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Introduction to Retailing

What is Retailing
The

word Retail comes from the French


wordretailler, which means "to cut
off, clip, pare, divide" or to break bulk.
A retailer may be defined as a dealer
or trader who sells goods in small
quantities or one who repeats or
relates . Thus retailing can be
considered as the last stage of
movement of goods or services to the
consumers.

Retailing

is the set of business activities that


adds values to the product and services sold to
consumers for their personal or family use.
Manufacturer Wholesaler Retailer
Consumer
Avon, Oriflame, Tupperware sells directly
Functions performed by Retailer
1. Providing an assortment of products and
services they provide 1,000 30,000 diff.
items from diff. companies of diff brand,
design, size.
2. Breaking bulk
3. Holding inventory
4. Providing services

Breaking

bulk manufacture and


wholesaler ship bulks to retailer and he
offer product in small quantity (tailor
made according to customer need)
The Key to successful retaining is
offering the right product, at the right
price, in the right place, at the right
time and making a profit.
Wal Mart is the Worlds largest Retailer
(US) based and Carrefour is the largest
non US retailer (French based).

The Marketing concept applied to retailing

It comprises of 4 elements:

(i)

(ii) Coordinated efforts-------------Retailing concept-Retail


strategy

(iii) Value driven

(iv) Goal orientation

A retail strategy is the overall plan guiding the firm. It has 6


basic steps

defining the business

setting objectives

defining the customer market

developing an overall plan

enacting an integrated strategy

evaluating performance and making modifications

Customer orientation

Retailing and the Marketing


Retailing forms an integral part of the marketing mix and
includes elements like product, place, price, people,
presentation and promotion. Place relates to the
distribution and availability of product in various locations.
Customers are first introduced to the product at the retail
store. Organizations sell their products and services
through these retail outlets and get feedback on the
performance
of
their
products
and
customers
expectations.
Retail stores serve as communication hubs for customers.
Commonly known as the Point of Sale (POS) or the Point of
Purchase (POP), retail stores transmit information to the
customers through advertisements and displays.

First
Manufacturer
or
Agent/Distributor

C2

Third

Manufacturer
or
Agent/Distributor

Manufacturer
or
Agent/Distributor

Retailer 2

Retailer 1

C1

Second

C3

C4

Retailer 4

Retailer 3

C5

C6

C7

C8

C9

The Pivotal Role of Retailer in the Marketing Channel

C10

Channel Power
Channel power refers to the extent to which retailers
influence marketers decisions like pricing, promotion
and product strategy. This emanates from the point of
customer contact (the retailers), which is the onepoint source of information feedback from customers
to the marketer/ manufacturer. Because of its
communication capabilities, the channel is in a
position to influence customers decisions.

What is Organized Retail

Modern Organized Retail can be referred as the mall setup(Reliance


Mart/Big Bazaar)and standalone format (Raymonds stores/Koutons
Stores)
alligned
centrally
in
respect
to
Merchandise/Manpower/Planning/Touch & Feel Display Alignments and
Technology Integration.

In India where 95 % of business in Retail exists with MOM N POP stores.


Are not coming under organized voculbury as may be missing centrally
connecting/decision
makinglinks
as
regards
to
Merchandise/Manpower/Planning/Touch & Feel Displayand Technology
Integration. They are owned by an individual presently or a family
owned business by generations etc.

The uniqueness to Indian MOM N POP/Kiranas had been the nearness


to neighborhood and many a times personal connect with the
customers that shall be lacking in Modern Organized retail format.

The modern organized retail formats recognized today as Supermarket


or Hypermarket concept are largely popular as one stop shopping
destination along with entertainment zones as cinema & gaming etc

Organized vs Unorganized Retail

In the developed economies, organized retail is in the range


of 75-80 per cent of total retail, whereas in developing
economies, the unorganized sector dominates the retail
business. The share of organized retail varies widely from just
one per cent in Pakistan and 4 per cent in India to 36 per cent
in Brazil and 55 per cent in Malaysia

Modern retail formats, such as hypermarkets, superstores,


supermarkets, discount and convenience stores are widely
present in the developed world, whereas such forms of retail
outlets have only just begun to spread to developing
countries in recent years. In developing countries, the
retailing business continues to be dominated by family-run
neighbourhood shops and open markets

Spread of Modern Retail in Developing


The arrival of modern retail in developing countries occurred in three
Countries
successive
waves (Reardon and Hopkins, 2006; Reardon and Berdegue,

2007). The first wave took place in the early to mid-1990s in South America
(e.g., Argentina, Brazil, and Chile), East Asia outside China (South Korea,
Malaysia, Philippines, Thailand, and Taiwan), North-Central Europe (e.g.,
Poland, Hungary, and Czech Republic) and South Africa.

