INDUSTRY PROFILE

Retailing

Retailing is the transaction between the seller and consumer for personal consumption.

It is does not include transaction between the manufacturer, corporate purchase,

government purchase and other wholesale purchase. A retailer stocks the goods from the

manufacturer and then sells the same to the end user for a marginal profit.

Introduction
Retailing involves all activities incidental to selling to ultimate consumer for their

personnel family and household use. It does this by organizing their availability on a

relatively large scale and supplying them to a customer on a relatively small scale.

Retailer is any person/organization instrumental in reaching the goods or merchandise or

services to the end users. Retailer is a must and cannot be eliminated.

The Indian retailing industry is becoming intensely competitive, as more and more

payers are Vying for the same set of customers. The major retail players are Pantaloon

Retail, Shoppers Stop, Reliance, etc..,

Retail Industry in India:

Challenges Opportunities and Strategies

Retailing is one of the biggest sectors and it is witnessing revolution in India.

The new entrant in retailing in India signifies the beginning of retail revolution. India's

retail market is expected to grow tremendously in next few years. According to AT

Kearney, The Windows of Opportunity shows that Retailing in India was at opening

stage in 1995 and now it is in peaking stage in 2006. India's retail market is expected to

grow tremendously in next few years. India shows US$330 billion retail market that is

expected to grow 10% a year, with modern retailing just beginning. India ranks first in

2005. In fact, in 2005 and 2006, India is the most compelling opportunity for retailers,

because now India is in peaking stage. This window of opportunity is useful for

executives who plan their market-specific strategies; the four stages or the lifecycle of

this industry is as as follows:

A. Introduction:

Strategy suggested: A rapid penetration strategy is suggested at this Stage i.e. low price

and high promotion.

B. Growth:

The strategy of adopting quality and styled products with new models and shift of

advertising from product awareness to product preference Eg ; the big bazaar

advertisement says surf excel is cheaper than the market price. The idea behind adopting

strategy is to strengthen against competitors

C . Maturity:

Enter new market segments that is either enter new geographic areas e.g. ;vishal megha

mart has opened stores in smaller cities tier II and III cities

Decline:

The window of opportunity is closing fast and modern retail share is reaching 40 to 60

percent. Though the opportunity is closing the existing retailers can enter with new

formats such as discount models or non-food formats such as consumer electronics and

apparel.

Window of opportunity ends for about 5 to 10years before a market enters the

closing phase and reaches saturation level. India for example, was in the opening stage in

1995 and entered peaking stage in the year 2003 and reached number 1 rank in2005.

PRESENT INDIAN SCENARIO

* unorganized market: Rs. 583,000 crores

* Organized market: Rs.5, 000 crores

* 5X growth in organized retailing between 2000-2005

* Over 4,000 new modern Outlets in the last 3 years

 * Over 5,000,000 sq. ft. of mall space under development

* The top 3 modern retailers control over 750,000 sq. ft. of retail space

* Over 400,000 shoppers walk through their doors every week

Growth drivers in India for retail sector

• Rising incomes and improvements in infrastructure are enlarging Consumer markets

and accelerating the convergence of consumer tastes.

• Liberalization of the Indian economy

• Increase in spending Per capita Income.

• Advent of dual income families also helps in the growth of retail

Sector.

• Shift in consumer demand to foreign brands like McDonalds, Sony, Panasonic, etc.

• Consumer preference for shopping in new environs

• The Internet revolution is making the Indian consumer more Accessible to the growing

influences of domestic and foreign retail Chains. Reach of satellite T.V. channels is

helping in creating awareness about global products for local markets.

• About 47% of India's population is under the age of 20; and this will increase to 55%

by 2015. This young population, which is Technology- savvy, watch more than 50 TV

satellite channels, and display the highest propensity to spend, will immensely contribute

to the growth of the retail sector in the country.

 • Availability of quality real estate and mall management practices

• Foreign companies' attraction to India is the billion-plus Population.

Scope in retailing

Retail is clearly the sector that is poised to show the highest growth in the next five

years. The sector is set for a revolution, as both the present players and new entrants are

gearing up to explore the market. This sector contributes 10% of India's GDP and the

current growth rate is 8.5%.

The present size of the organized retailing sector is approximately 3% and is

expected to grow to 25-30% by the year 2010. There are about 300 new malls, 1500

supermarkets and 325 departmental stores currently under construction.

Many players are coming up with huge investments, due to which the present 12

million mom-and-pop shops and kirana stores fear losing their business. Most predictions

say that the sector might reach to US$ 400-600 billion by the year 2010.

