13135311 retail industries in global environment (1)

8/4/2019 13135311 Retail Industries in Global Environment (1)

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PROJECT

ON

EMERGING TRENDS IN RETAILING

(WITH REFERENCE TO RETAIL OUTLET IN THE MARKET)

PROJECT SUBMITTED TO SYMBIOSIS CENTRE FOR DISTANCE LEARNING,

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS

FOR THE DEGREE OF POST GRADUATE DIPLOMA IN BUSINESS ADMINISTRATION

IN MARKETING MANAGEMENT

By

Name: - Rajni MenonAddress:-58/86B, Prince Anwar Shah Road

Kolkata-700045Registration No-200606967

SYMBIOSIS CENTRE FOR DISTANCE LEARNING

PUNE

2010

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DECLARATION

I hereby declare that the project entitled EMERGING

TRENDS IN RETAILING submitted for the Degree of

Post Graduate Diploma in Business Administration in Marketing

Management is my original work and the project has not

formed the basis for the award of any degree, diploma,

associate ship, fellowship or similar other titles. It has not been

submitted to any other university or Institution for the award of

any degree or diploma.

Place: Name: Rajni Menon

Date: Registration No.:

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NO OBJECTION CERTIFICATE

This is to certify that Ms Rajni Menon is an employee of this

organization for the past 6 years

We have no objection for her to carry out a project work titled

EMERGING TRENDS IN RETAILING in our organization and for

submitting the same to the Director, SCDL as a part of

fulfillment of the Post Graduate Diploma in Business

Administration in Marketing Management Program.

We wish her all the success.

Place:-

Date:-

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ACKNOWLEDGEMENT

It is with real pleasure that, I record my indebtedness to

my academic Guide, Mr. Hemant Mundhra for his counsel

and guidance during the preparation of this project.

Place Name: Rajni

Menon

Date: Registration No:

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CERTIFICATE

Certified that the project is a work done by Ms. Rajni Menon

during the period of her study under my guidance, and that the

project has not previously formed the basis for the award of

any degree, diploma, associates hip, fellowship or similar other

titles and that it is an independent work done by his.

Place: Name: Hemant Mundhra

Date: Product Manager-PowercellBusiness

Eveready Industries IndiaLtd

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TABLE OF CONTENT

Chapter Content Page

No.

Acknowledgement II

List of Tables VI

List of Diagrams

VII

(1) Introduction 01-

44

1.1 Retail Industry

02-19

What is Retail Industry?

02-05

Structure of Retail Industry

06-11

Evolution of Retailing

12-13

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Indian Scenario of Retail Industry

14-16

Retail Worldwide scenario 17-19

1.2 Objectives and Role of Retail

Industry 20

1.3 Review of Literature

21-27

Major / Minor Challenges in Industry

21-26

Example of Some Published Issues

27

1.4 Hypothesis28-39

Past/ Present/ Future of Industry

28-35

Impact of Retail Industry in India

36-39

1.5 Limitations of the Study

40-42

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1.6 Methodology

43-44

Source of Data

43

Other Source 44

(2) Significance of the study

45-48

2.1Opportunities of the Western

46

Retailers in India

2.2 Contribution of FDI In Retailing

47-48

2.3 Benefits To The Indian Consumer

48

(3) Research and Analysis

49-69

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3.1 Latest Trends in Retail Sector

50-53

3.2 Major Player of Retail Industry

54-69

(4) Finding & Conclusion

70-73

(5) Bibliography 74-

76

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Table No. Title of the Table

Page No.

1.1. Growth of Retail Industry08

1.2. Continuation of GDP

14

1.3. World Organization Trade18

1.4 . Comparison of Retail Industry

29

3.1. World-Wide Retail

66

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Table No. Title of the Diagram

Page No.

1.1. Indian Retail Market

03

1.2. Map of Income Classes

05

1.3. Organized Retail Market

06

1.4 . Growing Format in India

10

1.5 . Retailing Map in India

11

1.6. Journey of Organized Retail

13

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1.7. Total Retail Sales 2007

16

1.8. US Retailing Format 18

1.9 Penetration of Retail

19

1.10 Challenges in Retail Market21

1.11 Retail Challenge

25

3.1 Retail Analysis51

3.2 Retail Market

52

3.3 Retail Segment53

3.4 Retail Touches Economy

73

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Chapter (1)

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Part-1.1

RETAIL INDUSTRY

The word "Retail" originates from a French-Italian word.

Retailer-someone who cuts off or sheds a small piece from

something. Retailing is the set of activities that markets

products or services to final consumers for their own personal

or household use. It does this by organizing their availability on

a relatively large scale and supplying them to customers on a

relatively small scale. Retailer is a Person or Agent or Agency

or Company or Organization who is instrumental in reaching

the Goods or Merchandise or Services to the End User or

Ultimate Consumer.

Retail is India's largest industry. It accounts for over 10 per

cent of the India's GDP and around eight per cent of the

employment. Retail sector is one of India's fastest growing

sectors with a 5 per cent compounded annual growth rate.

India's huge middle class base and its untapped retail industry

are key attractions for global retail giants planning to enter

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newer markets. Driven by changing lifestyles, strong income

growth and favorable demographic patterns, Indian retail is

expected to grow 25 per cent annually. It is expected that retail

in India could be worth US$ 175-200 billion by 2016.

Emerging markets such as India and China are the final

frontier for retail taking the focus away from saturated Western

markets. Since 2001, 49 global retailers entered 90 new

markets, but at the same time, 17 retailers left markets in

2005.

The Indian retail industry in valued at about $300 billion

and is expected to grow to $427 billion in 2010 and $637 billion

in 2015. Only three percent of Indian retail is organized.

Retailers of multiple brands can operate through a franchise or

a cash-and-carry wholesale model.

The Indian retail environment has attained $ 210bn quiche,

witnessing a strong development pace of five percent per year

as per latest survey by Price Waterhouse Coopers. As per the

estimation 200 malls, presenting additional 50mn sq ft of retail

space will be ready in next two years. Existing retail space in

160 malls is nearly 32mn sq ft

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1.1 Indian Retail Market

The analysts foresee bright future of the retail sector. A

huge number of shopping malls, nearly 100, have come up in

the recent past, generating 20mn sq ft. retail space, extending

more space of about 12mn sq ft to it. Nearly 60 malls are on

the verge of completion and may be operational by the end of

current financial year. A forecasted number of nearly 200

malls, in a move to make additional 50mn sq ft of retail space,

will be completed within the next two-years.

India retail industry is expanding itself most aggressively,

as a result a great demand for real estate is being created.

Indian retailers preferred means of expansion is to expand to

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other regions and to increase the number of their outlets in a

city. It is expected that by 2010, India may have 600 new

shopping centers.

In the Indian retailing industry, food is the most

dominating sector and is growing at a rate of 9% annually. The

branded food industry is trying to enter the India retail industry

and convert Indian consumers to branded food. Since at

present 60% of the Indian grocery basket consists of non-

branded items.

The global retail giants like Wal-Mart, Gap, Tesco,

Versace, K-Mart/SEARS, Carrefour, ZARA, FCUK, Fendi, NEXT,

Mother Care, lKEA, Trussardi, DKNY and Debenhams have

made plans to march in the Indian market.

ESPRIT, GUESS, Chanel, Mango and many other global

marked their presence in India by implementing licensing and

franchisee agreements. The global retailers on the line of

control, awaiting the green signal from Govt. to enter Indian

retail market. However, the current scenario has encouraged

Indian players to speed up retail expansion and fresh retail ven

tures.

