MIXED RETAILING INDUSTRY IN INDIA

HOW MIXED RETAILERS CAN LEVERAGE SOCIAL MEDIA TO GROW ITS BUSINESS

(c) InRev Systems

Mixed Retailers Brand Shares by Value* 2007-2010

INDUSTRY OVERVIEW

Brand Vishal Mega Mart Shoppers Stop Pantaloons Lifestyle Westside Marks And Spencer Globus

Company Vishal Retail Ltd Shoppers Stop Ltd Pantaloons Retail India Ltd Lifestyle International Pvt Ltd Trent Ltd Marks & Spencer Reliance India Pvt Ltd Globus Stores Pvt Ltd

2007 21.1 21.1 16.1 15.5 9.7 3.6

2008 27.5 18.7 16.1 14 9.0 3 3.4

2009 20.8 19.2 18 16 9.2 3.2 3.8

2010 20.2 19.8 18.7 18 9.4 3.4 3.3

Source: EuroMonitor

* % retail value rsp excl sales tax (c) InRev Systems

Mixed Retailers Brand Shares by Outlets/Sites 2007-2010

INDUSTRY OVERVIEW

Brand Vishal Mega Mart

Company Vishal Retail Ltd

2007 96

2008 148

2009 145

2010 150

Westside
Pantaloons Shoppers Stop Globus Lifestyle Marks And Spencer

Trent Ltd
Pantaloons Retail India Ltd Shoppers Stop Ltd Globus Stores Pvt Ltd Lifestyle International Pvt Ltd Marks & Spencer Reliance India Pvt Ltd

28
35 23 20 14 -

35
44 27 30 15 14

41
45 29 34 17 15

50
46 35 29 25 19

Source: EuroMonitor

(c) InRev Systems

Mixed Retailers Brand Shares by Selling Space* 2007-2010

INDUSTRY OVERVIEW

Brand Vishal Mega Mart Shoppers Stop Westside

Company Vishal Retail Ltd Shoppers Stop Ltd Trent Ltd

2007 153 115.2 58.8

2008 231.2 144.6 73.6

2009 226.5 155.4 86.2

2010 232.3 186 105.4

Lifestyle
Pantaloons Globus Marks And Spencer

Lifestyle International Pvt Ltd

Pantaloons Retail India Ltd Globus Stores Pvt Ltd Marks & Spencer Reliance India Pvt Ltd

61.9
74.9 29.6 -

66.6
94.2 34 9.2

75.4
100.7 38.5 10.4

104.5
103 32.9 16.4

Source: EuroMonitor

* surface area '000 sq m (c) InRev Systems

Industry Rivalry

INDUSTRY OVERVIEW

Total no of organized mixed retailers is small and fixed cost and exit cost is high. Overall, the attractiveness of the industry due to industry rivalry is medium to high Capital intensive and involvement of economy of scale makes the industry attractive. Currently, foreign mixed retailers are not allowed to be setup in India. Overall, the attractiveness of the industry due to threat of new entrants is high

Industry Rivalry 5 4 3 Threat of Substitute 2 1 0 Threat of New Entrants

Threat of New Entrants

Buyer Power

Supplier Power

Overall, the attractiveness of the industry is HIGH

Supplier Power Buyer Power Threat of Substitute

There are many no of suppliers. Forward integration of the supplier is possible though will not be easy. Overall, the attractiveness of the industry due to supplier power is medium There are large no of buyers and backward integration of the buyers is not possible. However high price sensitivity of the buyers is a challenge for the industry. Overall, the attractiveness of the industry due to buyer power is medium to high There are huge no of substitutes available in the market such as unorganized retailers or stand-alone retailers. However the convenience as well as the one-stop solution image that a mixed retail provides makes it attractive over its counterparts. Overall, the attractiveness of the industry due to threat of substitute is medium
(c) InRev Systems

WHY SOCIAL MEDIA?

