Kirana StoreKirana Store

Boom in Indian Retail Sector – Future Group

India----”a potential goldmine”

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Retailing, is the set of activities involved in selling

products and services directly to consumers. It encompasses selling through the stores, the internet,

door-to-door visits ---- any channel that could be used to approach the consumer.

Kirana StoreSources: KPMG Survey & AT Kearney’s GRDI(2008)

• Retailing is one of the pillars of the Indian economy.

• The Indian retail market, which is the fifth largest retail destination globally, was ranked second after Vietnam as the most attractive emerging market for investment in the retail sector by AT Kearney's 7th annual Global Retail Development Index (GRDI), in 2008.

•There are around 12 million retail outlets in India.

•Retailing in India is witnessing a huge revamping exercise as the total Retail market size in India in 2008 was estimated at US$ 353 billion (INR value approx 16944 billion), which was Rs 11228.7 billion in 2001.

• The consumer spending in India has increased by an impressive 75 per cent in the last four years - - AT Kearney's.

• The share of retail trade in the country's gross domestic product (GDP) was between 8–10 per cent in 2007. It is currently around 12 per cent.

Retail in India..||

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In a sharp contrast to the retail sector in developed economies, retailing in India - though large in terms of size - is highly fragmented and unorganised.

The organized retail industry in India had not evolved till the early 1990s. Until then, the industry was dominated by the un-organized sector. It was a sellers market, with a limited number of brands, and little choice available to customers.

Traditionally, the Kirana, mom-and-pop, and family owned retail stores represent the retail business in India.

About 78% of the formats of low-cost retailing,

for example – the kirana, owner manned general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc.

were utilizing only household labour.

These formats account for around two-thirds of the sector's output.

Unorganized Retailing

The beginning..||

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Traditional -- Retailing in India

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bananas

Packaged MilkStationery

Eveready Battery

Tobacco PouchCandy

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The evolution of Retail began when new entrants entered and create awareness of modern formats and raise consumer expectations.

Foundation for organized retail in India was laid by Pantaloon Retails India Limited (PRIL). Following it’s successful venture a host of Indian business giants such as Reliance, Tata Group and others entered into retail sector.

India is currently in the second phase of the retail evolution, with domestic customers becoming more demanding with their rising standard of living and changing lifestyles.

Change in customers' focus {Buying to broad shopping}.

Consumerism and brand growth--Most of the world's leading brands, including like Spencer, Levis, Lee, Red Tape, Revlon, Philips, Nike, Reebok, Parker, etc. became part of Indian market.

Media Growth - Increased advertisements and brand promotions have led to a growing consumer spending across a wide range of product categories.

Emergence of newer specialised and bigger retail formats.

Miracle of Retail is attributable to the ‘pull’ it has on customers.

The Evolution..||

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Popular Retailing formats in India

• Department store: Large retail store offering a variety of services and merchandise, organized in the separate departments. e.g. Shopper’s Stop.

• Supermarket: Large self service outlets, catering to varied shopper needs are Supermarkets.

• Hypermarket: Supermarket + Department store. A gigantic retail facility that carries a big range of products under one roof, including groceries and apparel, catering to all routine weekly shopping

• Category killers: Multi Brand outlets, also known as Category Killers, offer several brands across a single product.

• Convenios: 24X7 stores --close to homes-- carry a limited stock of daily use goods --- special focus on food products e.g. In & Out petrol pump outlets.

• Specialty Stores: Chains such as the Mumbai books retailer Crossword, the Times Group's music chain Planet M --- focusing on specific market segments.

• Seamless malls: Retailers without walls separating the individual stores. One enormous shop---hundreds of brands sharing space. e.g. Pantaloon’s Central Mall.

needs in one trip e.g. Big Bazaar.

Hypermarket is emerging as the most favorable format for the time being in India.

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The Tata Group-Formats: Westside, Star India Bazaar, Steeljunction, Landmark, Titan Industries with World of Titans showrooms, Tanishq outlets, etc.