Companies like Shoppers Stop, Trent, Reliance, Lifestyle,

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Pantaloons Tanishq, Crossroads, Akbarallys' and Tanishq

already have planned to invest over Rs 5,000cr. Trent is on the

edge to take both its brands 'Star India Bazaar' and 'Westside'

to new cities, meanwhile Shoppers' Stop has recently geared

up for expansion of present ones and to add 11 new stores

including two hypermarkets. Also, Pantaloon has planned to

add eight 'Big Bazaar' malls within the next 6 to 8 months.

After partition, Reliance Industries Ltd (RIL) is substantially

getting ready to enter in field of retailing. RIL is poised to

emerge as the single largest player in this sector. On the other

hand, Toscos, Wal-Marts or Safeway does ultimately enter in

the country. So finally, Shoppers' Stops, Westside, Pantaloons

and West sides in coming years have will face stiff competition.

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1.2 Map of Income Classes

STRUCTURE OF RETAIL

INDUSTRY

The retail industry continued in India in the form of

Kiranas till 1980. Soon, following the modernization of the retail

sector in India, many companies started pouring in the retail

industry in India like Bombay Dyeing, Grasim etc. As has been

mentioned earlier the retail sector in India can be widely split

into the organized and the unorganized sector.

Organized Retail Sector

After 50 years of unorganized retailing and fragmented

Kiranas stores, the Indian retail industry has finally begun to

move towards modernization, Systematization and

consolidation. Today, modernization is the catch phrase and

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2006-07

20


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the key to understanding retail in the next decade.

Traditionally retailers

1.3 Organized Retail Market

Have had localized operations. This localized nature of the

industry is Changing as retailers face lower growth rates and

threatened profitability in home Markets. New geographies

help them sustain top line growth in Addition to enabling global

sourcing and encasing on global advantages of getting the best

products at optimum prices.

There has been a boom in retail trade in India owing to a

gradual increase in the disposable incomes of the middle class

households, as a result of good performance of IT, Service and

Infrastructure sectors. More and more players are entering the

retail business in India to introduce new formats like malls,

supermarkets, discount stores, department stores and even

changing the traditional looks of bookstores, chemist shops,

and furnishing stores.

Organized retail formats prevalent globally

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Supermarkets: Self-service 4000-20000 sq ft stores with

shopping carts typically focused on regular groceries,

household goods and personal care

Hypermarkets: Huge stores over 40000 sq ft situated outside

the town with ample parking space aimed for bulk purchases

stocking electronics, furniture and clothing. Carrefour is the

global major in this format.

Mass merchandisers: Large destination stores that sell

everything at competitive prices. They have cross-country

chain operations with centralized sourcing and a hub-and-

spoke distribution. Makro and Sam's Club are leading players in

this format.

Discounters: Aimed at

bargain buyers offering

less choice but deep

discount on bulk sourcing

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deals through controlled inventory. Aldi is the world leader in

this format.

Convenience Stores: Small stores located at convenient

points like petrol stations working round the clock.

Unorganized Retail Sector

The unorganized retail sector basically includes the local

Kiranas, hand cart, the vendors on the pavement etc. This

sector constitutes about 98% of the total retail trade. As 70% of

the employment is generated in Agriculture sector, hence this

form of retailing is widely seen in those areas and of course to

some parts of the urban. There is a lot of hue and cry in the

sector for opening of sector for direct investment from the

foreign players, but government can not neglect the interests

of small players. One of main reason of not opening this sector

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1.1 Growth of Retail

23


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to FDI is it may shrink the employment in the unorganized

sector and expand that in the organized.

RETAILING FORMATS IN INDIA

Malls:

The largest form of organized retailing today. Located

mainly in metro cities, in proximity to urban outskirts. Ranges

from 60,000 sq ft to 7,00,000 sq ft and above. They lend anideal shopping experience with an amalgamation of product,

service and entertainment, all under a common roof. Examples

include Shoppers Stop, Pyramid, and Pantaloon

Specialty Stores:

Chains such as the Bangalore based Kids Kemp, the

Mumbai books retailer Crossword, RPG's Music World and the

Times Group's music chain Planet M, are focusing on specific

market segments and have established themselves strongly in

their sectors.

Discount Stores:

As the name suggests, discount stores or factory outlets,

offer discounts on the MRP through selling in bulk reaching

economies of scale or excess stock left over at the season. The

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product category can range from a variety of perishable/ non

perishable goods

Department Stores:

Departmental Stores are expected to take over the

apparel business from exclusive brand showrooms. Among

these, the biggest success is K Raheja's Shoppers Stop, which

started in Mumbai and now has more than seven large stores

(over 30,000 sq. ft) across India and even has its own in store

brand for clothes called Stop.

Hyper marts/Supermarkets:

Large self service outlets, catering to varied shopper

needs are termed as Supermarkets. These are located in or

near residential high streets. These stores today contribute to

30% of all food & grocery organized retail sales. Super Markets

can further be classified in to mini supermarkets typically 1,000

sq ft to 2,000 sq ft and large supermarkets ranging from of3,500 sq ft to 5,000 sq ft. having a strong focus on food &

grocery and personal sales.

Convenience Stores:

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These are relatively small stores 400-2,000 sq. feet

located near residential areas. They stock a limited range of

high-turnover convenience products and are usually open for

extended periods during the day, seven days a week. Prices

are slightly higher due to the convenience premium.

Mob's :

Multi Brand outlets, also known as Category Killers, offer

several brands across a single product category. These usually

do well in busy market places and Metros.

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1.4 Growing Format in India

26


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RETAILING MAP IN INDIA

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1.5 Retailing Map

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EVOLUTION OF

RETAILING

Retailing, one of the largest sectors in the global

economy, is going through a transition phase in India. For a

long time, the corner grocery store was the only choice

available to the consumer, especially in the urban areas. This is

slowly giving way to international formats of retailing. The

traditional food and grocery segment has seen the emergence

of supermarkets/grocery chains, convenience stores and fast-

food chains.

The traditional grocers, by introducing self-service formats

as well as value-added services such as credit and home

delivery, have tried to redefine themselves. However, the boom

in retailing has been confined primarily to the urban markets in

the country. Even there, large chunks are yet to feel the impact

of organized retailing. There are two primary reasons for this.

First, the modern retailer is yet to feel the saturation' effect in

the urban market and has, therefore, probably not looked at

the other markets as seriously. Second, the modern retailing


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trend, despite its cost-effectiveness, has come to be identified

with lifestyles.

In order to appeal to all classes of the society, retail stores

would have to identify with different lifestyles. In a sense, this

trend is already visible with the emergence of stores with an

essentially `value for money' image. The attractiveness of the

other stores actually appeals to the existing affluent class as

Well as those who aspire to be part of this class. Hence, one

can assume that the retailing revolution is emerging along the

lines of the economic evolution of society.

It was only in the year

2000 that the

economists put a

figure to it: Rs.

400,000 crore which

is expected develop to

around Rs. 800,000 crore

1.6 Journey of Organized

Retail


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by the year 2005 an annual increase of 20 per cent. Retailing

in India is unorganized with poor supply chain management

perspective. According to a recent survey by some of the retail

consulting bodies, an overwhelming proportion of the Rs.

400,000 crore retail markets are UNORGANISED. In fact, only a

Rs. 20,000 crore segment of the market is organized. As much

as 96 per cent of the 5 million-plus outlets are smaller than 500

square feet area. This means that India per capita retailing

space is about 2 square feet in comparison to 16 square feet in

the United States. India's per capita retailing space is thus the

lowest in the world.

INDIAN SCENARIO OF RETAIL

INDUSTRY

The present value of the Indian retail market is estimated

by the India Retail Report to be around Rs. 12,00,000

crore($270 billion) and the annual growth rate is 5.7 percent.