Even though retail sales are still dominated by brick and mortar stores, the influence of the Internet on offline purchasing is becoming increasingly important

Social Media or Consumer-Generated Media can help retailers understand consumers need and attitude and then proactively engage with customer needs and query
Brand Health Tracking CRM
Access sentiments of customers Engagement with customers

Consumer Insights

Reaching out to customers

(c) InRev Systems

WHY SOCIAL MEDIA?

EVERYONES HERE 70% of social media users in India accessed a social networking site every day 40% of organisations in India spend more than 10% of their marketing and communication budget on digital media

ENGAGE It is essential to connect with customers and gain their attention to increase brand loyalty and attract new customers

GET INSIGHTS Retailers can get meaningful insights and use it for decision making process in launching new campaign, CRM programs, etc.

According to Forrester Research, almost two-thirds of retailers have already invested in social media/CGM. Indian retailers too are starting to invest in social media

(c) InRev Systems

WHY SOCIAL MEDIA?

LinkedIn has over 100 MILLION users and adds about 1 MILLION new users to its service every week. The median age of LinkedIn users is 41, and the average user has 60 connections. 20 percent of its members are in the service industry Twitter has more than 145 MILLION users and adds about 6 MILLION new users a month. On average 140 million tweets are sent a day. More than 460,000 new account have been added every day . The median age of a Twitter user is 35 years old and the average user has 70 followers Facebook currently has over 500 MILLION active users around the globe and 50% of these active users log on to Facebook in any given day. Facebook's median age is 31 and its average user has 130 friends and is connected to 80 community pages, groups or events while average user creates 90 pieces of content each month YouTube has 2 BILLION views per day, and 24 hours of video is uploaded every minute. YouTube achieved for the first time the milestone of 100 videos watched per user last year

InRev Systems 2011

WHY SOCIAL MEDIA?

Threat from specialist retailers is increasing as they increase their presence throughout the country

Large no of Category

MIXED RETAILER

SOCIAL MEDIA

Brand loyalty will become vital as consumers move towards premium products, and exclusive outlets for such brands will discourage them from visiting department stores instead of an exclusive outlet, where they can see more product variety under the same brand Mixed Retailer needs to move to high brand awareness region by ENGAGING WITH CUSTOMERS MORE THAN EVER

Single Category Low Brand Awareness

SPECIALIST RETAILER High Brand Awareness

(c) InRev Systems

PANTALOONS is one of the biggest mixed retailers in India to adopt social media in engaging with its customers

SOCIAL MEDIA INDEX

Pantaloons Facebook Page

Pantaloons Twitter Page Pantaloon use it mostly for announcement

(c) InRev Systems

SOCIAL MEDIA INDEX

Pantaloons use social networking site such as Facebook to engage with customers and get customers feedback

(c) InRev Systems

SOCIAL MEDIA INDEX

SOCIAL MEDIA GRADES is calculated based on the interactivity level of the mixed retailers in Facebook, Twitter, LinkedIn, YouTube and Blogs. It shows how active the mixed retailers are in the social media space No of Channels represents the number of social networking sites a mixed retailers is present in Mixed Retailer PANTALOONS SHOPPERS STOP LIFESTYLE INTERNATIONAL MARKS & SPENCER INDIA GLOBUS No of Channels 8 8 5 5 6 Social Grades 3.06 2.81 2.28 2.02 1.97

WESTSIDE
VISHAL MEGA MART

5
4

1.62
1.8

Social Media Grades for the Mixed Retailers in India

InRev Systems 2011

SOCIAL MEDIA INDEX

3.5 3

Interactivity Level

2.5 2 1.5 1 0.5 0 0 1 2 3 4

No of Channels

Interaction Plot of the Mixed Retailers in the Social Media Space

(c) InRev Systems

BRAND AWARENESS
Number of conversations across web

RESEARCH FINDINGS
Shoppers Stop is talked more in Social Media. The negative percentage is higher too
InRev Systems 2011