The second wave happened during the mid to late 1990s in Mexico, Central
America (e.g., Ecuador, Colombia, and Guatemala), Southeast Asian countries
(e.g., Indonesia), Southern-Central Europe (e.g., Bulgaria).

The third wave has just begun in the late 1990s and early 2000s in parts of
Africa (e.g., Kenya), some countries in Central and South America (e.g.,
Nicaragua, Peru, and Bolivia), Southeast Asia (e.g., Vietnam), China, India,
and Russia.

Thus, the third wave countries which include China, India and Russia are late
comers in the diffusion of modern retail. According to the authors, the main
reason why they lagged behind was the severe restrictions on foreign direct
investment (FDI) in retailing in these countries. The demand side features of
these countries, such as income, size of the middle class, urbanization, and
the share of women in workforce, etc., have been similar to countries in the
second wave. In China and Russia these restrictions were progressively
relaxed in the 1990s and in India partially in the 2000s. In January 2006, India
allowed foreign companies to own up to 51 per cent in single-brand retail joint
ventures (JVs), but multiple-brand foreign firms are still barred in retail

What does Retailing Industry Include?

Department

Store
Discount Store
Clothing Store
Specialty Store
Convenience Store
Grocery Store
Drug Store
Home Furnishing Store
Auto Retails

Contribution of Retailing on Indian


Economy

Real estate: The retail industrys real estate requirement will


be in millions of square feet. This will lead to productive use of
land. And also offer employment opportunities in real estate.

Higher GDP: Apart from contribution to the GDP, Retailing


can bring change in agricultural supply chain, remove
inefficiencies in the distribution of consumer goods and
improve productivity while providing consumers with a better
range of products and prices in a better ambience could

Employment Opportunities: It offers wide range of career


opportunity including: store management, merchandising ,
Management and owing a retail business.

Outsourcing Opportunities: it can provide opportunities for


nationwide network for supply chain management,
warehousing, pilferage prevention (to stop shoplifting) etc.

Market Overview

14

RETAILING SCENARIO GLOBAL


Retailing in more developed countries is big business and
better organized than what it is in India. In the developed
world most of it is accounted for by the organized retail sector.
For instance, the organized sector has an up to 80% share of
retail sales in the United States. The corresponding figure for
Western Europe is 70% while it is 50% in Malaysia and
Thailand, 40% in Brazil and Argentina, 35% in Philippines, 25%
in Indonesia and 15% in South Korea. Organized retailing
however remains poorly developed, accounting for a paltry
10% in China.
The service sector accounts for a large share of GDP in most
developed economies. And the retail sector forms a very
strong component of the service sector. According to the US
Department of Labor, about 22 million Americans are
employed in the retailing industry in more than 2
million retail stores that is, one out of every five
workers employed.

RETALING SCENARIO INDIA


Much of it is in the unorganized sector,
with over 12 million retail outlets or
various sizes and formats. Almost 96% of
these retail outlets are less than 500
sq.ft. in size, the per capita retail space in
India being 2 sq.ft. compared to the US
figure of 16 sq.ft. Indias per capita
retailing space is thus the lowest in the
world.

KEY DRIVERS OF RETAILING IN INDIA


Consumer Pull

In the pre-liberalization supply-led market, the power rested clearly


with the manufacturers. In todays demand-led market, its the
consumer who calls the shots. There has been a significant evolution
in the Indian consumer, mainly due to the liberalization of the
consumer goods industry that was initiated in the mid-eighties and
accelerated through the nineties.
Consumers can be divided into two broad segments:
1.
High-income segment: This comprises consumers who do
not shop themselves, have a very low level of involvement and
whose monthly grocery bill forms a very small part of the salary.
2.
Middle and lower income group: This includes consumers
who are highly involved in grocery shopping, as this expenditure
constitutes 50% or more of the monthly salary. This segment is
highly value-conscious, constantly looking for bargains and is made
up of active shoppers. Modern retailing, characterized by value,
variety, convenience and service for the consumer, appeals to this
second segment. Supermarkets allow consumers to interact more
directly with the products, read labels, compare prices, avail of
promotions and offers, and so on.

