Introduction to Retailing Introduction to Retailing

What is RetailingWhat is RetailingThe word Retail comes from the French

word  retailler, which means "to cut off, clip, pare, divide" or to break bulk.

A retailer may be defined as a ‘ dealer or trader who sells goods in small quantities’ or ‘ one who repeats or relates’ . Thus retailing can be considered as the last stage of movement of goods or services to the consumers.

Retailing is the set of business activities that adds values to the product and services sold to consumers for their personal or family use.

Manufacturer → Wholesaler → Retailer → Consumer

Avon, Oriflame, Tupperware sells directlyFunctions performed by Retailer1. Providing an assortment of products and

services – they provide 1,000 – 30,000 diff. items from diff. companies of diff brand, design, size.

2. Breaking bulk3. Holding inventory4. Providing services

Breaking bulk – manufacture and wholesaler ship bulks to retailer and he offer product in small quantity (tailor made according to customer need) 

The Key to successful retaining is offering the right product, at the right price, in the right place, at the right time and making a profit.

Wal Mart is the Worlds largest Retailer (US) based and Carrefour is the largest non US retailer (French based).

The Marketing concept applied to retailing It comprises of 4 elements: (i) Customer orientation (ii) Coordinated efforts-------------Retailing concept-Retail

strategy (iii) Value driven (iv) Goal orientation   A retail strategy is the overall plan guiding the firm. It has 6

basic steps defining the business setting objectives defining the customer market developing an overall plan enacting an integrated strategy evaluating performance and making modifications

Retailing and the MarketingRetailing and the Marketing

Retailing forms an integral part of the marketing mix and includes elements like product, place, price, people, presentation and promotion. Place relates to the distribution and availability of product in various locations.Customers are first introduced to the product at the retail store. Organizations sell their products and services through these retail outlets and get feedback on the performance of their products and customers’ expectations.Retail stores serve as communication hubs for customers. Commonly known as the Point of Sale (POS) or the Point of Purchase (POP), retail stores transmit information to the customers through advertisements and displays.

Manufactureror

Agent/Distributor

Manufactureror

Agent/Distributor

Manufactureror

Agent/Distributor

Retailer 1 Retailer 2 Retailer 3 Retailer 4

C1 C2 C3 C4 C5 C6 C7 C8 C9 C10

First Second Third

The Pivotal Role of Retailer in the Marketing Channel

Channel PowerChannel Power

Channel power refers to the extent to which retailers influence marketers’ decisions like pricing, promotion and product strategy. This emanates from the point of customer contact (the retailers), which is the one-point source of information feedback from customers to the marketer/ manufacturer. Because of its communication capabilities, the channel is in a position to influence customers’ decisions.

What is Organized RetailWhat is Organized Retail Modern Organized Retail can be referred as the mall setup(Reliance

Mart/Big Bazaar)  and standalone format (Raymonds stores/Koutons Stores) alligned centrally in respect to Merchandise/Manpower/Planning/Touch & Feel Display Alignments  and Technology Integration.

In India where 95 % of business in Retail exists with MOM N POP stores. Are not coming under organized voculbury as may be missing centrally connecting/decision making links as regards to Merchandise/Manpower/Planning/Touch & Feel Display and Technology Integration. They are owned by an individual presently or a family owned business by generations etc.

The uniqueness to Indian MOM N POP/Kiranas had been the nearness to neighborhood and many a times personal connect with the customers that shall be lacking in Modern Organized retail format. 

The modern organized retail formats recognized today as Supermarket or Hypermarket concept are largely popular as one stop shopping destination along with entertainment zones as cinema & gaming etc

Organized vs Unorganized Retail In the developed economies, organized retail is in the range

of 75-80 per cent of total retail, whereas in developing economies, the unorganized sector dominates the retail business. The share of organized retail varies widely from just one per cent in Pakistan and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia

Modern retail formats, such as hypermarkets, superstores, supermarkets, discount and convenience stores are widely present in the developed world, whereas such forms of retail outlets have only just begun to spread to developing countries in recent years. In developing countries, the retailing business continues to be dominated by family-run neighbourhood shops and open markets

Spread of Modern Retail in Developing Spread of Modern Retail in Developing Countries Countries

The arrival of modern retail in developing countries occurred in three successive waves (Reardon and Hopkins, 2006; Reardon and Berdegue, 2007). The first wave took place in the early to mid-1990s in South America (e.g., Argentina, Brazil, and Chile), East Asia outside China (South Korea, Malaysia, Philippines, Thailand, and Taiwan), North-Central Europe (e.g., Poland, Hungary, and Czech Republic) and South Africa.

