS
Source: TechSci Research
RETAIL
Competitive Rivalry
• Entry of foreign players in the market & e-retailers have intensified
competition
• Customers’ low switching cost increases competition
• The Indian retail sector is highly fragmented, which increases
competition
Threat of New Entrants Substitute Products
Bargaining Power of Suppliers Bargaining Power of Customers
• Entry as a retailer is quite
simple. However, players need
to establish strong distribution
channels & achieve economies
of scale to compete
• Retailers have low switching
costs, which make the supplier
power low. Larger retailers can
easily switch to different
suppliers.
• The consumers are price
sensitive & have information
about the product & its price
• Low switching cost gives
customers high bargaining
power
• Threat of substitute products is
low. However, customers may
purchase products from a local
store instead of purchasing
from a retailer
Competitive
Rivalry
(Moderate-
High)
Threat of New
Entrants
(High)
Threat of
Substitute
Products
(Low)
Bargaining
Power of
Customers
(High)
Bargaining
Power of
Suppliers
(Low)
28. 2828MAY 2017 For updated information, please visit www.ibef.org
STRATEGIES ADOPTED
Source: Company websites, TechSci Research
Notes: R&D – Research and Development
RETAIL
• It is imperative for a retailer to have a strong distribution & logistic network to succeed in this
sector. Players follow a distribution network that suits them the best. For example, Shoppers Stop
follows a “hub & spoke” model for its distribution network to increase efficiency & productivity
• In March 2017, PepsiCo Inc. announced the launch of ready to cook breakfast items like khichdi,
dosa, idli etc., which would be sold under the brand namely Quaker Nutri Foods
• In March 2017, Parle launched Frooti its iconic drink in a fizzy version, it’s the first innovation in the
brand since its launch 32 years ago.
• Certain players in this sector are focused on a particular segment. For example, Future Retail
(FRL) exclusively operates hypermarkets & home retailing businesses. FRL focuses on
maintaining its competitive advantage & gaining benefits of scale through focusing on efficiency &
productivity
• As of February 2017, Tanishq is focusing on expanding its large format-retailing concept, with re-
launching their showrooms in Velachery.
• Retailers are opting for many channel to maximise sales, Omni-channel retailing is being adopted
by many retailers in India. For example, Shoppers Stop is making efforts to be an omni-channel
retailer. Ezone has launched an online platform, which has led to increase in sales
• In February 2017, Myntra became the 1st e-commerce brand to manage the fashion brand --
Mango’s omni channel presence, globally. .
Strong distribution and
logistic network
Marketing innovation
Focus
Omni-channel retailing
• Retailers benefit if consumers perceive their store brands to have consistent & comparable quality
& availability in relation to branded products. For this, retailers are providing more assortments for
private level brands to compete with supplier's brand. New product development, aggressive retail
mix & everyday low pricing strategy help to get edge over supplier's brand
Changing the perception
30. 3030MAY 2017 For updated information, please visit www.ibef.org
GROWTH DRIVERS FOR RETAIL IN INDIA
Source: TechSci Research
RETAIL
Favourable
demographics
Rise in income and
purchasing power
Change in
consumer mindset
Easy consumer
credit and increase
in quality products
Brand
consciousness
31. 3131MAY 2017 For updated information, please visit www.ibef.org
FAVOURABLE FDI POLICY ENCOURAGING INVESTMENT
Source: TechSci Research
Note: NIC - National Industrial Classification Code, DIPP - Department of Industrial Policies and Promotion
RETAIL
1991
1997
2006
2008
2012
Liberalisation: FDI of
upto 51 per cent
allowed under the
automatic route in
select priority sectors
