Retail Industry with

reference to India

By Yogesh Kende
Yogesh.kende@gmail.com
 Introduction
Retail: Derived from the French word “retailer” means To cut off a piece or to
break bulk.

Retailer: Defined as a dealer or trader who sells goods in small quantities, or

one who repeats or relates.

Retailing: The last stage in movement of goods or services to the consumer.

Retailing can thus be defined as consisting of all such activities involved in the
marketing of goods and services directly to the consumers for their personal,
family or household use.

•Retail comes from the French word retailer which refers to "cutting off, clip
and divide" in terms of tailoring (1365).
•It first was recorded as a noun with the meaning of a "sale in small quantities"
in 1433 (French).
 Basic concept of retailing

• Retailing is the set of business activity that adds value to the product and services sold to
consumers for their personal or family use
• Retailing - the last link in the Supply Chain
• Desired Product - Desired Sizes - Desired Times.
• Retailing covers diverse products such as foot apparels, consumer goods, financial
services,Jewellery, etc.
• Retailing involves selling many different products and services, either from a store location or in
direct selling through vending machines and in-home presentations, mail order, and so on.
• First retailers in India include BATA, Pantaloon, Bombay Dyeing. The current Retail scenario is
controlled by the likes of shoppers stop, Big Bazaars.
 Functions of a retailer

• From customers point of view, retailer serves by providing goods that he needs in
the required assortment and at the right place and time.

• From an economic standpoint the role of a retailer is to provide real added value
or utility to the customer.

This comes from five different perspectives

1. First utility arises from the need of providing a finished goods and services in the
form that is acceptable to the customer
2. The retailer performs the function of storing the goods, and providing us with an
assortment of products in various categories
3. The retailer creates time utility by keeping the store open when the consumers
prefer to shop
4. By being available at a convenient location he creates place utility
5. Finally when he products are sold ownership utility is created
 Contd…

All these are real benefits which the Retailer offers by

1. Being close to potential customers

2. Fully understanding the motivating factors that drive their customers
3. By serving the consumers by way of functioning as a marketing intermediary and
creating time, place and ownership utility

The Retailer also serves the manufacturers by

1. Performing the function of distributing the goods to the end users

2. Creating a channel of information from manufacturer to the consumer
3. By serving as a final link in the distribution chain
4. Recommending products where brand loyalty is not strong or for unbranded
products.
The Retailer’s Role in the Sorting
Process (link to Mkt. Mix)
 Special Characteristics Affecting
Retailers

Small average sale Impulse Purchase

Retailer’s Strategy

Popularity of stores
 Porter’s Five Force Model

Threat of Entry

Supplier Power Rivalry Buyer Power

Threat of Substitutes
8
 Threat for New Entrants

Factors Organized Un-organized

Economies of Scale High Low
Capital Requirement High Low
Cost Advantage High Low
Differentiation Low Low
Expected Retaliation from Low High
existing firms
Industry status High Low
Tax and Licensing High Low
Cost of Real Estate High Low

9
 Bargaining Power of Suppliers
Factors Organized Un-organized
Low Supplier Concentration Low Low
Differentiation Low Low
Switching costs High Low
Forward Integration High Low
Retail Industry an Important Low High
Buyer
Suppliers’ product not an Low Low
important input for the buyer’s
business
Space Availability Low Low

10
Bargaining power of buyers

Factors Organized Un-organized

Quality Conscious low High
Price Sensitivity High Low

11
 Threat of Substitutes

Factors Organized Un-organized

Product-for-product Low Low

Substitution
Substitution of Need High Low
Generic Substitution Low Low

12
 Rivalry among existing competitors

• Brand loyalty rather than store loyalty

• Organized retail v/s Organized retail e.g. Big Bazaar "Is se
Sasta aur accha kahin nahin"

• Unorganized retail v/s Unorganized retail

• Organized v/s Unorganized retail
• Supermarket retail chains sell quality products offered at
substantial low price as compared to the mom and popshops.