BRAND AWARENESS
Number of conversations across web

RESEARCH FINDINGS
This is a scary situation for Marks and Spencer; there is huge negative talks happening lately
InRev Systems 2011

BRAND HEALTH
SENTIMENTS across web for different Retailers

RESEARCH FINDINGS

Shoppers Stop is the most hated brand among the four in Social Web

RETAILER PANTALOONS SHOPPERS STOP LIFESTYLE INTERNATIONAL MARKS & SPENCER

POSITIVE SENTIMENT % 63.55% 58.9% 77.19% 71.62%

NEGATIVE SENTIMENT % 7.06% 11.38% 5.09% 9.79%

InRev Systems 2011

DEMOGRPHIC
Demographic Age Groups

RESEARCH FINDINGS
Pantaloon most popular among teens, Marks and Spencer in early post teen age, Lifestyle and Shoppers Stop in heavy spending category of 26 to 35 years.

InRev Systems 2011

DEMOGRPHIC
Demographic Location

RESEARCH FINDINGS

Most brands localized to West and South India - Westside is strong in Chennai, Marks and Spencer in Mumbai and Bangalore, Shoppers Stop in Mumbai Kolkata, Delhi and Hyderabad are less represented
InRev Systems 2011

INDUSTRY INTELLIGENCE

RESEARCH FINDINGS

This is an example of tracking an industry buzz word loyalty card. Some positive and some negative thoughts Extremely useful to understand the market sentiment for better product designs
Tracking the keyword Loyalty Card in Simplify360 Had a lovely albeit brief stop in Doha. What a nice place. Looking forward to going back soon. I wonder if Bliss spa does a loyalty card... - imawiggins on 25-042011 via twitter for i-phone

There are many people like imawiggins who are nor sure whether a store has loyalty card or not
InRev Systems 2011

Korean Beef Bulgogi is awesome. But u know what's better? A free one! Thank you loyalty card :) bashrahman on 28-04-2011 via Twitter for BlackBerry

SIMPLIFY360

The Research is done using Social Media Monitoring Product, Simplify360.

Brand Monitoring & Sentiment Analysis

Social Analytics Dashboard Schedule Messages and RSS Feed

Personalized URL Tracking

Download Data and Reports

ALL THESE AND MORE IN

Creating Polls and Sharing

SIMPLIFY360

Email Campaigns
Team Collaboration and Work Assignment Email and Notification

InRev Systems 2011

SIMPLIFY360

Simplify360 is a web based social media engagement and analytics platform that offers a ONE STOP SOLUTION to the social media needs of a business and lets you engage with your customers and interpret your social presence

Simplify360 provides an easy to use platform for tracking and listening to what people are talking about your brand in social communities.
With Simplify360 you can not only LISTEN to what your customers are talking about your brand but also ENGAGE with them!

Simplify360 lets you ANALYSE the social media presence of your brand by giving you actionable insights

InRev Systems 2011

People Talk a Lot About Companies.

But tracking conversations happening online is easier said than done. With SIMPLIFY360, you can track what customers are talking about your retail brand good or bad feedback or even suggestion

SIMPLIFY360

Tracking Pantaloons in Simplify360

FIND the sentiments of the people

talking about your brand too much negative sentiment might want you to know the reason behind it
InRev Systems 2011

People Have Love Hate Relationship. Companies Should Engage

Negative conversation about TESCO - Engage with such customer proactively to find out the reason why such statement is made and make him happy
Any talks happening on Social Web is a lead for Customer Service, Sales or Marketing

SIMPLIFY360

Talks on Social Media are important as it affects public sentiment towards a brand or company
It is always good to know if anything significant talk is happening about company or competition Engagement is the key
InRev Systems 2011

Start Using Simplify360 Today

For Details, Visit http://simplify360.com/ http://simplify360.com/blog/ http://www.facebook.com/simplify360 @simplify360

InRev Systems (2011)

Or Send a Mail to david@in-rev.com VP - Sales, InRev Systems