FDI of upto 100 per cent
allowed under the
automatic route in Cash &
Carry (wholesale)
Government proposed
introducing FDI in multi-
brand retail (2008); follows
up in 2012 by approving a
plan to raise the FDI limit
to 51 per cent
FDI of upto 51 per
cent allowed with prior
government approval
in single-brand retail
Government approved
51 per cent FDI in
multi-brand retail &
increased FDI limit to
100 per cent (from 51
per cent) in single
brand retail
With a view to improve
the ease of doing
business, the government
has aligned the foreign
direct investment policy
with NIC code
2016
2015
As per DIPP, FDI
equity inflows in Indian
retail trading totalled
USD935.74 million,
during April 2000–
December 2016
32. 3232MAY 2017 For updated information, please visit www.ibef.org
INDIAN RETAIL IS SET TO BENEFIT FROM FDI POLICY
RETAIL
Benefits of FDI in Indian retail
Increase in
employment
Infrastructure
investment
Removing
middlemen
Benefiting Indian
manufacturers
FDI limitSector Entry route
Wholesale cash and
carry trading
Single brand product
retailing
Multi-brand, front-end
retail
100%
100%
51%
Automatic
Foreign Investment
and Promotion Board
Foreign Investment
and Promotion Board
Technological
advancement
33. 3333MAY 2017 For updated information, please visit www.ibef.org
FDI POLICY DETAILS ON SINGLE AND MULTI-BRAND RETAIL IN INDIA
RETAIL
51 per cent FDI in multi
-brand retail
Status: Policy passed
100 per cent FDI in
single brand retail
Status: Policy passed
• Minimum investment cap is USD100 million
• 30 per cent procurement of manufactured or processed products must be from SMEs
• Minimum 50 per cent of total FDI must be invested in backend infrastructure (logistics, cold
storage, soil testing labs, seed farming & agro-processing units)
• Removes middlemen and provides better price to farmers
• Development in retail supply chain system
• 50 per cent of jobs in retail outlet could be reserved for rural youth & a certain amount of farm
produce could be required to be procured from poor farmers
• To ensure the Public Distribution System (PDS) and Food Security System (FSS), the
government reserves the right to procure a certain amount of food grains
• Multi-brand retail would keep food & commodity prices under control
• Will cut agricultural waste as mega retailers would develop backend infrastructure
• Consumers will receive higher quality products at lower prices & with better service
• Products to be sold under the same brand internationally
• Sale of multi-brand goods is not allowed, even if produced by the same manufacturer
• For FDI above 51 per cent, 30 per cent sourcing must be from SMEs
• Consumerism of retail market
• Any additional product categories to be sold under single brand retail must first receive
government approval
34. 3434MAY 2017 For updated information, please visit www.ibef.org
NEW GOODS AND SERVICE TAX (GST) WOULD SIMPLIFY TAX STRUCTURE
Source: TechSci Research
RETAIL
Goods and Service Tax
(GST)
System changes and transition management
• Changes need to be made to accounting & IT
systems in order to record transactions in line with
GST requirements
• Appropriate measures need to be taken to ensure
smooth transition to the GST regime through
employee training, compliance under GST, customer
education & inventory credit tracking
Supply chain structure
• Introduction of Goods & Service Tax (GST) as a
unified tax regime would lead to a re-evaluation of
procurement & distribution arrangements
• Removal of excise duty on products would result in
cash flow improvements
Cash flow
• Tax refunds on goods purchased for resale implies a
significant reduction in the inventory cost of
distribution
• Distributors are also expected to experience cash flow
from collection of GST in their sales, before remitting it
to the government at the end of the tax-filing period
Pricing and profitability
• Elimination of tax cascading is expected to lower input