Rising Incomes
Over the past decade, Indias middle and highincome population has grown at a rapid pace of
over 10% per annum.
Explosion of Media
There has been an explosion in media as well
during the past decade.
Change in Consumer Behaviour
The urban woman today is literate and, in many
cases, employed. There is greater work pressure
and increased commuting time. And with a shift in
the family structure, nuclear families have become
a significant component of urban markets.

With an increase in double-income households, people do


not have much leisure time and seek the convenience of
one-stop shopping order to make the best use of their
time. They also look for speed and efficiency. Increased
awareness has also meant that consumers now seek more
information, variety, product availability, better quality and
hygiene as well as increased customer service. The
concept of Value for Money is picking up.
Consumerism Cycle
The consumer cycle starts with the industry dictating the
market. Eventually over time the distributor gains control
over the market; at this stage the distributor becomes an
important link between manufacturer and customer. When
the market starts developing and expanding its horizons,
retailers turn into the vital link in this supply chain. India is
entering this third stage where retailers control the market.
Being the closest link to the consumer in the supply chain,
retailers benefit accordingly.

The Rural Market: Waking Up


The rural market is beginning to emerge as an important
consumption area, accounting for over one-third of the
demand for most key consumer durables and non-durable
products.
Establishment of the Supply Chain
Over the past few years, the consumer goods sector has
been transformed by increased liberalization, continuous
reduction in customs duty, a shift from quota to tariffbased systems for imports and sophistication in
manufacturing. Entry restrictions for multinationals have
been removed in nearly all sectors.
According to a study, there are over 18,000 stock-keeping
units (SKUs are products and their variants, of type and
size, counted individually), while most retailers have the
space for a at most 5,000-7,000 units. This has tempted a
number of real estate companies and other corporates
into investing in malls and other retail formats.

Emergence of Hubs of Retail Activity


Chennai, Bangalore and Hyderabad have become
major retail hubs. In Chennai, about 17% of food
sales flow through supermarkets and 25-30% of
consumer durable sales come from specialty chains
such as Viveks and Vasanth.
Change in Scale of Operations
Subhiksha has over 50 stores and Big Bazaar has 60
stores, spread over India. This growing scale
enables the supermarkets to eliminate links in the
purchasing chain and to make deals with food
processors directly.

Entry of the Corporate Sector


Large conglomerates like the Tatas, ITC, the RPG group,
the Piramals and the Rahejas have initiated investment in
retailing. The Birlas have acquired the Madura Garments
apparel business, while Reliance has publicly committed
to developing a retail business along with the
development of its fuel-retailing network. Oil companies
like HPCL (Speed Mart,) IOCL (Convenio) and BPCL (In &
Out) are also expanding from fuel retailing to grocery and
convenience stores.
Expansion of Family-Owned Businesses
The most successful of these are the Rs. 150-crore
Viveks, the 40-year-old Chennai consumer durables
chain, the Rs. 50-crore Pantaloon Apparel retail business,
and Bangalores food retailer Nilgiris. With the new-age
demanding consumer preferring to shop in these big
retail chains, traditional bania shops will face a difficult
time trying to meet consumer expectations.

New Entrepreneurs
The growing attractiveness of the retail trade has
begun to attract new entrepreneurs with ideas, and
venture capitalists with funds.
Building Chains around Brands
Apparel, footwear and consumer durable brands have
driven the growth of specialty chains and upgraded
existing multi-brand outlets. Some like Reebok claim to
have entered retailing because of the paucity of
suitable multi-brand retailing options. However, many
of these are emerging as large retailers (Titan, Madura
Garments, Raymonds) today, and appear to be
committed to developing their retail businesses. Thus
there is an extension of consumer brand-seeking
(promise, trust, comfort, image) from products to
stores.