Retail market for food and grocery with a worth of Rs. 7,43,900

crore is the largest of the different types of retail industries


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present in India. Furthermore around 15 million retail outlets

help India win the crown of having the highest retail outlet

density in the world. The contribution of retail sector to GDP

has been manifested below:

Country Retail Sector's share in GDP

(in %)

India 10

USA 10

China 8

Brazil 6

1.2 Continuation to GDP

As can be clearly seen, retailing in India is superior to those of

its contenders. Retail sector is a sunrise industry in India and

the prospect for growth is simply huge. There are many factors

that have stimulated the rise of the shopping centers and

multiplex-malls in a jiffy. Some of them can be listed as follows:

1. Rise in the purchasing power of Indians- the rise in the

per capita income in the last few years has been magnificent.

This has led to the generation of insatiable wants of the upper

and middle class. The demand of new as well as second hand


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durables has risen throughout the country thus providing the

incentive for taking up retailing.

2.Favorable to farmers- retailing has helped in removing the

middlemen and has thus enhanced the remuneration to

farmers. This is a new revolution in the agricultural sector in

India and will go a long way in amending the condition of

agriculture, a major concern among policy makers.

3. Use of credit- a typical Indian is most conversant with

using credit cards than carrying money. This is led to shift of

the consumer base towards supermarkets and make the

payments in the form of credit.

4. Comfortable Atmosphere- a visit to a retail store appears

to be more soothing for the generation-Y. People and kids prefer

to shop in an air conditioned. The retail industry is the second

largest employer in India. It currently employs about 7 percent

of the total labor force in India. Finance Minister P.

Chidambaram's recent statement salaries ought not to

be legislated is a welcome move as most of the organized

retail is in private hands. Only 4.6% of the total retail trade is

into organized sector. It generates about Rs.55,000 crore

($12.4 billion). The major and minor players desperately need

to work hard in this direction so that next time the figures look


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more decent. The government must also make an attempt to

ameliorate the situation as political instability and

infrastructure namely power and roads are the major

roadblocks in the path of smooth functioning of the market.


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PRESENT INDIAN SCENARIO

* Unorganized market: Rs. 583,000 cores

* Organized market: Rs.5, 000 cores

* 5X growth in organized retailing between 2000-2005

* Over 4,000 new modern Outlets in the last 3 years

* Over 5,000,000 sq. ft. of mall space under development

* the top 3 modern retailers control over 750,000 sq. ft. of retail

space

* Over 400,000 shoppers walk through their doors every week

* 47 global fortune companies & 25 of Asia's top 200

companies are retailers

* Biggest player in India is Pantaloon Retail India Limited

* Growth in organized retailing on par with expectations and

projections of the last 5 Years: on course to touch Rs. 35,000

corers (US$ 7 Billion) or

more by 2005-06


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1.7 Total Retail Sales 2007

RETAIL : WORLDWIDE

SCENARIO

China- the total sales from retail market in China reached

US$755 billion in 2005. However organized retailing in China

accounts for only 20% of it. Also the fragmentation of China's

retail market is so high that top 100 retailers make up for only

10.5% of the total market. The registered sales of department

stores grew by 25.7% and that of convenience stores grew by

36.5% in 2005. The Chinese retail market is expected to reach

new highs as the population of strong middle class is expected

to double by 2020 and mergers and acquisitions among


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retailers are3 going in great guns. The WTO restrictions are also

expected to have a favorable impact on its retail sector. Key

Players Analyzed This section covers the key facts about

players currently operating in the China retail industry

including Shanghai Bailian Group, Beijing Gome Electric,

Carrefour, Wal-Mart Stores, Wuhan Zhongbai Group, and China

Paradise Electronics Retail.

Japan- total annual sales for the Japanese retail industry for

2003 amounted to JPY 133,273 billion. Japan had 1.2 million

retail establishments in June 2004 and there were 42,738

specialty superstores. The year 2002 to 2004 the annual sales

per store increased by 3.8%. The growth was mainly driven by

the grocery superstores but the number of superstores

specializing in clothes gradually came down. The organized

retail sector in Japan couldn't perform at its full efficiency

because of collapse of the 'bubble economy' in the early 90s

Spain- Spain Energy Industry Spain energy consumption is

estimated to have

reached 165 Million Tons

of Oil Equivalent in 2006.

Fossil fuels are the major


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sources for energy in Spain especially Oil (49.5%) & Natural

Gas (19.9%). With the Spanish objective of energy security &

diversity, and clean energy sources, renewable sources are

expected to grow at rapid pace. Key Findings Spain is a net

energy importer, with imports accounting for 99% of its total

annual oil and natural gas consumption and 50% of its coal

consumption key players in Spain energy such as Gas Natural

Group, CEPS Group, Repsol YPF, Endesa S.A. and Gamesa.

United State- Retail

is the second-largest

industry in the U.S. by

number of businesses and

number of employees.

Retail sales in the U.S. (total

retail sales include the categories of gasoline, automobiles, and

1.8 US Retailing

1.3 World Trade


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food service) were up about 3.8% in 2007, to $4.49 trillion

(Plunkett Research estimate). The 2007 growth was driven

partly by higher gasoline costs as well as by deep price

discounting during the Christmas season by mass

merchandisers and year-long discounting by automobile

dealers.

Brazil-Emerging as one of the world's largest retail markets.

The sales in the industry have been growing strongly since

2003 and are expected to continue at this momentum only

over the next few years as constantly declining inflation rate

allows for continued expansion of real incomes (increasing

demand for non durable consumer goods) and credit conditions

ease (sustaining demand for durable goods). A process of

consolidation of the retail industry has been underway but

overall, the market remains relatively fragmented, indicating

substantial scope for the larger players to grow their market

share in future. The top five supermarket chains account for

approximately 40% of total sales.. All the market values have

been converted to US$ at May 2007 exchange rate where, 1

Brazil Real (BRL) = US$ 0.494 (Approx).


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Part 1.2

OBJECTIVES & ROLE OF RETAIL

INDUSTRY

Retail is clearly the sector that is poised to show the

highest growth in the next five years. The sector is set for a

revolution, as both the present players and new entrants are

gearing up to explore the market. This sector contributes 10%

of India's GDP and the current growth rate is 8.5%. The present

size of the organized retailing sector is approximately 3% and

is expected to grow to 25-30% by the year 2010. There are

about 300 new malls, 1500 supermarkets and 325

departmental stores currently under construction. Many players

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are coming up with huge investments, due to which the present

12 million mom-and-pop shops and Kiranas stores fear losing

their business. Most predictions say that the sector might reach

to US$ 400-600 billion by the year 2010

The retail sector has played a phenomenal role

throughout the world in increasing productivity of consumer

goods and services. It is the second largest industry in the

United States of America in terms of numbers of employees

and establishments. Wal-Mart, the largest retailer in the United

States is also the largest employer in the United States with

annual sales over $ 284 Billion. There is no denying the fact

that most of the developed economies are very much relying

on their retail sector as a locomotive of growth. Analysts, CEOs,

and others are using consumer spending and consumer

confidence data originating from the retail sector as an indicator to

gauge the status of the economy


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Part 1.3

CHALLENGES OF RETAIL INDUSTRY

The big challenge for the Indian retailing industry is the

heterogeneity of the market. It is up to us retailers to evolve

with consumers, predict where and what they will spend on, be

there and take the highest share of their wallet and use this

last leg of the economic chain to build India. At Panta-loon,

through our delivery formats, we touch 52% of the customers

wallet. My vision is to capture where this new, young and

emergent India is

going to spend and

capture as close to

100% of their

shopping.

So far, modern-format retail has scaled up its presence in the

metros and a few cities. However, the

future will see tier-II and,

maybe, even tier-III cities attract more retail outlets. Consumer

mindset and behavior is changing in these cities. A growing

1.10 Challenges in Retail


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groceries and it accounts for 77 percent of total retail sales. So

it is obvious that this is the most preferred section of retailers.

