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For the complete report, get in touch with us at : [email protected] The market will be boosted by the rising income levels coupled with changing lifestyle, resulting in increased demand for convenience shopping. The report begins with an introduction section, comprising of the description of convenience stores along with the significant focus areas for the development of the domestic convenience store market. The next section provides the global outlook of the convenience store market, mentioning the growth of convenience stores in Japan and the United States. The market overview section begins with the retail industry overview in India, including the market size and growth of the retail sector with distinct share of organized and traditional retail. It also provides a brief idea about the retail supply chain and mentions the ways in which modern retail supply chain is leading to cost reduction. This section also includes the various organized retail formats, providing a brief description and few examples of each format. This is followed by the Convenience store market in India, providing details on the domestic organized convenience store market size in terms of market value and its growth. It also mentions the necessary factors for the success of the convenience stores. Another detailed illustration about the changing shopping trend has been included. Further, the report provides a description of the major segments which attracts consumer spending and their share in the overall retail sector. Food and groceries has always been the most frequently purchased and largest selling segment in the Indian retail sector. The Convenience Store Market in India is part of Netscribes’ Consumer Goods Industry Series reports. The market will be boosted by the rising income levels coupled with changing lifestyle, resulting in increased demand for convenience shopping. The report begins with an introduction section, comprising of the description of convenience stores along with the significant focus areas for the development of the domestic convenience store market. The next section provides the global outlook of the convenience store market, mentioning the growth of convenience stores in Japan and the United States. The market overview section begins with the retail industry overview in India, including the market size and growth of the retail sector with distinct share of organized and traditional retail. It also provides a brief idea about the retail supply chain and mentions the ways in which modern retail supply chain is leading to cost reduction. This section also includes the various organized retail formats, providing a brief description and few examples of each format. This is followed by the Convenience store market in India, providing details on the domestic organized convenience store market size in terms of market value and its growth. It also mentions the necessary factors for the success of the convenience stores. Another
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Convenience Store Market – India
June 2012
2CONVENIENCE STORE MARKET IN INDIA 2012.PPT
SAMPLE
Executive Summary
Market
Shopping Trends
Competition
Global convenience store market has been growing rapidly along with the rising income and improving lifestyle
across the globe
Retail Industry is experiencing aggressive growth and expansion, accounting for ~x% of the country’s GDP
Convenience stores are still an emerging concept in India, accounting for only ~y% of the country's total
organized retail sector
Drivers:
‐ Rising Income Levels and Consumerism
‐ Ease of Payment via Cards
‐ Changing Demographics and Lifestyle
‐ Growing Acceptance towards FDI in Retail
Drivers & Challenges
Challenges:
‐ Large Geographic Spread and Lack of Logistics
Support
‐ Regulatory Challenges
‐ Human Resource Constraints
‐ Customer Migration
Company 6Company 3 Company 5Company 2 Company 4Company 1
Major Players
Changing Shopping Trend in India
Consumer Spending – Major Segments
Consumer Demands in Today’s Shopping Trend
3CONVENIENCE STORE MARKET IN INDIA 2012.PPT
SAMPLE
•Introduction
•Global Outlook
•Market Overview• Indian Retail Industry
• Convenience Store Market
•Shopping Trends
•Drivers & Challenges
•Real Estate Challenges
•Competition
•Strategic Recommendations
4CONVENIENCE STORE MARKET IN INDIA 2012.PPT
SAMPLE …of the major players and rising no. of convenience stores in various countries across the globe
Growth of Convenience Stores in Japan*
Convenience Store – Global Outlook (2/2)
Growth of Convenience Stores in US
0
20,000
40,000
60,000
no. x%
20‐‐e
a3
20‐‐
a2
20‐‐
a1
0
50,000
100,000
150,000
no.b3
20‐‐
y%
20‐‐
b2
20‐‐
b1
5CONVENIENCE STORE MARKET IN INDIA 2012.PPT
SAMPLE
Retail market in India is poised for strong growth in the coming years owing to favorable government support
• Indian retail market has experienced high growth over the last decade with a gradual shift towards modern retailing formats Retail market value is expected to be worth INR a2 tr in 20‐‐, growing at a CAGR of x% during 20‐‐ ‐20‐‐
It accounts for y% of the country's GDP and is the second largest employer with z mn people, contributing w% of the total employment
• Due to the government now allowing more FDI relaxations, the retail sector in India is poised for strong growth in the near future
• Low organized retail penetration at r% indicates huge growth potential for this market More than f mn shoppers are expected to shop at organized retail chains by 20‐‐
• Traditional retail sector comprises ~g mn mom‐and‐pop stores/ Kiranas which may gradually turn into convenience stores and mini supermarkets Modern retail supply chain eliminates intermediaries, such as a, b and c, resulting in increased profitability for the producers and cost reduction for the consumers
Market Size and GrowthRetail Market – Overview
Company/Manufacturer
Retail Supply Chain
a cb
d Consumers
0
20
40
60x%
20‐‐e
a2
y2
y1
20‐‐
a1
x2x1
Traditional retailOrganized retail
6CONVENIENCE STORE MARKET IN INDIA 2012.PPT
SAMPLE Traditional retail formats such as kirana stores are fast getting replaced...
