SlideShare a Scribd company logo
1 of 12
Download to read offline
INDUSTRY INSIGHT: INDIAN RETAIL INDUSTRY
The retail industry is among the largest industries in India, accounting for
over 10 percent of the country’s GDP and about 8 percent of the
employment in 2004. It has also emerged as one of the dynamic and fast-
growing industries. According to the Global Retail Development Index 2005,
India is the leading destination for retail investment.

The Industry Insight: Indian Retail Industry 2006, introduced by Cygnus,
provides the comprehensive industry analysis. The Industry Insight answers
the following key questions:
    a. What is the Global Scenario – major markets, & outlook
    b. How the industry is evolving in India
    c. The Current Scenario in organized and unorganized retail
    d. Different market segments of the industry
    e. Characteristics and Changing Trends in the Indian Consumer
         behavior
    f. What is the role of technology in retail?
    g. What are the external factors and how do they affect the industry?
                                                                                                      The report includes
Companies analyzed/mentioned                                                                          Executive Summary,
Major Players in Food Retailing –                                                                     Introduction, Global Retail
Food World, Trinethra, Apna Bazaar, big Bazaar – Pantaloons, Margin Free,                             Industry Scenario, Indian
Subhiksha, Nilgiris, MTR                                                                              Retail Industry, Role of
Major players in Apparel Retailing –                                                                  Indian Consumer In
Pantaloon Retail (India) Limited, Shopper’s Stop Limited, Trent Limited, Madura                       Evolving Retail Industry,
Garments, Lifestyle International (Pvt) Limited, Piramyd Retail Limited,                              Factors Underlying
Provogue (India) Limited, Raymond Apparel Limited, Ebony Retail Holdings                              Evolution of Modern Retail
Limited, Globus                                                                                       in India, Organised Retail
                                                                                                      Formats, Mall
Additional Information                                                                                Phenomenon: The Possible
The report makes a Michael Porter analysis of discusses the FDI in detail                             Implications, Food Retail In
covering the restrictions, present scenario and strategies of International                           India, Apparel Retail In
players for Indian market. It presents a case study on Chinese retailing                              India, Other Retail
and gives an in- depth analysis of “Why FDI is good for India?” In the end,                           Segments, Technology,
report gives Vision 2010.                                                                             Growth Drivers of
This report is an insightful resource in identifying potential and opportunities                      Organized Retailing, Critical
in retail industry.                                                                                   Success Factors, Emerging
                                                                                                      Trends In Indian Retailing,
Who should buy the report?                                                                            Legal And Regulatory
The report is a must – buy for those who wish to enter in retailing or the                            Information, Issues &
existing players to improve upon their strategies and retailing formats.                              Challenges, Future Outlook

This report is suitable to individuals responsible for and interested in:                             Total No. of Pages – 191
    a. Board and executive management                                                                 Total No. of Figures – 44
    b. Business strategy / Business development                                                       Total No. of Tables – 56
    c. Retail Vertical Team in ITES BPO to understand the evolving industry                           Total No. of exhibits - 59
    d. Business school students
    e. Consultants
    f. Entrepreneurs

To place order
Send your request to mktg@cygnusindia.com or fax to 040 – 23430201


                                                           Contact us for more details-
                      Corporate Office: 4th & 5th Floors, Astral Heights, Road No. 1, Banjara Hills, Hyderabad-500034, India,
                 Tel: +91-40-23430203-05, Fax: +91-40-23430201,E-mail: info@cygnusindia.com ; Website: www.cygnusindia.com
                Branches: Ahemdabade: 079-26404728/29/30/31 Bangalore: 080-41311229 Chennai: 044-42122168, 42122819
                 Hyderabad: 040-23430209 Kolkata: 033-22890642/43 Mumbai: 022-22870612/14 New Delhi: 011-41520651/52
INDUSTRY INSIGHT – INDIAN RETAIL INDUSTRY




