BEACON June 2013

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R E T A I L I N D U S T R Y

A N A L Y S I S

1

K N O W Y O U R C O M P A N Y :

I N F O S Y S C O N S U L T I N G

2

C O N S U L T I N G W O R L D

N E W S 4

J U N E Q U I Z 5

F E A T U R E D A R T I C L E

O N P A G E 2 A B O U T

Sydenham Institute of Management Studies, Research and Entrepreneurship Education

JUNE 2013

B E A C O N BE-A-CONSULTANT

Issue: 8

INDEX

Retailing in India is one of the pillars of the economy. The Indian retail market currently stands at

470bn accounting for about 25% of GDP. This sector is the second largest employer after agriculture, em-

ploying more than 35 million people. The growing disposable income in the country has resulting in in-

creasing consumer spending habits. The Indian Retail has evolved from Weekly Markets, Village Fairs,

bazaars and Melas to Kiranas to Co-operatives and finally to supermarkets and hypermarkets.

Organized and Unorganized Retailing: .

Organized retailing, in India include trading

activities undertaken by licensed retailers and they

are publicly traded. The organized occupies less than

6% of the overall contribution of retail sector which is

the lower as compared to its peers in BRIC countries

i.e. Brazil(38%), Russia(33%) and China(20%). How-

ever the Organized Retail is growing fast at CAGR of

21% in the last 5-6 years, as results of the FDI norms

undertaken by the government. Food and Grocery in

organized retail is showing the highest growth at 30%

CAGR due to the evolution of large number of super-

markets and hypermarkets.

Now lets talk about FDI in retail and antici-

pated consumer trends in retail sector.

A MONTHLY NEWSLETTER FROM SIMCON - SIMSREE CONSULTING CLUB

1 . R E T A I L I N D U S T R Y A N A L Y S I S

: BEACON

Consumer Trend:

The amount of consumption has doubled over the past 10 years and the rate of consumption is expected to increase 60%

over the next decade. New centres of consumptions are being created in Tier II and Tier III cities which throws huge opportunities

for many companies. The increasing women consumers have ensured the growth of beauty care, apparel and jewellery. Increasing

"Time Poverty" has made the companies to create "All In One Roof shopping destinations". Last but not the least technology has

made the consumer to rule as he has access to all sorts of information in one location, so this has made different retailers to work

different ways to appease customers.

Foreign Direct Investment:

FDI in retail is much talked and debated topic in recent times. It has primarily divided into two parts, single-brand and multi

-brand. 100% FDI is permissible in single-brand and 51 % in multi-brand retail.

Why has this particular topic caused debate for so long? One main concern is that the independent stores will close causing

huge unemployment ultimately affecting inclusive growth. The small retailer and the middle man present in the retail industry plays

a large part in Indian economy. Effective supply chain management of foreign retailers can lead to "direct" procurement of goods

from the supplier surpassing the middle men.

However, we have many advantages of inviting foreign retailers to trade in India. FDI increases the organized retailing in

India which will increase tax inflows to the government. Organized retail will need workers and with the consistent income would

address the issue of unemployment. It will also increase the competition in the country which will ultimately make the Indian retail-

ers become more competent. India is operating in budget deficits and needs huge investments for infrastructure and education, so this

is the right time for the country to come out of it crutches.

Factors driving growth

1. Growing count of double-income households

2. Disposable income increasing and hence the customer aspiration

3. Increasing working population

4. Organized retail is beginning to contribute

5. Growing tendency towards liberalization of the FDI policy

Sources: India Retail Report, Technopak Analysis

CONTD. RETAIL INDUSTRY ANALYSIS

Possible bottlenecks

1. Lack of adherence to international standards

2. Absence of efficient supply-chain management

3. No fixed consumption pattern of the Indian consumers

4. Trained manpower is lacking

5. Lack of infrastructure and distribution channels facilities

I N F O S Y S C O N S U L T I N G

: BEACON

K N O W Y O U R C O M P A N Y

Infosys Consulting Inc.:

Infosys Consulting Inc. (IC) is a Management Consulting Services Subsidiary of Infosys Technologies Limited (ITL).. The

company was founded in 2004 and is headquartered in Fremont, California. While IC brought in zero dollars of revenue in 2004, in

fiscal year 2011 direct revenue hit $200 million. In addition, IC drove another $600 million in revenue for its India-based parent

company, Infosys Technology Limited (ITL). IC also had an operating margin of 25 percent. The company had grown very rapidly -

by 2011 it counted 700 consultants worldwide and 42 partners. Infosys Consulting, Inc. provides information technology consulting

services across various sectors. Refer to the diagram below.

Unique 1-1-3 Global Delivery Model:

ICI works on 1-1-3 model which consists of 1 ICI (Consulting) resource, an Infosys resource (ITL) and 3 Offshore Infosys

(ITL) resources. This model had an advantage over competitors like IBM and Accenture who had no resources offshore. It facilitates

shorter period for solution delivery cycle, it incurs cost savings, and helps in delivering measurable benefits

Competitor analysis-

Conclusion: ICI has undoubtedly created a unique model for delivering business consulting solutions. The company is also creating

value by leveraging its core competencies. ICI delivers measurable benefits at a blended rate which is less than core competitors and

also assures quality consulting.