13
 Organized : Retail
Sector
High

New Entrants

Low Low

Low Buyers Power

Suppliers Power Rivalry

Low

Substitutes

14
 Unorganized : Retail
Sector Low

New Entrants

Low High

High Buyers Power

Suppliers Power Rivalry

Low

Substitutes

15
 Internal
• Retaining qualified
manpower
• Implementing SOP’s & best
practices
• Focus on improving
operational efficiency
• Cost control
External
• High real estate cost
• Anarchic laws
• Shortage of qualified
manpower
• Unorganized & poor supply
chain

• CRM & Service levels

16
Impact of slowdown

Source: in.kpmg.com
Impact of slowdown on key parameters
Strategies to help cope with the
recession
Contd…
 Some of our thoughts on future
outlook and
how it may impact behavior in retail
sector are
as follows:
Contd…
Industry Wise Impact
Organized retail penetration gap
created by slowdown
Disappointing Footfalls
Margin contraction- Interest burden
adversely impacts profits
“The slowdown and delay in development of quality
malls have hindered our expansion plans to a large
extent.” -- Amit Kumar, Head, Retail,
Fashion@bigbazaar
 Mistakes by retailers have also added
to external troubles
• Crowding in unattractive locations
• Inability to compete with traditional retail
• Over reliance on debt
Real Estate Costs
Revenue Sharing Model
 Entering into alliances and leveraging
expertise

Retailers can also consider entering into an alliance with:

1.A retailer from the same channel

2.A retailer from a different channel
3.Vendors
4.Back-end service providers like third party logistics players and IT service
providers
Contd…
 Retail Industry : Updates
2010

Source:http://www.indiainbusiness.nic.in/industry-infrastructure/service-
sectors/retailing.htm
 The remarkable world of retail

• Retail is currently the biggest industry in the

world with sales of $7.2 trillion

• Every 10th billionaire in the world is a retailer.

 Indian retail sector

• The Indian retail market is a Rs. 9,00,000 crore industry and

is growing at a rate of 8.5% pa.

• The Indian Retail sector is very unorganized, fragmented

and with a rural bias.
 RETAILING - Overview

• The attitudinal shift of the Indian consumer in terms of "Choice Preference", "Value for Money"
and the emergence of organized retail formats have transformed the face of Retailing in India.
With a growth over 20 percent per annum over the last 5 years, organized retailing is projected
to reach US$ 23 Billion by 2010.

• The Indian retail industry though predominantly fragmented through the owner -run " Mom and
Pop outlets" has been witnessing the emergence of a few medium sized Indian Retail chains,
namely Pantaloon Retail, RPG Retail, Shoppers Stop, Westside (Tata Group) and Lifestyle
International.

• Given the attractiveness of the Indian retail sector, foreign retailers like Wal-Mart, Carrefour SA,
Europe's largest retailer and Tesco Plc, the UK's largest retailer, were keen to enter this growing
market, despite the Indian retail sector being closed to foreign direct investment (FDI).

• In the last few years, Indians have gone through a dramatic transformation in lifestyle by
moving from traditional spending on food, groceries and clothing to lifestyle categories that
deliver better quality and taste. Modern retailing satisfies rising demand for such goods and
services with many players entering the bandwagon in an attempt to tap greater opportunities.
 The Growth Drivers

The Indian Retail growth can be attributed to the several factors including :

•Demography Dynamics: Approximately 60 per cent of Indian population below 30 years of age.

•Double Incomes: Increasing instances of Double Incomes in most families coupled with the rise
in spending power.

•Plastic Revolution: Increasing use of credit cards for categories relating to Apparel, Consumer
Durable Goods, Food and Grocery etc.

•Urbanization: increased urbanization has led to higher customer density areas thus enabling
retailers to use lesser number of stores to target the same number of customers. Aggregation
of demand that occurs due to urbanization helps a retailer in reaping the economies of scale.

•Covering distances has become easier: with increased automobile penetration and an overall
improvement in the transportation infrastructure, covering distances has become easier than
before. Now a customer can travel miles to reach a particular shop, if he or she sees value in
shopping from a particular location.
 Technology in Retail

Over the years as the consumer demand increased and the retailers geared up to meet this
increase, technology evolved rapidly to support this growth. The hardware and software
tools that have now become almost essential for retailing can be into 3 broad categories.

Customer Interfacing Systems

1.Bar Coding and Scanners - Point of sale systems use scanners and bar coding to identify
an item, use pre-stored data to calculate the cost and generate the total bill for a client.
Tunnel Scanning is a new concept where the consumer pushes the full shopping cart
through an electronic gate to the point of sale. In a matter of seconds, the items in the cart
are hit with laser beams and scanned. All that the consumer has to do is to pay for the
goods.

