Description
It also provides the details of global retailing facts and information about the biggest retailers and countries. Further it talks about the retailing scenario in India.
Global Retailing Scenario
& Its Future
INTRODUCTION TO RETAILING
•Retailing consists of the sale of goods or merchandise for personal or household consumption either from a fixed location such as a shopping mall or store, or from a fixed location and related subordinated services. •In commerce, a retailer buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells individual items or small quantities to the general public or end-user customers, usually in a shop, also called a store. •Retailers are at the end of the supply chain. Marketers see retailing as part of their overall distribution strategy.
Etymology
•Retail comes from the French word retaillier which refers to "cutting off, clip and divide" in terms of tailoring (1365). • It first was recorded as a noun with the meaning of a "sale in small quantities" in 1433 (French). •Its literal meaning for retail was to "cut off, shred, paring". •In both Dutch and German also refer to sale of small quantities or items.
Shopping
•Shopping is the purchase of goods and services from retailers .Shopping involves selection and purchase •"Window shopping" is an American/English phrase meaning to look into glass windows of a shop for entertainment and imagine purchasing items without actually purchasing, possibly just to pass the time between other activities, or planning a purchase. •“Screen shopping" is derived from this term but applies to online retail stores (i.e., window shopping through a computer screen). •“Internet Shopping”(eBay, Amazon) •Shopping is fun for some people.
?
?
Modern Format retailers (Organized retailing) ? Supermarkets (Subhiksha) ? Hypermarkets (Big Bazaar) ? Department Stores (Shoppers Stop) Cash & carry (wal-mart yet to come) ? Company Owned Company Operated (Bata)
Classifying Retail
?
Traditional Format Retailers (Unorganized Retailing) ? Traditional Mom and Pop Stores: (KIRANA) ? Kiosks ? Street Markets ? Exclusive /Multiple Brand Outlets
Hypermarket
•Hypermarket is a superstore which combines a supermarket and a department store. •Gigantic retail facility carries an enormous range of products under one roof. •A consumer can ideally satisfy all of his or her routine weekly shopping needs in one trip to the hypermarket. •A typical Wal-Mart Supercenter covers 150,000 square feet, •A typical Carrefour 210,000 square feet •Hypermarkets choose suburban or out-of-town locations that are easily accessible by automobile. •The concept was pioneered by Carrefour upon opening its first such store in 1962 at Sainte-Geneviève-des-Bois, France
•In France, the dominant chain is Carrefour 2nd largest chain of hypermarkets in the world after Wal-Mart
Supermarket
A supermarket is a departmentalized self-service store offering a wide variety of food and household merchandise. It is larger in size and has a wider selection than a traditional grocery store. The traditional supermarket occupies a large floor space on a single level and is situated near a residential area in order to be convenient to consumers The first true supermarket in the United States was opened by ex-Kroger employee Michael J. Cullen, on August 4, 1937, in a 6,000 square foot (560 m²) former garage in Jamaica, Queens, New York
Department Store
Department stores usually sell products :
•Apparel •Furniture •Electronics Appliances •Paint •Toiletries & Cosmetics •Photographic equipment •Jewellery •Toys •Sporting goods.
Convenience store
A convenience store is a small store or shop, generally accessible or local. Alongside ,busy roads, gas/petrol stations. Railway stations,densely-populated urban neighborhoods. For meeting immediately or temporarily requirements. Items offered are milk, bread, soft drinks, cigarettes, coffee, slurpees, candy bars, sandwiches, pizza hot dogs, ice cream, candy, gum, chips, popcorn, maps, magazines, newspapers, small toys, feminine hygiene products, cat food, dog food, and toilet paper. CD, DVD, video game
Cash and Carry
•Goods are sold from a wholesale warehouse operated either on a selfservice basis or on the basis of samples retailers •Professional users, caterers, institutional buyers are customers •Wholesalers buy from manufacturers and sell mostly to retailers •Selling and promoting, buying and assortment building, warehousing, transporting, financing, risk-bearing, supplying market information, and providing management services •Cash and carry wholesaler arrange the transport of the goods themselves and pay the goods in cash and not on credit •100% FDI is allowed in this format in INDIA. •WAL-MART & BHARTI. Joint venture based on this strategy. •METRO(GERMANY), CARREFOUR(FRANCE),TESCO(U.K) planning to enter through the same format.
