Retails Industry News

• Aditya Birla Retails plans expansion in India

• Growth Phase of Indian Retail Sector to
India Retail Industry Continue
• Indian Garment exporters focusing on
The Indian retail industry is the fifth largest in domestic retail
the world. Comprising of organized and
unorganized sectors, India retail industry is one
of the fastest growing industries in India, especially over the last few years. Though initially, the retail
industry in India was mostly unorganized, however with the change of tastes and preferences of the
consumers, the industry is getting more popular these days and getting organized as well. With growing
market demand, the industry is expected to grow at a pace of 25-30% annually. The India retail industry
is expected to grow from Rs. 35,000 crore in 2004-05 to Rs. 109,000 crore by the year 2010.

Growth of Indian Retail

According to the 8th Annual Global Retail Development Index (GRDI) of AT Kearney, India retail
industry is the most promising emerging market for investment. In 2007, the retail trade in India had a
share of 8-10% in the GDP (Gross Domestic Product) of the country. In 2009, it rose to 12%. It is also
expected to reach 22% by 2010.

According to a report by Northbride Capita, the India retail industry is expected to grow to US$ 700
billion by 2010. By the same time, the organized sector will be 20% of the total market share. It can be
mentioned here that, the share of organized sector in 2007 was 7.5% of the total retail market.

Major Retailers in India

Pantaloon:

Pantaloon is one of the biggest retailers in India with more than 450 stores across the country.
Headquartered in Mumbai, it has more than 5 million sq. ft retail space located across the country. It's
growing at an enviable pace and is expected to reach 30 million sq. ft by the year 2010. In 2001,
Pantaloon launched country's first hypermarket ‘Big Bazaar’. It has the following retail segments:
• Food & Grocery: Big Bazaar, Food Bazaar
• Home Solutions: Hometown, Furniture Bazaar, Collection-i
• Consumer Electronics: e-zone
• Shoes: Shoe Factory
• Books, Music & Gifts: Depot
• Health & Beauty Care: Star, Sitara
• E-tailing: Futurebazaar.com
• Entertainment: Bowling Co.
Retail formats in India

Hypermarts/supermarkets: large self-servicing outlets offering products from a variety of categories.

• Mom-and-pop stores: they are family owned business catering to small sections; they are
individually handled retail outlets and have a personal touch.
• Departmental stores: are general retail merchandisers offering quality products and services.
• Convenience stores: are located in residential areas with slightly higher prices goods due to the
convenience offered.
• Shopping malls: the biggest form of retail in India, malls offers customers a mix of all types of
products and services including entertainment and food under a single roof.
• E-trailers: are retailers providing online buying and selling of products and services.
• Discount stores: these are factory outlets that give discount on the MRP.
• Vending: it is a relatively new entry, in the retail sector. Here beverages, snacks and other small
items can be bought via vending machine.
• Category killers: small specialty stores that offer a variety of categories. They are known as
category killers as they focus on specific categories, such as electronics and sporting goods.
This is also known as Multi Brand Outlets or MBO's.
• Specialty stores: are retail chains dealing in specific categories and provide deep assortment.
Mumbai's Crossword Book Store and RPG's Music World are a couple of examples.
Challenges facing Indian retail industry
• The tax structure in India favors small retail business
• Lack of adequate infrastructure facilities
• High cost of real estate
• Dissimilarity in consumer groups
• Restrictions in Foreign Direct Investment
• Shortage of retail study options
• Shortage of trained manpower
• Low retail management skill
The Future

The retail industry in India is currently growing at a great pace and is expected to go up to US$ 833
billion by the year 2013. It is further expected to reach US$ 1.3 trillion by the year 2018 at a CAGR of
10%. As the country has got a high growth rates, the consumer spending has also gone up and is also
expected to go up further in the future. In the last four year, the consumer spending in India climbed up
to 75%. As a result, the India retail industry is expected to grow further in the future days. By the year
2013, the organized sector is also expected to grow at a CAGR of 40%.