2.Payment - Payment through credit cards has become quite widespread and this enables a
fast and easy payment process. Electronic cheque conversion, a recent development in this
area, processes a cheque electronically by transmitting transaction information to the
retailer and consumer's bank. Rather than manually process a cheque, the retailer voids it
and hands it back to the consumer along with a receipt, having digitally captured and stored
the image of the cheque, which makes the process very fast.
 Contd…

3. Internet
Internet is also rapidly evolving as a customer interface, removing the need of a consumer
physically visiting the store.

Operation Support Systems

1. ERP System
Various ERP vendors have developed retail-specific systems which help in integrating all the
functions from warehousing to distribution, front and back office store systems and merchandising.
An integrated supply chain helps the retailer in maintaining his stocks, getting his supplies on time,
preventing stock-outs and thus reducing his costs, while servicing the customer better.

2. CRM Systems
The rise of loyalty programs, mail order and the Internet has provided retailers with real access to
consumer data. Data warehousing & mining technologies offers retailers the tools they need to
make sense of their consumer data and apply it to business. This, along with the various available
CRM (Customer Relationship Management) Systems, allows the retailers to study the purchase
behavior of consumers in detail and grow the value of individual consumers to their businesses.
 Contd…

3. Advanced Planning and Scheduling Systems

APS systems can provide improved control across the supply chain, all the way from raw
material suppliers right through to the retail shelf. These APS packages complement
existing (but often limited) ERP packages. They enable consolidation of activities such as
long term budgeting, monthly forecasting, weekly factory scheduling and daily
distribution scheduling into one overall planning process using a single set of data.

Leading manufactures, distributors and retailers and considering APS packages such as
those from i2, Manugistics, Bann, MerciaLincs and Stirling-Douglas.

Strategic Decision Support Systems

1. Store Site Location

Demographics and buying patterns of residents of an area can be used to compare
various possible sites for opening new stores. Today, software packages are helping
retailers not only in their location decisions but in decisions regarding store sizing and
floor-spaces as well.
 Contd…

2. Visual Merchandising
The decision on how to place & stack items in a store is no more taken on the
gut feel of the store manager. A larger number of visual merchandising
tools are available to him to evaluate the impact of his stacking options.
The SPACEMAN Store Suit from AC Neilsen and ModaCAD are example of
products helping in modeling a retail store design.
 Investment Opportunities

• Potential For Investment: The total estimated Investment Opportunity in the retail sector is
around US$ 5-6 Billion in the Next five years.

• Location: with modern retail formats having made their foray into the top cities namely
Hyderabad, Coimbatore, Ahmedabad, Mumbai, Pune, Chennai, Bangalore, Delhi, Nagpur
there exists tremendous potential in two tier towns over the next 5 years.
• Sectors with High Growth Potential: Certain segments that promise a high growth are

– Food and Grocery

– Clothing

– Furniture and Fixtures

– Pharmacy

– Durables, Footwear & Leather, Watch & Jewellery

 Contd…

• Fastest Growing Formats: Some of the formats that offer good growth potential are:
– Specialty and Super Market
– Hyper Market
– Discount stores
– Department Stores
– Convenience Stores and E-Retailing

• Supply Chain Infrastructure: Supply chain infrastructure in terms of cold chain and Logistics.

• Rural Retail: Retail sector offers opportunities for exploration and investment in rural areas,
with Corporates and Entrepreneurs having made a foray in the past. India's largely rural
population has caught the eye of retailers looking for new areas of growth.

• Wholesale Trading: wholesale trading also holds huge potential for growth. German giant
Metro AG and South African Shoprite Holdings have already made headway in this segment
by setting up stores selling merchandise on a wholesale basis in Bangalore and Mumbai
respectively.
 Major Formats of In-Store Retailing
Format Description
Branded Exclusive showrooms either
Stores owned or franchised out by a
manufacturer.
Specialty Focus on a specific consumer
Stores need, carry most of the brands
available
Department Large stores having a wide
Stores variety of products, organized
into different departments such
as clothing, house wares,
furniture, appliances, toys, etc.
Supermarkets Extremely large self-service
retail outlets
The Value Proposition
Complete range available for a
given brand, certified product
quality
Greater choice to the
consumer, comparison between
brands is possible
One stop shop catering to
varied/ consumer needs.
One stop shop catering to
varied consumer needs
 Contd…

