Cover Image

Indian Retail Industry

Notice
This publication has been discontinued on April 10, 2014.

Improving footfalls on the backdrop of various discount schemes offered by the retailers, stimulated hopes of faster recovery of the Indian Retail sector during FY13. Correspondingly, the sales volumes across the retail segments increased on y-o-y basis. However, the operating margins of the retailers failed to improve during FY13, primarily owing to the increase in input costs.To counter the same, the retailers adopted various measures such as closure of non-viable stores, re-negotiation of store rentals, effective manpower planning in view of the store size and SKUs therein.

During FY13, SSS performance of the retailers remained unchanged as compared to last year. With high interest rates and lack of fund-raising avenues from the capital markets, the availability of capital further remained a major constraint to the Indian retailers during FY13.

CARE Research's report on ‘The Indian Retail Sector’ seeks to answer queries such as: What is the expected growth of India's Private Final Consumption Expenditure (PFCE)? What is the expected size of Indian retail & Organised retail industry? To what extent would the penetration of organised retail increase from the current level? What are the challenges the industry is likely to face in the foreseeable future?

With Indian retail data spanning from FY09-13 garnered through a well-established network of primary and secondary sources and CARE Research's outlook on the industry for the period FY14-FY17 on retail sales, organised retail penetration etc., the report is indispensable for any company in the Retail sector, banks/FIs, policy makers, research & academic organizations, other international and national agencies etc. Additionally, the four quarterly updates from the date of subscription accompanying the said report would form a potent tool for the subscribers to keep abreast of the happenings in the industry.

Table of Contents

SECTION - I: CARE Research's OUTLOOK

  • Rising PFCE - to fuel Indian Retailing growth story
  • Indian Retailing to cross Rs. 40 Lakh crore by FY17
  • Share of food & grocery to decline by FY17
  • Spend on discretionary items to drive the organised retail in India by FY17
  • Comparative study of organised retailing segments
  • Emphasis on private labels to boost profit margins
  • Organised retailing in tier-II & III cities to expand further
  • Upcoming retail space
  • Requirement of mall space by store formats
  • Operating profits to remain range-bound till FY15

SECTION - II: INDUSTRY SECTION

INDUSTRY OVERVIEW

  • Retailing Overview
  • Unorganised Retail
  • Organised Retail
  • Major forms of Retailing
    • Convenience Stores
    • Discount Stores
    • Factory / company outlets
    • Specialty Store
    • Supermarkets
    • Department Stores
    • Hypermarkets
  • Industry characteristics
    • Highly unorganised & fragmented industry
    • The rural-urban divide
    • Emergence of multiple retail formats
    • Long supply chain
    • Linkages with the economic growth

EVOLUTION OF ORGANISED RETAIL

  • Initiation (Pre 1990's)
  • Conceptualisation (1990-2005)
  • Expansion (2005-10)
  • Consolidation and growth (2010 onwards)
  • ORGANISED RETAIL SEGMENTS
  • Clothing & Apparel
  • Food & Grocery
  • Jewellery
  • Mobile & Telecom
  • Furniture & Furnishing
  • Footwear
  • Other segments

EMERGING RETAIL CONCEPT

  • Rural Retailing
    • Benefits to the retailers
    • Benefits to the rural populace
  • Luxury Retailing
  • Airport Retailing
  • E- Commerce
    • E-retailing market in India
    • Market characteristics
      • Convenient Shopping
      • Value for money
      • Change in the consumers' attitude
      • Easy payment options
      • Lack of ‘touch & feel' experience
      • Lack of transparency in transactions
      • Untimely delivery of products

REGULATORY SCENARIO

  • Regulatory Structure
  • Licensing Requirements
  • Taxation Regime

DEMAND DRIVERS

  • Demographic advantages
  • Rising Urbanisation
  • Rising Income Levels
  • Growing consumer class
  • Growing per capita expenditures
  • Growing spread of ‘plastic money'
  • Changing face of Indian consumerism - from necessities to luxuries
  • Rising number of nuclear families
  • Growing female working population

CHALLENGES TO ORGANISED RETAIL

  • Real estate and property-related issues
  • Taxation & policy-related hurdles
  • Inefficiencies in supply chain management
  • Increased Shrinkages
  • Scarcity of skilled workforce
  • Political & local agitation

DETERMINANTS OF RETAIL FORMAT VIABILITY

  • Average number of footfalls
  • Sales per sq ft
  • Supply Chain Management
    • Minimisation of wastages
    • Specialised manufacturing
    • Reducing chances of stock-out
  • Dependence on ‘Private labels'
  • Technological upgradation
  • Repeat sales through loyalty programs
  • Advertising & sales promotion activities

COST & MARGIN ANALYSIS

  • Procurement of Raw Materials/Finished Goods
  • Labour expenses
  • Selling & Distribution expenses
  • Rental expenses
  • Slower Inventory turnover
  • Same Store growth remains muted in FY13
  • Higher interest cost dented the net profit margins