Other retailing Formats
Kiosk Variety store
World`s largest Malls
•Berjaya Times Square in Kuala Lumpur, Malaysia, is 700,000 m². (approximately 7 million square feet). •Beijing's Golden Resources Shopping Mall, opened in October 2004, is the world's largest, at 600,000 m² (approximately 6 million square feet). •SM Mall of Asia in the Philippines, opened in May 2006, is the world's third largest at 386,000 m² square meters of gross floor area with further expansions still ongoing. •The Mall of Arabia inside Dubailand in Dubai, United Arab Emirates, which will open in 2008, will become the largest mall in the world, at 929,000 square meters (10 million sq. feet).(22000 small shops of avg 50 sq.yds in india)
Global Retailing Facts
World’s largest private industry Above US $ 8 trillion sales worldwide annually Accounts for almost 10% of GDP in most countries Major employer in most economies –16% –15% –12% – 7% in US in Brazil in Poland in China
Generates competition which results in –reduction of prices –product and service innovation –enhanced customer experience
Biggest retail Sales countries of the world
•U.S •E.U •JAPAN •CHINA •U.K •INDIA •RUSSIA U.S $ 4 tn (13 times of Indian market) U.S $ 2 tn U.S $ 1 tn U.S $ 750 bn U.S $ 444 bn U.S $ 300 bn U.S $ 200 bn
Biggest retailers of the World
U.S.A FRANCE U.S.A U.K U.S.A US $316 Bn US $95 Bn US $73 Bn US $62 Bn US$56 Bn
Reason For Success of Global Retailers
•Better Consumer Demand •Better Consumer Confidence •Computer Operated Depots •Better Logistical System
Evolution of Indian retail
Historic/Rural Reach Traditional/Perva sive Reach Government Supported Modern Formats/ International
PDS Outlets Khadi Stores Cooperatives Convenience Stores Mom and Pop/Kiranas
Exclusive Brand Outlets Hyper/Super Markets Department Stores Shopping Malls
Weekly Markets Village Fairs Melas
Source of Entertainmen
Neighborhood Stores/Convenie
Availability/ Low Costs /
Shopping Experience/Efficie
Evolution of Indian retail
?
Informal retailing Sector ? Typically small retailers. ? Evasion of taxes ? Difficulty in enforcing collection mechanisms ? No monitoring of labor laws
tax
?
Formal Retailing Sector ? Typically large retailers ? Greater enforcement of taxation mechanisms ? High level of labor usage monitoring
Large Indian retailers
?
Hypermarket
? ? ? ?
Big Bazaar Giants Shoprite Star Lifestyle Pantaloons Piramyds Shoppers Stop Trent Fame Adlabs Fun Republic Inox PVR
?
Department store
? ? ? ? ?
?
Entertainment
? ? ? ?
The changing Indian consumer
?
?
?
Greater per capita income ? Increase in disposable income of middle class households ? 20.9%* growth in real disposable income in ’99-’03. Growing high and middle income population ? Growing at a pace of over 10%* per annum over last decade Affordability growth ? Falling interest rates ? Easier consumer credit ? Greater variety and quality at all price points
The changing Indian consumer
?
The urban consumer ? Getting exposed to international lifestyles ? Inclined to acquiring asset ? More discerning and demanding than ever No longer need-based shopping ? Shopping is a family experience Changing Mindset ? Increasing tendency to spend ? Post Liberalization children coming of age ?100 mn 17-21 year olds*. Tend to spend freely. Greater levels of education
?
