Indian_Retail

World's eye on Indian Retail  And it’s crystal clear why the world’s eye on Indian retail The Indian retail industry is the fifth largest in the world. Comprising of organized and unorganized sectors, India retail industry is one of the fastest growing industries in India Though initially, the retail industry in India was mostly unorganized, however with the change of tastes and preferences of the consumers, the industry is getting more popular these days and getting organized as well. The retail industry in India is currently growing at a great pace and is expected to go up to US$ 833 billion by the year 2013. It is further expected to reach US$ 1.3 trillion by the year 2018 at a CAGR of 10%. As the country has got a high growth rates, the consumer spending has also gone up and is also expected to go up further in the future. In the last four year, the consumer spending in India climbed up to 75%. As a result, the India retail industry is expected to grow further in the future days. By the year 2013, the organized sector is also expected to grow at a CAGR of 40%. India has the youngest population in the world, with large population between 20-34 age groups in the urban regions boosting the demand. All these factors have tempted the foreign firms such as Walmart, Tesco and Carrefour to enter India. India is now firmly placed on the US and UK radars as US retailers are gradually realizing the potential of the retail and consumer goods sector. The timing is the most important source of competitive advantage for global and regional retailers in the globalization race. Knowing when to enter emerging retail markets is the key to success. AT Kearney's study on global retailing trends found that India is the least competitive as well as least saturated of all major global markets. This implies that there are significantly low entry barriers for players trying to setup base here, in terms of the competitive landscape. The report further stated that global retailers such as Walmart, Carrefour, Tesco and Casino would take advantage of the more favourable FDI rules that are likely in India and enter the country through partnerships with local retailers. Other retailers such as Marks & Spencer and the Benetton Group, who operate through a franchisee model, would most likely switch to a hybrid ownership structure. However, in order to achieve breakthrough growth the global retailers might have to face some glitches in India. High taxes, poor infrastructure, bureaucratic hurdles and high cost of real estate are some of the challenges that overseas retailers may have to tackle in the country. In present scenario Food ,Apparel  Category ,are growing Rapidly than other categories. Urban retailing Vs Rural retailing however More than half of retail market in India is in the rural areas (55%); although share of urban market is increasing by almost 5% every 8-10 years . rural India , Accommodating almost two-third of the country's consumers and generating almost half of the national income. the rural India offers tremendous opportunities for organized retailers which many companies have failed to access. According to the study conducted by NCEAR, the number of `lower middle income' group in rural areas is almost double as compared to the urban areas, having a large consuming class with 41% of the Indian middle class and 58% of the total disposable income. Itc choupalfresh , Hariyali kisan bazaar, Future groups ‘s Adhar are the main players in these .domain .these players offers all under one roof ,which is challenging in terms offering range price and in time Urban Retailing Following are the Main urban players in Retail Ground Future value retail limited  -one of the biggest retailers in India with more than 450 stores across the country. Headquartered in Mumbai,Main flagship brand of this group is Big Bazaar , Big Bazaar is a chain of hypermarket in India, which caters to every family’s needs and requirements. THIS KING OF Indian retail market is proudly, with tagline of Isse sasta aur Accha kahi nahi !!!This retail store is a subsidiary of Future group, Pantaloons Retail India Ltd. and is an answer to the United States’ Wal-Mart. Big Bazaar has released the doors for the fashion world, general merchandise like sports goods, cutlery, crockery, utensils, and home furnishings etc. at best economical prices. Big Bazaar group offers more than 150 stores all over the country with an amalgamation of Indian bazaars’ feel and touch with a convenience and choice of the modern retail facilities. The retail format of the Big Bazaar group includes Aadhar, Rural & Home-Town retail chain, Ezone home-improvement chain, sportswear retailer, depot and music chain is few among others. History of Big Bazaar The worldwide country chain, Big Bazaar, is formed by CEO of Future Group; Mr. Kishor Biyani.one must read Book written by biyani, It happened in India which tells story & growth of future group in Indian retail. The group do not promises more than what it delivers. Their basic attraction associated with reasonable