Retail Market – Organised Formats (1/2)
Retail Formats Description Companies
Supermarkets • Description 1Company 1, Company 2, Company 3, Company 4
Department Stores • Description 2Company 1, Company 2, Company 3, Company 4
Cash and Carry Stores • Description 3
Company 1, Company 2, Company 3
Hypermarkets • Description 4Company 1, Company 2,
Company 3
7CONVENIENCE STORE MARKET IN INDIA 2012.PPT
SAMPLE
Convenience store market in India to witness strong growth owing to the rising demand for convenience shopping
•Convenient stores in India is still at a nascent stage,
providing huge untapped market potential for future
growth Currently, convenient stores market in India is approximately
equal to INR a1 bn and is expected to grow at a CAGR of x%
to reach INR a5 bn in 20‐‐
• Convenient store market represents y% share of the
total organized retail market in India
• Convenient stores cater to the basic needs of an Indian
consumer
• They are located in both residential as well as
commercial markets and often operated in conjunction
with a service station
• Convenience stores have become the preferred
shopping destinations for the Indian urban consumers,
demanding for convenience, quality and service
• Convenience stores in India are z% as efficient as stores
in the US in terms of display, accessibility of products
and service
Organized Convenience Store MarketConvenience Stores Market – Overview
Convenience Store Success Factors
Factor 8Factor 4
Factor 7Factor 3
Factor 6Factor 2Success Factors
Factor 1 Factor 5
0
50
100
150
200
250
INR bn
20‐‐e
x% a5
20‐‐e
a4
20‐‐e
a3
20‐‐e
a2
20‐‐
a1
8CONVENIENCE STORE MARKET IN INDIA 2012.PPTSAMPLE
Consumer Spending – Major Segments
Consumer Durables
Furniture and Furnishings
Food and Grocery
• Pointers
• Pointers
• Pointers
Electronics
Beauty, Wellness and Pharmacy
Apparel
• Pointers
• Pointers
• Pointers
India Spends on
Indian consumer spends on various items, broadly classified under the following segments:
9CONVENIENCE STORE MARKET IN INDIA 2012.PPT
Needs, desires and wants of the Indian consumers contributing to the country’s growing retail sector
Consumer Demands in Today’s Shopping Trend
• Findings
x9%
x8%
x7%x6%
x5%
x4%
x3%
x2%
x1% Segment 9
Segment 8
Segment 7
Segment 6
Segment 5
Segment 4
Segment 3
Segment 2
Segment 1
SAMPLE
10CONVENIENCE STORE MARKET IN INDIA 2012.PPT
SAMPLE
Drivers & Challenges – Summary
Drivers
Rising Income Levels and Consumerism
Ease of Payment via Cards
Changing Demographics and Lifestyle
Growing Acceptance towards FDI in Retail
Human Resource Constraints
Challenges
Large Geographic Spread and Lack of Logistics Support
Regulatory Challenges
Customer Migration
11CONVENIENCE STORE MARKET IN INDIA 2012.PPT
SAMPLE
Impact
Rising income and consumption levels will boost the growth of the convenience stores in India
Rising Income Levels and Consumerism
• Finding 1 Sub‐finding 1
• Finding 2 Sub‐finding 2
• Finding 3
Aggregate Consumption (INR tr) Aggregate Disposable Income (INR tr)
24%
24%
20‐‐e
x2
10%
36%
35%
8%12%
20‐‐
x1
50%
12%6%
7%100%
80%
60%
40%
20%
0%
20‐‐e
x3
3%17%
35%
20%
23%
23%
3%
7%
0%
20%
40%
60%
80%
100%24%
20‐‐e
y2
9%
20‐‐e
y3
15%
34%33%
35%
9%14%
20‐‐
y1
49%
13%
9%
Segment 5
Segment 4
Segment 3
Segment 2
Segment 1
Household Income Brackets(INR ‘000)
12CONVENIENCE STORE MARKET IN INDIA 2012.PPT
SAMPLE
‐3,000
‐2,500
‐2,000
‐1,500
‐1,000
‐500
0
0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 22,000 24,000 26,000 28,000 30,000 32,000
Net Profit
Revenue
m3
m2
m1
Source:
Size of the Bubble represents Total Assets in USD mn
Company 3Company 2Company 1
Major Private Companies ‐ Summary
13CONVENIENCE STORE MARKET IN INDIA 2012.PPT
SAMPLE
Private: Domestic – Company 1 (1/3)
Key People
Products and Services
Company Information Offices and Centres – India
w stores – Products
Product 1, Product 2 and Product 3; Product 4, Product 4, Product 5
Name Designation