?
?
Anticipated growth
?
Market size ? Current market size is roughly US$ 300 bn ? Only 3% is through organized retailing ? 96% of the 12 Million stores are less than 500 Sq. ft. ? Forecast Growth rate for the retailing industry is roughly 8.3% for 20032008 ? Sales from large format stores would rise by 24-49% ? Formal and modern format retailing would enjoy rapid growth
India`s growing no. of domestic retail chains
FDI in Indian retailing
?
Current Indian FDI Regime ?FDI not permitted in retail trade sector, except in: ?Hi-Tech items / items requiring specialized after sales service ? Medical and diagnostic items ? Items sourced from the Indian small sector (manufactured with technology provided by
FDI in Indian retailing
•No FDI is allowed in multiple brand retailing •100% FDI allowed in cash & carry format(e.g Walmart-Bharti) •51% FDI allowed in single brand retailing(Nike,Gucci,Versace,Mcdona ld)
How FDI ?
?
FDI should be allowed in stages ? Initial stages: 26% FDI
?
3 yrs. 3 yrs.
Establishment Phase: 49% FDI Mature Phase: 100% FDI
?
?
FDI policy ? No incentives needed to attract FDI ? Market size and potential are sufficient inducers ? No need for costly tax breaks, import duty exemptions, land and power subsidies, and other enticements
Hot Destinations
Tier 1 cities: Tier 2 cities: Hyderabad, Bangalore, Ahmedabad, Gurgaon, Pune, Baroda,Noida Tier 3 cities: Chandigarh, Coimbatore, Trivandrum, Faridabad, Ludhiana, Cochin, Shimla, Mysore,Amritsar Delhi,Mumbai,Kolkata,Chennai
Forthcoming Prevailing Major Players Mammoths
Reliance Retail Bharti Retail Birlas Tatas Godrej Adhaar ITC e-choupal
Future Group Trent Ltd RPG Enterprise Vishal Retail Ltd Shoppers Stop Ltd Bata India Ltd Provogue India Ltd
Case study : FDI permitted in 1992. 40 Chinese have secured approval retailing retailers
? ? ?
foreign
Retail sales have [email protected]% yoy since FDI was permitted
FDI initially restricted to 6 major cities (including Beijing, Shanghai and Guangzhou) and SEZs Foreign ownership initially restricted to 49% US$ 22 bn of FDI attracted, 3.6% of total FDI ? In 2003, FDI in wholesale and retail was US$ 1.1 bn (Around 30% of our total FDI in 2003) Current restrictions on FDI will be
?
?
?
37 5 30 0 22 5 150 75
7 8 8 0
US$ bn
FDI in retail allowed
8 5
9 0
9 1
9 2
9 3
9 4
9 5
9 6
9 7
9 8
9 9
0 0
0 1
0 2
Years
?
Retail sales grew @ 19.5% yoy for the next 4 years after the introduction of FDI in 1992
Current News
•Eleven retailers gearing up for IPOs •40 retail players to spend $25 billion in next four years
•Aditya Birla Group signifies intent to become leading player in retail industry •Big Bazaar to open 60 new stores •Shoppers’ Stop gears up for luxury retail •Reliance targets Rs. 100000 crs. Retail sales target •Dabur explores entering consumer retail business •The retail industry in India is estimated at $427 billion in 2010 and US$ 637 billion in 2015
Recommendations
? ? ? ? ?
Grant industry status to retail Permit FDI in Retail in phases Invest in supply chain infrastructure Ease distribution – infrastructure creation, octroi Ensure single window clearance for retail chains
Organize market for real estate ? Ensure proper rent laws ? Enforce zoning laws development plan ? Increase land supply
?
and
city
?
Ensure flexibility of labor laws
You Will always Shop In This Way in Future !