Global retail giants such as Wal-Mart, Tesco, Germany's Metro AG and many

others are ready to enter the retail markets. The rising demand of branded products and

increase in purchasing power has lured these companies to enter the market.

Leading Indian Retailers

Bata India Ltd, Big Bazaar, Crossword, Ebony Retail Holdings Ltd., Food Bazaar,

Globus Stores Pvt. Ltd., Liberty shoes Ltd., Music World Entertainment Ltd., Pantaloon
Retail India Ltd., Shoppers Stop, Subhiksha, Titan Industries, Trent and the new entrants

penetrating the market soon will include Reliance Retail Ltd, Wal-Mart Stores etc

Employment opportunities in retail sector in India

India's retail industry is the second largest sector, after agriculture, which provides

employment. According to Associated Chambers of Commerce and Industry of India

(ASSOCHAM), the retail sector wills Create 50,000 jobs in next few years. Retail

companies are starting retail management courses in Partnership with management

institutes, roping in talent from other Sectors and developing comprehensive career

growth and loyalty Plans for existing employees. Top players like Pantaloon Retail India

Limited, Trent, Shopper's Stop, RPG Group and ebony are virtually on their toes.

Consider the plans of largest player, The Pantaloon Retail India Ltd, The company has

developed a comprehensive strategy, where in it Expects that in 2years, it will not recruit

any new managers from outside. Trent has also started in-house learning programs and

now goes to under graduate colleges to recruit students. Since, the job market is hugely

receptive to this with more and more business schools focusing on the sector and large

retailers setting up retail academics.

Challenges of Retailing in India

In India the Retailing industry has a long way to go, and to become a truly flourishing

industry, retailing needs to cross the following hurdles:

* The first challenge facing the organized retail sector is the competition from

unorganized sector.

* In retail sector, Automatic approval is not allowed for foreign investment

* Taxation, which favors small retail businesses.

* Developed supply chain and integrated IT management is absent in retail sector.

* Lack of trained work force.

* Low skill level for retailing management.

* Intrinsic complexity of retailing- rapid price changes, threat of product obsolescence

and low margins.

* Organized retail sector has to pay huge taxes, which is negligible for small retail

business.

*Cost of business operations is very high in India.

Retail Marketing & Sales Promotion

Retail marketing plans, sales promotion ideas, branding and advertising resources for

retailers. Learn how to use loss leaders, media buys and sales events to the benefit of your

retail store. Select a newspaper to advertise in, create an effective ad and understand

newspaper rate cards.

a. Advertising for Retailers

Learn how to properly buy advertising, where to advertise your business and what

forms of advertising work best for the retail store. Affordable ways to advertise in

newspapers, use direct mail, billboards, television, radio, and the Internet

b. Merchandising

In retail, merchandising is the practice of making products in stores available to

consumers, primarily by stocking shelves and displays. Use these merchandising

resources to learn how to create an attractive display, get tips for product placement and

receive other retail merchandising advice.

c. Private Label Branding Learn

the definition of private label branding, find out where to buy private label products to

sell in your store, and better understand the private labeling concept with these resources.

Retail Signage - Digital Signage - Store Signs

Learn more about the effective use of retail signage, the benefits of digital signage and

other promotional signs. This category covers neon signs, billboards, digital signage

systems and other retail store signage.

Using Press Releases

Writing and sending a press release is an excellent way to get the word out about your

retail store. Here are paid and free press release services, press release best practices and

other retail marketing ideas using press releases.

Retail Strategy

Strategic retail planning and repositioning

• End their retail propositions

• Plan and develop new retail formats and channels

• Plan effective retail store roll-out strategies

• Prioritize new retail markets and define how to enter them

• Evaluate and execute new retail ventures and acquisitions

• Develop retail business plans and financial projections

Retail performance improvement

By deploying experienced professionals in retail strategy, range an Improve and exited

supply chain management, retail technology, multi-channel retailing and store roll-out,

we deliver strong, practical recommendations to drive trading improvements and

operating efficiencies, resulting in quick wins as well as long term financial benefit.

Some of the questions we have addressed recently include

 How can we make our retail proposition more appealing and Competitive
  How can we manage our product range and stock most effectively to drive sales

and free working capital?

 How do we optimize our store portfolio and store roll out Programmer

 How do we realize our multi-channel potential (including online/ catalogue)?

 Which supply chain improvements will drive sales and/or free working capital?

 How do we improve our management of shelf space to drive sales?

 How do we improve our management of store operations to save costs and drive sales?