Discount Stores offering discounts on Low Prices

Stores the retail price through
selling high volumes and
reaping economies of scale

Hyper- mart Larger than a supermarket, Low prices, vast choice

sometimes with a warehouse available including services
appearance, generally such as cafeterias.
located in quieter parts of the
city

Convenience Small self-service formats Convenient location and

stores located in crowded urban extended operating hours.
areas.
Shopping An enclosure having different Variety of shops available to
Malls formats of in-store retailers, each other.
all under one roof.
Retailing Reality with reference
to India

Source: Cushman & Wakefield

Research
Commercial Submarket
 Change in Retail Real-estate Rentals
NCR Khan Market 855 -34%
South Extention I & II 562 -40%
Karol Bagh 270 -39%
Cannaught Place(Inner Circle) 540 -28%
Mumbai LinkingRoad 495 -61%
KempsCorner / Breach Candy 360 -60%
Colaba Causeway 337 63%
Lokhandwala / Andheri 270 23%
Chennai NungambakkamHigh Road 90 -28%
Khader Nawaz Road 135 -25%
Adyar Main Road 90 -33%
Kolkata Park Street 225 -9%
Camac Street 225 -9%
Elgin Road 180 -18%
Hyderabad JublieeHills 135 -35%
Banjara Hills 135 -40%
MGRoad 90 -27%
Bangalore MGRoad 180 -25%
BrigadeRoad 360 0%
Jayanagar, 4th block 180 -23%
Ahmedabad CGRoad 90 -42%
LawGarden 45 -46%
SarkegGandhinagar Highway 45 -41%
Pune MGRoad 180 -43%
Koregaon Park 135 -33%
 Change in Retail Real-estate Rentals- Malls
Rental:Q3(2009)--
%ChangeinRental
Cities Location:PrimeMainStreet Netof CarpetArea
(1year ago)
(Inr/sq.ft)
NCR Naida 270 -33%
Gurgaon 225 -36%
SouthDelhi 405 -32%
WestDelhi 225 -44%
Mumbai Lower Parel 450 31%
Goregaon 270 -49%
Ghatkopar 225 -37%
Chennai Chennai Central 180 -28%
Chennai Western 135 -26%
Chennai South 90 -
Kolkata SouthKolkata 225 -40%
SaltLake 360 -20%
Rajarhat 90 -47%
ElginRoad 247 -34%
Hyderabad NTRGardens 90 -29%
Him ayathnagar 90 -36%
BanjaraHills(RoadNo1) 135 -41%
Bangalore Koram angla 360 -18%
MagrathRoad 292 -14%
CunninghamRoad 180 -11%
Vittal MallyaRaod 315 -7%
Ahmedabad Vastrapur 90 -53%
SGHighway 45 -61%
Drive-in-Road 45 -37%
Pune MGRoad 270 -29%
Bundgarden 180 -38%
GaneshKhindRoad 112 -33%
Main consideration for creating a
successful Mall – Stage by Stage
analysis
Contd…
Mall Supply at PAN India Level
Current distribution of Mall space by
City Type
Break up of Mall space by format by
2013 - 2014
Additional Mall Space Requirement by
2013 - 2014
India: Consumption
 Size of Consumption in India
GDP US$ 1,161 Billion

Private Consumption Public Spending & investment

US$ 680 Billion – 59% US$ 481 Billion – 41%

Retail Non Retail

US$ 435 Billion – US$ 245 Billion –
64% 36%

Urban Rural
US$ 201 Billion – US$ 234 Billion –
46% 54%

Organised Retail
Organised Retail
US$ 21 Billion – 64%
Negligible
-10% of Urban
 India: Consumer Spending, 2009
S.No Consumer Spending (excluding Size in 2009 Size in 2014 Likely
institutional and govt. (in US$ (in US$ Ranking in
spending) billion) billion) 2014

