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Convenience Store Market – India
October 2014
2
SAMPLE Executive Summary
Market
Drivers & Challenges
Competitive Landscape
Drivers
Rising Income Levels and Consumerism
Ease of Payment via Cards
Changing Demographics and Lifestyle
Growing Acceptance towards FDI in Retail
Government Participation
Challenges
Large Geographic Spread and Lack of Logistics Support
Regulatory Challenges
Human Resource Constraints
Customer Migration
Key Players
Player 1 Player 2 Player 3
Player 4 Player 5 Player 6
Global convenience store market has been growing rapidly along with the rising income and improving lifestyle across the globe
Organized convenience store market is growing at a rate of x1% in the country
FDI scenario in retail
Single brand retailing in India
Multi brand retailing in India
Goods and Services Tax
CONVENIENCE STORE MARKET IN INDIA 2014.PPT
Shopping Trends
Changing Shopping Trend in India
Consumer Spending – Major Segments
E-Grocery
3
•Macroeconomic Indicators
•Introduction
•Global Outlook
•Market Overview
Indian Retail Industry
Convenience Store Market
•Shopping Trends
•Drivers & Challenges
•Real Estate Challenges
•Government Participation
•Competitive Landscape
•Strategic Recommendations
•Appendix
CONVENIENCE STORE MARKET IN INDIA 2014.PPT
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Macroeconomic Indicators (1/3)
11
12
13
14
15
INR tn
Q4
c4
b4
a4
Q3
c3
b3
a3
Q2
d2
c2
b2
a2
Q1
d1
c1
b1
a1
2013-14 2012-13 2011-12 2010-11
GDP at Factor Cost: Quarterly
Inflation Rate: Monthly
-2
-1
0
1
2
Aug 2013 - Sep 2013
q p
%
Nov 2013 - Dec 2013 Sep 2013 - Oct 2013
-t
Oct 2013 - Nov 2013
s
Jul 2013 - Aug 2013
r
CONVENIENCE STORE MARKET IN INDIA 2014.PPT
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SAMPLE …of the major players and rising number of convenience stores in various countries across the globe
Convenience Store – Global Outlook (2/2)
Growth of Convenience Stores in US
0
no. x7
2013
x6
2012
x5
2011
x4
2010
x3
2009
x2
Types of Convenience Stores in UK (2013)
0
x9
Unaffiliated Independents
x8
x10
Symbol Groups Multiples
x11
Forecourts
x12
Co-operatives
%
CONVENIENCE STORE MARKET IN INDIA 2014.PPT
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Convenience store market in India to witness strong growth owing to the rising demand for convenience shopping
• Convenience stores in India is still at a nascent stage,
providing huge untapped market potential for future
growth
Currently, convenience stores market in India is approximately
valued at INR z1 bn and is expected to grow at a CAGR of z2%
to reach INR z3 bn in 2018
• Convenience stores cater to the basic needs of an Indian
consumer
• They are located in both residential as well as
commercial markets and often operate in conjunction
with a service station
• Convenience stores have become the preferred
shopping destinations for the Indian urban consumers,
demanding for convenience, quality and service
• However, convenience stores in India are only 75% as
efficient as stores in the US in terms of display,
accessibility of products and service
Organized Convenience Store Market Convenience Store Market – Overview
Convenience Store Success Factors
Store Appearance
Success Factors
Food
Layout Pricing
Service Distribution
Promotion Product Mix
0
INR bn
y7
2018e
y6
2017e
y5
2016e
y4
2015e
y3
2014e
y2
2013
y1
CONVENIENCE STORE MARKET IN INDIA 2014.PPT
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SAMPLE
Needs, desires and wants of the Indian consumers contributing to the country’s growing retail sector
Consumer Demands in Today’s Shopping Trend
• Text
• Text
n9
n8 n7 n6 n5
n4
n3 n2
n1
m9
m8
m7
m6
m5
m4
m3
m2
m1
CONVENIENCE STORE MARKET IN INDIA 2014.PPT
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Drivers & Challenges – Summary
Drivers
Rising Income Levels and Consumerism
Ease of Payment via Cards
Changing Demographics and Lifestyle
Growing Acceptance towards FDI in Retail
Challenges
Large Geographic Spread and Lack of Logistics Support
Regulatory Challenges
Human Resource Constraints
Customer Migration
CONVENIENCE STORE MARKET IN INDIA 2014.PPT
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SAMPLE Porter’s Five Forces Analysis
Competitive Rivalry • Text
Bargaining Power of Buyers • Text
Threat of New Entrants • Text
Impact Medium
Impact Low
Impact Medium
Bargaining Power of Suppliers • Text
Impact Medium
Threat of Substitutes • Text
Impact High
CONVENIENCE STORE MARKET IN INDIA 2014.PPT
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SAMPLE Key Ratios of Top 3 Companies – Operational Basis (FY 2012) (1/3)
Competitive Benchmarking (2/5)
0
%
Reliance Retail Ltd.
p6
p5
REI Six Ten Retail Ltd.
p4 p3
Mother Dairy Fruit and Vegetable Pvt. Ltd.
p2 p1
• Player 1 recorded operating margin of-%, higher than both Player 2 and Player 3 which recorded operating margin of -% and -% respectively
• Player 1 recorded net margin of %, higher than that of Player 2 which recorded net margin of -% but lower than that of Player 3 which recorded net margin of -%
Net Margin Operating Margin
CONVENIENCE STORE MARKET IN INDIA 2014.PPT
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SAMPLE Public: Player 1 (1/5)
Key People
Products and Services
Company Information Offices and Centres – India
Category Products/Services
Products & Services Convenience Store Name Designation
P1 D1
P2 D2
P3 D3
Head Office
Mumbai
Corporate Address
Tel No.