Foreign Retailers Looking for Entry Options


The increasing attractiveness of the sector has drawn
the interest of a number of global retailers. With the
opening up of the economy, more and more MNCs have
entered the Indian business arena through joint
ventures, franchisees or even self-owned stores. The
very first MNC to get into the business was Spencers, a
tie-up between the RPG Group and Dairy Farm
International, a $10 billion Hong Kong-based company,
and a part of the Jardine Matheson group.
While foreign retailers cannot start operations on their
own mainly because of FDI restrictions on the sector, a
number of companies, including Tesco, Kingfisher, Metro,
Carrefour and Ahold, are exploring entry options. In
apparel, Benetton, Lifestyle and Zegna are already in
business, and Dairy Farm has a number of retailing joint
ventures in India.

Technological Impact
Technology is probably the most dynamic change agent
in the retailing industry. The computerization of the
various operations in a retail store including inventory
management, billing and payments as well as database
(of customers) management widespread use of bar
coding, point-of-sale terminals and Management
Information System (MIS) has changed the face of
retailing drastically.

GROWTH OF ORGANIZED RETAILING IN INDIA


Organized retailing in India initially began in the
South. The availability of land at prime locations
coupled with lower real estate prices (compared to
Mumbai and Delhi) made multi-storeyed shopping
complexes possible.

Even though big retail chains like Crossroads, Saga


and Shoppers Stop are concentrating on the upper
segment and selling products at higher prices, some
like RPGs Food World and Big Bazaar are tapping the
huge middle class population.

Over the years, international brands like McDonalds,


Swarovski, Lacoste, Dominos, Pepsi, Benetton among a
host of others have come in and thrived in India.

A sunrise industry, it offers tremendous potential for


growth and contributes 8-10% to overall employment.
However, this is still low compared to 20% in the USA.

However, the boom in retailing has been


confined primarily to the urban markets. There are
two main reasons for this. Firstly, the modern
retailer is yet to exhaust the opportunities in the
urban market and has therefore probably not looked
at other markets seriously. Secondly, the modern
retailing trend, despite its cost-effectiveness, has
come to be identified with lifestyle.

In order to appeal to all classes of the society,


retail stores need to identify with different lifestyles.
In a sense, this trend is already visible with the
emergence of stores with an essentially value for
money image.

A four-gear path for the organized retail trade suggested by KSA


Technopak places India in the second gear and predicts that it will
match global standards by 2010.

Gear one is the stage of infancy.

The

development of the modern retail industry began when


Indian shoppers upgraded from local shops to Super Bazaars. The
open layout and self-service concepts were new to the Indian
consumer, who was used to being served while shopping.
Gear I was driven by entrepreneurs like Subhiksha and Viveks in
the South, real estate owners like the Rahejas (who started
Shoppers Stop) and marketers who integrated forward from
manufacturing to retailing (for instance, lifestyle brands like
Zodiac, Park Avenue and Bombay Dyeing which opened exclusive
stores).

This gave the new breed of retailers an opportunity to


differentiate on the basis of good quality products, services and
ambience. These retail formats raised the bar for consumers as far
as retail interface was concerned.

The first level also looks at retailers driving customer awareness.

The model primarily applies to apparel more than any


other form of retailing.

The second
expectations.

gear

is

about

meeting

customer

It is consumer-driven, where buyers are exposed to new


retail formats.

This leads to first-generation retailers expanding to


multiple locations (Shoppers Stop, Food World and
Subhiksha expand their networks as well as their locations).
Convenient timings, dial-n-order, free parking, provision for
trial and taste, prices below MRP (maximum retail price), free
home delivery and no-questions-asked return policies are
some of the features offered by these new forms of stores.

Moreover, some offer facilities like taking care of the kids


while
the
mothers
shop,
vending
machines
and
entertainment for those accompanying serious shoppers,
convenient floor levels for the physically handicapped and so
on.

Pure retailers like Westside and Lifestyle provide a


unique selling proposition of choice and width.

Barista in coffee, Pizza Hut and McDonalds in quickservice formats, Swarovski in crystal, Swatch in
watches, THS in home, Agrani Switch in technology
products, Apollo pharmacy and The Medicine Shoppe in
pharmaceuticals and Ceat Shoppe in tyres.

Gear II is a period of growth. India is currently in this


stage.

