Sidd Final Retail

8/4/2019 Sidd Final Retail

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Indian Retail Industry

Presented by:

Siddharth MehtaAnuj Jain

Prashant Jajoo

Tejdeep Mangrola

Abhinav Singh Gaur

Aravali Institute of Management

Presented to:

Asst. Prof. Vishwas Gupta


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Retailing isyThe sale of goods and services from a fixed location

y In individual or small lot

yTo the ultimate consumer for personal use


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Key point of Retail Industryy Potential to be the third largest economy in terms of GDP in next few years

y It ranks high amongst the top 10 FDI destinations of the world

y Second largest employment generator after agriculture sector

y Vibrant and multi cultured cities

y Huge opportunity exists, especially in semi-rural and rural areas

y Indian retail is fragmented with over 12 million outlets operating in the country.

y Retail Market is estimated to grow from US$ 637 billion in 2015

y There are some 12 million retail outlets of which nearly 5 million sell food andrelated products


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Organized Vs Unorganized Retail Sector

Organized Retail SectorThe organised retail stores are

characterised by professionally managed

stores or large chain of stores, providing

goods and services that appeal to

customers, in an ambience that isencouraging for shopping and agreeableto customers.

Unorganized Retail SectorUnorganised retailing refers to small

grocery shops in your

neighbourhood, hawkers and

tobacconists at the corner of the

streets.


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Organized Vs Unorganized Retail Sector

Factor Organized Retail Sector Unorganized Retail Sector

Definition Modern form of retailing Traditional form of retailing

Examples Hypermarket, Retail chainetc.

Mom n Pop stores, handcart, pavement vendors etc

Market Share 3% 97%

Market Growth 35% 6%

Challenges Poor supply chainmanagement, aggressiveexpansion etc.

Use of labour intensivetechnology, lack ofgovernment support etc.


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Retailer Existing formats Brand NamesNo.ofStores

Total Retail Space(000 sq ft)

Pantaloon RetailIndian Ltd

Department store Pantaloon 13 1,948

Hypermarket Big Bazaar 450 5000

Seamless Malls Central 12 1200

RPG Retail

Hyper markets Spencers 400 6000

Music Stores Music world 225 230

Books Stores Books

Shoppers Stop Ltd.

Department stores Shoppers Stop 20 1000

Books & Music Stores Crosswords 33 N/A

Home furnishing Home Stop N/A N/A

Landmark Group(Based in Dubai)

Department Stores Lifestyle 8 370

Trent India Ltd

Department Stores West side 19 350

Hypermarkets Star India Bazaar 1 N/A

Books & Music Stores Land Mark 4 N/A

Vishal Group Hyper markets Vishal Mega Mart 183 13,45

Formats adopted by Key Players


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Format-Obsolete &

Formats growing rapidly


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Formats suggested for Jodhpur

y Hypermarket like Big Bazaar, Star India Bazaar.y Benefits:

y Shopping convenience

y Wide range of products

y Every type of product under single roof

y Self Service

y Play Area for children

y Discounts & Offers


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GrowthDrivers Barriers to Entry

yConsumption Boom

yLess Competition

yFavorableDemographics

yChanging Lifestyles and

PreferencesyReal estate boom

y Regulatory barriers

y Fragmented Suppliers

y Lack of infrastructure

y Lack of skilled Human

Resource

Growth Drivers & Barriers for

retail in Jodhpur


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Location

y Opp Bhoot Motors, In place of reliance mart atAshapurna Mall

y Owner: Mr. Karan Singh

yRent: 15 Lacks per month

y Benefits

y With in reach

y Familiar Place

y Posh areay Less legal compliances

y Built infrastructure


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y Economic Base

y Employment rate - Moderate

y Total and per capita disposable income High as per

location

y Growth forecasts Probability is high

y Economic and seasonal fluctuations Will not affect

y Access to credit and financial facilities Good availability

of finance

y Competition

y Number and size of the competitors - Very Few

y Present Availability of transportation - Good

y Long term versus short term outlook Saturation levels Will

able to meet


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y Store Locations and its Availability

y Number and type of locations

y Availability of transportationy Own versus leased locations

y Costs of occupancy and operation

y Regulationsy Licensing procedures

y Operational procedures

y Minimum wages prevalent

y Zoning

y Tax structures


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y Locationy Central Business District

y Advantagesy Easy accessibility

y Good assortment of products & services

y High pedestrian traffic

y High Foot falls

y Disadvantages

y

High renty Traffic Congestion

Site Evaluation and Site Selection


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y Revenue Sharing- % of salesy SIS- Shop in shop

y Minimum guarantee plus revenue sharing

Strategy For Big Bazaar


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Sidd Final Retail

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