1 Food and Grocery 260 325 1

2 Healthcare 34 55 2
3 Apparel and home textiles 32 43 4
4 Education (K-12, Higher education & 28 45 3
vocational
5 Telecom 25 41 5
6 Jewellery & Watches 25 34 7
7 Personal transport (vehicles + fuel + 240 37 6
repairs)
8 Travel and leisure 12 20 8
9 Consumer durables and IT Products 11 17 9
10 Home (furniture, furnishing etc.) 10 15 10
11 Personal care 10 14 11
12 Eating out 5 7 12
13 Footwear 4 5 13
14 Health and beauty services 1 2 14
 Categories of
1991 2009Consumption 2015
1. Food and Grocery 1. Food and Grocery 1. Food and Grocery
2. Clothing 2. Clothing 2. Clothing
3. Footwear 3. Footwear 3. Footwear
4. Consumer Durables 4. Consumer Durables 4. Consumer Durables
5. Home Linen 5. Expenditure on DVD and 5. Expenditure on DVD and
6. Movies and Theatre VCD's VCD's
7. Eating Out 6. Home Linen 6. Home Linen
7. Home Accessories 7. Home Accessories
8. Accessories 8. Gifts
9. Gifts 9. Take-away/RTE meals
10. Take-away/RTE meals 10. Movies and Theatre
11. Movies and Theatre 11. Eating Out
12. Eating Out 12. Entertainment Parks
13. Entertainment Parks 13. Mobile Phone and Services
14. Mobile Phone and Services 14. Household Help
15. Household Help 15. Travel Packages
16. Travel Packages 16. Club Membership
17. Club Membership 17. Computer Peripherals and
18. Computer Peripherals and Internet
Internet 18. Beauty and Spa
19. Personal Transport 19. Gaming
20. Personal Transport
21. Coaching/Training/
Learning
Size and Scale of Modern Retail

60
0
50
0
40
0
30
0
20
0
10
0
200 200 201
5 9 4
Total Retail
Organised Retail
Sales
GDP US$ 1,161 Billion

• Next (Videocon)
• The Mobile Store (Essar)
• Apollo Pharmacy, Guardian Lifecare, Medplus
• Tanishq, Gitanjali (jewellery)
• Reebok, Nike, Adidas (footwear, clothing and accessories), Esprit, Tommy Hilfiger, Raymond and
many others
• Welhome, Roseby's (Home furnishings)
• Fabindia
• Ethos (watches)
• Carplus (car accessories)
• Landmark (bookss, music and gifts)
• Carnation (car repairs and servicing)
• Mom & Me (Mahindra & Mahindra), Mothercare (mother and child)
• Brands' own stores (LG, Sony, Samsung; tiles/paints/home hardware companies etc.)
 Off-beat Jobs in India
Event Management 22%
SFX and computer graphics 18%
Wellness Management 15%
Content Writer 15%
Cell-phone games programmer 11%
Tour management 11%
Bartender 4%
DJ 4%
 Off-beat Jobs in India
High sense of responsibility 89%
More trustworthy 81%
Can handle pressure 80%
Tidy and methodical 77%
Meet deadlines 76%
Can analyse effectively 75%
Can multitask 75%
Maintain harmony 68%
Good communicators 61%
Fast learners 61%
 Size and Scale of Modern Retail
Category Contribution of Organised
Retail to Total Sale
Refined edible oil 9%
Beverages 8%
Packaged atta 8%
Washing powders 7%
Shampoo 7%
Skin creams 6%
Packaged tea 5%
Chocolate 5%
Toilet soaps 4%
Biscuits 3%
Other 5%
All India 5%
 Companies with high Focus on Franchisee Stores
Companies Total No. of Company- Franchised %age of stores
Stores owned Stores Stores Franchised
KidZee 697 - 697 100%
Adidas 500 - 500 100%
Raymond’s 453 - 453 100%
Domino’s Pizza 270 - 270 100%
McDonald’s 160 - 160 100%
Baskin Robbins 300 10 290 97%
World of Titan 274 10 264 96%
Koutons Retail 1400 59 1341 96%
Liberty 570 70 500 88%
Reebok 50 150 700 82%
Archies 550 100 450 82%
Khadim’s 481 150 331 69%
Numero Uno 120 55 65 54%
Subway 145 69 76 52%
 Population by Income Class

Luxurieted [>USD 100K] 3.7 13%

Future Potential [USD>50K] 21.5
15%
Other [<USD 50K]

1178
1.8 2
10.
9.3 1%
7
CAGR 2007-
13 1104 1104

200 200
2013E
7 8
 Size and Scale of Modern Retail
Brand Year of Entry Current No. of Stores

