Retail Business Harika1

AN ARTICLE BY KISHORE BIYANI CEO, FUTURE GROUP

PRESNTED BY HARIKA.B

THE CHANGE… A SHIFT FROM SHOPS TO BRANDS FROM TALKIES TO MULTIPLEX FROM KIRANA TO MALLS…

Transformation Transformation- Socialist to consumption led

economy. Changing Demographics Income levels Technology Globalization

‘Republic of the young’- 890 mn < 40 yrs of

age They value freedom, choices and have not seen scarcity

Age of discovery Change reflected in every sphere From movies to cricket, from shops to malls Young and vibrant India Customers willing to experiment From Panipat to Palakkad

Economic impact of modern retail: RETAIL share in the World GDP IS 27% Organized retail ranges from 20 to 55% India-Consumption driven economy Macro trends in urbanization, income levels,

demographics,…etc 6-7% CAGR for the next 5 yrs Nominal income will grow at a CAGR of 9-11% Per capita income- $600 to $1200 In 2006-07 the economy grew at an unprecedented rate of 9.4% with GDP- a trillion dollars

URBAN-RURAL RELATIONSHIP It is ignored at policy making level. Urban demand creates a shift from farm to

non-farm jobs Urban consumption leads to 6.3 mn new non farm jobs in rural areas and $91 bn in real rural households in come over next decade. From a survey it was found that- increase of rs.100 in urban leads to an increase of Rs. 39 in rural households. Rural economy accounts to almost more than 50% of GDP presently.

Challenges and Opportunities Indians demand ideas and solutions uniquely

Indian The diversity and heterogeneity doesn’t allow a standardized solution . ‘Mass of niches’  Paradoxes like logic and emotion, capitalism and and socialism coexist simultaneously. It just signifies the openness and ability to add dimensions without losing old ones.

Demand side innovation

Indian retailing sector attracts businesses

from within and outside the country. AT Kearney Global Retail Development IndexMost attractive emerging market A fact that retailing is demand-led not supplyled is ignored. It is more a localized business than being dominated by multi nationals. French retailer Carrefour-largest international network is present only in 29 countries.

Demand side innovation Hypermarkets and discount chains dominate

retail scene in India. Growing middle class is pushing the development of specialty stores Globalization and shopper’s tastes are one of the strongest forces Retail chains for fashion, food, office stationery, health products are in demand. Bringing new set of customers seems to be the biggest challenge in India Front end innovation, consumer credit

Trends for the years ahead India is expected to have 15 mn retail outlets

with highest density for retail.. China and Brazil took 10-15 yrs to gain the share of organized retail Inclusive and holistic role in building brands, shaping desires and catalyzing consumption Physical proximity to customers Strong portfolio of brands and direct tying up with small manufacturers for snacks, tea, chocolates…etc Establishing an emotional connect with customers.

Trends…contd Collaboration between retailers and consumer

good companies to share Customer data and insights Exclusive packaging and Product formulations for specific retail chains

Joint promotion and marketing for brands. Build credit products Communication help in influencing desire

CONCLUSION The convergence of three catalystsBrands Consumer credit Media Within a retail store can bring about a paradigm shift in modern retailing. It is no longer about buying and selling, it’s

about catalyzing consumption that leads to economic growth.

THANK YOU