Person 1 Director
Person 2 Director
Person 3 Manager
Person 4 Secretary
Corporate Address
xxx
1, z Road, k , Phase‐ g, New Delhi, 1100ff
India
Tel No. xxxx‐ yyyy
Fax No. ‐
Website www.xxx.in
Year of Incorporation 20‐‐
New Delhi
Head Office
14CONVENIENCE STORE MARKET IN INDIA 2012.PPT
SAMPLE
Financial Snapshot Key Ratios
Particulars y‐o‐y change (2010‐09)
2010 2009 2008 2007
Profitability RatiosOperating Margin ‐ ‐ ‐ ‐ ‐
Net Margin ‐ ‐ ‐ ‐ ‐
Profit Before Tax Margin ‐ ‐ ‐ ‐ ‐
Return on Equity ‐ ‐ ‐ ‐ ‐
Return on Capital Employed ‐ ‐ ‐ ‐ ‐
Return on Working Capital ‐ ‐ ‐ ‐ ‐
Return on Assets ‐ ‐ ‐ ‐ ‐
Return on Fixed Assets ‐ ‐ ‐ ‐ ‐
Cost RatiosOperating costs (% of Sales) ‐ ‐ ‐ ‐ ‐
Administration costs (% of Sales)
‐ ‐ ‐ ‐ ‐
Interest costs (% of Sales) ‐ ‐ ‐ ‐ ‐
Liquidity RatiosCurrent Ratio ‐ ‐ ‐ ‐ ‐
Cash Ratio ‐ ‐ ‐ ‐ ‐
Leverage RatiosDebt to Equity Ratio ‐ ‐ ‐ ‐ ‐
Debt to Capital Ratio ‐ ‐ ‐ ‐ ‐
Interest Coverage Ratio ‐ ‐ ‐ ‐ ‐
Efficiency RatiosFixed Asset Turnover ‐ ‐ ‐ ‐ ‐
Asset Turnover ‐ ‐ ‐ ‐ ‐
Current Asset Turnover ‐ ‐ ‐ ‐ ‐
Working Capital Turnover ‐ ‐ ‐ ‐ ‐
Capital Employed Turnover ‐ ‐ ‐ ‐ ‐
Private: Domestic – Company 2(2/3)
Improved Decline
Financial Summary
• The company incurred a net loss of INR a4 mn in FY 20‐‐, as compared to net loss of INR a3 mn in FY 20‐‐
• The company reported total income of INR b4 mn in FY 20‐‐, registering an increase of x% over FY 20‐‐
• The company earned an operating margin of d% in FY 20‐‐, an increase of f percentage points over FY 20‐‐
• The company reported debt to equity ratio of g in FY 20‐‐, a decrease of c% over FY 20‐‐
Net Profit/LossTotal Income
0
1000
2000
3000
4000
5000
‐3,000
‐2,000
‐1,000
0
INR mn
b4
20‐‐
a3
b3
20‐‐
a2
b2
20‐‐
a1INR mn
20‐‐
a4
15CONVENIENCE STORE MARKET IN INDIA 2012.PPT
SAMPLE Business Highlights
Private: Domestic – Company 1 (3/3)
Description News
Overview
• Company 1 is one of the recently established retailers with chain of retail stores under the brand name ‘brand 1’ across India It operates convenience stores called brand 1, compact hypermarket stores called brand 1 Market and hyper market called brand 1 Hyper
• Brand 1stores are one‐stop shopping destination that supplies the daily necessities at a discounted price They provide wide range of high quality products along with great in‐store experience and service
• brand 1 market offers ~x products across y categories, including segment 1, segment 2, segment 3, segment 4, segment 5 and segment 6
• brand 1 hyper is spread across z sq ft, offering x new items across categories such as food and groceries and consumer electronics
Expansion Plans
• Comapny has plans of investing INR x1‐x2 bn for securing g mn sq ft of total retail space in country 1 and employing ~d people by 20‐‐
• On rst Mar 20‐‐, company had launched an brand 1 store in city 1 located at u Market in state 1 It offers low price shopping experience covering an area of more than h sq ft and stocks more than j quality products, including a special segment 5 section
• Brand 1 market stores will house Company 2 with first segment 8 being established in city 2 in state 2, state 3 and state 4
Network• Currently there are t1 brand 1 stores across state 1, state 2, state 3, state 4, state 5, state 6, state 7, state 8, state 9, state 10 and state 11
• There are more than t2 customers visiting the brand 1stores daily
16CONVENIENCE STORE MARKET IN INDIA 2012.PPT
SAMPLE
Strategic Recommendations
• Strategy 1
• Strategy 3
• Strategy 4
• Strategy 5
Strategic Recommendations
• Strategy 2
17CONVENIENCE STORE MARKET IN INDIA 2012.PPT
Thank you for the attention
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Convenience Store Market – India report is part of Netscribes’ Consumer Goods Industry Series. For more detailed information or customized research requirements please contact:
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