                                                                                                               CONTENTS

                                                             1. Executive Summary................................................................................. 11
                                                             2. Introduction .......................................................................................... 16
                                                             3. Global Retail Industry Scenario ................................................................ 18
                                                                3.1 Introduction .................................................................................................. 18
                                                                3.2 Current Market Scenario- Retail the biggest industry ........................................ 18
                                                                3.3 Consumer Demographic Trends...................................................................... 19
                                                                   3.3.1 Changing Households..........................................................................................19
                                                                   3.3.2 Changing Income ................................................................................................20
                                                                   3.3.3 Aging Population ................................................................................................20
                                                                3.4 Major Markets .............................................................................................. 20
                                                                   3.4.1 Unswerving: the US .............................................................................................20
                                                                   3.4.2 Shining star of Europe: the UK..............................................................................21
                                                                   3.4.3 Restructure of Germany........................................................................................22
                                                                   3.4.4Revolution in Japan ..............................................................................................23
                                                                3.5 Growth Drivers ............................................................................................. 23
                                                                   3.5.1 GDP growth ........................................................................................................23
                                                                   3.5.2 Consumers’ desire for something unique ...............................................................24
                                                                   3.5.3 Increased spending on IT by Retailers....................................................................24
                                                                   3.5.4 Online shopping..................................................................................................24
                                                                   3.5.5 Looking east for growth........................................................................................25
                                                                3.6 Recent Trends and Developments.................................................................... 25
                                                                   3.6.1 Radio Frequency Identification (RFID) technology ...................................................25
                                                                   3.6.2 Consolidation and Global Expansion ....................................................................25
                                                                   3.6.3 Consumer trends .................................................................................................26
                                                                   3.6.4 Augmented use of Smart cards .............................................................................26
INDUSTRY INSIGHT – INDIAN RETAIL INDUSTRY-January 2006




                                                                   3.6.5 Self Service .........................................................................................................26
                                                                3.7 Issues and Challenges.................................................................................... 26
                                                                   3.7.1 Supply Chain Efficiency .......................................................................................27
                                                                   3.7.2 Smart pricing ......................................................................................................27
                                                                   3.7.3 Books and Records in smaller businesses ...............................................................27
                                                                   3.7.4 Shifting demographic trends.................................................................................27
                                                                3.8 Outlook ........................................................................................................ 28

                                                             4. Indian Retail Industry .............................................................................. 29
                                                                4.1 Introduction .................................................................................................. 29
                                                                4.2 The Evolution of the Indian Retail Industry........................................................ 30
                                                                4.3 Number of Retailers ...................................................................................... 31
                                                                4.4 Ways to Categorize Retailers ......................................................................... 33
                                                                   4.4.1 On the Basis of Target Markets Served ..................................................................33
                                                                   4.4.2 On the Basis of Products Carried ..........................................................................34
                                                                   4.4.3 On the Basis of Pricing Strategy............................................................................34
                                                                   4.4.4 On the Basis of Promotional Focus ........................................................................35
                                                                   4.4.5 On the Basis of Distribution Method ......................................................................36
                                                                   4.4.6 On the Basis of Service Level ................................................................................37



                                                         1                                                                 © Cygnus Business Consulting & Research 2006
INDUSTRY INSIGHT – INDIAN RETAIL INDUSTRY


                                                                  4.4.7 On the Basis of Ownership Structure.....................................................................38
                                                               4.5 Industry Structure .......................................................................................... 39
                                                               4.6 Current Market Scenario................................................................................ 42
                                                                  4.6.1 Unorganized Retail..............................................................................................43
                                                                  4.6.2 Organized Retail .................................................................................................43
                                                               4.7 Market Segments in Retailing ......................................................................... 46
                                                                  4.7.1 Food retailing......................................................................................................46
                                                                  4.7.2 Apparel retailing .................................................................................................46
                                                                  4.7.3 Household /Consumer durables retailing ..............................................................47
                                                                  4.7.4 Indian Music and Books Retailing .........................................................................48
                                                               4.8 Michael Porter Analysis ................................................................................. 49

