La grande distribuzione a New Delhi

1. GENERAL INFORMATION

2. FORECAST

Organized retail is in the midst of an unprecedented boom and fashion has driven this retail boom in India and it continues to mark its prominence in all kinds of markets, malls and stores.

The Indian retail industry consisting of over 15 million outlets, provides employment to over 74 million people (7% of the population). The size of the retail industry is pegged at USD 202.6 billion and it is expected to grow at a compounded 30% over the next 5 years. In this time, about 12% of the population will be engaged in retailing.

Currently, the sector is highly fragmented and dominated by small individually owned businesses. The size of organized retailing at USD 4.5 billion with a growth rate of 8.5% represented only 2% of the overall market last year. It is expected to be about USD 6.7 billion by 2005 representing 6% of the total market and by 15-20% over the next decade. Growth rate of sales through hypermarkets, etc. grew by 30% last year and the same is expected for the next few years.

The top 6 cities are expected to account for 66% of the organized retail market with 36% going to textiles and clothing, 17% to jewellery & watches and 14% to food & grocery.

While in the department stores, the share of the fashion wares will be over 95%, in hypermarkets like Big Bazaar the share could go as high as 70%. It will be fashion again that will see maximum growth in terms of organized retail expansion with over 1000 branded exclusive showrooms and over 20 large department stores opening in the next two years.

Over 300 malls are expected to come up by 2006 and 600 by 2009 all over India. Delhi is the epicenter of this boom with over 100 malls planned in the next 3 years. However, it is also predicted that most of these malls will struggle to make money.

The following factors will trigger rapid growth in demand for consumer products in India in the following years:

• High GDP growth rate of 6-8% and commitment to economic reform measures
• Low per capita consumption pointing towards latent demand potential
• Burgeoning middle class population and rising disposable income
• Entry of MNCs and abundant choice for consumers
• Dramatic change in consumption habits and aspiration for better lifestyle
• Rising awareness brought about by sophisticated market communication pattern
• The media revolution and the publicity and brand promotion measures
• Some 40 million Indians have the same purchasing power as Americans

3. APPROACH TO THE INDIAN MARKET
The prime focus of firms undertaking retail business would be to identify the market conditions and expectations and then define the range of strategic options available for fulfilling the market demands. The optimal strategy for achieving long term goals is governed by the environment and internal capabilities along with a suitable product mix.

In a survey carried out in February 2002 on the % share of different products in the total sales of top department stores, apparel forms 73%, Jewellery, wristwear & fashion accessories 10%, home furnishings 7%, cosmetic and fragrance as 5% and footwear 1%.

4. OBSTACLES
1. Real estate
A shortage of good quality retail space, very high rents for that which is available, high demand for space in cities which compounds shortage, debarment of foreigners from owning property in India which blocks FDI, high stamp duties on property deals, rigid building and zoning laws, strong pro-tenancy laws and absence of clear titles to ownership are some of the common problems
2. Labour laws
The labour laws instituted to protect store workers are not flexible enough to support the modern formats of retailing. These rigidities in the law constrain the operations of modern retail outlets. Working hours are restricted with shops required to close one day of the week and the hiring of part time employees is difficult.
3. Bureaucracy
The existence of a layer of petty bureaucracy that requires licenses for everything is time consuming and harassing. State and city license is required for trading. Separate licenses are required for dealing in rice and textiles and a drug license is required for dealing in baby foods.
4. Other factors
Inadequate infrastructure (shortage of power), lack of trained manpower (in retailing) and absence of adequate parking space are some of the areas that merit attention.
5. Presently, FDI is not allowed in retailing per se. However, trading is permitted under the automatic route with FDI up to 51% provided it is primarily export activities and the undertaking is an export house/trading house/super trading house/star trading house.

6. LIST OF PRINCIPAL OPERATORS

It was fashion again that enthused investors and retailers to think of large format stores in mid nineties. With the advent of Big Jo's, Ebony, etc. in Delhi and the value retailing chains of Pantaloons in several cities across India, the market started looking different. Large Indian retail stores of yesteryears began to look smaller in comparison to the mega stores of 30,000 to 70,000 sq.ft. that started attracting more customer traffic, thus ushering in the period of retail concentration.

The entry of large corporate houses and MNCs in fashion retail business added more life to the happenings at the market place. While Tata launched fashion retail brand stores-WESTSIDE in Delhi and kolkata in North India among other cities, the Dubai based Landmark Group came to India with LIFESTYLE STORES and the Rahejas came up with GLOBUS.