But unfortunately the foible taste bias for 'wet market' (i.e.

fresh food available through hawkers) has marred this prospect

also. Therefore supply chain management, storage of fresh

perishable foods and persuading the customers that the food is

inexpensive despite being fresh are genuine challenges to the

newcomers. Diversifying the product base to consumer

products such as readymade garments, furnitures, mobiles and

computers can mitigate the losses, if any from food marketing

and also broaden the reach to consumers.

3. Nostalgia- Indian shopping habits are no different. People

tend to attach qualities like honesty, fair price, good behavior

etc. to shopkeepers with whom they have been dealing right

from childhood. They find no reason to go to a distant

megaspore without any genuine reason. This problem is

difficult to deal with as it demands a change in long-formed

mindset. Organized retail outlets can overcome this problem by

employing eligible local peoples who can interact in vernacular


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language and win the confidence of people.

4. Information Technology- This is a major problem and

India must act fast if it wishes to create a smooth field for

organized retailing. Digitization of services will make transfer of

goods easy and an improvement in supply chain management

will definitely play a significant role in attracting more

consumers and less consumer grievances. Besides, it will

generate easier payments option for customer and easier

money movement for the CEOs of these highly

diversified malls.

MINOR CHALLENGES

1. Human resource crunch- the concern for insufficient

manpower in the industry has been in news for the last few

months. This fear is somehow unfounded. The retail industry

according to recent reports is growing at a rate of 100 percent.

Kishore Biyani's Future Group i.e. the Big Bazaar chain of retail

outlet alone provides employment to more than 18,000 people

and is planning to expand its employment base to 34,000 by

June 2008. If we add to this the foray by mega players like


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Reliance and Bharti-Walmart then the fear can surely turn into

a misperception. Retailing mainly deals with hard-selling of

space, trade of stocks and building of relationships. Since most

of the openings are for front line shop people, a graduation will

suffice. Nowadays many institutes also provide post-HSC and

post-graduate retail-specific courses.

2. Hindrances from government- Some political parties

want the government to amend laws and improve curbs so that

the mega players can't openly decimate the unorganized retail

sector. This is a conclusion based on a myopic outlook and

must be amended for a long term strategy. The fear is baseless

because of the reasons mentioned above. The mega stores will

no doubt provide employment to the less educated masses.

Also taking business away especially from small food vendors is

more easily said than done. Instead the limiting move will send

wrong signals to the investors and will ward off investments

when the states need it most. Allowing 51 percent retail FDI in

single brand retailing is a welcome move in this direction. It is

expected that the government will create further opportunities

for the organized retail to come up as home


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grown investment is always sweeter than foreign investment.


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central to the strategic thrust of the retailing firm.

Merchandising consists of activities involved in acquiring

particular goods and services and making them available at a

place, time and quantity that enable the retailer to reach its

goals. Merchandising is perhaps, the most important function

for any retail

organization, as it decides what finally goes on shelf of the stor

e.

3) PRICING:

Pricing is a crucial strategic variable due to its direct

relationship with a firm's goal and its interaction with other

retailing elements. The importance of pricing decisions is

growing because today's customers are looking for good value

when they buy merchandise and services. Price is the easiest

and quickest variable to change.

4) TARGET AUDIENCE:

"Consumer the prime mover"

"Consumer Pull", however, seems to be the most important

driving factor behind the sustenance of the industry. The

purchasing power of the customers has increased to a great


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extent, with the influencing the retail industry to a great extent,

a variety of other factors also seem to fuel the retailing boom.

5) SCALE OF OPERATIONS:

Scale of operations includes all the supply chain activities,

which are carried out in the business. It is one of the challenges

that the Indian retailers are facing. The cost of business

operations is very high in India.

SOME PUBLISHED ISSUE OF RETAIL

INDUSTRY

The retail industry is expected to grow into a USD 427

billion industry by 2010-FICCI

Indias retail industry, which is in the middle of rapid

growth, has already


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scripted success stories fit to be the subject of a Bollywood

film-Business Standard

The impact of organized retailers that have seen swarming

of malls lately, on the mom-n-pop stores in 20 Indian

cities- Indian Council of Research in

International Economic Relations (ICRIER)

Modern Retailing Comprehensive policy vital- The Hindu

Retail boom triggers ancillary industry growth- The Times

of India


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Part 1.4

PAST/ PRESENT/

FUTURE OF RETAIL INDUSTRY

Before the decade of eighties, India with hundreds of

towns and cities was a nation striving for development. The

evolution was being witnessed at various levels and the people

of India were learning to play different roles as businessmen

and consumers.

Retail-which literally means to put on the market, is a very

important aspect of every city. Without a well organized retail

industry we would not have our necessities and luxuries

fulfilled. Be it our daily groceries or fashion accessories and

everything in between, retail industry brings us the blissful

experience of shopping. Though organized retailing industry

began much earlier in the developed nations, India had not

actively participated. However with its vast expanse and young

population, India in the 21st century emerges as a highly

potential retail market. The journey of retailing in India has

been riveting and the future promises further growth. Here is a


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complete picture deciphering the past, present and future

trends of Indian Retail Market.

It is widely accepted that the retail industry has

undergone a drastic change in last five years and there is yet

more to come. Let us compare the image of Indian retailing in

2004-05 to that of its status in 2007-08 in the following table:

Magnification of the Indian Retail Industry

Yardstick Situation in 04-

05

Situation in

07-08

Value of retail sales Rs. 10,20,000

crore

Rs 12,00,000

crore

Annual growth rate 5% 5.7%

Value of organized market Rs 35,000 crore Rs 55,000 crore

Share of organized

market in the sector

3.4% 4.6%

Forecasts (after 5 years)

about size of organized

retail market

Over Rs.

1,00,000 crore

Rs. 2,00,000

crore

Forecasts about growth Around 30% Around 40%


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rate of organized retail

market

The above table clearly shows that the retail market as well as

the mindset required for it has experienced a thorough revisal

in the last three years. This is just the beginning and Indians

are sanguine that the sector will see rosy days in the future.

This confidence has helped India acquire the No.1 position

among 30 most attractive retailing destinations in the world

according to the Global Retail Development Index of 2005 (by

AT Kearney, India). Among emerging markets, India holds the

second position after China in the list of most favored retail

destinations

Past Retail Industry in India

Before the decade of eighties, India with hundreds of

towns and cities was a nation striving for development. The

evolution was being witnessed at various levels and the people

of the nation were learning to play different roles as

businessmen and consumers. The foundation for a strong

1.4 Comparison of Retail


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economy were being laid, youth were beckoning new

awareness in all spheres. And this brought in an opportunity for

retail industry to flourish. First in the metros and major cities

later to impact sub urban and rural market as well.

Retailing in India at this stage was completely unorganized and

it thrived as separate entities operated by small and medium

entrepreneurs in their own territories. There was lack of

international exposure and only a few Indian companies

explored the retail platform on a larger scale. From overseas

only companies like Levi's, Pepe, Marks and Spencer etc. had

entered targeting upper middle and rich classes of Indians.

However as more than 50 % population was formed by lower

and lower middle class people, the market was not completely

captured. This was later realized by brands like Big Bazaar and

Pantaloons who made their products and services accessible to

all classes of people and today the success of these brands

proves the potential of Indian retail market.

A great shift that ushered in the Indian Retail Revolution

was the eruption of Malls across all regional markets. Now at its

peak, the mall culture actually brought in the organized format

for Retailing in India which was absent earlier.To your surprise


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there was not a single mall in India a decade before and just a

few years ago only a handful of them were striving, today there

are more than 50 malls across different cities and 2 years from

now around 500 malls are predicted to come up.

