KINDUZ Market Scoping Services

Retail Industry Services | KINDUZ Consulting | http://www.kinduz.com/

Enabling Sustained Excellence

MARKET SCOPING

SERVICES

•Location Mapping

•Competition Mapping

•Location Feasibility

http://www.kinduz.com/


Current Indian Retail Scenario

Spencer’s is in Cost Cutting, right sizing mode – 100 unviable stores

shut which led to a loss of 289 crore in 2008-09 and 150crore in 2007-08• Economic Times,17th June, 2009

Birla Nuvo plans to close 30 stores and save Rs 100 Cr on costs; also

open 150 new stores in viable centers• India Retail Biz, May 1st, 2009 ·

Foodland Fresh, a Mumbai-based retail chain, closed 39 of its 42 stores

across the city, last week.• Economic Times,10th February, 2009

Reliance Fresh is mulling closing 25 stores from its 590 stores at present

while the UK online and catalogue retailer• Economic Times,10th February, 2009

© 2008 KINDUZ - All rights reserved 1



Factors Leading to Successful Retail Stores

“The three most important things for a

successful retail store are

1) Location

2) Location

3) Location”

Sam Walton, founder Walmart


Visibility Accessibility Feasibility ParkingMerchandise

Mix

KINDUZ, Retail Industry Research , February 2009



Locations are on every retailer’s mind


“The modern retail opportunity is in the top 20 cities. Tier two towns could take five more years.”

CEO, Durables retail chain for KPMG retail report 2009

“All regions have potential key is in slicing the relevant customer segments and developing an

appropriate format/ value proposition.”CEO, Large Indian retailer for KPMG retail report 2009

“Out of town retail models will not work in India.”CEO, Global retail chain for KPMG retail report 2009

"No single format will be

suitable pan India - findingthe relevant format wouldbe key to success."

CEO, a large Indian retailer

“There are too manygeneral malls with similarvalue propositions in India.”

CEO, Furniture retail chain



KINDUZ MARKET SCOPING SERVICES




KINDUZ Market Scoping ServicesA structured approach to retail location planning


STEP I

1.Customer Profiling: Population Distribution/ Average Age Distribution/ Annual Income Distribution/Car ownership

2.Key Zone Mapping: Shopping Malls, Corporate Offices, Government offices, Entertainment Zones, etc.

3.Location Hunting: Key Retail Locations in Area, Anchor Tenants in these locations, Parking Availability, Asking Rate per sq.ft

STEP II

Competition Mapping: Existing Competitor Names & Locations, Sizes of stores in Area, Existing Average Revenue /sqft, Category Distribution within Store

STEP III

Location Feasibility: Trading Area Potential, CAPEX, OPEX Feasibility, Recommended Store Format, Recommended Store Size, Projected Breakeven Point




3. COMPETITION ANALYSIS FOR TRADING

AREAExisting competitors names & locationsSizes of competition’ s stores

Existing revenue per square feetWeek and weekend footfall

Category MixSpecial features if anyAsking rate for these locations

4. LOCATION FEASIBILITY ANALYSISGrading all Location options on key parameters like:

rental•Competition

•Footfall•Revenue/sft•Parking

•Accessibility

Ideal category mix recommendation for shortlisted option

Market Scoping Package Details

1.DEMOGRAPHIC PROFILE FOR COMPLETE CITY

Total urban population in target catchmentAge distribution Sex ratio

Education levelsKey economic indicators

Hot Zones - Population concentration within city

2.LOCATION OPTION IDENTIFICATION

Key retail zone identification within city Rentals in identified Retail Zones

Detailed analysis for each option:1.Key Zones within trading area:

Shopping malls Corporate/government offices

Entertainment zones RestaurantsSchools/colleges

2. Micro Mapping for Primary, Secondary and Tertiary trading areas

3. Retail location accessibility from Hot Zones 4. Detailed Site Analysis



Demographic Indicators of Target Catchment


•Total urban population in target catchment

•Sex Ratio

•Male Literacy Rate

•Female Literacy Rate

•Population less than 6yrs

•Children (6-14yrs) in private school

•Income Distribution

TOP FIVE

1. Allahabad 1,635,3872

2. Kanpur Nagar 1,549,5053

3. Lucknow (,250,8774

4. Agra 1,198,9915

5. Jaunpur 1,170,022



Economic IndicatorsHousing Loan Accounts , Loans for Purchase of Consumer Durables , No. of Retail Trade Accounts


