NCRDS STERLING INSTITUTE OF MANAGEMENT STUDIES PROJECT ON

RETAIL INDUSTRY
PRESENTED BY PROF. SHIRISH BHAKARE PRESENTED BY EDWIN D'SOUZA (A-11) SHAILESH JADHAV (A-23) SWARADA KHAIRE(A-35) MAHESH MUTKULE (A-47) PRANAV SHINDE (A-59)

RETAIL INDUSTRY

Retail is the sale of goods and services from individuals or businesses to the end-user Retailers are part of an integrated system called the supply chain A retailer purchases goods or products in large quantities from manufacturers directly or through a wholesaler, and then sells smaller quantities to the consumer for a profit Retail Industry can be classified into 2 broad categories: (a) Unorganized Retail (b) Organized Retail
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MARKET SIZE
The present value of the Indian retail market is estimated by the India Retail Report to be around $500 billion 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 present in India & the Annual Growth Rate is 5.7 percent Furthermore around 15 million retail outlets help India win the crown of having the highest retail outlet density in the world

According to the Global Retail Development Index 2012, India ranks fifth among the top 30 emerging markets for retail
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UNORGANIZED / TRADITIONAL RETAIL FORMATS

FORMAT
Counter Stores

DEFINITION
Family Run Stores, Selling Essential Food Items Pavement Stalls Selling Limited Items Retailers Selling Foods Items as well as Other Products

VALUE POSITION
High Service, Low Price High Service

EXAMPLE
Kirana Stores

Kiosks

Paan Shops

Street Vendors

High Service

Vegetable Vendors

ORGANIZED RETAIL FORMATS

FORMAT
Super Markets Department Stores Discount Stores Hyper Markets

DEFINITION
Food & Household Products Multiple Product Categories Stores Selling Branded Products at Lower Price

VALUE POSITION
Convenience & Price Service & Choice Price & Choice

EXAMPLE
Subhiksha, More Shoppers Stop Mega Mart, The Loot Spencer, HyperCity Vijay Sales, Bata, Tanishq
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Big Department Stores Price, having wide Product Range Convenience, from Food to Electronics Range & Quality Extensive Range of Products within Single Category Service

Specialty Stores

GROWTH RATES

Growth Rate (In $Billions)

700

600
500 400 300 200 100 0 2008 2009 2010 2011 2012 2013
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KEY PLAYERS

Big Bazaar Central Pantaloons Home Town eZone

West Side Croma Star Bazaar Landmark Fashion Yatra

Reliance Trends Reliance Fresh Reliance Digital Reliance TimeOut

FUTURE GROUP

TATA GROUP

RELIANCE GROUP

RETAIL INDUSTRY VALUE CHAIN

Partnering with Vendor Buying Managing Inventory Distributing Inventory Operating Stores Marketing & Selling

TASK OF THE RETAIL SECTOR IN THE VALUE CHAIN

Continuously measure Consumer Expectations and Satisfactions Develop Quality Food Based on Consumer needs Purchase Food from Reliable Sources and control it Present Quality Foods in safe environment to the Consumers
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COMPETITORS ANALYSIS

CUSTOMER BUYING KEY FACTORS

Low Prices

Convenient Location Wide range of products adapted to local preferences Fresh/Quality Products Good Service

ENTRY & EXIT BARRIERS

ENTRY BARRIERS
Customer Loyalty Government Regulations Distributor Agreements Switching Barriers Tariffs & Advertising Inelastic Demand

EXIT BARRIERS
Closure Costs The Loss of Business Reputation & Consumer Goodwill A Market Downturn

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SUPPLIER ANALYSIS (PORTERS 5 FORCES MODEL)

Supplier Concentration Importance of Volume Forward Integration

THREATS TO NEW ENTRANTS

Switching Cost Access to Distribution Channel Government Policy Cost Disadvantage

BARGAINING POWER OF SUPPLIERS

Availability & Performance of Substitutes Ability of Buyer to Substitute Switching Cost Incurred by Buyers

INTENSITY OF RIVALRY (Rivalry Among Firms)

BARGAINING POWER OF BUYERS

THREAT OF SUBSTITUTES

Buyer to Supplier Ratio Buyers Purchase Volume Backward Integration 11

SHOPPERS STOP
SS is one of Indias prominent retailers and is a part of the K Raheja Corp Group (Chandru L Raheja Group), which is among the prominent real estate developers and hoteliers in the country They retail a range of branded apparel, footwear, perfumes, cosmetics, jewellery, leather products, accessories, home products, electronics, books, music and toys in their stores. They also retail their own private label apparel, footwear, fashion jewellery, leather products, accessories and home products