prices is their Unique Selling Price. Though, the products Big Bazaar stores stocks might not be advanced, but the customers are assured to avail the worth of the money spent by them. In 2001, the group opened its first store on the VIP Road, Calcutta, which was the primary departmental store offering regulated services of parking, steel vessels, apparel, electronics etc under the one roof at the competitive prices. Big Bazaar has become a massive hit with lower middle-class and middle class people as a major client base. At present, the Future Group comprises various formats and brands like Pantaloons, F123, Copper Chimney, Etam, Staples, One Mobile, Urbana, Brand Factory, LootMart, HomeTown and Central. The Big Bazaar has several stores located all over the India, among that Chennai, Hyderabad, Ahmedabad, Bangalore, Kolkata, Pune, Mumbai and Delhi is those metro cities where the stores of Big Bazaars are located. Facilities offered by Big Bazaar * Online shopping: Big Bazaar has an official website, FutureBazaar.com, which is one of the most favorite sites among people of India for online shopping. FutureBazaar is an online business venture of Future Group, which sells an assortment of products such as fashion, which includes merchandise for men and women, mobile accessories, mobile handsets and electronics like home theatres, video cameras, digital camera, LCD TVs, kitchen appliances and many more. * Discounts: “Hfte ka sabse sasta din was introduced by the Big Bazaar, wherein extra and special discounts were offered on Wednesday every week, to attract the potential buyers into their store. Future value retail group have more than 5 million sq. ft retail space located across the country. It's growing at an enviable pace . In 2001, Pantaloon launched country's first hypermarket ‘Big Bazaar’. It has the following retail segments: * Food & Grocery: Big Bazaar, Food Bazaar * Home Solutions: Hometown, Furniture Bazaar * Consumer Electronics: e-zone * Shoes: Shoe Factory * Books, Music & Gifts: Depot * Health & Beauty Care: Star, Sitara * E-tailing: Futurebazaar.com * Entertainment: Bowling Co. Tata Group Tata group is another major player in Indian retail industry with its subsidiary Trent, which operates Westside and Star India Bazaar. Established in 1998, it also acquired the largest book and music retailer in India ‘Landmark’ in 2005. Trent owns over 4 lakh sq. ft retail space across the country .today Star bazaar is known for its high quality, ambiance and range of sku in Food in metros | | | | Hypermarkets like Star Bazaar are changing the way people shop for their groceries and household essentials. People who used to visit the local shops and vegetable markets frequently are now buying at hypermarkets such as Star Bazaar that offer customers a variety of products at affordable prices, in a comfortable environment. But while affordability is a big factor for customers, they also seek value and quality which they know they will get at Star Bazaar, a Tata enterprise. The uniqueness of each Star Bazaar store lies in the size and spread of its merchandise range. Shoppers can select from a large range of staples, fresh goods, apparel, luggage, consumer durables, household products and much more and also enjoy the benefit of generous reductions on the market rate."A customer who is buying in a hypermarket is, in his mind, comparing it with what is available elsewhere. There is always in the customer’s mind a value equation and we have to be able to deliver that," says Neeti Chopra, head, marketing, Trent. The stores stock goods according to regional customer preferences, as customers in different regions favour different essentials. For instance, in Gujarat, people tend to stock up on their pulses whereas in northern India, basmati rice is a big item. Star Bazaar is aware that people today look at value as a critical component while shopping. And that the first visit may be put down to curiosity, but customers will keep coming back only if they are satisfied with the choices, the quality and the value of the products on sale. So the big focus is on understanding its customers — who they are, what they want, what is relevant to them, and how to package it in a manner that makes the store more attractive to them. Regionalism also comes into play in the back end of the retail operation — Star Bazaar has tied up with local and regional vendors for supplies and transportation of goods | | | | | | | | | | | | | | | | D MartT -Avenue Super Marts Pvt Ltd. Avenue Super Marts Pvt Ltd (ASPL) owns and operates hypermarkets and supermarkets by the store name D-Mart. D-Mart seeks to provide a one-stop shopping experience for the entire family, meeting all their daily household needs. A wide selection of home utility products is offered, including foods, toiletries, beauty products, garments, kitchenware, bed and bath linen, home appliances and much more. Since D-Mart first opened its doors in the Mumbai region in 2000, it has grown into a trusted and well-established shopping destination in the Mumbai Metropolitan Region (Mumbai, Navi Mumbai and Thane).  