The apparel retail market in India is a little more


evolved than the rest. While apparel retailing can be
said to be in the second gear, other sectors like
electronics, food, etc. are still in the first gear.

Compared to the first two stages, the main


differentiator in the next two is the shift in the power
equation between manufacturers and retailers.

In the third and fourth stage retailers exert more


influence than manufacturers and therefore have
stronger bargaining power.

Furthermore, the third gear involves efficient backend management. Retailers exploit economies of scale
and offer the best prices to their customers. The focus
is on customer acquisition and category management.

Cost savings in terms of initiating vendor


partnership and increasing stock turns take priority.
Retailers expand into non-metros and look at various
customer loyalty programmes. Many retailers in China
and South Asia are in this phase.

A distinctive mark of this phase is efficiency:


profitability through heavy investment in the back-end.

The fourth
consolidation.

and

last

gear

is

period

of

The organized sector acquires a significant share


of the retail pie. It is the start of a cross-border
movement, with mergers and acquisitions gaining in
importance.

Retailers in North America and Europe like WalMart, Tesco, M&S and Carrefour are in gear four,
where they are looking for cross-border movement.

Furthermore, companies start adding more stores


and newer markets to their portfolio.

There is a fair degree of domestic consolidation as


well. Sourcing gets done globally.

Indian Retail on the Fast-track


Indias GDP growth of 9.4% for 2006-07, was the highest
ever in 18 years, reflecting the booming economy of the
country.
Indias retail sector, in tandem with the economy, is on a high
growth trajectory; expected to grow by over 27% in the
next 5 -6 years.
Retail contributes to 10% of Indias Gross Domestic Product
and provides employment to 8% of Indias working
population.
Higher disposable incomes, easy availability of credit and
high exposure to media and brands has increased
average propensity to consume considerably over the
India ranked first for the third consecutive year, on the Global Retail Development Index 2007,
years.
conducted by AT Kearney across 30 emerging economies. India is ranked as the most preferred
retail destination for international investors.
India ranked first for the fifth time, on the Global Consumer Confidence Index June 2007,
conducted by The Nielsen Company. Indians were judged the worlds most optimistic consumers,
with high financial confidence about their income for the next 12 months.

34

Indian Retail Revolution


Indias retail market has more than doubled in size
to USD 311.7 billion in 2005-06.
Sector revenues increased by about 93.5%
between 2000 and 2006, translating to an average
annual growth rate of 13.3%.
Market

witnessing

migration

from

traditional
Source: Datamonitor

retailing to modern/organized retailing formats, with


an

explosive

proliferation

of

malls

and

branded outlets.
Organized retail segment contributes to over USD
12.9 billion of retail revenues, with penetration
growing from 3% in 2004-05 to 4.15% in
2005-06.
Share of organized retail is projected to grow to
USD 43.8 billion out of the total retail sector
revenues projected at USD 460.6 billion in
2010-11.
Modern retailing outlets are increasingly matching
up to global standards and witnessing intense
competition.

Exchange Rate: USD 1 = INR


41
Valid through the report

Source: Crisil
Research

35

Transition from Traditional to


Modern Retailing
With a share of over 95% of total retail
revenues, traditional retailing continues to be
the backbone of the Indian retail industry.
Over 12 million small and medium retail
outlets exist in India, the highest in any
country.
Traditional retail is highly pronounced in small
towns and cities with primary presence of
neighbourhood

kirana

stores,

push-cart

vendors, melas and mandis.

Modern/Organized retailing is growing at


an aggressive pace in urban India, fuelled
by bourgeoning economic activity.
Organized retail sector is estimated to grow
by 400%, in value terms, by 2007-08.
Increasing

number

of

domestic

and

international players are setting up base


and expanding their business to tap the
burgeoning market.

36

Growth Across Segments


Food and Beverages segment accounts for the largest
share, over 74%, of the total retail pie.
Traditional

retail dominates

food,

grocery and

allied products sector, with grocery and staples


largely sourced from the Kiranas and push cart
vendors.
Apparel and Consumer Durables verticals are the
fastest growing verticals.
Mobile phones, one of the highest growth product
categories, with deep telecom penetration into towns
and villages and the sector adding 5 million new
users every month.
With the reducing average age of Indians buying
homes, the Home Dcor sector is growing rapidly.
Beauty Care, Home Dcor, Books, Music and Gifts
segments are gaining traction predominantly in the
urban areas and emerging cities.