Sources: Stanford case by Anisha Capur, Business Outlook, Infosys.com, case on Infosys Consulting

published by TCK school of business, Investing.businessweek.com, Moneycontrol.com

US consulting market surges to $39.3bn

The US management consulting market grew by 8.5 per cent between 2011 and 2012 to $39.3bn - making it by far the largest single consulting market in the world - Source reports. This finding is published in a report by Source Information Services today (13th June 2013). The report finds that from a consulting service perspective the highest growth rates in the US market are to be found in marketing and sales (a 25 per cent increase), operational improve-ment (11 per cent) and technology (10 per cent). Hot sectors From an industry sector perspective the hot areas are healthcare, increasing over 18 per cent to $3.5bn, energy and resources (12 per cent up) and pharmaceuticals (10 per cent up). Expected expenditure When speaking to clients about how they expect their expenditure on consulting to change over the next 12 months, the Source report finds that the news is generally very good: 82 per cent say that the amount they spend won‟t fall, almost half (42 per cent) say it will increase, and 5 per cent say it will increase by more than 50 per cent.

US sustainability consulting market 'is not for the faint hearted'

Verdantix' analysis Of leading consultancies finds that success in the $700m US sustainability consulting mar-ket requires deep pockets and unique expertise. New York, May 22, 2013. A diverse collection of eight services firms – CH2M HILL, Deloitte, Ernst & Young, ERM, KPMG, McKinsey, PE International and PwC – stand out as the leading consultancies in the challenging US sustainability consulting market according to a new report from independent ana-lyst firm Verdantix ( Green Quadrant: Sustainability Consulting (US) 2013). The study assesses the 15 most prominent sustainability consultancies on 49 criteria covering sustainability strategy, innovation, reporting and communications, social and community, risk assessment, supply chain and product life cycle assessment, energy, carbon and water. The analysis includes the perspectives of a panel of buyers with collective revenues of $274bn.

BCG Energy Expert IvánMartén Named One of the Year’s Top Consultants

IvánMartén, global leader of The Boston Consulting Group‟s Energy practice, has been named one of the “Top 25” most influential consultants of 2013 by Consulting magazine, the industry‟s leading trade publication. Martén won in the “Excellence in Energy” category. “We were incredibly impressed with the 400 or so nominations we re-ceived this year,” said Joe Kornik, Consulting editor and publisher, in announcing the winners. “Each year, the Top 25 nominations get stronger, and this year was no different. In fact, we had a lot more client nominations than we normally do, which is fantastic.” In its profile of him in the May 2013 issue, Consulting says: “Martén has advised CEOs and top management teams at leading companies as well as governments and regulatory agencies. His work has spanned nearly all sectors of the energy industry on issues ranging from strategy and organization to regulation and sustainable development.

Big Oil & Gas Not Yet Ready for Big Data Companies ‘borderline irresponsible’ in treatment of data says Re-

port

According to the oil and gas management consultancy, many oil and gas companies are „borderline irrespon-sible‟ in how they maintain their existing data, despite the billions they spend on it. The company argues that better valued and managed data will afford executives and investors greater certainty on strategically important measure-ments crucial to executive decision making, such as the Reserve Replacement Ratio (RRR). With technology driving data growth at an exponential rate, oil and gas companies need to be prepared to receive and manage „big data‟ alongside considerable existing pools of information, if they are to harness its potential to fuel superior performance. With the Final Investment Decisions (or FIDs as they are often known) that promote pro-jects into production leaning on critical data and high level metrics, it is vital the information that underpins these deci-sions is well maintained. The report advocates that to be better prepared for the growth in data companies must for-malize data governance and adopt better data management processes.

Consulting World News : BEACON

Sources: www.ey.com , www.consultant-news.com, www.big4.com, www.sourceforconsulting.com/news.html

Mail Answers To:

[email protected] with

Subject= simcon_quiz_june_2013

First Received All Correct Answers will

be published in next month’s Edition.

B E L O W A R E A N S W E R S T O

V O L - 7 . M A Y _ 2 0 1 3

Q.1. Name the event connecting these: Linklaters LLP, Baker and McKenzie.

Q.2. Name the treasure hunt campaign launched by reliance communication where fans have to locate the tab in Google

map that zoomed in with the growing number of tweets .This campaign was a beautiful integration of Face book, Twitter and

Google map.

Q.3. What did these guys start? (Hint will not be dropped here.)

Q.4. X was the backbone behind the company which was once called “the firm” for its

dominance in its sector. Mr. X was hired by the company whose founder later died due to

Pneumonia. X took over the reins contributed to making the company what it is today, re-

structuring the company around New York. His influence remained till time of his death

when he was 99.Name X.

Q.5. What is common to the cars Scirocco, Passat, Bora, Jetta and Polo (Apart from the fact that they all are Volkswagen

car)

QUIZZ TIME !!

Contributions invited: To make this feature a successful effort, we seek continued

involvement and contribution from our readers, that is YOU. We invite articles and trivia on

themes related to consulting. Be it industry news, consulting trends, a joke, a cartoon or

feedback, we are eager to hear from you. So go ahead, do your research, pen down your

thoughts and mail your entries to [email protected].

Best Regards,

SIMCON –SIMSREE CONSULTING CLUB

SIMSREE, B-ROAD CHURCHGATE 400 020, INDIA.

Mail To: [email protected]

QUIZZ OF JUNE 2013

1. Mont Blanc has designed special edition pens in their honor

2. Mike Lazaridis of Research In Motion which makes the Blackberry

3. Chitra Ramakrishna , she will assume the role of NSE (national stock

exchange) CEO from April 1 , 2013 , she will be 1st woman to assume

this role

4. Boroline

5. Jeffery Immelt of GE

: BEACON

BEACON June 2013

Education

Transcript of BEACON June 2013