Retail Introduction PPT
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Transcript of Retail Introduction PPT
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7/28/2019 Retail Introduction PPT
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FOOD AND GROCERY RETAILING
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Key Challenges in Food Retailing
DEMAND SIDE:
Penchant for fresh/home-made and value
consciousness
Diversity of tastes and preferences
Willingness to travel
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SUPPLY SIDE:
Sourcing base and efficiency
Real estate availability and cost Manpower availability
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Emerging trends in food retailing
Big becoming bigger
Rise of organic foods and health and wellness
segment
Increasing focus on private labels
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Scope for innovation in food retail
Innovation on Retail format - Players can innovateon formats in different ways :
by targeting specific customer segments and
serving their needs better e.g. working women,single office goers, etc
by changing the product mix e.g. entirely privatelabel stores, exclusively fresh produce stores
by offering new forms of convenience and widerrange to the customer e.g. teleretail and internetretail
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Technological Innovations - Employing cutting edgetechnology in retail could prove to be the source of
competitive advantage for retailers. Self-scan checkouts have the potential of both reducing
check-out time manpower cost for the retailer
Using RFID tags can help track and reduce in-storeinventory management costs and give retailers better
insights into customer in-store movement patterns Web-enabled POS systems, e-SCM systems, e-Procurement
systems and warehouse management systems will enablefood retailers in integrating the entire agri value chainleading to efficient procurement and supply chain
management. Use of cutting edge analytics can bring insights into
customer buying behaviour with implications on storelayout, pricing and promotions.
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There are various factors paving the way to revolutionizing food retailing in
India. Among them few are:
Changing life styles and tastes
Growing need for convenience
Increasing disposable income
Increasing numbers of working women Change in consumption patterns
Higher aspirations among youth
Impact of western lifestyle
Plastic Revolution Increased use of credit cards anddebit cards
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UP-AND-COMING FOOD RETAIL FORMATS:
A. Neighbourhood Stores B. Supermarkets
C. Hypermarkets
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OPPORTUNITY IN FOOD & GROCERY
Consumers : Urban Middle Class continues to grow by 20-25million annually, the population is predominantly young, betterexposed to modern lifestyles, and harbours a preference forpackaged food and beverages.
This growing Indian Middle Class, especially the employedyouth in the ITES, BPO and other Service sectors, have higher
propensity to consume, which is further fuelled by easyavailability of credit due to popularization of plastic cards.
Retailers : More than 3,500 Food outlets and restaurantsoperational across tier-I & tier-II cities and Retail space of over5 million sq.ft have come up for F&G supermarkets, departmentstores, hypermarkets and food catering outlets.
25 major F&G Retailers emerged in less than a year and Retailsales in the segment grew by nearly 150% over 2006!
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OPPORTUNITY IN LOGISTICS
Logistics, Supply Chain : Improved logistics, warehousing, state-
of-the-art technology and availability of quality processed andpackaged food are factors that will boost the growth oforganised F&G retail in India.
Indian corporates like ITC, Godrej, DCM Shriram have initiatedthe process of direct supply linkages with the farm, Globalmajor Metro AG was the first to introduce up-to-date know-
how logistics and supply chain management, Corporate majorReliance is investing heavily on this front, Wal-Mart too plansback-end operations with Bharti.
Investments to the tune of USD 23.5 Billion in the foodprocessing sector over the next three years is in the pipeline.
This will undoubtedly create a huge demand for the foodprocessing and packaging industry But keeping in view thevast farm sector and the surmounting demand for quality foodproducts, there remains room for much more
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OPPORTUNITY IN FOOD PROCESSING
Nearly 80% of agricultural produce in developed
countries gets processed and packaged. It is just about 1.3% in the case of India - a reason
why less than 1% of the F&G retail segment isorganised.
Even the existing organised F&G Retailers arefinding it difficult to keep their stacks full & fresh.
This is just the right time for global firms to invest inthe food processing sector, especially so when thegovernment seems eager to boost rural/farm
incomes. Marine Food Parks & Agricultural Special Economic
Zones are already being worked out to ensure thatfarmers are not displaced.
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STAR BAZAARchota budget lambi shopping
A TATA enterprise.
All home and foodneeds available (staplefoods, beverages,personal care products,fresh dairy products &durables, freshvegetables and fruits,and household items)
Neat storage and freshvegetables
All groceries arrangedsystematically
http://saleraja.com/offer-sale/Star-Bazaar -
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Guide to whats available where?
20-20 special
Back to school offer
Winter mega offers
Various schemes and offers run on weekdaysand weekends
Multiple billing counters to save time.
In house bakery Non veg in cold storge
http://saleraja.com/offer-sale/Star-Bazaar -
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STAR BAZAAR ADVANTAGE
One of the largest live bakeries in the city offering
delicious cakes, pastries cookies, breads
Multiple check out counters to make your shopping easier and faster
High quality products made available at extremely low prices in the city
A wide range of private labelled apparels offering the best value tocustomers
Unparalleled and irresistible offers and discounts
Exclusive programs:
'Star Power Rewards Program (Rs. 500 or more)
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Reliance FreshGrowth through value creation
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Fresh
Cheap
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Eg: Banjara hill outlets-sourced directly- vantimamdi, chevella, and
nearby mandals in ranga reddy district.
Recruiting PeopleUnderprivileged Community
Biometric CardsFarmersLoans upto Rs. 15000
Training the farmer
Information centre:
Increase productivity
Market rates of different Corps
Technical HelpQuality of seeds and fertilizers
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Product Range:
Vegetables and fruits House hold items
Food and beveragesAll premiere
brand + Private label
Groceriesonly private label
Dairy products
Non veg food items
Ready to eat items
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Promotion:
Main ideamake bulk purchase
Discount scheme daysSaturday and Sunday
Reliance fresh membership cardReliance One
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Pricing:
Low prized private labels
Discount on bulk buying
Private Labels:
Maximum Space: Own Products Less Space: Nestle Maggi, MTR Masala, Pepsi, Lays Chips.
Reasons: High Margin