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The India retail market is estimated at US$ 470 Bn in 2011, accounting for ~35% of GDP and is expected to grow to US$ 675 Bn by 2016, @ CAGR of 7.5% The organized retail market is estimated at US$ 26 Bn and accounts for ~6% of the overall retail market for 2011. The organized retail market is projected to grow to US$ 84 Bn by 2016, @CAGR of 26% At 35%, Food & Grocery has the highest share of organized retail . Food & Grocery along with Apparel, Jewellery & Watches and Consumer Electronics & IT accounts for ~80% of the organized retail market in India in 2011. For the top 8 retail categories ~50% of the retail stores are present in top 25 cities
RELIANCE RETAIL
Entry through a tie-up with Sahakari Bhandar, Mumbai Its first foray into Organized Retail was in Nov 2006 with Reliance Fresh Reliance Fresh Reliance Fresh follows Farm-to-Fork Model It has items like fruits & vegetables, grocery, bakery, dairy, personal care etc.
Private label Reliance Select The store was successful in initial years but later was subjected to protests from local traders Reliance Fuel Ventured into retailing of fuel through franchised petrol bunks in 2006 Good quality product and services were offered
Reliance Digital Started in April 2007 Tie-up with Apple and opened iStores Tie-up with Reva electric car company Reconnect- Private label launched in Oct 2011 Competition from e-zone, Tatas Croma, Next stores Reliance Trends Specialty chain with Apparels, Luggage and accessories Offers International brands in lifestyle segment Own private labels and national brands in value segment
Reliance Footprint 20:80 Private label to other domestic and international brands Major Players-Bata, Woodlands, Reebok etc. Reliance Jewels Collection from Kolkata, Rajkot, Amritsar etc. Reliance Timeout Area of 21,000sft Offers books, toys, music etc. with an Instore Coffee shop Major Players- Future Groupss Depot, RPGs Books&Beyond and K Rahejas Crossword
Reliance Delight Non vegetarian retail outlet offering fresh fish and frozen meat Delivers margins up to 20% Less number of organized players Contributes to 10% of overall revenue to RRL Reliance Auto zone Engages in sales and service of accessories for two and four wheelers Typical store with 6500 s.ft space
Reliance Wellness Medicines in Allopathic, Homeopathy and Ayurveda Tie-up with ICICI Lombard for health insurance Competitors- Future Groups Fit and healthy, RPGs Health and glow Plans to achieve INR 6000Crore target by 2011
ITC RETAIL
CONTD
Awards provided the impetus for a new chain attempting to achieve its target audience
Retailer
of the year 2008 by Asian Retail Congress Best Supply Chain Practices 2006 by Retailers Association of India with ITWSignode
empowering
small and marginal farmers overcoming inhibitions of poor farming and risk taking
CONTD
ITCs agribusiness division, conceived EChoupal as a more back end integrated supply chain Also forayed into rural marketing mall called Choupal Sagar Spent Rs.4 crs on setting up and receives nearly Rs.3 crs per annum Plans to expand came to a halt due to financial crisis and economic slowdown
CONTD
Entry into urban markets with Choupal Fresh sourcing merchandise directly from farmers via EChoupal Started operations only in metros and plans to expand Emphasis on improving quality and productivity of domestic horticulture products through ITCs good agricultural practice Combine wholesale with retail Future groups Pantaloon retail entered into a strategic tie-up with Choupal Fresh for its Fresh and Pure section in Food Bazaar
Incorporated as apparel retailer Manz Wear Forayed into retailing mainstream in 1997 with its 8000 sq ft retail showroom Pantaloon launched big format retail centres like Big Bazaar and Central with 1500020000 and 200,000 sq ft space respectively. Named as Future Group in 2006 and its retail arm was renamed as Pantaloon Retail (India) Limited.
Pantaloon retail has presence in various sectors of retail in multiple formats Based on value for money psyche of indian middle class Turnover surged from Rs. 285.3 Cr in 2002 to Rs. 5048.9 Cr in 2008 PAT jumped from Rs. 7 Cr. To Rs. 126 Cr Market capitalization increased from 60 Cr to 3737.8 Cr.
ITC Model It does not have manufacturing facilities Instead outsources the production of all its merchandise Apparel designs are made in association with ADIG( American Design Intelligence Group), US based firm Hired its own set of designers 100% Outsourcing
Practices concepts like JIT Production, FTL(Full truck load) and RDC(Regional Distribution Centers) Replenishes stock within 24 hours in major markets and 48 hours all over India Strong presence comes from cottage and SMEs Notebooks outsourced from Tamil Nadu Agarbattis are made in association with Sri Aurobindo Ashram HACCP Certified(Hazard analysis and critical control points)
Future Group Model Value based volume business 98 Big bazaar outlets(2009), 214 ( As of June 2012)
Source: Wikipedia
Reseller that sources products in bulk Purchased 70% of Adhaar which will exploit rural retailing chances In-house brands- Koryo and Sensei Private labels are sourced from China It has centers in Hong Kong and China Backward integration helped in maintaining its bottom line Has its own supply chain arm, FLSL which also serves external business parties
Reliance Model Tie-up with ITC Choupal, Dole and Chiquito for supply of fruits and vegetables Rural sourcing hubs in WB, HP, Uttaranchal Source televisions from Videocon to introduce private labels For Reliance Wellness, deal with Cipla Tie up with 37 manufacturing partners for Jewellery To resolve supply chain issues, Reliance made a tie up with UK based supply chain major
Decrease in footfalls and reducing profits Three retailers planning to sell their private merchandise through Kirana Stores FDI in multi-brand retail may bring a new hope to the current scenario But, Only time would tell!!!