SHOPPER'S STOP already has 9 outlets all over India with one store in Delhi (planning 3 more here), 1 in Jaipur and remaining in other cities in India. It proposes to add 45 more stores in the next 5 years of which 15 will be in the northern region alone. As of February 2002, apparel formed 73% of total sales in this store with 11% being attributed to jewellery, wristwear & fashion accessories.

PANTALOONS is another department stores with 13 outlets and 34 franchisees all over India out of which Kolkata has 2 outlets and Kanpur in North India has 1. It is also in the process of large scale expansion.

K's MALL, S.M. STORES, BIG JOS and EBONY are some of the large independent stores in New Delhi which are now expanding into satellite towns like Gurgaon where for e.g., K's MALL is taking up 18000sq.ft space and BIG JO's is taking up 30000 sq.ft in a mall in Gurgaon.

   

La grande distribuzione a Mumbai

Informazioni generali di mercato


India has 12 million retail outlets. The retail sector is the second largest source of employment and the job market is hugely receptive to retailing expertise as more an more B-schools are now focussing on the sector and large retailers setting up retail academies. This is hardly surprising the retail sector is estimated to create 50,000 jobs a year in the next five years. Though not as high profile as the BPO and the ITES sectors, there is no mistaking the fact that retailing is one of the fastest growing sectors in India.

The overall size of the retail market in India is estimated at Rs. 5,88,000 crore (" €106909 million). Of this, the unorganised market is worth Rs. 5,83,000 crore (" €106000 million). and the organised market Rs. 5,000 crore (" € 909 million), including the organised food and grocery (Rs.600 crore (" € 109 million).

In a developing country like India, bulk of consumer expenditure is on basic necessities, especially food related items. Hence, it is not surprising that food, beverages and tobacco accounted for as much as 71per cent of retail sales in 2002. The remaining 29 per cent of retail sales are non-food items. The share of food related items has declined from 73 per cent in 1999, as with income growth, Indians, like consumers elsewhere, spent more on non-food items compared with food products.

Franchising has emerged as a popular mode of retailing, thanks to economic liberalisation, competition and foreign investment since the 1990s, which led to a proliferation of brands with both foreign and Indian companies acquiring a strong brand equity for their products. Sales of franchises grew at a rapid pace of 14per cent per annum since 1999. In 2002, there were over 5,000 franchised outlets
The other major retailing organisation format is multiples, better known as "chain stores" in India. In 2002, there were about 1,800 chain stores. Among the various organisational formats, sales of chain stores grew at the fastest pace, with sales growth during 1999-2002 averaging 24 per cent per year.

An Images Retail Study on Shopping Habits & Lifestyle of consumers in India, indicates that that the shopping frequency is highest in Mumbai.

OPPORTUNITIES (Sectors)

The upper middle class comprises an estimated 40 million people. They have annual incomes of US$600,000 each in terms of Purchasing Power Parity (PPP).
The middle middle class comprises an estimated 150 million people, each with PPP incomes of US$20,000 per year each. The lower middle class comprises an estimated 110 million people. An estimate of their annual income is not available, but they are mostly the relatively affluent people in the rural areas of India.

One of the important demographic trends in recent times is the changing age profile in India. The country is increasingly being acknowledged as a "young " nation, with about 35per cent of its population less than 14 years of age. The median age of India 's population is 24 years. Youth are generally early adopters of most modern products and concepts. Growing urbanization is a key trend in the country, with rural population growth averaging to 17.9 per cent and urban growth at 30.7 per cent for the period 1991 to 2001

Sector wise organized retailing in India
SEGMENT MARKET SIZE (US$ Million)
Textiles and clothing	900
Jewellery	555
Consumer Durables	335
Footwear	335
Food and Personal care	225
Non-store retail	200
Luggage, watches and tyre	115
Books and Music	90

Some of the prevalent retailing formats in India Include:

MALLS - Most malls give floor space out to individual shops on lease, and these are enticed by the economies resulting from the sharing of costs. India has seen a rise in the number of malls in the last few years. Today India has 37 malls in Mumbai, 10 in Hyderabad, 15 in Bangalore. Approximately 220 malls in the whole of India by end 2005
BRANDED STORES - Exclusive showrooms run by premium brands have been the catalysts in pushing up the Indian retail scenario. This concept is now being used to introduce organized retailing to the second rung towns.
DEPARTMENTAL STORES - Departmental stores are expected to take over the apparel business from exclusive brand showrooms. Among these the biggest success is Shoppers Stop which started in Mumbai and now has more than seven large stores (over 30,000 Sq.feet) across India. Trent is another fast expanding large player in this segment.
SPECIALITY STORES-Chains Such as the Bangalore based Kids Kemp, the Mumbai based book retailer Crossword, RPG's MusicWorld are focusing on specific market segments and have established themselves strongly in their sectors.