THANKS! THANKS
doc_416307444.ppt
It also provides the details of global retailing facts and information about the biggest retailers and countries. Further it talks about the retailing scenario in India.
Global Retailing Scenario
& Its Future
INTRODUCTION TO RETAILING
•Retailing consists of the sale of goods or merchandise for personal or household consumption either from a fixed location such as a shopping mall or store, or from a fixed location and related subordinated services. •In commerce, a retailer buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells individual items or small quantities to the general public or end-user customers, usually in a shop, also called a store. •Retailers are at the end of the supply chain. Marketers see retailing as part of their overall distribution strategy.
Etymology
•Retail comes from the French word retaillier which refers to "cutting off, clip and divide" in terms of tailoring (1365). • It first was recorded as a noun with the meaning of a "sale in small quantities" in 1433 (French). •Its literal meaning for retail was to "cut off, shred, paring". •In both Dutch and German also refer to sale of small quantities or items.
Shopping
•Shopping is the purchase of goods and services from retailers .Shopping involves selection and purchase •"Window shopping" is an American/English phrase meaning to look into glass windows of a shop for entertainment and imagine purchasing items without actually purchasing, possibly just to pass the time between other activities, or planning a purchase. •“Screen shopping" is derived from this term but applies to online retail stores (i.e., window shopping through a computer screen). •“Internet Shopping”(eBay, Amazon) •Shopping is fun for some people.
?
?
Modern Format retailers (Organized retailing) ? Supermarkets (Subhiksha) ? Hypermarkets (Big Bazaar) ? Department Stores (Shoppers Stop) Cash & carry (wal-mart yet to come) ? Company Owned Company Operated (Bata)
Classifying Retail
?
Traditional Format Retailers (Unorganized Retailing) ? Traditional Mom and Pop Stores: (KIRANA) ? Kiosks ? Street Markets ? Exclusive /Multiple Brand Outlets
Hypermarket
•Hypermarket is a superstore which combines a supermarket and a department store. •Gigantic retail facility carries an enormous range of products under one roof. •A consumer can ideally satisfy all of his or her routine weekly shopping needs in one trip to the hypermarket. •A typical Wal-Mart Supercenter covers 150,000 square feet, •A typical Carrefour 210,000 square feet •Hypermarkets choose suburban or out-of-town locations that are easily accessible by automobile. •The concept was pioneered by Carrefour upon opening its first such store in 1962 at Sainte-Geneviève-des-Bois, France
•In France, the dominant chain is Carrefour 2nd largest chain of hypermarkets in the world after Wal-Mart
Supermarket
A supermarket is a departmentalized self-service store offering a wide variety of food and household merchandise. It is larger in size and has a wider selection than a traditional grocery store. The traditional supermarket occupies a large floor space on a single level and is situated near a residential area in order to be convenient to consumers The first true supermarket in the United States was opened by ex-Kroger employee Michael J. Cullen, on August 4, 1937, in a 6,000 square foot (560 m²) former garage in Jamaica, Queens, New York
Department Store
Department stores usually sell products :
•Apparel •Furniture •Electronics Appliances •Paint •Toiletries & Cosmetics •Photographic equipment •Jewellery •Toys •Sporting goods.
Convenience store
A convenience store is a small store or shop, generally accessible or local. Alongside ,busy roads, gas/petrol stations. Railway stations,densely-populated urban neighborhoods. For meeting immediately or temporarily requirements. Items offered are milk, bread, soft drinks, cigarettes, coffee, slurpees, candy bars, sandwiches, pizza hot dogs, ice cream, candy, gum, chips, popcorn, maps, magazines, newspapers, small toys, feminine hygiene products, cat food, dog food, and toilet paper. CD, DVD, video game
Cash and Carry
•Goods are sold from a wholesale warehouse operated either on a selfservice basis or on the basis of samples retailers •Professional users, caterers, institutional buyers are customers •Wholesalers buy from manufacturers and sell mostly to retailers •Selling and promoting, buying and assortment building, warehousing, transporting, financing, risk-bearing, supplying market information, and providing management services •Cash and carry wholesaler arrange the transport of the goods themselves and pay the goods in cash and not on credit •100% FDI is allowed in this format in INDIA. •WAL-MART & BHARTI. Joint venture based on this strategy. •METRO(GERMANY), CARREFOUR(FRANCE),TESCO(U.K) planning to enter through the same format.