costs & improve profitability
• Application of tax at all points of supply chain is likely
to require adjustments to profit margins, especially for
distributors and retailers
35. 3535MAY 2017 For updated information, please visit www.ibef.org
INCOME GROWTH TO DRIVE DEMAND FOR ORGANISED RETAIL
Source: TechSci Research, IMF,
Notes: E- Estimate, F - Forecasts
RETAIL
Multiple drivers are leading to strong growth in Indian retail through a consumption boom
Significant growth in discretionary income & changing lifestyles are among the major growth drivers of Indian retail
Easy availability of credit & use of ‘plastic money’ have contributed to a strong & growing consumer culture in India
Acceptance and usage of e-retailers by consumers are increasing due to convenience & secured financial transactions
Expansion in the size of the upper middle class & advertisement has led to greater spending on luxury products & high
brand consciousness
Rising per capita income in India
Real income growth projections
1430.2
1552.5
1514.8
1504.5
1600.9
1617.3
1750.6
1874.9
2026.7
2207.6
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
0.0
500.0
1000.0
1500.0
2000.0
2500.0
GDP per capita, current prices Growth Rate
0.0%
6.0%
12.0%
18.0%
24.0%
30.0%
0
600
1,200
1,800
2,400
3,000
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015F
2016F
2017F
GDP constant prices, USD Billion Annual growth rate
E
37. 3737MAY 2017 For updated information, please visit www.ibef.org
GROWTH VALUE PROPOSITION
Source: KPMG International 2011, TechSci Research
RETAIL
DemandFactors
Higher brand consciousness
Growing young population
and working women
Rising incomes & purchasing power
Changing consumer preferences and
growing urbanisation
Indian retail opportunity
Rapid real estate and infrastructure
development
Development of supply chain improving
efficiency
Easy availability of credit
R&D, innovation and new product
development
SupplyFactors
Growing aspiration levels and appetite to
experiment
Credit availability
Emergence of new
categories
Expansion plans of
existing players
38. 3838MAY 2017 For updated information, please visit www.ibef.org
AMPLE GROWTH OPPORTUNITIES IN INDIAN RETAIL INDUSTRY
Source: TechSci Research
Note: FMCG - Fast Moving Consumer Goods
RETAIL
Large number of retail
outlets
• India is the 5th largest preferred retail destination globally
• The sector is experiencing exponential growth, with retail development taking place not
just in major cities & metros, but also in Tier-II & Tier-III cities
Rural markets offer
significant growth
potential
• FMCG players are focusing on rural market as it accounted for over 40 per cent of FMCG
consumer base in India in 2016
• With increasing investment in infrastructure, retailers would be able to increase their
access to high-growth potential rural markets
Private label
opportunities
• The organised Indian retail industry has begun experiencing an increased level of activity
in the private label space
• Private label strategy is likely to play a dominant role as its share in the US & the UK
markets is 19 per cent & 39 per cent, respectively, while its share in India is just 6 per
cent. Stores like Shopper Stop, Lifestyle generates 15 to 25 per cent revenues from
private label brands. Growth of online retail is also augmenting the growth of private label
brand in India
Sourcing base
• India‘s price competitiveness attracts large retail players to use it as a sourcing base
• Global retailers such as Walmart, GAP, Tesco & JC Penney are increasing their sourcing
from India & are moving from 3rd-party buying offices to establishing their own wholly-
owned/wholly-managed sourcing & buying offices
Luxury retailing
• Luxury retailing is gaining importance in India. This includes fragrances, gourmet retailing,
accessories & jewellery among many others. The Indian consumer is ready to splurge on
luxury items & is increasingly doing so.