The second wave happened during the mid to late 1990s in Mexico, Central America (e.g., Ecuador, Colombia, and Guatemala), Southeast Asian countries (e.g., Indonesia), Southern-Central Europe (e.g., Bulgaria).

The third wave has just begun in the late 1990s and early 2000s in parts of Africa (e.g., Kenya), some countries in Central and South America (e.g., Nicaragua, Peru, and Bolivia), Southeast Asia (e.g., Vietnam), China, India, and Russia.

Thus, the third wave countries which include China, India and Russia are late comers in the diffusion of modern retail. According to the authors, the main reason why they lagged behind was the severe restrictions on foreign direct investment (FDI) in retailing in these countries. The demand side features of these countries, such as income, size of the middle class, urbanization, and the share of women in workforce, etc., have been similar to countries in the second wave. In China and Russia these restrictions were progressively relaxed in the 1990s and in India partially in the 2000s. In January 2006, India allowed foreign companies to own up to 51 per cent in single-brand retail joint ventures (JVs), but multiple-brand foreign firms are still barred in retail although they can set up wholesale operations.

What does Retailing Industry Include?What does Retailing Industry Include?Department StoreDiscount StoreClothing StoreSpecialty StoreConvenience StoreGrocery StoreDrug StoreHome Furnishing StoreAuto Retails

Contribution of Retailing on Indian Contribution of Retailing on Indian EconomyEconomy

Real estate: The retail industry’s real estate requirement will be in millions of square feet. This will lead to productive use of land. And also offer employment opportunities in real estate.

Higher GDP: Apart from contribution to the GDP, Retailing can bring change in agricultural supply chain, remove inefficiencies in the distribution of consumer goods and improve productivity while providing consumers with a better range of products and prices in a better ambience could

Employment Opportunities: It offers wide range of career opportunity including: store management, merchandising , Management and owing a retail business.

Outsourcing Opportunities: it can provide opportunities for nationwide network for supply chain management, warehousing, pilferage prevention (to stop shoplifting) etc.

14

Market Overview

RETAILING SCENARIO – GLOBALRETAILING SCENARIO – GLOBAL

Retailing in more developed countries is big business and better organized than what it is in India. In the developed world most of it is accounted for by the organized retail sector. For instance, the organized sector has an up to 80% share of retail sales in the United States. The corresponding figure for Western Europe is 70% while it is 50% in Malaysia and Thailand, 40% in Brazil and Argentina, 35% in Philippines, 25% in Indonesia and 15% in South Korea. Organized retailing however remains poorly developed, accounting for a paltry 10% in China.The service sector accounts for a large share of GDP in most developed economies. And the retail sector forms a very strong component of the service sector. According to the US Department of Labor, about 22 million Americans are employed in the retailing industry in more than 2 million retail stores – that is, one out of every five workers employed.

RETALING SCENARIO – INDIARETALING SCENARIO – INDIA

Much of it is in the unorganized sector, with over 12 million retail outlets or various sizes and formats. Almost 96% of these retail outlets are less than 500 sq.ft. in size, the per capita retail space in India being 2 sq.ft. compared to the US figure of 16 sq.ft. India’s per capita retailing space is thus the lowest in the world.

KEY DRIVERS OF RETAILING IN INDIAKEY DRIVERS OF RETAILING IN INDIAConsumer PullIn the pre-liberalization supply-led market, the power rested clearly with the manufacturers. In today’s demand-led market, it’s the consumer who calls the shots. There has been a significant evolution in the Indian consumer, mainly due to the liberalization of the consumer goods industry that was initiated in the mid-eighties and accelerated through the nineties.Consumers can be divided into two broad segments:1. High-income segment: This comprises consumers who do not shop themselves, have a very low level of involvement and whose monthly grocery bill forms a very small part of the salary.2. Middle and lower income group: This includes consumers who are highly involved in grocery shopping, as this expenditure constitutes 50% or more of the monthly salary. This segment is highly value-conscious, constantly looking for bargains and is made up of active shoppers. Modern retailing, characterized by value, variety, convenience and service for the consumer, appeals to this second segment. Supermarkets allow consumers to interact more directly with the products, read labels, compare prices, avail of promotions and offers, and so on.