37

Increasing Penetration of
Organized Retail

Organized retail in India is largely restricted to the

urban and semi-urban regions, with consumer


exposure to modern retailing formats like malls and
stand-alone stores etc. for specific product categories.
Clothing and Textiles/Apparel segment dominates
the organized retail sector with revenues worth USD
4.76 billion, contributing to over 36% of the
organized retail pie.
Source: Crisil Research

Apparel is one of the fastest growing


verticals, with higher number of domestic
and

foreign

brands,

and

increasing

consumer willingness to pay for quality.


Footwear
retail

has

the

highest

penetration,

organized

primarily

due

to

players like Bata India Pvt. Ltd. and Liberty,


with

wide

distribution

network

and

customer confidence.
Source: Crisil Research

38

Future Outlook

Retail sector revenues


pegged at USD 460.6

Changing Paradigm: The Confluence of Modern and Traditional


Retail

billion by 2010-11
Organized retail
Technology
Adoption,
Leveraging
Traditional
Formats for
Modern Retail

imbibe from the


traditional formats

Entry,
Growth,
Expansion,
Top Line
Focus for
Organized
Retail

Un-organized formats
converging to
organized formats, in
mushrooming village
malls

2000

the form of

Ist Phase

2nd Phase

a
rc
Pe

2008

expected to adapt and

Range,
Portfolio,
Format
Options,
Beginning of
the RuralUrban Retail
Merge

2005

Modern retail is

Growth

USD 43.8 billion

3rd Phase

ce
pa
lS
i
a
et
aR
pit

2011

projected to grow to

M&A,
Consolidation,
High
Investments,
Confluence of
Indian Retail

4th Phase

Large Indian retail


players have already
begun formulating
strategies for the
rural retail space

39

Key Players

40

Key
Players
Pantaloons Retail India Limited
Pantaloon Retail India Limited (PRIL), a Future Group venture started its operations with
Pantaloon Shoppe in 1993 and has since emerged to be the retailing giant of India with over
5 million square feet of retail space spread over 450 stores across 40 cities in India.
Pantaloons Retail has many firsts to its name in the Indian market, with discounted store
formats like Brand Factory etc. setting benchmarks for new players entering the market.
Innovative store formats like Hometown- a one stop shop for all the home requirements,
Sports Bar- a sports theme restaurant complete with game courts and screens for match viewing,
Health City- a value segment targeted spa and beauty care venture etc., are hitting the market,
consolidating the market position of PRIL.
The unique selling proposition of Pantaloon Retail is the dual approach to tap both the value
segment and lifestyle and luxury segment consumers, by establishing retail formats in
each segment like Big Bazaar, Fashion Station etc. aimed at value retailing while Central,
Pantaloons captures the lifestyle segment consumers.

Source: Company Reports

41

Key
Players
Shoppers Stop Limited
Shoppers Stop, established in 1991 with its flagship store- Shoppers Stop, has now expanded to
over 100 retail outlets spread across 1.1 million square feet of built-up area, spanning the
entire spectrum of retailing verticals and formats.
Private labels account for more than 21% of their retail revenues, with Shoppers Stop
clocking impressive total number of transactions to customer footfalls ratio (conversion
ratio) of 27%.
Strategic partnerships with international retailing players like Mothercare Plc of Britain and
Leisure & Allied Industries of Australia, are aiding Shoppers Stop in catering to niche markets.
Aggressive expansion plans are in pipeline for formats like Timezone, a leisure and
entertainment format venture and Brio- the coffee bar located strategically in their Crossword
bookstores.

42

Key Players
Tata Trent Ltd.