3.2 Future group

Introduction

Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of

India’s leading business houses with multiple businesses spanning across the consumption

space. While retail forms the core business activity of Future Group, group subsidiaries are

present in consumer finance, capital, insurance, leisure and entertainment, brand

development, retail real estate development, retail media and logistics Led by its flagship

enterprise, Pantaloon Retail, the group operates over 12 million square feet of retail space in

71 cities and towns and 65 rural locations across India

Headquartered in Mumbai (Bombay), Pantaloon Retail employs around 30,000 people

and is listed on the Indian stock exchanges. The company follows a multi-format retail
strategy that captures almost the entire consumption basket of Indian customers. In the

lifestyle segment, the group operates Pantaloons, a fashion retail chain and Central, a chain

of seamless malls. In the value segment, its marquee brand, Big Bazaar is a hypermarket

format that combines the look, touch and feel of Indian bazaars with the choice and

convenience of modern retail

FUTURE VALUE BRANDS

 The Future Group has built a strong portfolio of some of the fastest Growing

consumer brands in India.

 This activity is led through Future Brands India Limited, a specialized subsidiary

company that was set up to create and build powerful brands that address the

aspirations of the new Indian consumer

 Some of the key brands in this portfolio include, John Miller, Lombard, Bare,

DJ&C, Buffalo and RIG in the fashion and apparel space. Dream line, present in the

home segment, offers a wide range of products in kitchenware, bed & bath linen, and

Home Décor categories. In the food and home care segment brands include Tasty

Treat, Premium Harvest, Fresh & Pure, Care Mate and Clean Mate. In consumer

durables and electronics space, the group’s brands include Koryo and Sensei.

Indianness: confidence in ourselves

 Leadership: to be a leader, both in thought and business

 Respect & Humility: to respect every individual and be humble in our country

Future group firms

• Pantaloon Retail (India) Limited

• Home Solutions Retail India Limited

• Future Brands Limited

• Future Media (India) Limited

• Future Supply Chain Solutions Limited

• Convergem Communication (India) Limited

• Pantaloon Food Product (India) Limited

• Future Knowledge Services Limited

• Future Capital Holdings Limited

• Future General India Insurance Company Limited

• Future General India Life Insurance Company Limited

• Future bazaar India Limited

• Winner Sports Private Limited

• Staples Future Office Products Private Limited

 • Talwalkars Pantaloon Fitness Private Limited

• Indus League Clothing

• Galaxy Entertainment Corporation Ltd

• Future Consumer Products Limited

• Future Ventures India Limited

COMPANY PROFILE - BIG BAZAAR

Big Bazaar is not just another hypermarket. It caters to every need of your

family. Where Big Bazaar scores over other stores is its value for money proposition

for the Indian customers.

The Big Bazaar is one such department store to have set up shop across the

country. Since its first outlet opened in Kolkata in late 2001, the Big Bazaar has spread

to towns and cities at an alarming rate. Currently 106 outlets

These multi-level shopping meccas stock everything from food to fridges, and

cookware to clothes. However, the Big Bazaar isn't your ordinary department store. It's

been especially designed to appeal to the Indian consumer.

Big Bazaar With a slogan of "Is se sasta aur accha kahin nahi!" ("Nowhere

cheaper or better than this!"), the Big Bazaar targets itself directly at the average Indian's

love of following the crowd and scrambling for a good discount.

Parent-Pantaloon Retail India Ltd

Pantaloon Retail (India) Limited, is India’s leading retailer that operates multiple retail

formats in both the value and lifestyle segment of the Indian consumer market.

Headquartered in Mumbai (Bombay), the company operates over 12 million square feet

of retail space, has over 1000 stores across 71 cities in India and

employsover30,00people.

The company’s leading formats include Pantaloons, a chain of fashion outlets, Big

Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain, blends

the look, touch and feel of Indian bazaars with aspects of modern retail like choice,

convenience and quality and Central, a chain of seamless destination malls. Some of its

other formats include Brand Factory, Blue Sky, all, Top 10 and Star and Sitara. The

company also operates an online portal, futurebazaar.com.

A subsidiary company, Home Solutions Retail (India) Limited, operates Home

Town, a large-format home solutions store, Collection i, selling home furniture products

and e Zone focused on catering to the consumer electronics segment.

Pantaloon Retail was recently awarded the International Retailer of the Year 2007 by

the US-based National Retail Federation (NRF) and the Emerging Market Retailer of the

Year 2007 at the World Retail Congress held in Barcelona.

Target Audience

Big Bazaar targets higher and upper middle class customers, the large and growing

young working population is a preferred customer segment, Big Bazaar specifically

targets working women and home makers who are the primary decision makers.