Other retailing Formats
Kiosk Variety store
World`s largest Malls
•Berjaya Times Square in Kuala Lumpur, Malaysia, is 700,000 m². (approximately 7 million square feet). •Beijing's Golden Resources Shopping Mall, opened in October 2004, is the world's largest, at 600,000 m² (approximately 6 million square feet). •SM Mall of Asia in the Philippines, opened in May 2006, is the world's third largest at 386,000 m² square meters of gross floor area with further expansions still ongoing. •The Mall of Arabia inside Dubailand in Dubai, United Arab Emirates, which will open in 2008, will become the largest mall in the world, at 929,000 square meters (10 million sq. feet).(22000 small shops of avg 50 sq.yds in india)
Global Retailing Facts
World’s largest private industry Above US $ 8 trillion sales worldwide annually Accounts for almost 10% of GDP in most countries Major employer in most economies –16% –15% –12% – 7% in US in Brazil in Poland in China
Generates competition which results in –reduction of prices –product and service innovation –enhanced customer experience
Biggest retail Sales countries of the world
•U.S •E.U •JAPAN •CHINA •U.K •INDIA •RUSSIA U.S $ 4 tn (13 times of Indian market) U.S $ 2 tn U.S $ 1 tn U.S $ 750 bn U.S $ 444 bn U.S $ 300 bn U.S $ 200 bn
Biggest retailers of the World
U.S.A FRANCE U.S.A U.K U.S.A US $316 Bn US $95 Bn US $73 Bn US $62 Bn US$56 Bn
Reason For Success of Global Retailers
•Better Consumer Demand •Better Consumer Confidence •Computer Operated Depots •Better Logistical System
Evolution of Indian retail
Historic/Rural Reach Traditional/Perva sive Reach Government Supported Modern Formats/ International
PDS Outlets Khadi Stores Cooperatives Convenience Stores Mom and Pop/Kiranas
Exclusive Brand Outlets Hyper/Super Markets Department Stores Shopping Malls
Weekly Markets Village Fairs Melas
Source of Entertainmen
Neighborhood Stores/Convenie
Availability/ Low Costs /
Shopping Experience/Efficie
Evolution of Indian retail
?
Informal retailing Sector ? Typically small retailers. ? Evasion of taxes ? Difficulty in enforcing collection mechanisms ? No monitoring of labor laws
tax
?
Formal Retailing Sector ? Typically large retailers ? Greater enforcement of taxation mechanisms ? High level of labor usage monitoring
Large Indian retailers
?
Hypermarket
? ? ? ?
Big Bazaar Giants Shoprite Star Lifestyle Pantaloons Piramyds Shoppers Stop Trent Fame Adlabs Fun Republic Inox PVR
?
Department store
? ? ? ? ?
?
Entertainment
? ? ? ?
The changing Indian consumer
?
?
?
Greater per capita income ? Increase in disposable income of middle class households ? 20.9%* growth in real disposable income in ’99-’03. Growing high and middle income population ? Growing at a pace of over 10%* per annum over last decade Affordability growth ? Falling interest rates ? Easier consumer credit ? Greater variety and quality at all price points
The changing Indian consumer
?
The urban consumer ? Getting exposed to international lifestyles ? Inclined to acquiring asset ? More discerning and demanding than ever No longer need-based shopping ? Shopping is a family experience Changing Mindset ? Increasing tendency to spend ? Post Liberalization children coming of age ?100 mn 17-21 year olds*. Tend to spend freely. Greater levels of education
?