Present Retail Industry in India

At present the Retail industry in India is accelerating.

Though India is still not at an equal pace with other Asian

counterparts, Indian is geared to become a major player in the

Retail Market. The fact that most of the developed nations are

saturated and the developing ones still not prepared, India

secures a great position in the international market. Also with a

highly diverse demography, India provides immense scope for

companies brining in different products targeting different

consumers.

According to the Global Retail Development Index, India is

positioned as the foremost destination for Retail investment

and business development. The factor that is presently playing

a significant role here is the fact that a large section of Indian

population is in the age group of 20-34 with a considerably high

purchasing power; this has caused the increase in the demand


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in the urban market resulting in consistent growth in the Retail

business.

And though the metros and other tier 1 cities continue to

sustain Retail growth, the buzz has now shifted from these

great cities to lesser known ones. As the spending power is no

longer limited to metros, every tier 2 city in the country has

good market for almost every product or service. Due to this,

tier 2 cities like Chandigarh, Coimbatore, Pune, Kolkatta,

Ahmedabad, Baroda, Hyderabad, Cochin, Nagpur, Indore,

Trivandrum etc. provide a good platform for a brand to enter

Indian market.

However there are a few precautions for every brand that

explores Indian market. As Indian consumers are very curious

and have a broad perspective, they respond well to a new

product or concept and there are very fair chances of a brand

surviving well, but every Indian consumer be it an urbanite or a

small town dweller needs a feeling of value for money.

Although labeled as tight fisted, Indian consumers are great

spenders once they realize that they are getting value for their

money. Also new product /service concepts from the western

world are better adopted first by the urban Indians, the smaller


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markets respond well to the need based retailing rather than

luxury concepts.

As the Indian retailing is getting more and more organized

various retail formats are emerging to capture the potential of

the market.

* Mega Malls

* Multiplexes

* Large and small supermarkets

* Hypermarkets

* Departmental stores are a few formats which flourishing in

the both big and small regional markets.

As the major cities have made the present retail scenario

pleasant, the future of the Indian Retailing industry lies in the

rural regions. Catering to these consumers will bring

tremendous business to brands from every sector. However as

the market expands companies entering India will have to be

more cautious with their strategic plans.

Future Retail Industry in India


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According to a study the size of the Indian Retail market is

currently estimated at Rs. 704 crores which accounts for a

meager 3 % of the total retail market. As the market becomes

more and more organized the Indian retail industry will gain

greater worth. The Retail sector in the small towns and cities

will increase by 50 to 60 % pertaining to easy and inexpensive

availability of land and demand among consumers.

Growth in India Real estate sector is also complementing

the Retail sector and thus it becomes a strong feature for the

future trend. Over a period of next 4 years there will be a retail

space demand of 40 million sq. ft. However with growing real

estate sector space constraint will not be there to meet this

demand. The growth in the retail sector is also caused by the

development of retail specific properties like malls and

multiplexes.

According to a report, from the year 2003 to 2008 the

retail sales are growing at a rate of 8.3% per annum. With this

the organized retail which currently has only 3% of the total

market share will acquire 15-20 % of the market share by the

year 2010.


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Factors that are playing a role in fuelling the bright future of

the Indian Retail are as follows:

The income of an average Indian is increasing and thus

there is a proportional increase in the purchasing power.

The infrastructure is improving greatly in all regions is

benefiting the market.

Indian economy and its policies are also becoming more

and more liberal making way for a wide range of

companies to enter Indian market.

Indian population has learnt to become a good consumer

and all national and international brands are benefiting

with this new awareness.

Another great factor is the internet revolution, which is

allowing foreign brands to understand Indian consumers

and influence them before entering the market. Due to

the reach of media in the remotest of the markets,

consumers are now aware of the global products and it

helps brands to build themselves faster in a new region

However despite these factors contributing to the growth of

Indian retail Industry, there are a few challenges that the


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industry faces which need to be dealt with in order to realize

the complete scope of growth in Indian market.

Foreign direct investment is not allowed in retail sector, which

can be a concern for many brands. But Franchise agreements

circumvent this problem. Along with this regulations and local

laws and real estate purchase restrictions bring up challenges.

And with Good Planning, Timely Implementation and a media

campaign that touches Indian consumers any brand can go far

ahead in the Indian Retail Revolution.


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IMPACT OF RETAIL INDUSTRY IN GLOBAL

WORLD

Organized retailing is spreading and making its presence

felt in different parts of the Country. The trend in grocery

retailing however, has been slightly different with a Growth

concentration in the South. Though there was traditional family

owned retail Chains in South India such as Nilgiris as early as

1905, the retail revolution happened With the RPG group

starting the Food world chain of food retail outlets in South

India With focus on Chennai, Hyderabad and Bangalore

markets, preliminarily. The Experiment has reaped rich

dividends and the group is now foraying into other Territories

as well as. Owing to the success of Food world model of RPG

group, several new models such as Trinethra, Subhiksha,

Margin Free and others have made their foray into this sector

albeit at regional levels. Today the food retail sector in India is

about Rupees Ten Lakh Crores (USD 200 billions) of which the

organized food retail segment is about 1 per cent and

increasing at a pace of over 20% year to year.


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To be successful in food retailing in India essentially

means to draw away shoppers from, the roadside hawkers and

Kiranas stores to supermarkets. This transition can be achieved

to some extent through pricing, so the success of a food

retailer depends on how best he understands and squeezes his

supply chain. The other major factor is that of Convenience

shopping which the supermarket has the edge over the

traditionalKiranas Stores. On an average a supermarket stocks

up to 5000 SKUs against few hundreds stocked at an average

Kiranas stores.

Though with excellent potential, India poses a complex

situation for a retailer, as this is a Country where each State is

a mini-Country by itself. The demographys of a region Vary

quite distinctly from others. In order to appeal to all classes of

the society, retail Stores would have to identify with different

lifestyles. Hence we may find more of Regional players and it

would take enormously long time before nation wide successful

Retail chains emerge. This is the main reason as to why the

successful retail chains in the Countries today operate at


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regional segments only and are not aiming at nation wide

Presence, at least for the time being.

In the organized retail industry, the gestation periods are

long, institutional funding is Difficult, and there is none or little

Government support. But the belief among top Retailer chains

in the country is that the industry will see large investments

coming once. The current ban on foreign direct investment is

lifted. But that could be two-three years Away. Food and

grocery retailing is a tough business in India with margins

being very Low and consumers not dissatisfied with existing

shops where they buy. For example, the next-door grocery

shopkeeper is smart and delivers good customer service,

though not value.

As of now, while Chennai has about five organized food and

grocery retail chains, other big cities such as Delhi, Bangalore,

and Mumbai average only two-three such chains. Almost all

food retail players have been region-specific as far as

geographical presence is concerned in the country. To illustrate

with examples, the RPG Group's Food World, Nilgiris, Margin


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Free, Giant, Varkey's and Subhiksha, all of which are more or

less spread in the Southern region; Sabka Bazaar has a

presence only in and around Delhi; names such as Haiko and

Radhakrishna Food-land are Mumbai-centric; while Adani is

Ahmedabad-centric. Industry topography in India is such that

spreading presence across cities is a tough call. As pointed out

by many experts, organized food and grocery retailing chains

going national requires significant investments. Retailing within

this sector is not just about the front-end, but involves complex

supply chain and logistics issues as well.

The trend and mindset of the present retailer chains in

India can be best understood by studying Food-World as an

example, which came in first in the food and grocery retailing

sector. The chain has no plans to venture beyond the Southern

region just yet. Current plans are to focus on the Southern

markets and achieve saturation. The intention is that by 2005,

they could look at the other regions. Subhiksha, a Chennai

based discount chain, too wants to be the principal store of

purchase for at least 40 per cent of all consumers living within

500-750 meters of the store, that is, within walking distance.