D-Mart is now looking forward to growing its stores across India. Low prices is major attraction With D Mart RPG Group Spencer retail is one of the India’s largest and fastest growing multiform at retailer with over 200 stores including 30 large format store in India RPG Group is one of the earlier entrants in the Indian retail market, when it came into food & grocery retailing in 1996 with its retail Food world stores. Later it also opened the pharmacy and beauty care outlets ‘Health & Glow’. Spencer's focuses on verticals like fresh fruit and vegetables, food and grocery, personal care, garments and fashion accessories, home and office essentials, electrical and electronics. Established in 1996, Spencer's has become a popular destination for shoppers in India with hypermarkets and convenient stores catering to various shopping needs of its large consumer base. Operations Spencer's has retail footage of approximately 1 million square feet and over 220 Spencer's stores in 35 cities. The company operates through the following formats: * The Spencer's Hyper stores are destination stores, of more than 15,000 sq. ft in size. They offer everything under one roof. The merchandise ranges from fruits & vegetables, processed foods, groceries, meat, chicken, fish, bakery, chilled and frozen foods, garments and fashion accessories, consumer electronics & electrical products, home decor and needs, office stationeries, soft toys. On an average, a Spencer's hyper stocks 70,000 SKUs across 35,000 items. * The Spencer's stores are neighborhood stores ranging from 1500 less than 15000 sq. ft. These stores stock the necessary range and assortment in fruit and vegetables, FMCG food and non-food, staples and frozen foods and cater to the daily and weekly top-up shopping needs of the consumer.  Au Bon Pain Spencer’s Retail, has tied up with Au Bon Pain, the Boston-based fast casual dining and bakery café chain with more than 200 outlets in the USA, South Korea, Taiwan and Thailand. A joint venture has been formed between Spencer’s Retail and Varin Narula which would be the Master Franchisee of Au Bon Pain in India. Varin is the Director & Promoter of Au Bon Pain, Thailand. The outlets will offer the choicest of healthy and nutritious food, bakery products and beverages in a relaxed and casual environment. Beverly Hills Polo Club Spencer’s Retail, has signed an exclusive tie-up with the renowned apparel brand Beverly Hills Polo Club. Beverly Hills Polo Club® evokes casual, relaxed yet affluent and elegant Southern Californian lifestyle. It presents product categories in-tune with its image viz, T-Shirts, polo’s, sweat shirt & sweat pants, casual shirt & trousers, denims, winterwear, eyewear and watches for men and women. Formal shirts & trousers are an added category in the menswear segment. It is strategically developed by spencer for Indian market Reliance Reliance is one of the biggest players in Indian retail industry. More than 300 Reliance Fresh stores and Reliance Mart are quite popular in the Indian retail market. Since its inception in 2006, Reliance Retail Limited (RRL) has grown into an organisation that caters to millions of customers, thousands of farmers and vendors. Based on its core growth strategy of backward integration, RRL has made rapid progress towards building an entire value chain starting from the farmers to the end consumers. In the last year, Reliance Retail Limited (RRL) continued to fulfill its commitment of enriching Indian consumer’s shopping experience and providing quality merchandise at an attractive value proposition. More than 3 years into operation, RRL has now expanded its presence in more than 85 cities across 14 states in India. RRL forged ahead with its expansion plans and rolled out stores across the country. RRL’s footprint now spans a network of more than 1,000 stores.RRL operates several ‘value’ & ‘specialty’ formats. The ‘value’ formats that RRL operates are: ‘Reliance Fresh’, a neighborhood concept, ‘Reliance Mart’, an all under one roof supermarket concept & ‘Reliance Super’, a mini-mart concept. The ‘value’ formats offer a wide range and assortment of products required for daily household needs. The ‘specialty’ formats are: ‘Reliance Digital’, a consumer durables & information technology concept,‘Reliance Trends’, an apparel & accessories concept, ‘Reliance Wellness’, a health, wellness & beauty concept, ‘iStore by Reliance Digital’, an exclusive Apple products concept, ‘Reliance Footprint’, a footwear concept, ‘Reliance Jewels’, a jewellery concept, ‘Reliance TimeOut’, a books, music & entertainment concept,‘Reliance AutoZone’, an automotive products & services concept and ‘Reliance Living’, a homeware, furniture, modular kitchens, furnishings concept.RRL rapidly expanded the stores network it operates through strategic partnerships with world-class companies such as Marks & Spencer and Pearl Europe. RRL also entered into an exclusive distribution arrangement with Asics Corporation Japan to market Asics brands of shoes. and accessories