• The Indian luxury market stood at around USD14.7 billion in 2015 & is estimated to reach
USD18.3 billion by the end of 2016
• This will make India the 12th largest luxury retail market in the world by 2020
39. 3939MAY 2017 For updated information, please visit www.ibef.org
ATTRACTIVE INVESTMENT SEGMENTS
RETAIL
Source: PwC, Cushman & Wakefield, TechSci Research
Investment options in India (2015)
Real estate’s retail component is an attractive opportunity,
which is currently attracting 29 per cent of total investment
in real estate
Of the overall investors, 26 per cent are interested in
investing in Tier II and III cities
Training & warehouse spacing are the other viable options
for investments
34% 26%
20%
10% 8%
4% 3%
Currentrealestate
values
TierII&IIItowns
Trainedmanpower
Customised
warehousingspace
IT
Supplychain
management
Moreretailresearch
Migration trend towards urban areas
(urban population as share of total) (2015)
Employment opportunities, increased urban amenities &
better lifestyle opportunities are attracting rural population
towards cities every year
In 2015, the urban-rural migration reached at 32.7 per cent
This could be a major driver for the organised retail sector
as the working population would consequently increase
19.90%
23.30%
25.70%
27.80%
31.00% 32.00% 32.70%
1971 1981 1991 2001 2010 2014 2015
40. 4040MAY 2017 For updated information, please visit www.ibef.org
RETAIL
RECENT M&A DEALS IN THE INDIAN RETAIL SECTOR
Source: Bloomberg and Thomson ONE Banker, TechSci Research
Acquirer name Target name Year Deal type
Berger Paints Chugoku Marine Paints April 2017 Collaboration
Myntra InLogg April 2017 Acquisition
Flipkart owned Myntra HRX August 2016 Acquisition
Myntra MotoGP August 2016 Collaboration
Aditya Birla Fashion and Retail Forever 21 (India Business) May 2016 Acquisition
Idein Ventures. Infurnia Jan 2016 Joint Venture
Paytm Near.in Dec 2015 Acquisition
Morgan Stanley Flipkart June 2015 Private Equity
InnoVen Capital Sportsbiz Private Limited July 2015 Private Equity
Snapdeal Exclusively.in Feb 2015 Acquisition
Kalyan Jewellers India Pvt Ltd Warburg Pincus Oct 2014 Private Equity
Celio Future Lifestyle Fashions Limited Oct 2014 Private Equity
Flipkart Myntra.com May 2014 Acquisition
Soft Bank Snapdeal Oct 2014 Private Equity
Warburg Pincus Biba Apparels Dec 2013 Private Equity
Hassan Food Co Bush Foods Overseas Pvt Ltd Apr 2013 Acquisition
Trent Ltd Landmark Ltd Feb 2013 Acquisition
Future Venture India Ltd Big Apple (convenience store) Sep 2012 Acquisition
Peter England Ltd Pantaloons Retail India Ltd Sep 2012 Acquisition
Pantaloons Retail India Ltd R&R salons May 2012 Private Equity
42. 4242MAY 2017 For updated information, please visit www.ibef.org
RETAIL
Source: Reuters Knowledge, TechSci Research
Notes*- March 2015 to September 2015, CAGR - Compound Annual
Growth Rate
Future Retail sales growth (USD billion)
Revenues expanded at a CAGR of 2.4 per cent during
FY08–15
Under Future Fashion, the company owns a portfolio of 24
leading brands & covers more than 98 cities
Big Bazaar ranked the 3rd most trusted brand & the most
trusted retailer for providing quality services during 2016
As of November 2016, the company has agreed to buy retail
business of Hyderabad-based ‘Heritage Foods Ltd.’ As a
part of the deal, Heritage Foods will get a 3.65 per cent
stake or freshly issued shares worth USD44.06 million in
‘Future Retail’
In January 2017, Future Lifestyle Fashions raised
USD37.19 million in a subsidiary that houses Lee Cooper
brand of clothing.
In February 2017, Future Retail has entered into an
agreement to sell the UK based -- Laura Ashley’s home
furnishing merchandise, through their own operating stores
& websites in India.
FUTURE RETAIL: INDIA’S LEADING RETAILER IN MULTIPLE RETAIL FORMATS … (1/2)
CAGR:2.4%
1.4
1.5
2
2.5
2.4
1.9
1.7
1.0
FY08 FY09 FY10 FY11 FY12 FY14 FY15 FY16*
In November 2016, Future Consumer Ltd. entered into
an equal joint venture with UK’s largest wholesaler,
Booker Group, to develop the company’s cash-and-carry
business in India. Future Consumer is investing USD
7.47 million in the company.