Future Group Retail-Formats: Big Bazaar, Food Bazaar, Pantaloons, Central, Depot, aLL, E-Zone etc.

RPG Retail-Formats: Spencer’s Hyper, Spencer’s Super, etc.

K Raheja Corp Group-Formats: Shoppers’ Stop, Crossword, etc.

Lifestyle International-Lifestyle, Home Centre, Max, Fun City, etc.

Pyramid Retail-Formats: Pyramid Megastore, TruMart

Subhiksha-Formats: Subhiksha supermarket and telecom discount chain.

Vishal Retail Group-Formats: Vishal Mega Mart

Reliance Retail-Formats: Reliance Fresh , ADAG’s Reliance World, etc.

Major Indian Retailers

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MD(PRIL) and the CEO of Future Group

India Tomorrow

Future Group

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Future Group is one of the country’s leading business groups present in retail, asset management, consumer finance, insurance, retail media, retail spaces and logistics. Future Group was established in 1994 with a vision to provide diverse services in Indian and Global markets.

Future group’s retail network touches the lives of more than 200 million Indians.

It spreads across 71 cities and 65 rural locations in the country.

The group currently operates around 1,000 stores and spread over 12 million square feet of retail space.

abouT!

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Pantaloon Retail India Limited

Pantaloons Stores --a chain of fashion destinations

Big Bazaar-- hypermarket chain

Food Bazaar -- a supermarket chain

Central -- a chain of seamless destination malls

Home Town --Home Improvement

E Zone --Electronics

Depot --Books & Music

futurebazaar.com –e-tailing

Others—Wellness, beauty etc.

Joint Ventures with International Brands

Galaxy Entertainment Limited

UK-based Lee Cooper

French retailer ETAM group etc.

Indian Joint Venture Partners

Manipal Healthcare

Liberty Shoes. etc.

Retail Business

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“Deliver Everything, Everywhere, Everytime to Every Indian Consumer in the most profitable manner.”

The group considers ‘Indian-ness’ as a core value and its corporate credo is

“Rewrite rules, Retain values”

The group also operates India’s leading rural retailing

chain, Aadhaar that is present in over 65 locations in rural India, it acts as a complete solution provider for the Indian farmer.

Continued…

Vision

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a Future Group venture

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1987Company incorporated as Manz Wear Private Limited. Launch of Pantaloons trouser, India’s first formal trouser brand.

1991Launch of BARE, the Indian jeans brand.

1995John Miller – Formal shirt brand launched.

Major Milestones!

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• 1997 Pantaloons opens its first family store at Gariahat in Kolkata.

• 2001– Pantaloons launches the sixth store and establishes its presence across all four regions of the country.

• 2003 – Pantaloons gets exclusive rights for official cricket merchandise for the ICC World Cup.

• 2006 - Bipasha Basu and Zayed Khan become celebrity endorsers

• 2007 – Pantaloons becomes the title sponsor for Femina Miss India Contest; the association will continue till 2009

• August 2007 - The stores in Kolkata create a record in fashion retail by billing Rs. 3 Cr in a single day

Continued…

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Trendsetters'…||

All Pantaloons stores reflect the new ideology -- Fresh Feeling, Fresh Attitude, Fresh Fashion. 

Pantaloons has consistently kept its imagery as a fashion trendsetter-both the store fashion merchandise that is available at the stores and the imagery that is created for the brand.

Pantaloons stands out as a fashion trendsetter, on the lines of how fashion is followed internationally.  

Pantaloons stores have a wide variety of categories like casual wear, formalwear, party wear and sportswear for Men, Women and Kids.

Pantaloons has also made exclusive movie merchandise for films like Na Tum Jano Na Hum, Main Prem Ki Diwani Hoon, Kya Kool Hain Hum, Krrish

and Ta Ra Rum Pum.