TOP FIVE

1. Lucknow 47,9182

2. Ghaziabad 20,0253

3. Gautam Buddha Nagar 18,9664

4. Agra 17,1615

5. Kanpur Nagar 16,055

TOP FIVE

1. Moradabad 26,9022

2. Varanasi 22,3283

3. Gorakhpur 22,0894

4. Kanpur Nagar 21,3995

5. Saharanpur 21,009



Hot Zones - Population Concentration within City


Aspect/Location A B C D E F

Sq Km

Population

Residence type Apartments Independent houses Bungalows

Average Rentals

Property price

A

B

C

DE

F



RETAIL LOCATION OPTION IDENTIFICATION





Clear identification of existing key shopping areas in the city

A

B

C

DE

F

Identifying Key Retail Zones in City

Option 1

Option 2

Option 3Option 4




Indication of rentals in high density retail shopping areas for exploring the option of a standalone store

C

D

Option 1

Rs 50-75/sftOption 2

Rs 55-85/sft

Option 3

Rs 95-120/sftOption 4

Rs 65-95/sft

Rentals in identified Retail Location Options in City



DETAILED ANALYSIS FOR EACH OPTION





Identifying Key Zones

in Target Catchment (Schools, Colleges, Offices, Shopping Malls etc.

Key Zones in Area Primary

Trading

Secondary

Trading

Tertiary

Trading

Schools 6 3 8

Colleges 2 5 3

Entertainment Zones

Government Offices 2 1

Corporate Offices 2

Multiplexes 1

Restaurants 6 7 47

Shopping Malls

Competitors

Trading Area Analysis of Options

Primary Trading Area – upto 5kms/ 5-10minutes

Secondary Trading Area – upto 10km/ 10-20minutes

Tertiary Trading Area – upto15kms/ 20-30 minutes



Micro Mapping for Primary, Secondary and Tertiary Trading Areas.

© 2008 KINDUZ - All rights reserved` 15

Galaxy Ginger Court

Wood Art

Hotel Kasani Grand

Babuji Teknoflon

Loreal

Karr Express

Images Hospital

Blackberrys

Louis Phillipe

Pizza Hut

Shoppers Stop

Competition

Raheja IT Park

Accenture

Siri Elite Sgency

Computer Sceince Corporation Verizon India

HSBC

Adcendas IT Park

Oracle

Oracle

NIFT

Restaurants RetailersCorporate OfficesColleges

Infotech

Van Heusen

Mapping each area in detail to showcase eating joints, offices, retail shops, competition etc.

Detailed Area Map – Option 1



Retail Location Accessibility from Hot Zones


CompetitionIdentifying all possible Locations within trading area highlighting competition if present

A

B

C

D

E

F



Detailed Site Analysis – Option 1


LOCATION ANALYSIS A B C

Distance from Target Catchment 9.9 4.2 2

Size (sqft) 3,20000

Parking Availability 1000 cars

Anchor Tenants Hypercity, Lifestyle, Shoppers Stop

Rent/Sqft Rs120/sft

Developer’s Contact Details :

Actual Site Picture

Traffic

Flow



COMPETITION MAPPING




Competition Mapping in Trading AreaProduct Category and Retail Format which matches with Client Brief


Van Heusen

@Home

Inner Space

Vijay Textiles

Louis Phillipe

Skipper Furnishings

Prakash Lights

Welhome

Blackberrys

Allen Solly

Peter England

DETAILS Raymond Blackberrys Van Huesen Zodiac Louis Phillipe Peter England

Location

Size (Sqft)



Detailed Competition Analysis using Primary Research


Raymond Louis Phillipe

Address

Raymond

Plot No. 204, E Venue, Road No. 14, Banjara

Hills, Hyderabad, Andhra Pradesh500034, India

040 23301603

Louis Phillipe

686, 2, Lane Adj To Aamoda Kitchen, Banjara

Hills, Hyderabad, Andhra pradesh500034, India

040 23324546

Rent/sqft

Size (Sqft)

Average Revenue /Sqft

Categories

Special Feature

Studying Each

Competitor present within Trading Area



Option 1 - Summary

Immediate Catchment: 5000 families at Whitefield alone

Primary Catchment of 13 lacs in vicinity

Secondary Catchment 12 Lacs

Excellent Infrastructure

Key Zones:

35 schools + 19 colleges/technical institutes + 3 parks , Several football & cricket clubs ,

Ample Social clubs & varied places of worship

25 corporate offices within primary trading area

Accessibility:

15 minutes from Jubilee Hills, 20 minutes from Banjara Hills

Easily accessible from high traffic zones like Madhapur highway

Competition Key Indicators:

No of Competitors

Average Footfalls

Average Revenue/sft

© 2009 KINDUZ Business Consulting - All rights reserved 21



LOCATION FEASIBILITY ANALYSIS




Location and Competition Analysis


Characteristic Weight Option 1 Option 2 Option 3 Option 4

Competition 40 1 40 3 120 4 160 6 240

Rental 60 2 120 4 240 6 360 8 480

Parking 20 8 160 1 20 3 60 3 60

Footfall 60 8 480 7 420 4 240 5 300

Typical Revenue /Sqft 40 6 240 4 160 3 120 3 120

Target Population accessible within

primary trading area20 6 120 7 140 6 120 5 100

Total: 1160 1100 1060 1300

Completely objective Analysis of each location option using predefined statistical parameters

benchmarking each characteristic based on the industry standard.



