Retailvertical

Indian retail Industry

India’s retail market has more than doubled in size to USD 311.7billion in 2006-07.

Sector revenues increased by about 93.5% between 2000 and 2006, translating to an average annual growth rate of 13.3%.

Market witnessing a migration from traditional retailing to modern/organized retailing formats, with an explosive proliferation of malls and branded outlets.

Organized retail segment contributes to over USD 12.9 billion of retail revenues, with penetration growing from 3% in 2004-05 to 4.15% in 2005-06.

Share of organized retail is projected to grow to USD 43.8 billion out of the total retail

sector revenues projected at USD 460.6 billion in 2010-11.

Modern retailing outlets are increasingly matching up to global standards and witnessing

intense competition.

Contribution of different verticals

Indian Food Industry

Food and Grocery constitutes the largest retail segment accounting for 63 percent share in the Rs.1,330,000 crore (USD 300 Billion) Indian retail market.

Only 2percent of this segment was organised in 2007, as per India Food Report 2008.

food retailing business which accounts for 10% of the GDP.

8% of the employment.

Organise V/s Unorganise

Major Categories in food industry

Processed food

Fruit and vegetables

Dairy

Wheat and grain

Poultry

Indian food

processing industry

5th largest industry in

India

Share in world

trade 1.7%

Size U.S$70bn

Employ 1.6mn people

Industry is highly

unorganized

Highlights

Fruits and Vegetable

India ranks 2nd in production of vegetables.

(85mn tons).

In production of fruit India ranks 3rd after Brazil and china.(50mn tons).

Highly Unorganise sector.

Formats

Convenience Stores

Supermarkets

Hypermarkets

Cash & Carry (C & C) Stores

Forward integration

Major Retailer In Food Segment

Top 5 company Revenue No. of store

Food Bazaar 1900 cr. approx 140

Subhiksha 1480 cr. approx 860

Food world 300 cr. 80

Trinethra 274cr. 170

Vishal Retail 603cr. 105

Source: Business world

Enablers

Favorable demographics.

Growing middle class.

Improved logistics.

Rise in working population.

Impediments

Lack of cold storage and warehousing facility.

Lack of industrial status.

High real state cost.

Extensive wastage.

Q1. Which Retail brand strikes in our mind first when you think for grocery shopping ?

Q2. How often you go for shopping of grocery ?

Q3. How much time you spend in your shopping?

Q4. How much distance on travel for your shopping ?

Q6. Which brand prefer when you buy grocery ?

Q7. From where did you prefer to buy food products ?

Q8. Which factor you consider most while selecting a store ?

Q9. Who buys grocery for you home?

Q10. Which payment mode you prefer for bill payment ?

Recommendation

Good weekly sales and loyalty programs should be concentrated.

People don’t like to spend too much time on shopping. Thus better accessible store & loyalty is recommended.

Location play very crucial role & thus mode of transportation.

If retailer wants to promote “in house brand” & international brand , they must have to show there wide presence.

People consider both product assortment & convince. Thus store must consider its product quality and SKUs.