ANALYTICAL MODELS

  • Porter's Five Force Model
  • SWOT Analysis

SECTION - III: COMPANY SECTION

  • Future Retail India Limited
  • Shoppers Stop Limited
  • Trent Limited

List of Tables

SECTION - I: CARE Research's OUTLOOK

  • Trend in Indian retail sales
  • Trend in organised retail sales

SECTION - II: INDUSTRY SECTION

INDUSTRY OVERVIEW

  • Convenience stores in India
  • Discount stores in India
  • Supermarkets in India
  • Department stores in India
  • Hypermarkets in India

ORGANISED RETAIL SEGMENTS

  • Share of ready-to-wear, unstitched ready-to-wear and fabrics in apparel consumption
  • Few key departmental stores selling apparel in India
  • Few key departmental stores selling food and grocery in India
  • Few prominent jewellery retailers in India
  • Few key departmental stores selling furniture & furnishing in India
  • Few key departmental stores selling footwear in India

EMERGING RETAIL CONCEPT

  • Snapshot of rural retailers
  • Joint Venture's in Indian Airport retailing

REGULATORY SCENARIO

  • Existing FDI policy and amendments with respect to multi-brand retail
  • Status of market reforms in Agriculture (APMC Act amendments)
  • APMC rules- status

DETERMINANTS OF RETAIL FORMAT VIABILITY

  • Private labels of leading Indian retailers
  • Loyalty program - Pantaloon Retail India Limited
  • Globus - Card Rewards and Privileges
  • Globus Fashions - Loyalty Program
  • Advertisement & Sales promotion expenses as % of sales

COST & MARGIN ANALYSIS

  • Raw material expenditure as a % of net sales
  • Labour expenditure as a % of net sales
  • Selling and Distribution expenditure as a % of net sales
  • Revenue sharing by Retailers
  • Rental expenditure as a % of net sales

SECTION - III: COMPANY SECTION

  • Company Background
  • Various formats and number of operational stores
  • Various formats and total saleable area
  • Profit and loss statement
  • Balance sheet
  • Key financial ratios
  • Corporate Action & Remarks

SECTION - I: CARE Research's OUTLOOK

  • PFCE Estimates - FY13- FY17
  • Indian Retail Market- FY11- FY17E
  • Organised Retail Market Size & Penetration level estimates
  • Organised Retail- Market size & % penetration estimates segment-wise - A comparative study
  • Upcoming market potential
  • Operational mall space-region wise
  • Upcoming mall- state-wise % share
  • Format wise space-requirement break-up

SECTION - II: INDUSTRY SECTION

INDUSTRY OVERVIEW

  • Retail market in India (FY13)
  • Retail segmentation
  • Share of Unorganised retail in total Retail-2013
  • Unorganised retailing-sales by retailer type (%)
  • Trend in GDP, PFCE & Retail Sales

EVOLUTION OF ORGANISED RETAIL

  • Evolution of organised retail in India
  • Early Entrants in organised Retail (Pre-1991)
  • Entrants in organised Retail (1991-2004)
  • Entrants in organised Retail (1991-2012)
  • Format-wise organised retail penetration since inception in India

ORGANISED RETAIL SEGMENTS

  • Organised retail- total revenues & % penetration
  • Segment-wise contribution in organised retail (FY13)
  • Clothing & apparel - total organised retail and % penetration
  • Segment contribution of clothing and apparels in total apparel retail
  • Food & grocery -total organised retail and % penetration
  • Formats of food & grocery retailing in India
  • Segmentation of Indian jewellery market (FY12)
  • Mobile & telecom - total organised retail and % penetration
  • Segment wise mobile and telecom market
  • Furniture & furnishing - total organised retail and % penetration
  • Segment contribution in total furniture and furnishing market
  • Footwear - total organised retail and % penetration
  • Segmental contribution of footwear- (FY12)

EMERGING RETAIL CONCEPT

  • Indian e-commerce industry (FY08-FY13)
  • E-retailing in India
  • India - Internet users (FY07-FY12)
  • E-retail market in India
  • Segmental break up of E-retailing market in India

DEMAND DRIVERS

  • Age distribution of Indian population
  • Median age of population - CY12
  • Rural - urban population divide (%)
  • Indian GDP per capita (at current prices)
  • PFCE and Personal Disposable Income -per capita
  • Income Distribution of the Indian Households
  • Per capita monthly expenditure - Rural
  • Per capita monthly expenditure - Urban
  • Credit card usage trend (FY07-FY13)
  • Debit card usage trend (FY07-FY13)
  • Changing consumption pattern - FY08 -FY13
  • Trend of nuclear families
  • Growth trend of density & population
  • Proportion of female working population of the total working population
  • Proportion of female working in organised industrial activities (%)

COST & MARGIN ANALYSIS

  • Cost Structure of Retail Companies (as a percent of net sales): FY12
  • Trend in Cost structure as % of net sale
  • Average Inventory Days (FY08-FY12)
  • Trend in average same store sales growth (QoQ) (FY11-FY13)
  • Trend in profit margins(FY08-FY13)
  • Interest expense as % of operating profit (FY08-FY13)

ANALYTICAL MODELS

  • Porter's Five Force Model
  • SWOT Analysis

SECTION - III: COMPANY SECTION

  • Like to like sales growth
  • Share holding pattern as on December 31, 2012
  • Share Price trend
Show More
Pricing
Not Available
Get Notified
Email me when related reports are published