Website
Year of Incorporation
Ticker Symbol
Stock Exchange
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SAMPLE Financial Snapshot Key Ratios
Financial Summary
Key Financial Performance Indicators
Indicators Value (17/09/2014)
Market Capitalization (INR mn)
Total Enterprise Value (INR mn)
EPS (INR)
PE Ratio (Absolute)
Improved Decline
Net Profit/Loss
Total Income
0 0
Profit INR mn
Revenue INR mn
2014
g8
g7
2013
g6
g5
2012
g4
g3
2011
g2
g1
Particulars y-o-y change
(2014-13) 2014 2013 2012 2011
Profitability Ratios Operating Margin
Net Margin
Profit Before Tax Margin
Return on Equity
Return on Capital Employed
Return on Working Capital
Return on Assets
Return on Fixed Assets
Cost Ratios Operating costs (% of Sales)
Administration costs (% of Sales)
Interest costs (% of Sales)
Liquidity Ratios Current Ratio
Cash Ratio
Leverage Ratios Debt to Equity Ratio
Debt to Capital Ratio
Interest Coverage Ratio
Efficiency Ratios Fixed Asset Turnover
Asset Turnover
Current Asset Turnover
Working Capital Turnover
Capital Employed Turnover
• The company incurred a net profit of INR u1mn in FY 2014 and INR u2 mn in FY 2013
• The company reported total income of INR u3 mn in FY 2014, registering an increase of u4% over FY 2013
• The company earned an operating margin of u5% in FY 2014, an increase of u6 percentage points over FY 2013
• The company reported debt to current ratio of u7 in FY 2014, a decrease of u8% over FY 2013
Public: Player 1 (2/5)
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SAMPLE Key Business Segments Key Geographic Segments
Description Details
Overview
• Text
• Text
• Text
Business Highlights
Public: Player 1 (3/5)
2014
p4
2013
p3
2012
p2
p9
p8
2011
p1
p7 p6
p5
p11
p12
p10
2014
q4
2013
q3
2012
q2
2011
q1
q6
q5
q8
q7
CONVENIENCE STORE MARKET IN INDIA 2014.PPT
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SAMPLE • Text
• Text
• Text • Text
T O
W S
Public: Player 1 – SWOT Analysis (5/5)
CONVENIENCE STORE MARKET IN INDIA 2014.PPT
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SAMPLE
Key People
Products and Services
Company Information Offices and Centres – India
Registered Address
Tel No.
Website
Year of Incorporation
Head Office
Kolkata
Category Products/Services
Services Convenience Store
Private: Player 2 (1/5)
Name Designation
P1 D1
P2 D2
P3 D3
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SAMPLE Shareholders of the Company Ownership Structure
Name No. of Shares held
S1 N1
S2 N2
S3 N3
S4 N4
S5 N5
Total
Private: Player 2 – Shareholding Pattern (2/5)
s7
s6
s9 s8
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SAMPLE Financial Snapshot Key Ratios
Financial Summary
• Company incurred a net loss of INR x1 mn in FY 2013, as compared to net loss of INR x2 mn in FY 2012
• It reported total income of INR x3 mn in FY 2013, registering a decrease of x4% over FY 2012
• Earned an operating margin of x5% in FY 2013, a decrease of x5 percentage points over FY 2012
• The company reported a debt to equity ratio of x6 in FY 2013, a decrease of x7% over FY 2012
Particulars y-o-y change
(2013-12) 2013 2012 2011 2010
Profitability Ratios Operating Margin
Net Margin
Profit Before Tax Margin
Return on Equity
Return on Capital Employed
Return on Working Capital
Return on Assets
Return on Fixed Assets
Cost Ratios Operating costs (% of Sales)
Administration costs (% of Sales)
Interest costs (% of Sales)
Liquidity Ratios Current Ratio
Cash Ratio
Leverage Ratios Debt to Equity Ratio
Debt to Capital Ratio
Interest Coverage Ratio
Efficiency Ratios Fixed Asset Turnover
Asset Turnover
Current Asset Turnover
Working Capital Turnover
Capital Employed Turnover
Improved Decline
Total Income Profit / Loss
0
INR mn
INR mn
2013
y8
y7
2012
y5
y6
2011
y3
y4
2010
y1
y2
Private: Player 2 (3/5)
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SAMPLE Business Highlights
Description News
Overview • Text
• Text
Financials • Text
Recent Update • Text
• Text
Private: Player 2 (4/5)
CONVENIENCE STORE MARKET IN INDIA 2014.PPT
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SAMPLE • Text
• Text
• Text • Text
T O
W S
Private: Player 2 – SWOT Analysis (5/5)
CONVENIENCE STORE MARKET IN INDIA 2014.PPT
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CONVENIENCE STORE MARKET IN INDIA 2014.PPT