                                                             5. Role of Indian Consumer In Evoving Retail Industry .................................... 53
                                                               5.1 Characteristics of the Indian Consumer Behavior.............................................. 53
                                                               5.2 Changing Demographics: Young population with high disposable income......... 54
                                                               5.3 Rising income levels....................................................................................... 55
                                                               5.4 Consumption Growth now visible ................................................................... 57
                                                               5.5 Urban consumer’s shopping basket is changing............................................... 58
                                                               5.6 Increasing Awareness of Indian Consumers..................................................... 60
                                                               5.7 Changing Trends in the Indian Consumer Behaviour ........................................ 60

                                                             6. Factors Underlying Evolution of Modern Retail in India ............................... 62
                                                               6.1 Economic development .................................................................................. 62
                                                               6.2 Improvements in civic situation ....................................................................... 63
                                                               6.3 Changes in consumer needs, attitudes and behaviour ...................................... 63

                                                             7. Organised Retail Formats ........................................................................ 64
                                                               7.1 Different Retail Formats across the World ........................................................ 64
                                                               7.2 Retail Formats in India ................................................................................... 67
                                                                  7.2.1 Traditional retail formats ......................................................................................67
INDUSTRY INSIGHT – INDIAN RETAIL INDUSTRY-January 2006




                                                                  7.2.2 Modern Retail Formats Existing In India.................................................................69
                                                               7.3 Emerging Retailing Format: E-Tailing .............................................................. 71
                                                                  7.3.1 E-tailing – Why does it stand apart.......................................................................72
                                                                  7.3.4 Conveniences looked for by consumers in E-tailing.................................................73
                                                                  7.3.5 The Challenges of E-tailing ...................................................................................74
                                                                  7.3.6 Issues Concerning Modern Formats/ Organised Retailers .......................................76
                                                               7.4 How to Increase the Power of Organised Retail ............................................... 77
                                                               7.5 Barriers to implementation ............................................................................. 78

                                                             8. Mall Phenomenon: The Possible Implications ............................................. 79
                                                               8.1 Issues to Be Addressed By Shopping Malls ...................................................... 79
                                                                  8.1.1 Competition from unorganised sector – Pricing and Perception ...............................79
                                                                  8.1.2 Unrealistic Real Estate Pricing ...............................................................................80
                                                                  8.1.3 Lack of planned facilities ......................................................................................80
                                                                  8.1.4 Lack of adequate parking facilities ........................................................................81
                                                                  8.1.5 Fit and Forget Attitude of Mall Developers .............................................................81
                                                                  8.1.6 Inexperience in Mall Management ........................................................................81
                                                                  8.1.7 Need of Right type of Architectural Expertise and Design .......................................82
                                                                  8.1.8 Broker Driven Leasing ..........................................................................................82



                                                         2                                                               © Cygnus Business Consulting & Research 2006
INDUSTRY INSIGHT – INDIAN RETAIL INDUSTRY


                                                                8.2 Steps to Be Adopted By Shopping Malls to Ensure Success ............................... 82
                                                                   8.2.1 Catchment Analysis .............................................................................................82
                                                                   8.2.2 Right Component Mix ..........................................................................................83

