Boom in Indian Retail Sector

– Future Group
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India----”a potential
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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.

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 Retail in India..||
• 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.
Kirana
Sources: KPMG Survey & AT Store
Kearney’s
GRDI(2008)
The beginning..||

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
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Traditional -- Retailing in
India

Tobaccobanana
Packaged
Eveready
Stationery
Candy
Pouch
Milk s
Battery
Kirana Store
Kirana Store
The Evolution..||
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

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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
needs inthat
onecarries
trip e.g.aBig
bigBazaar.
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
Hypermarket is emerging as the most favorable format for the time being inKirana
India. Store
enormous shop---hundreds of brands sharing space. e.g. Pantaloon’s Central Mall.
Major Indian Retailers

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.

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Future Group

India
Tomorrow

MD(PRIL) and the CEO

of Future Group
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abouT!

Future Group is one of the country’s leading business

groups present in retail, asset management,
consumer
Future Groupfinance, insurance,
was established in 1994retail media,
with a vision retail
to provide
spaces services
diverse and logistics.
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.

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 Retail Business

Pantaloon Retail India Limited

Pantaloons Stores --a chain of fashion

destinations
Big Bazaar-- hypermarket chain Joint Ventures with International
Brands
Food Bazaar -- a supermarket chain
Galaxy Entertainment Limited
Central -- a chain of seamless destination
malls UK-based Lee Cooper
Home Town --Home Improvement French retailer ETAM group etc.
E Zone --Electronics
Depot --Books & Music Indian Joint Venture Partners

futurebazaar.com –e-tailing Manipal Healthcare

Others—Wellness, beauty etc. Liberty Shoes. etc.

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Continued…
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.
Vision
“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”

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a Future Group
venture

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Major Milestones!

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

1991
Launch of BARE, the Indian
jeans brand.

1995
John Miller – Formal shirt
brand launched.

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Continued…
• 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
3
by billing Rs. Cr in a single day

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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.

a Green Card Shopper

• Targeting youth

• Setting their own garment factories

• Just in time approach - prevent over stock of inventories

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Is se sasta aur accha kahin nahin!!!
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The Hypermarket!

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.

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 Continued…
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

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 Marketing Strategies
Get the 'shakti' with you. The
power to save. The power to
spend!

• Reward
Points
• Vouchers

• Special

payment
counters
• Priority entry

to card
Shakti is a credit card forholders
housewives. You need not
during high
submit income proof. Simply
traffic. show your Big Bazaar
bill of more than Rs. 500. Kirana Store
 Marketing Strategies
Click to edit Master text styles
Second level • Big Bazaar is facing
● Third level competition from various
● Fourth level other Hypermarkets
● Fifth level 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.
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FutureBazaar.com

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Online retail format
----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.

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Online retail format

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.

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Kirana Store
Conclusion

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Four axis - Retail Growth
(Indicative)
GDP organise
Home
12%, Solution d retail
and is Electronics
sector to

Products
likely to reach
reach 22 Apparel & US$ 51
% by Accessorie
s
billion by
2010 Food 2010
Markets Customers

Global National Regional Local Lower Middle Upper Upper

Departme Middle Middle Class
consum nt Stores Retail
er Formats
sector is
Supermarket
spendin s likely to
g4 Convenience
Stores
grow to
times in US$ 406
Hypermarket
next 20 billion by
yrs. 2010
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 Thank You !

Presented by Pratik
Jain

Kirana Store