43. 4343MAY 2017 For updated information, please visit www.ibef.org
Source: Company Annual Report,
TechSci Research
Note: msf - Million Square Feet
RETAIL
Has a good understanding of the Indian retail sector and its customers
Future Retail Ltd (FY16)
• Revenue: USD1.05 billion
for 12 months
• Operational retail
space:11.57 msf
• Over 738 stores in 122
cities
• Employees: 32,012
Ground-up
development
The right JV’s at the
right time
Winning team Versatile retailing
Multiple formats,
Multiple brands-a
comprehensive retail
experiment
Pantaloon Retail
success factors
FUTURE RETAIL: INDIA’S LEADING RETAILER IN MULTIPLE RETAIL FORMATS … (2/2)
44. 4444MAY 2017 For updated information, please visit www.ibef.org
SHOPPERS STOP: THE LEADER IN DIVERSIFIED MARKET STRATEGY … (1/3)
RETAIL
Source: Company Annual Report, TechSci Research
Note: First Citizen Loyalty Programme is a membership scheme
for its members to avail discounts and promotional offers
Shoppers Stop business format (as on June 2016)The company owns 172 stores in 25 cities with 4.81 million
sq ft space across 8 store formats
Successfully introduced a number of international brands
Improved product mix & brand profiles to attract new
customers
Over 3.3 million customers are a part of the First Citizen
Loyalty Programme
Won best loyalty programme award at the Loyalty Summit
2014 in large format retail category 74%
24%
2%
SS Department
Stores Business
Subsidiary
Companies
JV Companies
45. 4545MAY 2017 For updated information, please visit www.ibef.org
RETAIL
SHOPPERS STOP: THE LEADER IN DIVERSIFIED MARKET STRATEGY … (2/3)
Apparels
65%
Apparels
59%
FY14
Shoppers Stop
(apparel,
accessories,
footwear, jewelry
and décor)
Homestop
(home furnishing)
Crossword
(books and other
entertainment)
Mothercare
(infant and
toddler care)
Estee Lauder, Mac
and Clinique
(beauty)
Shoppers Stop
(Brands and JVs)
Shoppers Stop’s diversified portfolioShoppers Stop’s sales growth (USD million)
Source: Company Annual Report, TechSci Research
Note: CAGR - Compound Annual Growth Rate
Apparels
60%
Nuance Group
(airport retailers)
Apparels
58%
Non
Apparel
s
42%
CAGR: 10.69%
Apparels
64.2%
Non
Apparels
35.8%
227
285 308
491
582 584
507
452
511.71
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16⁽¹⁾
FY16(1)
48. 4848MAY 2017
INDUSTRY ASSOCIATIONS
Retailers Association of India
111/112, Ascot Centre,
Next to Hotel Le Royal Meridien, Sahar Road, Sahar,
Andheri (E),
Mumbai – 400099.
Tel: 91- 22 - 28269527 - 28
Fax: 91- 22- 28269536
E-mail: info@rai.net.in
Website: www.rai.net.in
The Franchising Association of India
A-13, Kailash Colony
New Delhi – 110048
Tel: 91- 11- 2923 5332
Fax: 91- 11- 2923 3145
Website: www.fai.co.in
For updated information, please visit www.ibef.org
RETAIL
49. 4949MAY 2017
GLOSSARY
FDI: Foreign Direct Investment
FMCG: Fast Moving Consumer Goods
FY: Indian Financial Year (April to March)
So FY10 implies April 2009 to June2010
IT: Information Technology
MoU: Memorandum of Understanding
MT: Million Tonnes
MTPA: Million Tonnes Per Annum
SEZ: Special Economic Zone
USD: US Dollar
Wherever applicable, numbers have been rounded off to the nearest whole number
For updated information, please visit www.ibef.org
RETAIL
50. 5050MAY 2017
Exchange rates (Fiscal Year)
For updated information, please visit www.ibef.org
EXCHANGE RATES
Exchange rates (Calendar Year)
FMCG
Year INR equivalent of one USD
2004–05 44.81
2005–06 44.14
2006–07 45.14
2007–08 40.27
2008–09 46.14
2009–10 47.42
2010–11 45.62
2011–12 46.88
2012–13 54.31
2013–14 60.28
2014-15 61.06
2015-16 65.46
2016-2017E 66.95
Source: Reserve bank of India,
Average for the year
Year INR equivalent of one USD
2005 43.98
2006 45.18
2007 41.34
2008 43.62
2009 48.42
2010 45.72
2011 46.85
2012 53.46
2013 58.44
2014 61.03
2015 64.15
2016 (Expected) 67.22
51. 5151MAY 2017
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RETAIL