Retail
Last Updated: July 2010

The BMI India Retail Report for the third-quarter of 2010, forecasts that the total retail sales will grow from
US$ 353 billion in 2010 to US$ 543.2 billion by 2014. With the expanding middle and upper class consumer
base, there will also be opportunities in India's tier II and III cities. The greater availability of personal credit
and a growing vehicle population to improve mobility also contribute to a trend towards annual retail sales
growth of 11.4 per cent. Mass grocery retail (MGR) sales in India are forecast to undergo enormous growth
over the forecast period. BMI further predicts that sales through MGR outlets will increase by 154 per cent to
reach US$ 15.29 billion by 2014. This is a consequence of India's dramatic, rapid shift from small independent
retailers to large, modern outlets.

BMI forecasts consumer electronic sales at US$ 29.86 billion in 2010, with over the counter (OTC)
pharmaceutical sales at US$ 3.28 billion. The latter is predicted to be the fastest growing retail sub-sector and
BMI forecasts that sales will reach US$ 6.18 billion by 2014, an increase of 88.5 per cent.

China and India are predicted to account for almost 91 per cent of regional retail sales in 2010 and by 2014
their share of the regional market is expected to be more than 92 per cent. Growth in regional retail sales for
2010-2014 is estimated by BMI at 72.2 per cent, an annual average of 14 per cent. India should experience the
most rapid rate of growth in the region, followed by China. For India, its forecast market share of 13.9 per cent
in 2010 is expected to increase to 14.3 per cent by 2014.

Moreover, for the 4th time in five years, India has been ranked as the most attractive nation for retail
investment among 30 emerging markets by the US-based global management consulting firm, A T Kearney in
its 8th annual Global Retail Development Index (GRDI) 2009. India remains among the leaders in the 2010
GRDI and presents major retail opportunities. India's retail market is expected to be worth about US$ 410
billion, with 5 per cent of sales through organised retail, meaning that the opportunity in India remains
immense. Retail should continue to grow rapidly—up to US$ 535 billion in 2013, with 10 per cent coming
from organised retail, reflecting a fast-growing middle class, demanding higher quality shopping environments
and stronger brands, the report added. Bharti Retail strengthened its position in northern India by opening 59
stores, Bharti Wal-Mart is expected to open 10 to 15 wholesale locations in the next three years, and Marks &
Spencer is considering plans to open additional outlets in the next few years.

Established retailers are tapping into the growing retail market by introducing innovative store formats.
Spencer's Retail, More (owned by Aditya Birla Group) and Shoppers Stop (owned by K Raheja Group) already
plan to expand.

According to a McKinsey & Company report titled 'The Great Indian Bazaar: Organised Retail Comes of Age
in India', organised retail in India is expected to increase from 5 per cent of the total market in 2008 to 14 - 18
per cent of the total retail market and reach US$ 450 billion by 2015.

Furthermore, according to a report titled 'India Organised Retail Market 2010', published by Knight Frank India
in May 2010 during 2010-12, around 55 million square feet (sq ft) of retail space will be ready in Mumbai,
national capital region (NCR), Bengaluru, Kolkata, Chennai, Hyderabad and Pune. Besides, between 2010 and
2012, the organised retail real estate stock will grow from the existing 41 million sq ft to 95 million sq ft.

India continues to be among the most attractive countries for global retailers. Foreign direct investment (FDI)
inflows between April 2000 and April 2010, in single-brand retail trading, stood at `US$ 194.69 million,
according to the Department of Industrial Policy and Promotion (DIPP).