Recommended Mix for Opening a Store in Shortlisted Location


Premium Suitings17%

Medium Range Suitings

33%Mens Shirts

25%

Textiles17%

Accessories8%

Recommended Mix

Complete Demographic Details and Recommended Category Mix for Location Shortlisted through

the analysis

Option 4 - Catchment

Sq Km

Population

Education Levels

Average Income

Location Details

Rental

Competitiors in

Primary Trading

Average Footfall

Average

Revenue/sft

Parking

Availability



Zoning

The entire zoning should consider one single science of shopping

IMPULSE !!!

to promote that critical aspect of shopping, which will generate better conversion !!!

The scientific zoning & trade mix of the store will ensure equal footfall distribution on every floor.




Design and Concept Planning


Traffic Flow Analysis Sightlines



ABOUT KINDUZ




About KINDUZ

KINDUZ is a niche consulting firm that delivers focused 'Business Improvements',

with 'Business Results' for its customers. Headquartered in India, with branches in

Germany, U.S.A. and Canada, KINDUZ has completed over 35 assignments since its

inceptions in 2008, and has retained every single client it has worked with.".

Our retail vertical is managed by experts from varied retail domains like real estate,

financial planning, space design and assortment planning. The CORE Team jointly holds

over 60yrs of industry experience with established developers and retailers.



Our Retail Services


29

Financial Services

Mergers and

Acquisitions

Equity and Debt

Funding

IPO Management

Registration & Licensing

Market Scoping

Demographic Mapping

Competition Mapping

Location Feasibility

Shopping Mall Services

City Profiling

Market Micro Analysis

Feasibility Analysis

Concept Design

Project Management

Mall Management

K-Star(Mumbai) Mega Mall(Mumbai)

Palm Beach Magneto Mall

(Mumbai) (Raipur)



Shop Design Partner – Shopworks Bengaluru, Dhaka, Mumbai, Colombo, Delhi, Frankfurt, Istanbul, Lisboa, London, Melbourne, Moskva, Shanghai




KINDUZ EXPERT PANEL




Aartee Roy


Education:

Certified in Production and

Inventory Management (CPIM)

from APICS (USA)

Six Sigma Black Belt

Advanced Diploma in Fashion

Design from NIFT (Delhi)

Bachelors in Arts from Panjab

University (Chandigarh)

Key Skills: Market Research , Category Mix Planning,

Roles Played

Senior Vice President at Kinduz ConsultingHeading the Retail vertical at KINDUZ

Responsible for def ining focus areas, marketing strategy and business development in the retail sector

Vice President Merchandising at Odyssey India Ltd.Heading all India merchandising for multiple categories including perfumes, jewellery , leather accessories

home and branded gif ts. Responsible for sales, margins and inventory management for all above.

Instrumental in merchandise mix planning for the bid for Delhi International Airport which Odyssey won.

Introduced 44 new suppliers to Odyssey which helped limit its top line depletion during the 2008 economic

downturn. Designed merchandise mix for Odyssey’s EXPRESS format which led the category to be the

top grosser of sales.

Senior Buyer at Lifestyle (UAE)Worked for Lifestyle heading home decor buying for nine countries in the Middle East. Helped Lifestyle

manage their inventory and replenishment across 64 stores spread in the GCC. Instrumental in category

management and vendor relationship management for Lifestyle enhancing their Like for Like top line by

12%Helped Lifestyle streamline their pricing strategy across the GCC, improving margins by 25% Helped

drive strategic contracts with suppliers to improve Odyssey’s margins by 5% and limit the exposure to

excess inventory.

Senior Merchant at Monsoon AccessorizeHeading merchandising for the Monsoon ladies and kids accessories at the India liaison of f ice.

Responsible for establishing the Indian supplier base for Monsoon Home.

Merchant at William E. Connor & Associates Ltd.Handling complete sourcing and merchandising for brands like Red envelope, the Body shop, Neiman

Marcus and Nordstrom. Helped supplier’s achieve Ethical Trading Compliance, thus limiting exposure of

Body Shop and Monsoon to unacceptable manufacturing practices.