Rising IncomesOver the past decade, India’s middle and high-income population has grown at a rapid pace of over 10% per annum.Explosion of MediaThere has been an explosion in media as well during the past decade.Change in Consumer BehaviourThe urban woman today is literate and, in many cases, employed. There is greater work pressure and increased commuting time. And with a shift in the family structure, nuclear families have become a significant component of urban markets.

With an increase in double-income households, people do not have much leisure time and seek the convenience of one-stop shopping order to make the best use of their time. They also look for speed and efficiency. Increased awareness has also meant that consumers now seek more information, variety, product availability, better quality and hygiene as well as increased customer service. The concept of “Value for Money” is picking up.Consumerism CycleThe consumer cycle starts with the industry dictating the market. Eventually over time the distributor gains control over the market; at this stage the distributor becomes an important link between manufacturer and customer. When the market starts developing and expanding its horizons, retailers turn into the vital link in this supply chain. India is entering this third stage where retailers control the market. Being the closest link to the consumer in the supply chain, retailers benefit accordingly.

The Rural Market: Waking UpThe rural market is beginning to emerge as an important consumption area, accounting for over one-third of the demand for most key consumer durables and non-durable products.Establishment of the Supply ChainOver the past few years, the consumer goods sector has been transformed by increased liberalization, continuous reduction in customs duty, a shift from quota to tariff-based systems for imports and sophistication in manufacturing. Entry restrictions for multinationals have been removed in nearly all sectors.According to a study, there are over 18,000 stock-keeping units (SKUs are products and their variants, of type and size, counted individually), while most retailers have the space for a at most 5,000-7,000 units. This has tempted a number of real estate companies and other corporates into investing in malls and other retail formats.

Emergence of Hubs of Retail ActivityChennai, Bangalore and Hyderabad have become major retail hubs. In Chennai, about 17% of food sales flow through supermarkets and 25-30% of consumer durable sales come from specialty chains such as Viveks and Vasanth.Change in Scale of OperationsSubhiksha has over 50 stores and Big Bazaar has 60 stores, spread over India. This growing scale enables the supermarkets to eliminate links in the purchasing chain and to make deals with food processors directly.

Entry of the Corporate SectorLarge conglomerates like the Tatas, ITC, the RPG group, the Piramals and the Rahejas have initiated investment in retailing. The Birlas have acquired the Madura Garments apparel business, while Reliance has publicly committed to developing a retail business along with the development of its fuel-retailing network. Oil companies like HPCL (Speed Mart,) IOCL (Convenio) and BPCL (In & Out) are also expanding from fuel retailing to grocery and convenience stores.Expansion of Family-Owned BusinessesThe most successful of these are the Rs. 150-crore Viveks, the 40-year-old Chennai consumer durables chain, the Rs. 50-crore Pantaloon Apparel retail business, and Bangalore’s food retailer Nilgiris. With the new-age demanding consumer preferring to shop in these big retail chains, traditional ‘bania’ shops will face a difficult time trying to meet consumer expectations.

New EntrepreneursThe growing attractiveness of the retail trade has begun to attract new entrepreneurs with ideas, and venture capitalists with funds.Building Chains around BrandsApparel, footwear and consumer durable brands have driven the growth of specialty chains and upgraded existing multi-brand outlets. Some like Reebok claim to have entered retailing because of the paucity of suitable multi-brand retailing options. However, many of these are emerging as large retailers (Titan, Madura Garments, Raymonds) today, and appear to be committed to developing their retail businesses. Thus there is an extension of consumer brand-seeking (promise, trust, comfort, image) from products to stores.