• Leading watchmaker Titan Industries Limited plans to invest about US$ 21.83 million for opening 50
premium watch outlets Helios in next five years to attain a sales target of US$ 87.31 million. "We are
looking to open Helios outlets in Mumbai, Delhi, Hyderabad, Kolkata, Chennai, Pune, Ahmedabad etc
in next 12 months," said Ajoy Chawla, Vice President (Retail), Titan.
• British high street retailer, Marks and Spencer (M&S) plans to significantly increase its retail presence
in India, targetting 50 stores in the next three years. M&S currently operates 17 stores in India through a
joint venture (JV) with Reliance Retail.
• Chinese retail major, Yishion has entered the Indian market and plans to have at least 125 points of
sales, including exclusive stores and multi-brand outlets, across India by 2012. It will open its first
exclusive store in New Delhi by September 2010.
• Spain's Inditex, Europe's largest clothing retailer opened the first store of its flagship Zara brand in India
in June 2010. It further plans to open a total of five Zara outlets in India.
• Bharti Retail, owner of Easy Day store—supermarkets and hypermarts—plans to invest about US$ 2.5
billion over the next five years to add about 10 million sq ft of retail space in the country by then,
according to a company spokesperson.
• Raymond Weil plans to invest US$ 883,665 in India during 2010, according to Olivier Bernheim,
President and CEO, Raymond Weil.

Policy Initiatives

FDI up to 51 per cent under the Government route is allowed in retail trade of Single Brand products, according
to the Consolidated FDI Policy document.

Road Ahead

According to industry experts, the next phase of growth is expected to come from rural markets.

According to a market research report published in June 2008 by RNCOS titled, 'Booming Retail Sector in
India', organised retail market in India is expected to reach US$ 50 billion by 2011. The key findings of the
report are:

• Number of shopping malls is expected to increase at a CAGR of more than 18.9 per cent from 2007 to
2015
• Rural market is projected to dominate the retail industry landscape in India by 2012 with total market
share of above 50 per cent
• Driven by the expanding retail market, the third party logistics market is forecasted to reach US$ 20
billion by 2011
• Apparel, along with food and grocery, will lead organised retailing in India
 Shoppers Stop - Presentation Transcript
1.
• Shoppers' Stop Limited is a chain of Retail stores in India owned by K. Raheja
Corp.
• Group - The Company houses a host of many international & domestic brands across
various categories such as apparel, accessories, cosmetics, home & kitchenware as also
its own private brands.
• SS started in 1991 with its first store in Andheri, Mumbai.
• With a Gross Retail Turnover of Rs. 8996 million, Shopper's Stop has become the
highest benchmark for the Indian Retail Industry.
2. SWOT ANALYSIS STRENGTH WEAKNESS
• Loyal Customer Base of 782000 First Citizen members
• Increasing Footfalls and Conversion Rates
• Strong and Well Established Management Team
• Systems and Processes
• Employee Retention
• Inadequate Promotional Strategies
• Uneven Distribution Network
• Follows Low – Risk Strategy
OPPORTUNITY THREAT
• Geographical Reach
• Preferred Partner for Foreign Players
• Hyper city – An entry into Value Retail
• Threat of New Entrants
• Competitive Rivalry in the Industry
• Economic Slowdown
3. MARKETING ENVIRONMENT
• SOCIO-CULTURAL ENVIRONMENT
• Changed from being a chain of retail stores to emerging as a fashion & lifestyle
destination for the growing affluent middle class of India.
• COMPETITIVE ENVIRONMENT
• Has identified and decided to invest in next generation data warehousing and business
intelligence solutions.
• TECHNOLOGICAL ENVIRONMENT
• Focused on leveraging investment and upgrading and revamping existing technology.
• Deploying Warehouse Automation application along with the multi-purpose handheld
devices to enhance efficiency in supply chain.
• Deployed Microsoft Technologies for reliable communication platform.
• Setting up a Disaster Recovery Plan for critical application systems.
• ECONOMIC ENVIRONMENT
• Growth in the economy at 9% and hike in the salaries by 15%, consumption of goods
increases.
• Increase in the consumer spending habit increases the number of consumers visiting the
 stores.
• Increase in the profit margins of the stores.
4. PRODUCT
• Identified the need for and created a suite of brands that reflect Styles, International
Class and Fashion
• Private Brands have been introduced and developed after a careful analysis of Customer
Requirement.
MARKETING MIX
5. PROMOTIONAL
• Communication Strategy-Reaching out to the customers in their own style and language
• E.g.- The first Shoppers Stop store in Lucknow was named “Tehzeeb”.
• Festive Promotion Campaign “PARIKRAMA” Customers getting opportunity to interact
with local artisans.
• Organizes major Promotional Events from time to time e.g. “Fly to Santa Land”, “Gear
up for the school” and “Salwar Kameez Dupatta Exchange” etc.
• Organizes Local Festivals like Durga Puja in Kolkata, Onam in South and Dhanteras in
North.
6. DISTRIBUTION
• Shoppers Stop Ltd. exudes Class, Comfort, Convenience where ever it is located.
• Shoppers Stop Ltd. not only concentrates on the location of the stores but also
emphasizes on the ambience and service excellence.
• Shoppers Stop is Indian largest chain of Super Stores with an aggregate acquired area of
11 lakh sq. feet.
7. DISTRIBUTION NETWORK OF SS
8. PRICING
• Shoppers Stop follows Premium Pricing Strategy that includes selling of High Quality
Products at a High Price.
9. MARKET SEGMENTATION
• Division of the total market into smaller, relatively homogeneous groups.
• The company is dealing with Consumer Products - goods or services purchased by an
ultimate consumer for personal use.
• GEOGRAPHIC SEGMENTATION
• Dividing an overall market into homogeneous groups on the basis of their locations.
• DEMOGRAPHIC SEGMENTATION
• Dividing consumer groups according to characteristics such as sex, age, income,
occupation, household size and education etc.
• SHOPPERS STOP have segmented their respective markets in terms of Age and Sex
(e.g. Clothing for Men, Women and Kids)
• Segmenting by Income and Expenditure patterns.
• PSYCHOGRAPHIC SEGMENTATION
• Divides a population into groups that have similar psychological characteristics, values,
and lifestyles.
• SHOPPERS STOP targets high standard living customers.
10.TARGETING
• Market Specialization
• The Shoppers Stop concentrates on serving many needs of a particular customer group
and in this way the Shopper Stop aims to gain a strong reputation in serving their
 customers, who belong to the middle and upper class.
11.POSITIONING
• Shopper Stop positions itself as a Global premium Retailer outlet.
• Shoppers’ Stop is positioned as a family store delivering a complete shopping experience
.
