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FOOD AND GROCERY RETAILING

Key Challenges in Food Retailing


DEMAND SIDE: Penchant for fresh/home-made and value consciousness Diversity of tastes and preferences Willingness to travel

SUPPLY SIDE: Sourcing base and efficiency Real estate availability and cost Manpower availability

Emerging trends in food retailing


Big becoming bigger Rise of organic foods and health and wellness segment Increasing focus on private labels

Scope for innovation in food retail


Innovation on Retail format - Players can innovate on formats in different ways : by targeting specific customer segments and serving their needs better e.g. working women, single office goers, etc by changing the product mix e.g. entirely private label stores, exclusively fresh produce stores by offering new forms of convenience and wider range to the customer e.g. teleretail and internet retail

Technological Innovations - Employing cutting edge technology in retail could prove to be the source of competitive advantage for retailers. Self-scan checkouts have the potential of both reducing check-out time manpower cost for the retailer Using RFID tags can help track and reduce in-store inventory management costs and give retailers better insights into customer in-store movement patterns Web-enabled POS systems, e-SCM systems, e-Procurement systems and warehouse management systems will enable food retailers in integrating the entire agri value chain leading to efficient procurement and supply chain management. Use of cutting edge analytics can bring insights into customer buying behaviour with implications on store layout, pricing and promotions.

There are various factors paving the way to revolutionizing food retailing in India. Among them few are:

Changing life styles and tastes Growing need for convenience Increasing disposable income Increasing numbers of working women Change in consumption patterns Higher aspirations among youth Impact of western lifestyle Plastic Revolution Increased use of credit cards and debit cards

UP-AND-COMING FOOD RETAIL FORMATS:

A. Neighbourhood Stores B. Supermarkets C. Hypermarkets

OPPORTUNITY IN FOOD & GROCERY


Consumers : Urban Middle Class continues to grow by 20-25 million annually, the population is predominantly young, better exposed to modern lifestyles, and harbours a preference for packaged food and beverages. This growing Indian Middle Class, especially the employed youth in the ITES, BPO and other Service sectors, have higher propensity to consume, which is further fuelled by easy availability of credit due to popularization of plastic cards. Retailers : More than 3,500 Food outlets and restaurants operational across tier-I & tier-II cities and Retail space of over 5 million sq.ft have come up for F&G supermarkets, department stores, hypermarkets and food catering outlets. 25 major F&G Retailers emerged in less than a year and Retail sales in the segment grew by nearly 150% over 2006!

OPPORTUNITY IN LOGISTICS
Logistics, Supply Chain : Improved logistics, warehousing, stateof-the-art technology and availability of quality processed and packaged food are factors that will boost the growth of organised F&G retail in India. Indian corporates like ITC, Godrej, DCM Shriram have initiated the process of direct supply linkages with the farm, Global major Metro AG was the first to introduce up-to-date knowhow logistics and supply chain management, Corporate major Reliance is investing heavily on this front, Wal-Mart too plans back-end operations with Bharti. Investments to the tune of USD 23.5 Billion in the food processing sector over the next three years is in the pipeline. This will undoubtedly create a huge demand for the food processing and packaging industry But keeping in view the vast farm sector and the surmounting demand for quality food products, there remains room for much more

OPPORTUNITY IN FOOD PROCESSING Nearly 80% of agricultural produce in developed countries gets processed and packaged. It is just about 1.3% in the case of India - a reason why less than 1% of the F&G retail segment is organised. Even the existing organised F&G Retailers are finding it difficult to keep their stacks full & fresh. This is just the right time for global firms to invest in the food processing sector, especially so when the government seems eager to boost rural/farm incomes. Marine Food Parks & Agricultural Special Economic Zones are already being worked out to ensure that farmers are not displaced.

STAR BAZAAR
chota budget lambi shopping

A TATA enterprise. All home and food needs available (staple foods, beverages, personal care products, fresh dairy products & durables, fresh vegetables and fruits, and household items) Neat storage and fresh vegetables All groceries arranged systematically

Guide to whats available where? 20-20 special Back to school offer Winter mega offers Various schemes and offers run on weekdays and weekends Multiple billing counters to save time. In house bakery Non veg in cold storge

STAR BAZAAR ADVANTAGE


One of the largest live bakeries in the city offering delicious cakes, pastries cookies, breads Multiple check out counters to make your shopping easier and faster High quality products made available at extremely low prices in the city

A wide range of private labelled apparels offering the best value to customers
Unparalleled and irresistible offers and discounts

Exclusive programs: 'Star Power Rewards Program (Rs. 500 or more)

Reliance Fresh
Growth through value creation

Fresh Cheap

Eg: Banjara hill outlets-sourced directly- vantimamdi, chevella, and nearby mandals in ranga reddy district. Recruiting People Underprivileged Community Biometric Cards Farmers Loans upto Rs. 15000 Training the farmer

Information centre: Increase productivity Market rates of different Corps Technical Help Quality of seeds and fertilizers

Product Range:
Vegetables and fruits House hold items Food and beverages All premiere brand + Private label Groceries only private label Dairy products Non veg food items Ready to eat items

Promotion:
Main idea make bulk purchase Discount scheme days Saturday and Sunday Reliance fresh membership card Reliance One

Pricing:
Low prized private labels Discount on bulk buying

Private Labels:
Maximum Space: Own Products

Less Space: Nestle Maggi, MTR Masala, Pepsi, Lays Chips.


Reasons: High Margin