Indian retail sector Aloysious Raju Dasari Raghavendran.R.S ICFAI Business School, Kochi
The Indian Retail Industry • Seen as “THE GOLD MINE” • It’s mouth-watering figures: – Total retail market : 350 billion US$ – Organized RM : 8 billion US$
• Highly fragmented / Unorganized – 12 million Kirana stores – Over 80% of them operates in less than 500 sq.ft 10/16/08
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MILESTONES
Weekly Markets, Village fairs and Melas
Convenience Stores, Kirana Stores
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Department Stores, Super Markets and discount stores
IV Hyper Markets and Shopping Malls 10/16/08
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TRENDS IN RETAILING 10/16/08
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Private Labels Focus on Small cities and towns Store design Multiple formats / New segments Bringing in Technology Farm to Fridge 24 hr retailing Shoppertainment: – – – –
Changes in the lifestyle Variety Fun & Entertainment One Stop Shopping Free Template from www.brainybetty.com
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COMPETITIVE ADVANTAGE 10/16/08
“ in Size but Big in Deeds” • Key Success factors of Conventional retail: – – – –
Reach Credit facilities Home delivery Intangible factors
• Is it viable for Organized retail to emulate these factors? • Probable opportunities for Conventional retailers: – Renovation of the existing formats – Entry of B2B companies – Consortium Free Template from www.brainybetty.com
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•Lack Of Infrastructure
•Variety : Customer Pull
•FDI
•More for Less
•The refashioned convenience store
•Technology
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•Increasing Disposable Income
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+ •Rural Retailing
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•Limited Reach •Lack of Trained & Professional Workforce
•Increasing Population of Working Women •Steady Indian Economic Growth •Increasing Margins by removing Middle men
10/16/08
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Who will the beneficiaries?
You & Me
Thank You… 10/16/08
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Which seg. is taking the lead?
10/16/08
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Who’s taking the pole ?
10/16/08
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Tapping the rural Market
10/16/08
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Tapping the rural Market • ITC rural initiative : Choupal Saagar near Aligarh in UP - spread over 4.28 acres - It’s shelves are covered with groceries, toys, apparel, video and audio systems, computers and mobile phones
10/16/08
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