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Part-1.5

There are many problems face by Retail industry in Indian

Market. They are following:-

The format does not suit rural India: While the format

suits the urban areas, it does not suit the rural areas in a

country like India. Today, in Indian, organized retailing is

confined to class A cities, the 23 largest cities. About 82 per

cent of organized retailing comes form the top six cities and

another 12 percent from the next four. Thus, the top 10 cities

account for 94 per cent of all organized retailing in India. The

scattered location of consumers has been the main deterrent

to the rapid spread of the idea in the rural areas.

Purchasing patterns not very conducive: Even in urban

centers, the purchasing patterns of the Indian consumers differ

form those of westerners. Whereas in the west, the purchases

are spread better over the month, in India. Purchases are by

and large made in the first week of the month. Theirs perhaps

has a correlation to patterns of payment of wages; Purchasing

patterns differ also because of the difference in the eating

habits of people.


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Inadequate growth of brands: Inadequate growth of brands

is another factor, In India, branding was almost not-existent in

convenience products until recently; this has naturally inhibited

retailing through sophisticated chains.

Supply chain problems: As suppliers are not properly

organized in the country, replenishment of stock poses

problems for large chains. Source development also poses

special problems.

Being family businesses, retailing enterprises have

limitation in expansion; Yet another reason for the slow pick

up of mega retailing idea in India is that all along retail

enterprises have been family concerns. And, family businesses

usually have a limitation in expansion,

Example of Viveks; The Viveks (Formerly Viveks & Co. ) of

Chennai, is an example. For the past several years, it

remained rather small because of its family character. During

the three decades from 1965 to 1995, it had just three

showrooms. It was a family concern and remained for a long

time, a single store outfit, managed by the father and assisted

by his three sons. Once the father grew old, the sons started

managing the business, and because there were three sons


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engaged in the business, the enterprise went in for three

showrooms. In recent years, however, it has emerged as a

major chain, as it has shed its family business character, now it

is actually the largest consumer durable chain in the country. It

has big sales volumes and multiple locations.

Real estate problems; Real estate is an integral requirement

of large scale chain store operation. One needs a large number

of stores in each city to achieve optimum scale. Also, big

chains have to operate in several cities. Real estate thus

becomes crucial. That is why groups that have been in real

estate and hotel businesses are more comfortable in branching

off into retailing. Fro other firms, real estate development are a

problem; they don not command property in prime locations.


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Other Limitation of Retail Industry

The organized retail industry in India is

faced with stiff competition from the unorganized sector.

There is a shortage of quality real estate

and infrastructure requirements in our country.

Opposition to Foreign Direct Investment

from small traders affects retail industry.

A very high stamp duty on transfer of

property affects the industry.

Shortage of retail space in central and

downtown locations also hinders the

growth of retail industry.

Presence of strong Pro-tenancy laws

makes it difficult to evict tenants and

this is posing problems.

Land-use conversion is time consuming

and becoming complex.

For settling property disputes, it consumes

lot of time.


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Non residents are not allowed to own

property except they are of Indian origin.

Inadequacies in infrastructure such as lack

of high quality road networks, power shortages and

insufficient storage spaces

The retail industry loses to the tune of

US$120 to US$130 million every year

in frauds ,thefts and employee pilferage, shop lifting, vendor

frauds or inaccurate supervision despite using standard and

modern security features.

Part 1.6

SOURCE OF DATA

Datas are the useful information or any forms of document

designed in a systematic and standardize manner which are

used for some further proceedings. One of the important tools

for conducting marketing research is the availability of

necessary and useful data. Some time the data are available

readily in one form or the other and some time the data are


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collected afresh. The sources of Data fall under two categories,

Primary Source and Secondary Sources.

Primary Data- the primary data was collected through the

following activities:

Filled the Retail Industry related questionnaire to managers of

a select group of companies And Paper Conversation

Secondary Data- the secondary data was collected through

the following:

Online Research material of the Various Institution/Outlets

directly or indirectly involved with Retail Industry, Secondary

Data used in External Source of Information Like internet,

magazine, paper cutting

OTHER SOURCE

Information Sources

Information has been sourced from namely, books,


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newspapers, trade journals, and white papers, industry

portals, government agencies, trade associations,

monitoring industry news and developments, and through

access to access to more than 3000 paid databases.

Analysis Method

The analysis methods include the following: Ratio Analysis,

Historical Trend Analysis, Linear Regression Analysis using

software tools, Judgmental Forecasting and Cause and Effect

Analysis etc.


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Chapter (2)


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Part 2.1

OPPORTUNITIES OF THE WESTERNRETAILERS IN INDIA

The retail industries in the western countries have

reached a point of saturation and there is no way of expanding.

In this backdrop the retail giants are trying to make their mark

in the retail market of countries that still have untapped

potential of expansion. India happens to be one of them. AT

Kearney has constructed the Global Retail Development Index

which has helped the western retailers to identify the countries

in which investments could be made. Opportunities in India

have attracted the western retailers like Wal-Mart, Euroset, and

Supervalu who have plans to enter as single branded retailers.

In gauging whether to enter, the companies keep into account

the timing factor that is whether the consumers are ready to

accept the products that are offered by them. It is highly

possible that there are potentials in the market but the

consumer preferences are skewed against the products that

are offered.


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Part 2.2

CONTRIBUTION OF FDI IN RETAILIN

G

Permitting Foreign Direct Investment in the retailing

sector can have immense benefits. It can generate huge

employment for the semi-skilled as well as illiterate

population which otherwise can't be employed in the

already confined rural and organized sector. The retail


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sector is highly dependent on the rural sector. Thus it can

facilitate the improvement of the standard of living of

farmers by purchasing commodities at a reasonable cost.

It also stems out an indirect employment generation

channel by training and employing people in the

transportation and distribution sectors such as drivers,

mechanics etc. It is also evident that real estate is a

genuine challenge for organized retailing. Traditional

retailers can use this situation in their favor by taking

franchisees of the mega players of this industry. On the

other hand, the consumer gains from the wide variety of

choices and a more diversified basket of prices available

under one roof. Secondly the indirect benefits like better

roads, online marketing, expansion of telecom sector etc.

will give a 'big push' to other sectors including the rural

one itself. Last but not the least the huge tax revenue

generated from these retail biggies and collected in

government coffers will gradually wipe out the ugly

looking fiscal and revenue deficits. Besides the transaction

in foreign currencies by these MNCs will create a balance

in exchange rate and will bring in stable funds in the

economy as opposed to FII's hot money. This will in turn


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act as a boost to the developing (or 'transforming', as

suggested by the USAID) economy of India.

Part 2.3

BENEFITS TO THE INDIAN CONSUMER:

One has to agree that the entrance of big players will

ensure the higher quality of service and produce being sold to

the consumers. There are other indirect benefits in terms of

choice and pricing that will be passed along to the consumers

as the big retailers will compete with each Other for greater

share of the market.


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Chapter (3)


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Part 3.1

LATEST TRENDS IN RETAIL SECTOR

Today, retail in India is huge, close to $200 billion, of

which organized retail accounts for just $6 billion. This $200

billion should become $300 billion in the next five to six years.

This is a time when organized retailing is just getting into full

steam and the opportunity is huge. Organized retail in India is

expected to grow at 40% for the next five years, thanks to the

nascent stage of modern retail and the malling of India.