Mont Blanc 1995 16

Tag Heuer 2003 9
Canali 2004 5
Salvatore Ferragamo 2005 5

Hugo Boss 2003 3

Fendi 2003 2
Moschino 2005 2
Versace 2006 2
Gucci 2007 2
 Public-Private Partnership
Options
Player Segment Products
Hindustan Unilever Beverages, staples, Dairy, Tea, Instant coffee, biscuits, ice creams, salt, w
Limited (HUL) Snack Foods flour (atta), instant drinks, soups, jam and squa
Dairy, Beverages and Snack Instant coffee, condensed milk,dairy whitener,
Nestle India Pvt. Ltd.
Foods infant food, choco-lates and confectioneries
Wheat f;our (atta), salt, ready-to-eat meals,
ITC Ltd. Staples and Snack Foods
biscuits, confectioneries, snacks and cooking p
Pepsico Beverages and Snack Foods Fruit Juices, cereals, snack foods, dairy derivati
Beverages and Culinary Fruit juice, cooking pastes, coconut milk, tomat
Dabur India Ltd.
Products puree, lemon drink, chilli powder and honey
Chocolates, hard-boiled confectionery, maltfoo
Cadbury India Ltd. Confectionery
cocoa and papads
Sweets, namkeens, syrups, crushes, chips and
Haldiram Marketing Pvt. Snack
Ltd. Foods
papads
Biscuits, flavoured milk, dairy whitener, ghee,
Britannia Industries Ltd.Bakery Products
bread, cake and rusks
Edible oils, vanaspati, bakery fats, fruit drinks,
Godrej Industries Ltd. Beverages And Staples
nectar, fruit juices and tomato puree
Beverages, Bottled Water and
Parle Agro Private Ltd.
Snack Foods
 Outlook for the Food and grocery
•The food and grocery market will continue to grow at a real
Market
growth rate of~4.1 per cent in the next 5 years
• Organized F&G will grow from – Us$ 3 billion in 2008 to – US$
19 billion by 2014 at a CAGR of 33 per cent
• F&G retail is dominated by the unorganized sector, with – 98
per cent of the market being local kirana stores
• Packaged food is 4 per cent of the F&G market. RTE/ frozen
food share is less than 1 per cent of the packaged food market at
US$ 64 million
• 2,800 organized retail outlets catered to F&G in 2008. The bulk
of these are supermarkets (87 per cent) followed by hypermarkets
(13 per cent)
• Total organized F&G space was – 20 million sq.ft. in 2009, of
which 60 percent were hypermarkets and 37 percent supermarkets
• Between 2004 and 2008, the number of outlets grew by 68 per
cent CAGR< while space grew by 70 per cent CAGR
• The key decision-maker for food and grocery shopping for the
household still remains the housewife in95 per cent of all cases

Key implications: Supermarkets/ hypermarkets and Cash

& Carry formats will fuel F&G organized retail in India. Larger
formats like cash & Carry and Hypermarkets can be
significant sales contributors for the frozen food
 The New Price-Fashion Continuum

High High
r o po Ralph
ZA Ae le Lauren
a
H& RA st Lizclaiborne Loyal
Fashionability

Fashionability
a lue lers
r im M Brands V t ai Loyal
P Re Brands
ark

Price Price
Wal Mart
Warriors Tesc Warriors
o

Low Price Low Price

High High
Index Index
 -
10%
10%
30%
Wal-Mart
Tesco Price
TJX Warriors
Companies
Ross Stores
Inditex
H&M
Fast Retailing
Value

Primark (UK)
Retailers

New Look
Aeropostale
The Buckle
Gap
Limited Brands
Nordstrom
VF
Dillard’s
Polo Ralph Lauren
Shimamura
Brands
Sales Growth of the Top Retailers

Lizclaiborne

Abercrombie & Fitch

American Eagle
Urban Outfitters
Columbia Sportswear
Enrolment of Women in Different Faculties

Faculty/ Year
 Type of Activity of Usually Employed
Urban Women

10
0 (All figures in %)
26.6 3.5 35.9
80
1.5 Other services
9.1 1.3 1.4 Transport &
60 `
3.1 10.0 12.2 communication
`4.1 Trade, hotel & restaurants
`
3.8
26.7 ` Construction
40 24.7
28.2 Manufacturing
Agriculture
20
31.0 24.7 18.1
0 1983- 1993- 2004-
84 94 05
 Women in the Workforce

5mn = 7-10mn =
Organised Organised
female female
workforce(4 workforce(4.
%) 6%)
168mn = Female
127mn = Female working
working opulation(32%) opulation(35%)