Key Skills : Business Planning and Strategy Definition. Revenue Model Design and

Location Feasibility Analysis.

Roles Played:

COO - Retail Tadawi Healthcare Group, Saudi Arabia

Transitioned the Tadawi is the largest healthcare company in Kingdom with over 500

pharmacy stores and turnover over US$ 350 million. Created and employed first Format

Category Management Program, monitoring expenditures and supplier performance,

improving shelf space productivity, and driving on going price improvements.

Director – Operations (Cash & Carry), Wal-Mart India

Responsible for operations and strategic direction with full responsibility for bottom -line

factors, including long-range planning. Spearheaded vision, strategy, and execution of

business operations. Led the planning team in the start-up operation in making the

feasibility study, format definition, project-plan and co-ordinating with HO team in

devising the timeframe for implementation.

COO - NEXT India (400 consumer durable & electronics retail chain)

Lead operations and strategies direction with full responsibility for top-line growth and

bottom-line profitability. Provide cross-functional management; direct four National

Buying Heads, three Regional Heads and eight District Managers; and general oversight

of 250 employees. Redefine organizational structure; oversee major pricing decisions and

perform monthly financial evaluation of company results.

General Manager, Retail Operations - Pharmasave Canada , (Health & Wellness Retail

Pharmacy Chain)

Managed 55 stores in Ontario. Responsible for over profitability and network expansion.

Manager - Jeans Pvt Ltd. District (25 Store Casual Fashion Retailer)

Mohit Mohan

Education:

MBA (Strategic Marketing)

Monash

UniversityAustralia

Franchise Management

University of

NSW, Australia

Real Estate - R M Institute

of Technology, Australia

Health & Safety Certification

- WSIB Canada



Key Skills : Property evaluation for all various retail formats, strategizing business

development expansion plans, streamlining the process of Business

development, computational research on demand dynamics required for expansion plan

Roles Played:

Senior Consultant Transaction Services – Retail at Cushman & Wakefield ( India )

Pvt. Ltd

Transaction services – Retail (Western India) worked for projects in cities like

Mumbai, Pune, Ahmedabad, Surat, Baroda, Jamnagar, Nagpur, Raipur.

Worked for Mall Developers with planning, leasing for developments like Atria Mall

(Mumbai) Mega Mall (Mumbai) Palm beach galleria (Navi Mumbai), K-Stars

(Mumbai), Imperial Mall (Surat), Magneto Mall (Raipur), Venus Square

(Ahemdabad), Express Avenue (Chennai).

Actively involved in creating Business Plan for esteemed clients like Hanes &

Mautriz, Marks & Spencers, Mango, Swarowski, Jumbo Electronics, Redmond.

Actively worked with retailers like Koutons, Spykar, Lilliput, The Mobile Store, Kiah, Snap

Fitness, Subway, Kailash Parbat, Levis, Nike

Involved in preparing business development pitch for the retail vertical with clients like

Shoppers’ Stop group, Odyssey, Gitanjali Lifestyle, Tata International, Trent Ltd, Brand

House Retail.

Narendra Kumar

Education:

MBA (International

Business) -

Symbiosis, Pune

B E (Electrical) MDU

Haryana



Key Skills : Space Design, Project Management

Roles Played:

Retail Real Estate Architect – Emaar MGF Land Ltd.

Involved in architectural co-ordination of their entire retail exploits pan India, including

review of layouts for over a dozen retail ventures and shopping malls.

Responsible for a wide gamut of activities ranging from approving proposals for new

projects at the retail level, mediating between the management strategies and architect

conceptualizations to achieve the perfect balance design and saleability.

A consultant for design issues, prioritizing space for anchors, vogue brands and

hypermarkets in the micro level.

Determining circulation patterns, traffic flows, frontages etc on the macro level. Serving as

the interpreter between the architect's conceptualization and developer's vision.

Design Head – Select Citywalk

Work profile included a comprehensive shopping mall exposure, from inception to

completion - all exercises and niceties amid and beyond.

Know-how at parity with latest developments in the design and construction industry.

Experience in retail design, inter-relationship between brand management and the

consequent orientation of spaces.Approving tenant layouts, modifications of existing shops

etc. Coordinating and mediating between Singapore and Local architects.

Ekta Prasad

Education:

B.Architecture from BMS

College of Engineering



Contact


Aartee RoySenior Vice President

Website: http://www.kinduz.com/retail/

Email: [email protected]

India Mobile: +91-9999-102366

India Office: +91-40-40165594

US Phone: +1-312-473-9766


http://www.kinduz.com/retail/

mailto:[email protected]

KINDUZ Market Scoping Services

Business

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