Vision
To be a global retailer in India and maintain its No.1 position in the Indian market in the Department Store category

Mission
NOTHING BUT THE BEST
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CORPORATE STRUCTURE
Annual Growth Rate of Shoppers Stop is 17% in Retail Industry

Market Share of Departmental Stores in Retail Industry

19% 40% 22%

Shoppers Stop Pantaloons

Lifestyle
Central Others
11% 8% 13

PRODUCTS & BRANDS

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SWOT ANALYSIS
STRENGTHS
Different Brands Loyal Customer Good Financial Position Low Risk Presence across various Segments

WEAKNESSES
Very High Prices Less Schemes Less Discounts (10% to 20%) Competition from Standalone Stores Store Makeover Expenditure

OPPORTUNITIES
Awareness about the Brands
Quality Enter New Consumer Goods Segments Higher Disposable Income

THREATS
Government Policies
Entry of Foreign Players High Attrition Independent Stores
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SEGMENTATION

Division of the total market into smaller, relatively homogeneous groups

The company is dealing with Consumer Products - goods or services purchased by an ultimate consumer for personal use Shoppers Stop targets high Standard Living Customers

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TARGETING

The Shoppers Stop concentrates on serving many needs of a particular customer group and in this way the Shopper Stop aims to gain a strong reputation in serving their customers, who belong to the middle and upper class Shoppers Stop gains strong reputation in serving this customer group and becomes a channel for additional product the customer group can use

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POSITIONING

Shopper Stop positions itself as a Global Premium Retailer Outlet Shoppers' Stop is positioned as a family store delivering a complete shopping experience

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OPERATIONS
Events Promotion Advertisement Loyalty Programme

Marketing
Mumbai DC

Stores

Consumer Demographics Design Development

Buying & Merchandising

Store Planning

Distribution & Logistics HR

Store Process

Vendors

Delhi DC Kolkata DC Bangalore DC

Stores Stores

Range Planning
Range Development Purchase Order to Vendors

Stores

Corporate Finance Legal IT

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SUPPLY ANALYSIS
Understanding the importance of distribution and logistics in ensuring that merchandise is available on the shop floors has led Shoppers Stop to streamline its supply chain The company has developed process manuals for each part of the logistics chain. These modules include vendor management, purchase order management, stock receiving systems, purchase verification and inventory buildup, fixing of price and store tags, dispatch of stocks to the retail floor and forwarding of bills for payment If we talk about various brands then the answer is that they have a direct tie ups with different companies and companies deliver all the needed products to their door-step means deliver all the goods to every shoppers stop showroom. But there are some companies which do not provide them these services so for those they have their own carrier
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FINANCIALS
Shoppers Stop was started in 1991 and in 2004-05 it got to sales of Rs. 500 Crores and PAT of Rs. 19 Crores In 2010-11 it had close to Rs. 2000 Crores of sales and Rs. 75 Crores of profit After its IPO the returns got by investors by holding SS till December 31st 2011 are (a) A Rs. 100 invested in Shoppers Stop for last 7 years would have grown to about Rs. 151 (b) A Rs.100 invested in NIFTY for last 7 years would have grown to about Rs. 230
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FUTURE SCOPE

The company intends to bring the world's best retail technology, retail practices and sales to India. To achieve the set target, they plan to expand their family by opening 4 new stores every year Today the manufacturer takes 1% as cost for transport which may or may not be the actually cost. Shoppers Stop tested a planned activity and concluded that there are definite cost advantages and the cost can be lowered to as low as 0.80% if done internally Planning to have at least 48 stores by 2011-2012 Partner with Foreign Players so as to expand Globally

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RECOMMENDATIONS
They should introduce more schemes, discounts, sales to increase the sales They should introduce Low rate Brands which will attract the middle class customers also or brands for masses Shoppers stops competitors used aggressive medium of advertisement like television commercial ads, thus to gain a competitive advantage over the competitors Shoppers Stop should also use such medium of marketing

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CONCLUSION
The Retail Industry in India has come forth as one of the most dynamic and fast paced industries with several players entering the market There is very huge potential for the growth of organized Retailing in India Government of India has also opened the door for the Multi brand retailers to enter into the markets Many foreign investors are also showing keen interest to enter into the Indian Market

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