Foreign Retailers Looking for Entry OptionsThe increasing attractiveness of the sector has drawn the interest of a number of global retailers. With the opening up of the economy, more and more MNCs have entered the Indian business arena through joint ventures, franchisees or even self-owned stores. The very first MNC to get into the business was Spencer’s, a tie-up between the RPG Group and Dairy Farm International, a $10 billion Hong Kong-based company, and a part of the Jardine Matheson group.While foreign retailers cannot start operations on their own mainly because of FDI restrictions on the sector, a number of companies, including Tesco, Kingfisher, Metro, Carrefour and Ahold, are exploring entry options. In apparel, Benetton, Lifestyle and Zegna are already in business, and Dairy Farm has a number of retailing joint ventures in India.

Technological ImpactTechnology is probably the most dynamic change agent in the retailing industry. The computerization of the various operations in a retail store – including inventory management, billing and payments as well as database (of customers) management – widespread use of bar coding, point-of-sale terminals and Management Information System (MIS) has changed the face of retailing drastically.

GROWTH OF ORGANIZED RETAILING IN INDIA Organized retailing in India initially began in the South. The availability of land at prime locations coupled with lower real estate prices (compared to Mumbai and Delhi) made multi-storeyed shopping complexes possible. Even though big retail chains like Crossroads, Saga and Shoppers Stop are concentrating on the upper segment and selling products at higher prices, some like RPG’s Food World and Big Bazaar are tapping the huge middle class population. Over the years, international brands like McDonalds, Swarovski, Lacoste, Domino’s, Pepsi, Benetton among a host of others have come in and thrived in India. A sunrise industry, it offers tremendous potential for growth and contributes 8-10% to overall employment. However, this is still low compared to 20% in the USA.

However, the boom in retailing has been confined primarily to the urban markets. There are two main reasons for this. Firstly, the modern retailer is yet to exhaust the opportunities in the urban market and has therefore probably not looked at other markets seriously. Secondly, the modern retailing trend, despite its cost-effectiveness, has come to be identified with lifestyle. In order to appeal to all classes of the society, retail stores need to identify with different lifestyles. In a sense, this trend is already visible with the emergence of stores with an essentially ‘value for money’ image.

A four-gear path for the organized retail trade suggested by KSA Technopak places India in the second gear and predicts that it will match global standards by 2010. Gear one is the stage of infancy. The development of the modern retail industry began when Indian shoppers upgraded from local shops to Super Bazaars. The open layout and self-service concepts were new to the Indian consumer, who was used to being served while shopping. Gear I was driven by entrepreneurs like Subhiksha and Vivek’s in the South, real estate owners like the Rahejas (who started Shoppers’ Stop) and marketers who integrated forward from manufacturing to retailing (for instance, lifestyle brands like Zodiac, Park Avenue and Bombay Dyeing which opened exclusive stores). This gave the new breed of retailers an opportunity to differentiate on the basis of good quality products, services and ambience. These retail formats raised the bar for consumers as far as retail interface was concerned. The first level also looks at retailers driving customer awareness.

The model primarily applies to apparel more than any other form of retailing. The second gear is about meeting customer expectations. It is consumer-driven, where buyers are exposed to new retail formats. This leads to first-generation retailers expanding to multiple locations (Shoppers’ Stop, Food World and Subhiksha expand their networks as well as their locations). Convenient timings, dial-n-order, free parking, provision for trial and taste, prices below MRP (maximum retail price), free home delivery and ‘no-questions-asked’ return policies are some of the features offered by these new forms of stores. Moreover, some offer facilities like taking care of the kids while the mothers shop, vending machines and entertainment for those accompanying serious shoppers, convenient floor levels for the physically handicapped and so on.

Pure retailers like Westside and Lifestyle provide a unique selling proposition of choice and width. Barista in coffee, Pizza Hut and McDonalds in quick-service formats, Swarovski in crystal, Swatch in watches, THS in home, Agrani Switch in technology products, Apollo pharmacy and The Medicine Shoppe in pharmaceuticals and Ceat Shoppe in tyres. Gear II is a period of growth. India is currently in this stage. The apparel retail market in India is a little more evolved than the rest. While apparel retailing can be said to be in the second gear, other sectors like electronics, food, etc. are still in the first gear. Compared to the first two stages, the main differentiator in the next two is the shift in the power equation between manufacturers and retailers.