Product mix

Denims& t-shirts Fabrics& cut pieces Formal wear Casual wear Party wear Ethnic

wear Accessories Under garments Night wear Dress material Saris Staples Ready to eat

Ready to cook International food Spices Imported bazaar Tea& coffee Fruits Vegetables

Imported fruits Dairy products Soft drinks Packaged juices Milk item Frozen foods Ice

creams Shampoos Detergents Soaps Liquid wash creams deodorants Home cleaners

utensils plastics crockery

Pricing

Value pricing (EDLP) Promotional pricing ,low interest financing ,psychological

discounting, special event pricing Differentiated pricing ,time pricing, Bundling.

Place-store locations

Initially identifies future/ potential development areas, acquire such areas at an early

phase before the real estate value booms, and located at high traffic areas.

Promotion

 “ Saal ke Sabse Saste 3 Din”

 Future card(3% discount)

 Shakti card

 Advertising(print ads, TV ads, radio)

 Brand endorsement by M.S DHONI

 Exchange offer

 Weekend discounts

 Point of purchase promotions

 ` Junk' swap offer- “Exchange anything

E-tailing

To overcome location disadvantage- launched a merchandise retailing website

www.futurebazaar.com which targets high-end customers ready to use credit cards.

Internet as place has put them in a profitable position because there is minimal expense of

maintaining a website.
 BOARD OF DIRECTORS

 Mr. Kishore Biyani, Managing Director

 Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the

Group Chief Executive Officer of Future Group.

 Mr.GopikishanBiyani,Wholetime Director

Gopikishan Biyani, is a commerce graduate and has more than twenty years of experience in the

textile business.

 Mr. Rakesh Biyani, Wholetime Director

Rakesh Biyani, is a commerce graduate and has been actively involved in category

management; retail stores operations, IT and exports. He has been instrumental in the

implementation of the various new retail formats.

 Mr. Vijay Biyani, Wholetime Director

Vijay Biyani has more than twenty years of experience in manufacturing, textiles and

retail industry and has been actively involved in the financial, audit and corporate

governance related issues within the company.

 Mr. Vijay Kumar Chopra, Independent Director

V.K.Chopra is a fellow member of The Institute of Chartered Accountants of India

(ICAI) by profession and is a Certified Associate of Indian Institute of Bankers

(CAIIB). His banking career spans over 31 years and he has served senior management

positions in Central Bank of India, Oriental Bank of Commerce, SIDBI, Corporation

Bank and SEBI

AWARDS

2009
CNBC Awaaz Consumer Awards 2009

Most Preferred Multi Product Chain - Big Bazaar

Most Preferred Multi Brand Food & Beverage Chain - Big Bazaar

Images Fashion Forum 2009

Most Admired Fashion Group Of The Year - Future Group

Most Admired Private Label - Pantaloons, the lifestyle format

Critics Choice For Pioneering Effort In Retail Concept Creation - Central

.
 Coca-Cola Golden Spoon Awards 2009

Most Admired Food & Grocery Retailer Of The Year

Most Admired Food Court

Most Admired Food Professional

2008

Indian Retail Forum Awards 2008

Most Admired Retail Company of the year - Future Group

Retail Face of the Year - Kishore Biyani

Best Retailer Of The Year ( Hypermarket) - Big Bazaar

Future Group was awarded the Most Admired Retail Company of the year by the

Indian Retail Forum at a glittering ceremony organized in Mumbai. Mr. Kishore Biyani

also won Retail Face of the Year.

India Retail Forum (IRF) is a platform for intellectual insights and information

exchange for the retail business in the Indian subcontinent.

The forum presents the business of retail in the region to a global audience, with the

express aim of facilitating understanding about and encouraging investment in this

massive marketplace.

Big Bazaar, the value format of Future Group bagged the Best Retailer Of The Year

Hypermarket

The INDIASTAR Award 2008

Food Bazaar: Best Packaging Innovation

Food Bazaar bagged the INDIASTAR Award for Best Packaging Innovation in India,

for its private label brand Fresh And Pure Chakki Atta.

INDIASTAR Award is a biennial event which aims to promote and encourage

excellence in packaging design, innovation and technology. The contest was established in

1972 and is considered as the most popular and premier event for India’s packaging

fraternity. This year there were around 357 entries and the participants had to submit a

sample of their designs for selection.

With this award, Pantaloon Retail (India) Limited becomes the first Indian Retailer to

win the prestigious INDIASTAR Award.

 Retail Asia Pacific 500 Top Awards 2008

Gold Winner - Top Retailer 2008 Asia Pacific

Retail Asia Publishing Pte, the institutor of these awards, aims to set a platform that

appraise raises and recognizes the development and growth of retailing throughout the Asia

Pacific region.