Professional Documents
Culture Documents
11% 43%
Rs 7,18,136 cr
3% Rs.1,78,998 cr Food, Beverage,
Miscellaneous Tobacco
Rs 57,367 cr
Education, Recreation
Total Private
15% Final Consumption
Rs 2,58,696 cr
Expenditure is
Transport, Rs 16,90,000 cr
Communication
1400000
1200000
1000000
800000
600000
400000
200000
0
2004 2005 2006 2007 2008 2009 2010
100,000
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
2004 2005 2006 2007 2008 2009 2010
• Favorable Demographics
• Mall Boom
Favorable Demographics & Mall
Boom
Indian Mall Scene in 2006
City Area (mn sq ft)
Indore 0.06
• Real estate is key for a retail business Jaipur 0.67
during its investment phase Chandigarh 0.12
• Drop in interest rates have made Ludhiana 0.2
property buying and leasing viable
Lucknow 1.07
• 100% FDI in Construction & Real Ahmedabad 1.95
Estate now permitted Pune 2.03
Chennai 1.22
• Over 600 malls expected by 2010 Calcutta 1.15
Hyderabad 1.26
• Total investments of USD 5 bn would
be required from organized retailers by Bangalore 2.12
2010 Mumbai 4.8
NCR (Delhi) 10.62
• Real Estate development in India –
poised for Dramatic growth
Retailing formats in India
Supermarkets (Foodworld,Spencer’s)
Hypermarkets (Big Bazaar,Trent )
Department Stores (Shoppers Stop,LifeStyle)
Specialty Chains (Spar)
Discount Chains (Subhiksha)
Cash ‘N’ Carry (Metro)
Petro Convenience (In & Out, Shell)
Traditional Format Retailers
Kiranas: Traditional Mom and Pop Stores
Kiosks
Street Markets
Exclusive /Multiple Brand Outlets
Recent Trends
Retail Sales in India
• Retailing in India is witnessing
a huge revamping exercise as
can be seen in the graph
• India is rated the fifth most
attractive emerging retail
market: a potential goldmine.
• Estimated to be US$ 200 billion,
of which organized retailing (i.e.
modern trade) makes up 3
percent or US$ 6.4 billion
• As per a report by KPMG the
annual growth of department
stores is estimated at 24%
• Ranked second in a Global
Retail Development Index of 30
developing countries drawn up
by AT Kearney.
Recent Trends
• Multiple drivers leading to a consumption boom:
Favorable demographics Raising aspirations : Value added goods sales
Growth in income Increasing population of women
• Food and apparel retailing key drivers of growth
• Organized retailing in India has been largely an urban phenomenon with affluent classes and
growing number of double-income households.
• More successful in cities in the south and west of India. Reasons range from differences in consumer
buying behavior to cost of real estate and taxation laws.
• Rural markets emerging as a huge opportunity for retailers reflected in the share of the rural market
across most categories of consumption
– ITC is experimenting with retailing through its e-Choupal and Choupal Sagar – rural
hypermarkets.
– HLL is using its Project Shakti initiative – leveraging women self-help groups – to explore the
rural market.
– Mahamaza is leveraging technology and network marketing concepts to act as an aggregator
and serve the rural markets.
• IT is a tool that has been used by retailers ranging from Amazon.com to eBay to radically change
buying behavior across the globe.
• ‘e-tailing’ slowly making its presence felt.
• Companies using their own web portal or tie-sups with horizontal players like Rediff.com and
Indiatimes.com to offer products on the web.
CHANGE IN RETAILING
Counter
Service
Self
Service
CHANGE IN RETAILING
Less Than
200 SKU
8000 to
10,000 SKU
CHANGE IN RETAILING
Few Hundred
sq. ft. Shop
50,000 plus
sq. ft.
Now Lakhs of sq.ft in pipeline
CHANGE IN RETAILING
No gadgets
Advanced
gadgets
CHANGE IN RETAILING
No IT
Advanced
IT
CHANGE IN RETAILING
No
Bar coding
Advanced
RFID
CHANGE IN RETAILING
Dull Shopping
Experience
Shopentertainment
or Shoppertainment
TOP 15 RETAILERS OF THE WORLD
Sr NAME COUNTRY SALE
$ BILLION
1 WAL MART STORES USA 256. 329
2 CARREFOUR FRANCE 87. 342
3 ROYAL AHOLD NITHERLAND 68. 224
4 METRO GERMANY 65. 147
5 KROGER USA 53. 791
6 TESCO UK 50. 326
7 TARGET USA 48. 163
8 RWE GERMANY 44. 241
9 COSTCO USA 41. 693
10 ALDI GERMANY 41. 011
11 INTERMATCH (ITM) FRANCE 36. 723
12 SAFEWAY USA 35. 552
13 ALBERTSON USA 35. 436
14 SWAZ GROUP GERMANY 33. 357
15 WALLGREENS USA 32. 505
TOP RETAILERS OF INDIA
Sr Name Company Sale (Cr)