It is expected that by 2016 modern retail industry in India

will be worth US$ 175- 200 billion. India retail industry is one of

the fastest growing industries with revenue expected in 2007

to amount US$ 320 billion and is increasing at a rate of 5%

yearly. A further increase of 7-8% is expected in the industry of

retail in India by growth in consumerism in urban areas, rising

incomes, and a steep rise in rural consumption. It has further

been predicted that the retailing industry in India will amount

to US$ 21.5 billion by 2010 from the current size of US$ 7.5

billion. The retail sector would generate employment for more


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than 2.5 million people by the year 2010, says an analysis by

Ma Foi Management Consultants Ltd. AndA KPMG report

says that the organized retail would grow at a higher rate than

GDP in the next five years


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Recent Trends & Changes

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

Multiple drivers leading to a consumption boom:

Favorable demographics

Growth in income

Increasing population of women

Raising aspirations : Value added goods sales


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3.1 Retail Analysis

Organized retailing in India has been largely an urban

phenomenon with affluent classes and growing number of

double-income households.

Rural markets emerging as a huge opportunity for retailers

reflected in the share of the rural market across most

categories of consumption.

Companies using their own web portal or tie-sups with

horizontal players like Rediff.com and Indiatimes.com to offer

products on the web

Spencer's is also planning to set up 500 more stores by

June 2008 with an investment of nearly US$ 125.89 million

DLF plans to invest US$ 4.02 billion over four years to

develop about 20 large shopping malls across the country

Israeli mall

developer Plaza

Center NV plans to

2 Retail


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invest US$ 1.25 billion over the next five-seven years to set

up 50 malls in India.

Reliance Retail is going ahead with plans worth an

investment of US$ 3.77 billion for setting up 205 stores

IT is a tool that has been used by retailers ranging from

Amazon.com to eBay to radically change buying behavior

across the globe

Experimentation with formats: Retailing in India is still

evolving and the sector is witnessing a series of experiments

across the country with new formats being tested out. Ex.

Quasi-mall, sub-urban discount stores, Cash and carry etc

Unorganized retailing is getting organized:To meet the

challenges of organized retailing such as large cineplexes,

and malls, which are backed by the corporate house such as

'Ansals' and 'PVR the unorganized sector is getting

organized. 25 stores in Delhi under the banner of Provision

mart are joining hands to combine monthly buying. Bombay

Bazaar and E-food mart formed which are aggregations of

Kiranas.


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Emergence of discount stores: They are expected to

spearhead the organized retailing revolution. Stores trying to

emulate the model of Wal-Mart. Ex. Big Bazaar, Bombay

Bazaar, RPGs

3.3 Retail


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Part 3.2

MAJOR PLAYER OF RETAIL INDUSTRY

The Indian retail sector has been euphoria over the last

five years. India topped the A.T. Kearney's Global Retail

Development Index for two consecutive years and this has

infatuated Indian as well as foreign retail players to go gaga on

the merchandising track. According to geographical expansion,

Delhi/NCR and Mumbai are the felicitated regions as the top

companies have rated the spending potential of consumers in

the vicinity of the national capital and the financial capital as

excellent. Other metros such as Kolkata, Chennai, Hyderabad

and Bangalore have caught the sight of investors but their

fortunes are yet to be illuminated. Companies like the Future

Group, Reliance, Bharti-Walmart, DLF etc. have shown the

way for other to enter. The countries are expecting a surge in

the growth sprint and lets hope for the best.

Top Companies: An analysis


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Big Bazaar is a chain of

department stores in India, currently

with 75 outlets. It is owned by the Pantaloon Retail India Ltd,

Future Group. It works on the same economy model as Wal-

Mart and has considerable success in many Indian cities and

small towns. The idea was pioneered by entrepreneur Kishore

Biyani, the CEO of Future Group. Currently Big Bazaar

stores are located only in India. It is the biggest and the fastest

growing chain of department store and aims at being 350

stores by the end of year 2010.

It offers all types of household items such as home furnishing,

utensils, fashion products etc. It has a grocery department and

vegetable section known as the Food Bazaar and its online

shopping site is known as FutureBazaar.com. The real estate

fund management company promoted by the Future Group

expects to develop more than 50 projects across India covering

a combined area of more than 16 million sq. ft. On April 1 2007,

Big Bazaar had to shut its outlets in Mumbai as the 120

retrenched employees called a strike with the support of Bhatia

Kamgar Sena (the trade Union wing of Shiv Sena). Later the

management agreed to reinstate the sacked workers


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Pantaloon Retail India Ltd, is Indias

leading retail company with presence

across food, fashion, home solutions and consumer electronics,

books and music, health, wellness and beauty, general

merchandise, communication products, E-tailing and leisure

and entertainment.

Headquartered in Mumbai (Bombay), has over 450 stores

across 30 cities in India and employs over 18,000 people.

Pantaloon founded by Mr. Kishore Biyani. The company

owns and manages multiple retail formats catering to a wide

cross-section of the Indian society and its width and depth of

merchandise helps it capture almost the entire consumption

basket of the Indian consumer.

Founded in 1987, as a garment manufacturing company,

Pantaloon Retail forayed into modern retail in 1997 with the

opening up of a chain of department stores, Pantaloons. In

2001, it launched Big Bazaar, a hypermarket chain, followed by

Food Bazaar, a supermarket chain. It went on to launch Central,

a first of its kind, seamless mall located in the heart of major

Indian cities. Some of its other formats include, Collection I


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Reliance Fresh is the retail chain

division of Reliance Industries of India

which is headed by Mr.Mukesh Ambani. Reliance has entered

into this segment by opening new retail stores into almost

every metropolitan and regional area of India. Reliance plans to

invest Rs 25000 cores in the next 4 years in their retail division

and plans to begin retail stores in 784 cities across the country.

The Reliance Fresh supermarket chain is RILs Rs 25,000 crore

venture and it plans to add more stores across different g, and

eventually have a pan-India footprint by year 2011. The super

marts will sell fresh fruits and vegetables, staples, groceries,

fresh juice bars and dairy products and also will sport a

separate enclosure and supply-chain for non-vegetarian

products. Besides, the stores would provide direct employment

to 5 lakh young Indians and indirect job opportunities to a

million people, according to the company. The company also

has plans to train students and housewives in customer care

and quality services for part-time jobs.

Reliance Fresh recently (24th Jan, 2007) opened several "Fresh"

outlets in Chennai, New Delhi, Hyderabad, Jaipur, Mumbai,

Chandigarh, Ludhiana increasing its total store count to 40.


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Reliance is still testing its retail concepts by controlled entry

beginning in the southern states


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Subhiksha is an Indian retail

chainwith more than 760 outlets selling

groceries, fruits, vegetables, medicines and mobile phones. It

was started and is managed by Mr. R. Subramaniam, IIM

Ahmedabad alumni. He also plans to invest Rs.500 crore to

increase the number of outlets to 2000 across the country by

2009.

Derived from the Sanskrit word, Subhiksham or "giver of all

things good", It opened its first store in Thiruvanmiyur in

Chennai in March, 1997 with an investment of about Rs. 5 lakh.

The retail chain has seen a considerable growth by offering

goods at cheaper rates and there by increasing its customer

base. It is also dubbed as India's largest retail chain. Vision to

deliver consistently better value to Indian consumers, has

guided Subhiksha to deliver savings to all consumers on each

and every item that they need in their daily lives, 365 days a

year, without any compromise on quality of goods purchased.

Subhiksha now has the pan Indian presence with stores across

Delhi, UP, Punjab, Hariyana, Gujarat, Maharashtra, AP,

Karnataka and TN. It has recently commenced operation in

Kerala also. Today, it is a multi-location, professionally


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managed and vibrant organization. Subhiksha now has even

opened Specialized Mobile shops called Subhiksha Mobile

where mobiles are sold at a discounted price

Subhiksha is India's largest supermarket, pharmacy and

telecom chain. Started in 1997 as a single store entity in South

Chennai, it is now present nationally across 1000 outlets and

spread across more than 90 cities. You can now locate the

nearest Subhiksha store in your area with the Store Locators.

