MBA Retail Project Report "The study of Retail Market in India"

The comparative penetration of organized retail in India.

                

            With the organized retail segment growing at the rate of 25-30 per cent per annum, revenues from the sector are expected to triple from the current US$ 7.7 billion to US$ 24 billion by 2010. The share of modern retail is likely to grow from its current 3 per cent to 15-20 percent over the next decade. 85 per cent of organized retailing is taking place in India’s urban areas while 66 per cent of it taking place in India’s 6 main cities alone.

          

          The growth is much faster in south India than in northern states. The total retail market in south India is $94 billio and of this organized retail is $8.5 billion. In southern part of India the organized retail market grow this estimated as 35 per cent per annum.

    

        In Chennai the growth rate is 12 percent while in Hyderabad it is 7 percent and in Kerala it is 3-4 percent per annum. As per Technopark study the sales in the organized sector forfood, beverage and tobacco is $195

Retailing formats in India

l Malls:

          The largest form of organized retailing today. Located mainly in metro cities, in proximity to urban outskirts. Ranges from 60,000 sq ft to 7,00,000 sq ft and above. They lend an ideal shopping experience with an amalgamation of product, service and entertainment, all under a common roof.Examples include Shoppers Stop, Piramyd, Pantaloon.

l Specialty Stores:

          Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer Crossword, RPG's Music World and the Times Group's music chain Planet M, are focusing on specific market segments and have established themselves strongly in their sectors.

l Discount Stores:

          As the name suggests, discount stores or factory outlets, offer discounts on the MRP through selling in bulk reaching economies of scale or excess stock left over at the season. The product category can range from a variety of perishable/ non perishable goods

l Department Stores:

          Large stores ranging from 20000-50000 sq. ft, catering to a variety of consumer needs. Further classified into localized departments such as clothing, toys, home, groceries, etc.

l Department Stores:

          Departmental Stores are expected to take over the apparel business from exclusive brand showrooms. Among these, the biggest success is K Raheja's Shoppers Stop, which started in Mumbai and now has more than seven large stores (over 30,000 sq. ft) across India and even has its own in store brand for clothes called Stop!.

l Hypermarts/Supermarkets:

          Large self service outlets, catering to varied shopper needs are termed as Supermarkets. These are located in or near residential high streets. These stores today contribute to 30% of all food & grocery organized retail sales. Super Markets can further be classified in to mini supermarkets typically 1,000 sq ft to 2,000 sq ft and large supermarkets ranging from of 3,500 sq ft to 5,000 sq ft. having a strong focus on food & grocery and personal sales.

l Convenience Stores:

          These are relatively small stores 400-2,000 sq. feet located near residential areas. They stock a limited range of high-turnover convenience products and are usually open for extended periods during the day, seven days a week. Prices are slightly higher due to the convenience premium.

l MBO’s :

          Multi Brand outlets, also known as Category Killers, offer several brands across a single product category. These usually do well in busy market places and Metros.