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Marketing Strategy

Future group, is planning to start renting clothes for occasion wear and sell second-hand clothes.

This will allow customers to hire high-end clothes, bags, jewellery and other accessories for a fraction of a price.

Pantaloon is also trying to build in-store branded sections for categories such as sunglasses and watches and high fashion garments.

Bringing latest collection every season, like vibrant

'Haldi Gulal Collection' in spring

It also has a separate section --- aLL, which houses fashionable apparel in western and ethnic wear for plus-size men & women.

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Edge over others…

• Multiple Formats - If margins from apparel sales in Pantaloons (the lifestyle store) suffer, the company does have the option of moving stock to the discount store, Big Bazaar.

• Pantaloons Green Card Program. Your Green Card is your passport to a whole new world of exclusive benefits and privileges.

• Targeting youth

• Setting their own garment factories

• Just in time approach - prevent over stock of inventories

a Green Card Shopper

Kirana StoreIs se sasta aur accha kahin nahin!!!

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Big Bazaar is the flagship hypermarket retail chain from Future Group, having 105 stores the country.

The first set of Big Bazaar stores opened in 2001 in Kolkata, Hyderabad and Bangalore.

 In 2008, Big Bazaar opened its 100th store, marking the fastest ever organic expansion of a hypermarket.

Promising 'more for less', Big Bazaar, offers 1.6-lakh mass-market product ranges that are sought by a majority of Indian consumers.

The idea was pioneered by Kishore Biyani, Ceo of Future Group.

The Hypermarket!

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It also offers a host of value-added services.

The special discounts and promotional offers, which are available at regular intervals, make the format very unique and distinct.

The consumer experiences a new level of standard in price, convenience, comfort, quality and store service levels.

Best is >> It is for all

Continued…

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Marketing StrategiesGet the 'shakti' with you. The power to save. The power to

spend!

Shakti is a credit card for housewives. You need not submit income proof. Simply show your Big Bazaar bill of more than Rs. 500.

• Reward Points• Vouchers• Special payment counters• Priority entry to card holders during high traffic.

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Click to edit Master text stylesSecond level

● Third level● Fourth level

● Fifth level

Marketing Strategies

• Big Bazaar is facing competition from various other Hypermarkets like..RPG’s Spencer, Trent (Star India Bazaar) and with Shoppers Stop too indicating their entry into the hypermarket segment.

• To have an edge over others Big Bazaar generates attractive schemes time to time like Exchange offers, Pay high schemes for newspapers, etc.

• Heavy Advertisement• Seasonal & occasional offers etc.

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FutureBazaar.com

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----To cater a new and fast emerging population of customers called ‘Netizens’ the company entered into E-tailing space through FutureBazaar.com.

----FutureBazaar.com is owned and operated by Future Bazaar India Ltd. (FBIL). a part of the Future Group.

----FBIL is the e-commerce arm of the Future Group.

----The company was incorporated in 2006 and began business in 2007.

Other Participants are --- ebay.in, fabmall.com (indianplaza), indiatimes.com etc.

Online retail format

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Futurebazzar Provides:-

A choice of more than 20,000 products.

Delivery across more than 1500 cities and towns in India covering around 16,000 pin codes.

Fast deliveries – tie ups with world leaders in logistics & transportation services.

A dedicated Customer Care helpline for any queries.

“Brand Association”– provides more strength.

Online retail format

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Conclusion

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Global National Regional Local LowerMiddle

Middle UpperMiddle

UpperClass

Markets Customers

Form

atsProducts

Food

Electronics

Home Solution

Department Stores

Supermarkets

Convenience Stores

Hypermarket

Apparel & Accessorie

s

GDP 12%, and is

likely to reach 22

% by 2010

consumer

spending 4

times in next 20

yrs.

Retail sector is likely to grow to

US$ 406 billion by

2010

organised retail

sector to reach

US$ 51 billion by

2010

Four axis - Retail Growth (Indicative)

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Pratik Jain

Thank You !

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