ICICI Venture Capital has a 24% stake in Subhiksha.

Food worldis a chain of supermarket

stores. It was started in May 1996 as a division of Spencer &

Co, a part of the RPG Group. In August 1999 it became a

separate company. Currently it operates 89 stores in Bangalore,

Chennai, Coimbatore, Erode, Hyderabad, Kodai, Pondichery,

Pune, Secunderabad, Salem, Trivandrum and Vellore

DLF Retail Developers Ltd. is one of

the troikas of the DLF Group. Besides being India's largest real


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estate developer, DLF is also of the leaders in innovating

shopping malls in India. It caught public eye when it launched

the 2, 50,000 sq ft. shopping mall in Gurgaon. It has brought a

dramatic change in the lifestyles and entertainment with its

City Centers and DT Cinemas. DLF has plans to invest Rs. 2000-

3000 crore in all the emerging areas from metros to class cities

in the next two years. Till last year the company was involved

in building 18 malls out of which 10 were in the NCR region.

Future plans of DLF involve opening up of 100 malls (specialty

malls, big box retailing and integrated malls) across 60 cities in

next 8-10 years. They are slowly transforming into 'lease' and

'revenue share' models.

Local players like ITC, the A.V. Birla Group and Tatas have given

the hints to enter organized retail. Frances Carrefour SA and

Britains Tesco too were recently in news for their future plans

to explore the Indian retail market

Bharti Retail, a wholly owned subsidiary

of Bharti Enterprises. Has announced two joint ventures

(JV)with the international retailing behemoth, Wal-Mart. The

first JV ensures cash and carry business, in which 100 percent


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FDI is permitted and it can sell only to retailers and distributors.

The second JV concerns the franchise arrangement. Sunil

Mittal, Chairman of the Bharti Group assured that the ventures

will use low prices every day and best practices for the

satisfaction of the customer. Processed foods and vegetables

will be delivered by Bharti Field Fresh, Bharti's JV with

Rothschild. Bharti Retail aims to foray every city with a

population exceeding 1 million. It has plans to come up with an

investment of more than $2 billion in convenience stores,

supermarkets and hypermarkets spread over an aggregate 10

million sq. ft. The expansion drive looks ambitious but analysts

are worried that Bharti may face stiff competition from

Pantaloon and Reliance as they too have sanguine plans to

flood the markets with thousands of retail outlets in the coming

five years. Bharti Telecom also has plans to offer all its fixed

and mobile telecom products and services from a single

window to the SMB (Small and Medium Business) enterprises

under the Bharti Infotel division...


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Lifestyle is part of the Landmark Group, a Dubai-

based retail chain. With over 30 years experience in retailing,

the Group has become the foremost retailer in the Gulf.

Positioned as a trendy, youthful and vibrant brand that offers

customers a wide variety of merchandise at exceptional value

for money, Lifestyle began operations in 1998 with its first

store in Chennai in 1999 and now has 13 Lifestyle stores, 5

Home Centers and 1 Baby shop store across Chennai,

Hyderabad, Bangalore, Gurgaon, Delhi, Mumbai and

Ahmedabad.

Business World-IMRB Most Respected Company Awards Survey

has rated Lifestyle as the Most Respected Company in the

Retail Sector in 2003 and 2004. Lifestyle has also been

awarded the ICICI-KSA Technopak Award for Retail Excellence in

2005, the Reid & Taylor Retailer of the Year Award for 2006 and

more recently, the Lycra Images Fashion Award for the Most

Admired Large Format Retailer of the Year in 2006

The foundation of Shopper's Stop

was laid on October 27, 1991 by the K.


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Raheja Corp. group of companies Shoppers Stop aims to

position itself as a global retailer. The company intends to bring

the worlds best retail technology, retail practices and sales to

India. Currently, they are adding 4 to 5 new stores every year

with an immense amount of expertise and credibility, Shopper's

Stop has become the highest benchmark for the Indian retail

industry Shopper's Stop in the only retailer from India to

become a member of the prestigious Intercontinental Group of

Departmental Stores (IGDS).

With its wide range of merchandise, exclusive shop-in-shop

counters of international brands and world-class customer

service, Shoppers Stop brought international standards of

shopping to the Indian consumer providing them with a world

class shopping experience. The stores offer a complete range

of apparel and lifestyle accessories for the entire family. From

apparel brands like Provogue, Color Plus, Arrow, Levis, Scullers,

Zodiac to cosmetic brands like Lakme, Chambor, Le Teint Ricci

etc., Shoppers Stop caters to every lifestyle need. Shoppers'

Stop retails its own line of clothing namely Stop, Life, Kashish,

Vettorio Fratini and DIY. The merchandise at Shoppers Stop is

sold at a quality and price assurance backed by its guarantee


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stamp on every bill. Their

motto: We are responsible for the goods we sell.

Vishal Mega Mart is one of fastest

growing retailing groups in India. Its outlets

cater to almost all price ranges. The showrooms have over

70,000 products range which fulfills all your household needs,

and can be catered to less than one roof. It is covering about

1996592 lac sq. ft. in 18 states across India. Each store gives

you international quality goods and prices hard to match. The

cost benefits that is derived from the large central purchase of

goods and services is passed on to the consumer the group had

a turnover of Rs. 1463.12 million for fiscal 2005, under the

dynamic leadership of Mr. Ram Chandra Aggarwal. The group

had of turnover Rs 2884.43 million for fiscal 2006 and Rs.

6026.53 million for fiscal 2007 .the groups prime focus is on

retailing. The Vishal stores offer affordable family fashion at

prices to suit every pocket.

Welspun Retail Limited (W.R.L.) was

established in 2003 as a part of Welspun Group,


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one of the fastest growing business conglomerates in India.

Welspun is a U.S. $1 billion group, into diverse businesses,

industries, regions and has six companies under the umbrella

brand. Our International Home Textiles Company; Welspun

India Limited (W I L) launched its Indian retail division, WRL

with an aim to capture the Home Textiles market in 2003. The

Retail brands, SPACES- Home & Beyond has carved its niche

with its fashion driven model in the country's major metros,

while Welhome targets a larger audience with its value for

money model. The turn over of the Retail division stands at 100

crore, expected to double in the next 5 years

Key Differentiating Attributes

W.R.L. is the first Retailer of soft furnishing for "Home" inIndia.

W.R.L. has two models that cater to both, the aspirationclientele and the value for money conscious clientele.

Launched Spaces -Home & Beyond and Welhome (WelspunFactory Outlet) in the same year.

Phenomenal growth anticipated in FY 2007-08.


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Vadodara, Indore, Noida, Gurgaon, Ghaziabad, Mysore, Jaipur,

Lucknow, Nagpur.

Wal-Mart Stores, Inc. is an

American public corporation that runs a chain of large, discount

department stores. It is the world's largest public corporation

by revenue, according to the 2007 Fortune Global 500.

Founded by Sam Walton in 1962, it was incorporated on

October 31, 1969. It opened its home office and first

distribution center in Bentonville, Arkansas. It had 38 stores

operating with 1,500 employees and sales of $44.2

million .Wal-Mart is the largest grocery retailer in the

United States, with an estimated 20% of the retail grocery

and consumables business, as well as the largest toy seller in

the U.S., with an estimated 22% share of the toy market. Wal-

Mart is the largest private user of electricity in the US. Owns a

subsidiary electric company in Texas, and will possibly move

into the power business. It is also undertaking a number of

environmentally conscious initiatives to reduce energy usage


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and waste. Wal-Mart operates in Mexico as Walmex, in the UK

as ASDA, and in Japan as Seiyu. It has wholly-ow

13135311 retail industries in global environment (1)

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