?
?
Anticipated growth
?
Market size ? Current market size is roughly US$ 300 bn ? Only 3% is through organized retailing ? 96% of the 12 Million stores are less than 500 Sq. ft. ? Forecast Growth rate for the retailing industry is roughly 8.3% for 20032008 ? Sales from large format stores would rise by 24-49% ? Formal and modern format retailing would enjoy rapid growth
India`s growing no. of domestic retail chains
FDI in Indian retailing
?
Current Indian FDI Regime ?FDI not permitted in retail trade sector, except in: ?Hi-Tech items / items requiring specialized after sales service ? Medical and diagnostic items ? Items sourced from the Indian small sector (manufactured with technology provided by
FDI in Indian retailing
•No FDI is allowed in multiple brand retailing •100% FDI allowed in cash & carry format(e.g Walmart-Bharti) •51% FDI allowed in single brand retailing(Nike,Gucci,Versace,Mcdona ld)
How FDI ?
?
FDI should be allowed in stages ? Initial stages: 26% FDI
?
3 yrs. 3 yrs.
Establishment Phase: 49% FDI Mature Phase: 100% FDI
?
?
FDI policy ? No incentives needed to attract FDI ? Market size and potential are sufficient inducers ? No need for costly tax breaks, import duty exemptions, land and power subsidies, and other enticements
Hot Destinations
Tier 1 cities: Tier 2 cities: Hyderabad, Bangalore, Ahmedabad, Gurgaon, Pune, Baroda,Noida Tier 3 cities: Chandigarh, Coimbatore, Trivandrum, Faridabad, Ludhiana, Cochin, Shimla, Mysore,Amritsar Delhi,Mumbai,Kolkata,Chennai
Forthcoming Prevailing Major Players Mammoths
Reliance Retail Bharti Retail Birlas Tatas Godrej Adhaar ITC e-choupal
Future Group Trent Ltd RPG Enterprise Vishal Retail Ltd Shoppers Stop Ltd Bata India Ltd Provogue India Ltd
Case study : FDI permitted in 1992. 40 Chinese have secured approval retailing retailers
? ? ?
foreign
Retail sales have [email protected]% yoy since FDI was permitted
FDI initially restricted to 6 major cities (including Beijing, Shanghai and Guangzhou) and SEZs Foreign ownership initially restricted to 49% US$ 22 bn of FDI attracted, 3.6% of total FDI ? In 2003, FDI in wholesale and retail was US$ 1.1 bn (Around 30% of our total FDI in 2003) Current restrictions on FDI will be
?
?
?
37 5 30 0 22 5 150 75
7 8 8 0
US$ bn
FDI in retail allowed
8 5
9 0
9 1
9 2
9 3
9 4
9 5
9 6
9 7
9 8
9 9
0 0
0 1
0 2
Years
?
Retail sales grew @ 19.5% yoy for the next 4 years after the introduction of FDI in 1992
Current News
•Eleven retailers gearing up for IPOs •40 retail players to spend $25 billion in next four years
•Aditya Birla Group signifies intent to become leading player in retail industry •Big Bazaar to open 60 new stores •Shoppers’ Stop gears up for luxury retail •Reliance targets Rs. 100000 crs. Retail sales target •Dabur explores entering consumer retail business •The retail industry in India is estimated at $427 billion in 2010 and US$ 637 billion in 2015
Recommendations
? ? ? ? ?
Grant industry status to retail Permit FDI in Retail in phases Invest in supply chain infrastructure Ease distribution – infrastructure creation, octroi Ensure single window clearance for retail chains
Organize market for real estate ? Ensure proper rent laws ? Enforce zoning laws development plan ? Increase land supply
?
and
city
?
Ensure flexibility of labor laws
You Will always Shop In This Way in Future !
THANKS! THANKS
doc_416307444.ppt