- Anam Patel - Batul Kagalwala - Beverlee DMello - Nisheeta Patankar - Srushti Gangan

TIMELINE OF RETAILING INDIA

Pre-1947

1947

1970s

1980s

1991

1991-95

Haats, Melas and typical Indian markets were formed

India becomes an independent nation

First emergence of organised retail through textile sector

Emergence of brands and brand retail outlets

India opens doors through economic reforms

Multiple formats and product categories introduces

TIMELINE OF RETAILING INDIA

1995--99

2000-05

2005

2006

2006-10

Modern malls are introduced

Rapid expansion of multiple format Indian cos begin

High Street shopping centers begin to appear

Government allows up to 51% FDI in a single brand retail firm

Rapid modern mall and single brand stores expansion

Initiation

Conceptualization

Entry of large Indian corporates and Global Retailers

Consolidation and Expansion

Large Scale Consolidation Increasing Competition

I
Size of Industry
Manufacturers opening their own outlets

II
Pure play Retailers, realizing the potential start to test waters,

Entry of large global retailers

III
Large Investment Commitments by large Indian corporate

IV

Movement to Smaller Cities and Rural Areas

More Aggression from International Players

Expansion by leading Product Brands

More than 25-30 retail businesses with Revenues in excess of US $ 1 Billion Specialty Formats based on finer segmentation of the market Private brands getting established

Pre 1995

1995 to 2005

2005 to 2010 4

2010 Onwards

RETAIL ENTRY OPTIONS

STRATEGIC LICENSE AGREEMENTS Foreign company enter into a licensing agreement with a partnering with Indian promoter owned companies

CASH & CARRY WHOLESALE RETAILING 100 % FDI allowed in wholesale trading which involves building a large distribution network

DISTRIBUTION An international company can set up a distribution office in India and supply products to local retailers

FRANCHISEE ROUTE This is widely used with a number to international brands in order to set shop in India

MANUFACTURING A company can setup manufacturing units in India along with stand alone retail outlets

JOINT VENTURES International firms can enter into agreements with domestic players and set up base in India. Share of MNC is restricted to 49% over here

EMERGENCE OF ORGANISED RETAILING

DEPARTMENT STORES

HYPERMARTS Relatively new concept, but already as big as department stores

SUPERMARKETS AND CONVENIENCE STORES

Well established, limited competition

Main challenge to mom and pop stores

Entrenched in Indian Mindset

Growing fast, but competition to intensify

How to compensate for facilities that mom and pop stores provide namely Home Delivery and Monthly Credit? Immense Competitions, building scale to achieve cost efficiencies will be critical

Score on shopping experience

Price Discount and Wide Varieties act as key attractions Key to success will be efficient Supply Chains and Store locations

Stress on branding

Price not critical as they cater to upper income class

PRESENT SCENARIO
CURRENT FDI POLICY

FDI up to 100% for cash and carry wholesale trading and export trading allowed under the automatic route

FDI up to 51 % with prior Government approval (i.e. FIPB) for retail trade of Single Brand products(2006 Series)

FDI is not permitted in Multi Brand Retailing in India.

MAJOR RETAILING PLAYERS IN INDIA

PROPOSED GOVERNMENT POLICY

FDI up to 100% in single brand retail

FDI up to 51% in multi brand retail

GOVERNMENT AND FDI

INDIA AND FDI

OUR TAKE ON FDI

Redistribution of jobs.

Fears of small shopkeepers getting displaced are vastly exaggerated.

Stimulation of existing competition. it's very unlikely that global retail will ever become monopolies.

TO BE...OR NOT TO BE???