in India. RRL has recently opened its flagship store under its franchise agreement with Hamleys and plans to expand the store network in the coming year. RRL has also expanded its presence in business-tobusiness office supplies through its joint venture with Office Depot.Through ‘Reliance One’, RRL’s loyalty membership program, RRL enjoys the patronage of over 5.5 million customers. In the coming year, RRL will continue on its mission to delight the customers every visit. RRL will continue to provide unprecedented value to customers across all its formats and stores. | HyperCITY provides a truly international shopping experience, where customers can shop in comfort in a large, modern, & exciting environment. It offers a wide and contemporary range of innovative products, sourced from both local and international markets. The product range covers: Foods, Homeware, Home Entertainment, Hi-Tech, Appliances, Furniture, Sports, Toys & Fashion.   Shoppers Stop is one of the leading retail stores in India. Shoppers Stop began by operating a chain of department stores under the name “Shoppers’ Stop” in India. Shoppers Stop has 35 stores across the country and three stores under the name HomeStop. Shoppers Stop retails a range of branded apparel and private label under the following categories of apparel, footwear, fashion jewellery, leather products, accessories and home products. These are complemented by cafe, food, entertainment, personal care and various beauty related services. Shoppers Stop launched its e-store with delivery across major cities in India in 2008. The website retails all the products available at Shoppers Stop stores, including apparel, cosmetics and accessories.Shoppers Stop opened stores in Amritsar, Bhopal and Aurangabad. Products Shoppers Stop retails products of domestic and international brands such as Louis Philippe, Pepe, Arrow, BIBA, Gini & Jony, Carbon, Corelle, Magppie , Nike, Reebok, LEGO, and Mattel. Shoppers Stop retails merchandise under its own labels, such as STOP, Kashish, LIFE and Vettorio Fratini, Elliza Donatein, Acropolis etc. The company also licensees for Austin Reed (London), an international brand, who’s men's and women's outerwear are retailed in India exclusively through the chain. In October 2009, Shoppers Stop has bought the license for merchandising Zoozoo the brand mascot for Vodafone India. Shoppers Stop and HyperCITY Retail, the two retail ventures of K Raheja group had signed a memorandum of understanding with UK’s leading retail chain Home Retail group to develop the Argos (retailer) retail format stores in India. AV Birla Group AV Birla Group has a strong presence in Indian apparel retailing. The brands like Louis Phillipe, Allen Solly, Van Heusen, Peter England are quite popular. It's also investing in other segments of retail.  Aditya Birla Retail Ltd (ABRL) that runs the ‘More’ (supermarket format) with tally of 530 and ‘More Megastore’ ( hypermarket format ) with tally of 12 storesin India ABRL has begun rapid expansion of both small-format and large-format stores, having rationalised store-count a year ago, and is also evaluating a foray in a few specialty retail formats. At 12 hypermarkets, the second largest hypermarket chain after Big Bazaar. With offering , you an international flavour of shopping but at absolutely rock-bottom prices Retail formats in India Hypermarkets’/supermarkets: large self-servicing outlets offering products from a variety of categories. * Mom-and-pop stores: they are family owned business catering to small sections; they are individually handled retail outlets and have a personal touch. * Departmental stores: are general retail merchandisers offering quality products and services. * Convenience stores: are located in residential areas with slightly higher prices goods due to the convenience offered. * Shopping malls: the biggest form of retail in India, malls offers customers a mix of all types of products and services including entertainment and food under a single roof. * E-trailers: are retailers providing online buying and selling of products and services. * Discount stores: these are factory outlets that give discount on the MRP. * Vending: it is a relatively new entry, in the retail sector. Here beverages, snacks and other small items can be bought via vending machine. * Category killers: small specialty stores that offer a variety of categories. They are known as category killers as they focus on specific categories, such as electronics and sporting goods. This is also known as Multi Brand Outlets or MBO's. * Specialty stores: are retail chains dealing in specific categories and provide deep assortment. Mumbai's Crossword Book Store and RPG's Music World, in shoes Woodland is a couple of examples. Challenges facing Indian retail industry * The tax structure in India favours small retail business * Lack of adequate infrastructure facilities * High cost of real estate * Dissimilarity in consumer groups * Restrictions in Foreign Direct Investment * Shortage of retail study options * Shortage of trained manpower