402mn = Working population (39%) 480mn = Working population (40%)

1029mn = Total Indian Population 1200mn = Total Indian Population

2001 2009
 Outlook for the Food and grocery
Market
350

300

250

200
billion
US$

150

100 195 216 237 266 277 288 298 307 316 326

50

0 2009 2010 2011 2012 2013 2014

2005 2006 2007 2008
P P P P P P
Traditional or
Organised
Organised
 Best Practices to Support
Women at Work
14% Surveys (Internal and external)

27% Creche for kids parenting workshops

25% Women’s forum

23% Women’s lounge/recreation

18% Round tables across groups/regular communication

50
Health & wellness awareness program
%
Anti-sexual harassment policy 68%

Transportation policy 55%

Flexible work schedules/ hour 68%

Flexible leave policy 64%

18% Team management

0 10 20 30 40 50 60 70 80
Incidence of Vocational Training

2 1
4
(All figures in %)

No vocational training
Received formal vocational
training
Received informal vocational
93 training
Receiving formal vocational
training
 Education Profile of Indian
Population
8
0
7
0
5
5
3
5
2
0
6 6

Graduatio Completed Completed Completed Completed Completed All

n & above Diploma Higher Secondary Middle Primary Literates
Secondary
Incidence of Vocational Education and Training:
Difference in Urban and Rural India

7
6

3 3
Total
2
2 Urban
1 2
Rural
0.6

15-19 20-24 25-29

years years years
 Sales Growth of the Top Retailers
Infrastructure,
Land Funding
Operations
Private Player
Government Private Player Alumni
Donors

Salient Features Opportunity Investments

•Land made available by
Government
•Same stature as Harvard /
Kellogg
•Focus on research and
development
•Create funding through corpus
and endowment
•Brand-building for generations
•Imparting international standard
high-quality education
•Create institution to attract
talent and location of business
•Land: 500-700 acres
•Number of graduates:
15,000-17,000 by end of 10 years
•Funding through corpus built by
corporate donors and investors
•Capex (excluding land):
US$ 312 million
 Roadblocks to retail development

• In India, organized retail is a little over a decade old

• It is largely an urban phenomenon
• However the pace of growth is still slow

Reasons for slow growth in retail -

1. Retail not being recognized as an industry in India -

o Hampering the availability of finance to existing and new players
o Hence affecting growth and expansion plans

2. High costs of real estate -

o Lease or rent of property is major area of expenditure
o This eats into the profitability of a project
 Contd…

3. Lack of adequate infrastructure -

Poor roads, lack of cold chain infrastructure
Existing supermarkets and food retailers have to invest substantially in building
cold chain infrastructure

4. Multiple and complex taxation system -

Sales tax rates vary from State to State
Organized players have to face multiple point control and tax system
Tax evasion by small stores
Hence it becomes expensive to transfer goods from one store to another

5. Foreign direct investment -

FDI in pure retailing is not permitted
One of the prime reason for slow growth of retail in India
Global retailer can enter only by way of a franchise with Indian partner or
through technological alliances
 Road Ahead; Plans of Large Retailers

• Reliance Retail: investing Rs. 30,000 crore ($6.67 billion) in setting up multiple retail formats with
expected sales of Rs. 90,000 crore plus ($20 billion) by 2009-10.

• Pantaloon Retail: Will occupy 10 mn sq.ft retail space and achieve Rs.9,000 crore-plus ($2 bn)
sales by 2008.

• RPG: Planning IPO, will have 450-plus Music World, 50-plus Spencer's Hyper covering 4 mn sq.ft
by 2010.

• LIFESTYLE :Investing Rs.400 crore-plus ($90 mn) in next five years on Max Hypermarkets & value
retail stores, home and lifestyle centres.

• Raheja's: Operates Shoppers' Stop, Crossword, Inorbit Mall, and 'Home Stop' formats. Will operate
55 "Hypercity" hypermarkets with US$100 million sales across India by 2015.

• Piramyd Retail: Aiming to occupy 1.75 million sq.ft retail space through 150 stores in next five
years.

• TATA (Trent Ltd.): Trent to open 27 more stores across its retail formats adding 1 mn sq.ft of
space in the next 12 DLF malls. Titan industries to add 50-plus Titan and Tanishq stores in 2006.
Thank you