In the third and fourth stage retailers exert more influence than manufacturers and therefore have stronger bargaining power. Furthermore, the third gear involves efficient back-end management. Retailers exploit economies of scale and offer the best prices to their customers. The focus is on customer acquisition and category management. Cost savings in terms of initiating vendor partnership and increasing stock turns take priority. Retailers expand into non-metros and look at various customer loyalty programmes. Many retailers in China and South Asia are in this phase. A distinctive mark of this phase is efficiency: profitability through heavy investment in the back-end. The fourth and last gear is a period of consolidation.

The organized sector acquires a significant share of the retail pie. It is the start of a cross-border movement, with mergers and acquisitions gaining in importance. Retailers in North America and Europe like Wal-Mart, Tesco, M&S and Carrefour are in gear four, where they are looking for cross-border movement. Furthermore, companies start adding more stores and newer markets to their portfolio. There is a fair degree of domestic consolidation as well. Sourcing gets done globally.

Indian Retail on the Fast-trackIndian Retail on the Fast-track

34

India ranked first for the fifth time, on the Global Consumer Confidence Index – June 2007, conducted by The Nielsen Company. Indians were judged the world’s most optimistic consumers, with high financial confidence about their income for the next 12 months.

India’s GDP growth of 9.4% for 2006-07, was the highest ever in 18 years, reflecting the booming economy of the country.

India’s retail sector, in tandem with the economy, is on a high growth trajectory; expected to grow by over 27% in the next 5 -6 years.

Retail contributes to 10% of India’s Gross Domestic Product and provides employment to 8% of India’s working population.

Higher disposable incomes, easy availability of credit and high exposure to media and brands has increased average propensity to consume considerably over the years.

India ranked first for the third consecutive year, on the Global Retail Development Index – 2007, conducted by AT Kearney across 30 emerging economies. India is ranked as the most preferred retail destination for international investors.

Indian Retail RevolutionIndian Retail Revolution

35

India’s retail market has more than doubled in size to USD 311.7 billion in 2005-06.

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.

Source: Datamonitor

Source: Crisil Research

Total Retail Sales

186.3205.4

230.3261.8

311.7

0

50

100

150

200

250

300

350

2001-02 2002-03 2003-04 2004-05 2005-06

USD

billi

on

Projected Retail Growth

311.7337.3

460.6

12.9 16.543.8

050

100150200250300350400450500

2005-06E 2006-07P 2010-11P

USD

billi

on

Total RetailOrganized Retail

Exchange Rate: USD 1 = INR 41Valid through the report

Transition from Traditional to Transition from Traditional to Modern RetailingModern Retailing

36

With a share of over 95% of total retail revenues, traditional retailing continues to be the backbone of the Indian retail industry.

Over 12 million small and medium retail outlets exist in India, the highest in any country.

Traditional retail is highly pronounced in small towns and cities with primary presence of neighbourhood “kirana” stores, push-cart vendors, “melas” and “mandis”.

Modern/Organized retailing is growing at an aggressive pace in urban India, fuelled by bourgeoning economic activity.

Organized retail sector is estimated to grow by 400%, in value terms, by 2007-08.

Increasing number of domestic and international players are setting up base and expanding their business to tap the burgeoning market.

Growth Across SegmentsGrowth Across Segments

37

Food and Beverages segment accounts for the largest share, over 74%, of the total retail pie.

Traditional retail dominates food, grocery and allied products sector, with grocery and staples largely sourced from the “Kiranas” and push cart vendors.

Apparel and Consumer Durables verticals are the fastest growing verticals.

Mobile phones, one of the highest growth product categories, with deep telecom penetration into towns and villages and the sector adding 5 million new users every month.

With the reducing average age of Indians buying homes, the Home Décor sector is growing rapidly.

Beauty Care, Home Décor, Books, Music and Gifts segments are gaining traction predominantly in the urban areas and emerging cities.