12.INTEGRATED MARKETING COMMUNICATION
• IMC refers to a co-coordinated communications program that is customer-focused and
internally consistent
• The different IMC elements are
• Advertising
• Sales promotion
• Direct marketing
• Public Relation
• Point of Purchase
• Publicity
• Special Events
• Packaging
13.ADVERTISING
• PRINT ADVERTISMENTS
• MEDIA ADVERTISMENTS
• OUTDOOR ADS
14.PRINT ADVERTISMENTS
15.OUTDOOR HOARDING
16.SALES PROMOTION
• GIFT VOUCHERS
• VARIOUS FESTIVE OFFERS
• CONTEST
• POP MATERIAL
17.GIFT VOUCHERS Shoppers Stop offer Gift Vouchers of denomination ranging from Rs 250 to
Rs 5000.
18.FESTIVE OFFERS
19.CONTEST
• Shoppers Stop has announced a 101-day Shopping Bonanza to pull in customers into the
stores.
• Lucky draw winners of the contest will get to see one of the seven wonders of the world
and two lucky couples who get the grand prize will be treated to a round-trip which will
cover all the seven wonders of the world.
20.POINT OF PURCHASE
21.PUBLICITY & PR
• BRAND AMBASSADOR
• SPECIAL EVENTS
• PUBLIC AFFAIRS ACTIVITIES
22.BRAND AMBASSADOR
• Shah Rukh Khan for all mega events because they both dominate their respective
industries. He reflects the perfect image of Shoppers Stop.
23.PUBLICITY & SPECIAL EVENTS
• Om Shanti Om Fashion Show
 • The leading Premium Fashion and Lifestyle destination Shopper’s Stop and the most
awaited movie , Om Shanti Om had come together to unveil the unique look of the
movie through a Fashion show. With this association Shopper’s Stop will retail the
limited edition clothes and merchandise inspired from the film at their stores across
India. The dazzling show witnessed the leading pair Shah Rukh Khan and Deepika
Padukone along with Arjun Rampal and Shreyas Talpade walking the ramp showcasing
their respective looks from the film.
24.PUBLIC RELATIONS
• Shoppers’ Stop entered into agreement with CRY to retail eco-friendly paper bags
designed by underprivileged children. The part proceeds from the sale of the bags were
donated to project supported by CRY.
• The Wardrobe Exchange saw tremendous response with 80,000 old garments collected
from customers, which were donated to projects of Concern India Foundation .
25.DIRECT MARKETING The name "First Citizen" reflects their commitment to
offering their customers the ultimate shopping experience
• As a First Citizen, customers shopping experience becomes even more enjoyable with:
• Reward Points for every time you shop at Shoppers Stop.
• Exclusive benefits & privileges
• Exclusive offers ever so often
• Updates on what you can look forward to shop for at Shoppers Stop
• Exclusive cash counters at Shoppers Stop so you can spend more time shopping than
waiting in a line
•
26.PACKAGING The previous packets of Shoppers Stop had the previous logo while the new
packets which are being widely distributed have the company symbol on it. The company has
also brought out collectible shopping bags for selective distribution with different themes and
launched the first in the series based on the theme 'Fashion through Ages'.
27.WHAT IS DAGMAR MODEL ? D = DEFINING A =ADVERTISING G =GOAL M
=MEASURED A =ADVERTISING R =RESULT Unaware Aware Comprehension & Image
Attitude Action
28.DAGMAR MODEL
• Promotional campaign:
• It must have an objective .
• And objective that is measurable
• Objective should contains
• The Idea
• Well-Defined Target Audience
• Creative Strategy
• Media Strategy
• Fixed time period
29.PROMOTIONAL CAMPAIGN
• Buy & Fly to the Seven Wonders of the world.
• THE IDEA : 'Buy and fly to the 7 wonders'. Spend a specified amount and
you could win a trip to the 7 wonders of the world. Besides the mega prize, customers
could win many other prizes like Gili gold coins, Gift Vouchers, VIP bags, Espirit
watches etc.
• CAMPAIGN OBJECTIVES : To differentiate the promotion from all other promotions
 in the market at that time. Shopper's Stop had to become the preferred shopping
destination for the festive season.
• TARGET AUDIENCE : Males and Females,Age-15-44yrs, High ownership of cars and
consumer durables. Evolved Indian who is open to new experiences.
• CREATIVE STRATEGY : Bringing alive the international experience by
communicating that Shopper's Stop is their Passport for seeing the Seven
Wonders of the World.
• MEDIA STRATEGY : Taking the strategy of 'enveloping the consumer'
with communication on TV, Press, Hoardings and Radio. Also Point of sale and Direct
marketing & PR to complete the 360 degree effect.
• EVIDENCE OF RESULTS : Record breaking sales ever in the history of
Shopper's Stop for any festive season. Revived Customer Entry, Increase in Cash
memo sizes and employee morale at an all time high.
30.DOWN UNDER FEST- A PROMOTIONAL CAMPAIGN An association with Tourism
Australia has prompted Shoppers’ Stop to launch “ Down Under Fest ” – a promotional
campaign to increase the purchases during the festive season.
31.NEW ADOPTER/ INNOVATION ADOPTION HIERARCHY Awareness Interest Evaluation
Trial Adoption AWARENESS ATTITUDE ACTION