1. Indian Retail scenario

2. * India‘s increasingly affluent middle class-300 million * Increasing proportion-Higher disposable income 83000 millionaires,India to be the fastest wealth creator by 2010. * The new age Indian youth-modern,well informed * Indian value system-price sensitive * Market Growth 8-10% annual growth with 30%+ growth rate for modern format retail * Strong Economy: Fourth Largest on purchasing parity basis * Market opportunities: Growing consumers aspirations together with very low penetration of modern format retailing. * Infrastructure-Large amount of quality retail space being added

3. Evolution of Indian Retail Historic/Rural Reach-Weekly Markets,Village fairs,melas- Source of entertainment Traditional/pervasive reach-Convenience store,Mom and Pop/kiranas-Neighborhood stores/convenience. Government supported-PDS Outlets,Khadi stores,cooperatives-Availability/Low costs/Distribution Modern Formats/International-Exclusive Brand Outlets/Hyper/Super Market/Departmental Stores/Shopping Malls-Shopping Experience/Efficiency

5. Indian Retailers Hypermarket Department Stores Entertainment Big Bazaar Life Style Fame Giant Pantaloons Adlabs Shoprite Pyramids Fun Republic Star Bazaar Shopper’s stop Inox Aditya B Group Trent PVR Hyper city Cinemax

6. Consumer Expenditure in Organized Retail

7. Retailers-Always healthier than Ever Company Market Cap(Rs mn) P/E CAGR Returns 3 Year or On Listing Pantaloons 3,561 60.2 89% Shopper’s Stop 1,727 63.7 29% Trent 991 40 54%

8. Global Retail Scenario Global Retail Industry is of size of USD 8 Trillion Over 50 of the Fortune 500 companies are retailers Fortune #1 “Wal-Mart” is a retailer 25 of the asian top 200 companies are retailers

9. Indian Retail Market * Over 12 Million Outlets in India *Organized Retail 3% *Set to Grow to 8-10% by 2010 *Organized Retail expected to be around Rs.110,000 Cr (USD 25 b) by 2010

10. FDI In Indian Retailing *Franchise-Nike,Pizza Hut, Tommy Hilfiger,Marks and spencer,Mango *Manufacturing-Bata India *Distribution-Swarovski,Hugo Boss * Wholesale Trading-Metro cash & carry *Food outlets-McDonald’s KFC,Pizza Hut,Dominos

11. Benefits of FDI *Greater per capita income *Increasing Tax paying Population *Reduced Tax Evasion *Greater Sourcing From India *Greater Consumer Spending due to economic boom

12. The Changing Indian Consumer The Urban Consumer *Getting exposed to international lifestyle *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 Mn17-21 year olds tend to spend freely Greater level of Education

13. Challenges of Retailing in India *Automatic approval is not allowed for foreign investment in India * Regulations restricting real estate purchases,and cumbersome local laws * Taxation,which favors small retail business * Absence of developed supply chain and IT management * Lack of trained workforce * Low skill level for retailing management

15. Implications for India *Be ready *Be realistic *Be resilient