Increasing Penetration of Increasing Penetration of Organized RetailOrganized Retail

38

Penetration of Organized Retail

16.39

17.04

8.76

6.19

32.84

13.08

99.02

83.61

82.96

91.24

93.81

96.44

67.16

86.92

0.98

3.56

0 20 40 60 80 100

Food and Beverages

Clothing and Textile

Consumer Durables

Home Décor andFurnishing

Jewelry and Watches

Beauty Care

Footwear

Books, Music and Gifts

Organized Retail Traditional Retail

Organized Retail: Revenue by Verticals (USD million)

2,268

4,756

2,585

829829244

341

1,073

Food and Beverages Clothing and TextileConsumer Durables Home Décor and FurnishingJewelry and Watches Beauty CareFootwear Books, Music and Gifts

Organized retail in India is largely restricted to the urban and semi-urban regions, with consumer exposure to modern retailing formats like malls and stand-alone stores etc. for specific product categories.

Clothing and Textiles/Apparel segment dominates the organized retail sector with revenues worth USD 4.76 billion, contributing to over 36% of the organized retail pie.

Apparel is one of the fastest growing verticals, with higher number of domestic and foreign brands, and increasing consumer willingness to pay for quality.

Footwear has the highest organized retail penetration, primarily due to players like Bata India Pvt. Ltd. and Liberty, with wide distribution network and customer confidence.

Source: Crisil Research

Source: Crisil Research

39

Changing Paradigm: The Confluence of Modern and Traditional Retail

Gro

wth

Ist Phase 2nd Phase 3rd Phase 4th Phase

2000

2005

2008

2011

Entry, Growth, Expansion,Top Line Focus for Organized Retail

Range,Portfolio,Format Options, Beginning of the Rural-Urban Retail Merge

Technology Adoption, Leveraging Traditional Formats for Modern Retail

M&A, Consolidation, High Investments, Confluence of Indian Retail

Per capita Retail Space

Future Outlook

Retail sector revenues pegged at USD 460.6 billion by 2010-11

Organized retail projected to grow to USD 43.8 billion

Modern retail is expected to adapt and imbibe from the traditional formats

Un-organized formats converging to organized formats, in the form of mushrooming village malls

Large Indian retail players have already begun formulating strategies for the rural retail space

40

Key Players

41

Key PlayersKey PlayersPantaloons Retail India LimitedPantaloon Retail India Limited (PRIL), a Future Group venture started its operations with

Pantaloon Shoppe in 1993 and has since emerged to be the retailing giant of India with over 5 million square feet of retail space spread over 450 stores across 40 cities in India.

Pantaloons Retail has many firsts to its name in the Indian market, with discounted store formats like Brand Factory etc. setting benchmarks for new players entering the market. Innovative store formats like Hometown- a one stop shop for all the home requirements, Sports Bar- a sports theme restaurant complete with game courts and screens for match viewing, Health City- a value segment targeted spa and beauty care venture etc., are hitting the market, consolidating the market position of PRIL.

The unique selling proposition of Pantaloon Retail is the dual approach to tap both the “value” segment and “lifestyle and luxury” segment consumers, by establishing retail formats in each segment like Big Bazaar, Fashion Station etc. aimed at value retailing while Central, Pantaloons captures the lifestyle segment consumers.

Source: Company Reports

42

Key PlayersKey PlayersShoppers Stop LimitedShoppers Stop, established in 1991 with its flagship store- Shoppers Stop, has now expanded to

over 100 retail outlets spread across 1.1 million square feet of built-up area, spanning the entire spectrum of retailing verticals and formats.

Private labels account for more than 21% of their retail revenues, with Shoppers Stop clocking impressive total number of transactions to customer footfalls ratio (conversion ratio) of 27%.

Strategic partnerships with international retailing players like Mothercare Plc of Britain and Leisure & Allied Industries of Australia, are aiding Shoppers Stop in catering to niche markets.

Aggressive expansion plans are in pipeline for formats like Timezone, a leisure and entertainment format venture and Brio- the coffee bar located strategically in their Crossword bookstores.

43

Key PlayersKey PlayersTata Trent Ltd.

Established in 1998 Revenues: US$ 53 million Retail sector activity: Apparel,

Specialty– books and music Current store format:

Hypermarket, Supermarkets Future plan: New venture-

Infiniti Retail Ltd. Manufacture private labels in

apparels Principal fascia: Westside,

Landmark, Star India Bazaar

RPG Enterprises

Established retail in 1996 Revenues: US$ 182 million Retail sector activity: Food &

grocery, beauty products, specialty- music

Current store format: Convenience stores, supermarkets, hypermarkets

Current outlets: 279 outlets Music world has tie ups with

350 affiliates across the country.

