Transcript Cont…. - Pioneer Institute of Professional Studies

PIONEER INSTITUTE OF
PROFESSIONAL STUDIES
PRESENTATION
ON
MARKET REPORT ON
RETAIL INDUSTRY
Submitted to :-
Prof. Aditi Naidu
Prof. Rashmi Farkiya
Submitted by :Mohammad Arif Khan
Sec. - A
Introduction
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1980s experienced slow change as india began to
open up economy.
Textile sector with companies like Bombay Dyening,
Raymond’s, S Kumar’s and Grasim first introduced
their retail chain.
The latter half of the 1990s saw a fresh wave of
entrants with a shift from Manufactures to pure
Retailers.
For e.g. Food World, Subhiksha and Nilgiris in food
and FMCG; Planet M and Music World in music;
Crossword and Fountainhead in books.
Cont….

At year end of 2000 the size of the market
Indian organized retail industry is estimated at
Rs. 13000 corore.
RECENT TRAND
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India Retail Report predicts that total retail sales
will grow from less than US$300bn in 2007 to
almost US$711bn by 2013.
Strong underlying economic growth, population
expansion, the increasing wealth of individuals
and the rapid construction of organised retail
infrastructure are key factors behind the forecast
growth.
Cont….
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According to this year's Global Retail
Development Index, India is positioned as the
leading destination for retail investment.
India's retail industry accounts for 10 percent of
its GDP and 8 percent of the employment to
reach $17 billion by 2010.
Contd…

There are about 300 new malls, 1,500
supermarkets and 325 departmental stores being
built in the cities very soon.
Key Players in Indian Retail Sector
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AV Birla Group has a strong presence in apparel
retail and owns famous brands like Allen Solly,
Louis Phillipe, Trouser Town, Van Heusen and
Peter England. The company has investment plans
to the tune of Rs 8000 – 9000 crores till 2010.

Lifestyle International is the international brand
business of Landmark Groups. The 340-crore
Lifestyle International (P) Ltd is investing upon a
massive expansion plan and will open 32 more
stores across India in the next three years.

Reliance has more than 300 Reliance Fresh
stores; they have multiple formats and their sale is
expected to be Rs 90,000 crores ($20 billion) by
2009-10.
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Pantaloon Retail has 450 stores across the country
and revenue of over Rs. 20 billion and is expected
to touch 30 billion by 2010. Segments include
Food & grocery, e-tailing, home solutions,
consumer electronics, entertainment, shoes, books,
music & gifts, health & beauty care services.
Market Share
Pantaloons
AVBirla Group
Relience Fresh
Lifestyle
other
Opportunity
With the organized retail segment growing
at the rate of 25-30 per cent per annum,
revenues from the sector are expected to
triple from the current revenue by 2010.
 Consumer preference for shopping in new
environments.
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Formal and modern format retailing would
enjoy rapid growth.
Cont…
•
Players who have established their presence in
the top metros are planning their establishments
in these emerging cities to gain the first-mover
advantage over other entrants.
Challenges in the Industry
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Industry Challenges :
Low domestic competition Because of
fragmented nature of industry.
 Non level playing field issues :
Wide differences in treatment of small and
large retailers.

 Challenging
Real
Issues :
Estate Cost
Supply
Chain Inconsistency
Poor
Infrastructure
Lack
of skilled manpower