The total mall space in just the seven major cities; New Delhi & suburbs, Mumbai and suburbs, Pune, Chennai, Kolkata, Bangalore and the twin cities of Hyderabad-Secunderabad) is estimated to reach 40.9 million square feet by year 2006,

Elenco dei principali operatori della grande distribuzione

The Loft (Shoes) Level Two, Haiko Mall Hiranandani Gardens, Mumbai - 400 076 Maharashtra, India Ph. No. : +91-22-56939777 Email : info@theloftindia.com Website: www.theloftindia.com	Aerens Goldsouk International (Gold Jewellery) G-14 Hauz Khas Neaer to HK Market New Delhi 16 Gurgaon/ New Delhi Ph: (011) 5151 7700/ 2651 7700 E-mail: praneetasingh@goldsoukindia.com
In Orbit Mall (Nirmal Lifestyle) Mumbai Sahifa Shaikh / Charlotte Rodrigues Corporate Voice I Weber Shandwick Tel.: 0091-22-2281 5359 Email: sahifa@corvoshandwick.co.in / charlotte@corvoshandwick.co.in	Ebony F 2/1, Khanpur Extn.New Delhi - 110062Phone: 91-11-6962057 91-11-6963401Fax: 91-11-6961957
Westside (Trent) Bombay House, 24, Homi Mody Street Mumbai 400 001 India Tel: +91-22-5676 7575 Fax: +91-22-5676 7676 Email: himanshu.chakrawarti@trent-tata.com	Nirmal Lifestyle Mall Ground Floor 29, Ramratan Trivedi Road Mulund (West) Mumbai - 400 080 Phone: 022 25910747
Tanishq (Jewellery) Golden Enclave, Tower A, Airport Road, Bangalore - 560 017, India. Tel: +91-80-526 8551 Fax: +91-80-526 3001 / 9923 Email: webmaster@titan.co.in	Shoppers stop Eureka Towers, 9th Floor, C - wing, Plot No 504, link road, Malad (W) Mumbai-400 064 Tel: 022-880 0808 / 8809898

Altre informazioni utili

Numerous clothing and footwear shops are to be found in Indian cities and towns, especially in shopping centres and markets. These are a mix of traditional and modern stores. Traditional outlets are small and cramped with little emphasis on alluring displays. They basically stock a limited range of cheap and popular items. In contrast, modern clothing and footwear stores are spacious with sample products attractively displayed in windows, sometimes with mannequins. Just as in the case of food retailing, there are also a huge number of retailers selling clothing and footwear in makeshift stalls or on footpaths. Because of their rock-bottom prices, which are much lower than prices of branded products, they attract a large number of customers.

The home furniture and household goods retailing sector in India is dominated by small retailers. Despite the large size of this market, very few modern and large retailers have established specialised stores for these products. However, there is considerable potential for the entry or expansion of specialised retail chains and it is likely that this will happen during the next few years.

The entry of a large number of foreign consumer durable companies into the Indian market during the 1990s after the government liberalised its foreign investment and import policies transformed this sector dramatically. A much larger variety of consumer electronic items and household appliances became available to the Indian customer. Competition among companies to sell their brands provided a strong impetus to the growth for retailers operating in this sector. Rising household incomes due to economic growth spurred consumer expenditure on leisure and personal goods in India. There are specialised retailers for each category of products in this sector.

A few retail chains also emerged particularly in the retailing of books and music products. Another key feature of this sector is the popularity of franchising arrangements between established manufacturers and retailers.

Retail sales (in real terms) are predicted to rise more rapidly than consumer expenditure during 2003-2008. The forecast growth in real retail sales during 2003-2008 is 8.3per cent per year (compared with 7.1per cent for consumer expenditure). Inevitably, modernisation of the Indian retail sector will be reflected in rapid growth in sales of supermarkets, department stores and hypermarkets. This is because of the growing preference of the affluent and upper middle classes for shopping at these types of retail stores, given the conveniences they offer such as shopping ambience, variety and a single-point source for purchases.

ICICI Venture Funds Management Company, is the first Indian finance company to have taken interest in supporting retail and mall ventures in India.

Aggiornato a giugno 2005