Future plan: by 2009 set-up 2000 stores in India

Principal fascia: Spencer’s, Music World

Landmark Group

Present in India since 1999 Retail sector activity: apparel,

home décor & furnishing Current store format:

Department stores, hypermarkets

Current outlets: Lifestyle-10 outlets, Max Retail-4 outlets

Future plan: Presence in mini metros and Tier-II cities

Principal fascia: Lifestyle, Home Centre, Max Retail

44

Key PlayersKey PlayersVivek Group

Established in 1965 Revenues: US$ 91.5 million Retail sector activity: food &

grocery, beauty, specialty- electronics & home appliances

Current store format: Supermarkets, Hypermarkets

Current outlets: Vivek-23 outlets, Jaisons-26 outlets, Premier-3 outlets

Future plan: Set up 60 stores in South India

Principal fascia: Viveks, Jaisons, Premier

Globus

Established in 1998 Retail sector activity: Apparel Current store format: Stand

alone stores Current outlets: 21 Future plan: To set up 100

stores by 2008 Manufacture private labels

under Globus and F21 Principal fascia: Globus

Madura Garments

Established in 1988 Part of the Aditya Birla Nuvo

Group Retail sector activity: Apparel Principal fascia: Louis

Philippe, Van Heusen, Allen Solly, SF jeans, Peter England

Joint Venture with international brands: Esprit

Current outlets: Planet Fashion-50 outlets, Trouser town-9 outlets

Future plan: Projected to increase to 300 outlets by 2009 and diversify into the women’s wear segment

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Key PlayersKey Players

Subhiksha Trading Services

Established in 1997 Turn over of US$ 75.6 million Retail sector activity: food,

medicines Current store format:

Supermarkets Current outlets: 150 outlets Future plan: To set up 600

stores with 145 stores in NCR region

Principal fascia: Subhiksha

Trinethra Super Retail Ltd.

Established in 1986 (Taken over by Aditya Birla Nuvo Group in 2006)

Revenues: US$ 58.5 million Retail sector activity: Food &

grocery, beauty products Current store format:

Convenience stores, supermarkets, hypermarkets

Current outlets: 150 outlets Future plan: To enter into

pharmacies, apparel, footwear Principal fascia: Trinethra

Super Retail LTD., Trinethra Quick Shop

Nilgiris Ltd.

Established in 1904 Revenues: US$ 30.5 million Retail sector activity: Food &

grocery, specialty- bakery products

Current store format: Supermarkets

Future plan: To increase stores to 100

Principal fascia: Nilgiris

46

Key PlayersKey Players

Provogue Ltd.

Established in 1997 Revenues: US$ 38.1 million Retail sector activity: apparel,

footwear Current store format: Stand

alone stores Current outlets: 139 outlets Future plan: To manage and

develop malls Principal fascia: Provogue,

Prozone

Bata India Ltd.

Present since 1931 Revenues: US$ 179.8 million Retail sector activity:

Footwear and accessories Current store format: stand

alone stores Current outlets: 1100 outlets Future plan: To remodel 150

stores and open 40 more stores Principal fascia: Bata

Archies Ltd.

Present since 1979 Revenues: US$ 20.8 million Retail sector activity:

Specialty-cards & gifts Current store format: stand

alone stores Future plan: To increase from

73 stores to 200 by 2008 Principal fascia: Archies,

Stupid Cupid

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Players across Verticals

Food and Grocery Clothing and Textiles

Jewelry and Watches Footwear

Source: Industry Sources

48

Home Décor and Furnishings ElectronicsPlayers across VerticalsPlayers across Verticals

Beauty Care Books and Music

Source: Industry Sources

49

International RetailersInternational RetailersInternational retailers are fast expanding their business in India to tap the large consumer base. Reebok has set up its largest store in the world in Hyderabad, Tommy Hilfiger and Levis have over 20,000 square feet of retail space and stand-alone stores across major metros. The fast-food giants like Pizza Hut, McDonalds, Subway etc are expanding at a fast pace, with these emerging Tier II and Tier III cities

Source: The Financial Times, Industry Sources