RPG Enterprises

Landmark Group

Established in 1998

Established retail in 1996

Present in India since 1999

Revenues: US$ 53 million

Revenues: US$ 182 million

Retail sector activity: Apparel,


Specialty books and music

Retail sector activity: Food &


grocery, beauty products,
specialty- music

Retail sector activity: apparel,


home dcor & furnishing

Current store format:


Hypermarket, Supermarkets
Future plan: New ventureInfiniti Retail Ltd.
Manufacture private labels in
apparels
Principal fascia: Westside,
Landmark, Star India Bazaar

Current store format:


Convenience stores,
supermarkets, hypermarkets
Current outlets: 279 outlets
Music world has tie ups with
350 affiliates across the
country.
Future plan: by 2009 set-up
2000 stores in India
Principal fascia: Spencers,
Music World

43

Current store format:


Department stores,
hypermarkets
Current outlets: Lifestyle-10
outlets, Max Retail-4 outlets
Future plan: Presence in mini
metros and Tier-II cities
Principal fascia: Lifestyle,
Home Centre, Max Retail

Key Players
Madura Garments

Vivek Group

Globus

Established in 1988

Established in 1965

Established in 1998

Part of the Aditya Birla Nuvo


Group

Revenues: US$ 91.5 million

Retail sector activity: Apparel

Retail sector activity: food &


grocery, beauty, specialtyelectronics & home appliances

Current store format: Stand


alone stores

Current store format:


Supermarkets, Hypermarkets

Future plan: To set up 100


stores by 2008

Current outlets: Vivek-23


outlets, Jaisons-26 outlets,
Premier-3 outlets

Manufacture private labels


under Globus and F21

Retail sector activity: Apparel


Principal fascia: Louis
Philippe, Van Heusen, Allen
Solly, SF jeans, Peter England
Joint Venture with international
brands: Esprit
Current outlets: Planet
Fashion-50 outlets, Trouser
town-9 outlets
Future plan: Projected to
increase to 300 outlets by 2009
and diversify into the womens
wear segment

Future plan: Set up 60 stores


in South India
Principal fascia: Viveks,
Jaisons, Premier

44

Current outlets: 21

Principal fascia: Globus

Key Players
Subhiksha Trading Services

Nilgiris Ltd.

Trinethra Super Retail Ltd.

Established in 1997

Established in 1904

Turn over of US$ 75.6 million

Revenues: US$ 30.5 million

Retail sector activity: food,


medicines

Retail sector activity: Food &


grocery, specialty- bakery
products

Current store format:


Supermarkets
Current outlets: 150 outlets
Future plan: To set up 600
stores with 145 stores in NCR
region

Current store format:


Supermarkets

Established in 1986 (Taken


over by Aditya Birla Nuvo
Group in 2006)
Revenues: US$ 58.5 million
Retail sector activity: Food &
grocery, beauty products

Future plan: To increase


stores to 100

Current store format:


Convenience stores,
supermarkets, hypermarkets

Principal fascia: Nilgiris

Current outlets: 150 outlets


Future plan: To enter into
pharmacies, apparel, footwear

Principal fascia: Subhiksha

Principal fascia: Trinethra


Super Retail LTD., Trinethra
Quick Shop

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Key Players
Provogue Ltd.

Bata India Ltd.

Archies Ltd.

Established in 1997

Present since 1931

Present since 1979

Revenues: US$ 38.1 million

Revenues: US$ 179.8 million

Revenues: US$ 20.8 million

Retail sector activity: apparel,


footwear

Retail sector activity:


Footwear and accessories

Retail sector activity:


Specialty-cards & gifts

Current store format: Stand


alone stores

Current store format: stand


alone stores

Current store format: stand


alone stores

Current outlets: 139 outlets

Current outlets: 1100 outlets

Future plan: To manage and


develop malls

Future plan: To remodel 150


stores and open 40 more
stores

Future plan: To increase from


73 stores to 200 by 2008

Principal fascia: Provogue,


Prozone

Principal fascia: Bata

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Principal fascia: Archies,


Stupid Cupid

Players across Verticals


Food and Grocery

Clothing and Textiles

Jewelry and Watches

Footwear

Source: Industry Sources

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Players across Verticals


Home Dcor and Furnishings

Electronics

Beauty Care

Books and Music

Source: Industry Sources

48

International Retailers

International retailers are fast expanding their business in India to tap the large consumer base.
Reebok has set up its largest store in the world in Hyderabad, Tommy Hilfiger and Levis
have over 20,000 square feet of retail space and stand-alone stores across major metros.
The fast-food giants like Pizza Hut, McDonalds, Subway etc are expanding at a fast pace, with these
emerging Tier II and Tier III cities

Source: The Financial Times, Industry Sources

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