                                                             9. Food Retail In India ................................................................................ 84
                                                                9.1 Evolution of Organized Food Retailing In India................................................ 84
                                                                9.2 Current Market Scenario................................................................................ 85
                                                                9.3 Characteristics of Organized Food Retail ........................................................ 87
                                                                   9.3.1 Region wise Preferences exist among consumers ....................................................87
                                                                   7.3.2 Regional Players dominate in Food Retail ..............................................................87
                                                                   9.3.3 Hurdles in going National ....................................................................................88
                                                                9.4 Key Driver of Food Retail In India - Integration of Food Industry ........................ 88
                                                                   9.4.1 Increased government support ..............................................................................89
                                                                   9.4.2 Industry initiatives ................................................................................................89
                                                                   9.4.3 Emergence of new players ...................................................................................90
                                                                9.5 Major Players - India’s Top Food Retailers....................................................... 90
                                                                   9.5.1 Food World ........................................................................................................90
                                                                   9.5.2 Trinethra .............................................................................................................91
                                                                   9.5.3 Apna Bazaar ......................................................................................................92
                                                                   9.5.4 Big Bazaar – Pantaloons ......................................................................................92
                                                                   9.5.5 Margin Free ........................................................................................................92
                                                                   9.5.6 Subhiksha ...........................................................................................................92
                                                                   9.5.7 Nilgiris ...............................................................................................................93
                                                                   9.5.8 MTR ...................................................................................................................93
                                                                9.6 Regulatory Issues in Organized Food Retailing ................................................ 94
                                                                   9.6.1 Government Policy on Food Retailing - India .........................................................94
                                                                   9.6.2 Food Safety Issues ...............................................................................................94
                                                                   9.6.3 Food Labelling In India with Special Reference to Codex Guidelines ........................95
                                                                9.7 Emerging Trends ........................................................................................... 96
                                                                   9.7.1 Likely Transformation of the Supply Chain .............................................................96
                                                                   9.7.2 Changing Supplier Retailer Relationships...............................................................97
                                                                   9.7.3 Innovations in Transportation Logistics...................................................................98
INDUSTRY INSIGHT – INDIAN RETAIL INDUSTRY-January 2006




                                                                   9.7.4 Developing Social Trends .....................................................................................98
                                                                   9.7.5 Increasing Impact of Technology...........................................................................99
                                                                9.8 Challenges of Organized Food retailing ....................................................... 100
                                                                9.9 Outlook of Food Retailing ............................................................................ 100

                                                             10. Apparel Retail In India ........................................................................ 102
                                                                10.1 Introduction .............................................................................................. 102
                                                                10.2 Current Market Scenario............................................................................ 102
                                                                   10.2.1 Development of India’s branded market ............................................................103
                                                                   10.2.2 Market segmentation .......................................................................................105
                                                                   10.2.3 Mens Apparel Market ......................................................................................105
                                                                   10.2.4 Women Apparel Market ..................................................................................105
                                                                   10.2.5 Kids/Children Apparel Market .........................................................................106
                                                                10.3 Major Players ........................................................................................... 106
                                                                   10.3.1 Pantaloon Retail (India) Limited.........................................................................106
                                                                   10.3.2 Shopper’s Stop Limited.....................................................................................110
                                                                   10.3.3 Trent Limited....................................................................................................112
                                                                   10.3.4 Madura Garments ...........................................................................................114



                                                         3                                                                  © Cygnus Business Consulting & Research 2006
INDUSTRY INSIGHT – INDIAN RETAIL INDUSTRY


                                                                   10.3.5 Lifestyle International (Pvt) Limited .....................................................................116
                                                                   10.3.6 Piramyd Retail Limited......................................................................................117
                                                                   10.3.7 Provogue (India) Limited...................................................................................121
                                                                   10.3.8 Raymond Apparel Limited ................................................................................125
                                                                   10.3.9 Ebony Retail Holdings Limited...........................................................................126
                                                                   10.3.10 Globus .........................................................................................................128
                                                                10.4 Recent Trends and Developments................................................................ 129
                                                                   10.4.1 Emerging large format stores in India................................................................129
                                                                   10.4.2 Preference for RTW garments ...........................................................................129
                                                                   10.4.3 Focus on technology to reduce cost and improve efficiency .................................130
                                                                   10.4.4 Growth of Private Label....................................................................................130
                                                                10.5 Outlook .................................................................................................... 130
                                                                   10.5.1 Apparel exports to grow post quota removal .....................................................130
                                                                   10.5.2 Implementation of VAT to reduce cost and complexity ........................................131
                                                                   10.5.3 Huge growth potential .....................................................................................131

                                                             11. Other Retail Segments......................................................................... 132
                                                                11.1 Health and beauty products retailers........................................................... 132
                                                                11.2 Home furniture and household goods retailers............................................. 132
                                                                11.3 Durable goods retailers ............................................................................. 132
                                                                11.4 Leisure and personal goods retailers ........................................................... 132
                                                                11.5 Alternative selling channels ........................................................................ 133

                                                             12. Technology ........................................................................................ 134
                                                                12.1 Role of Technology in Retail ....................................................................... 134
                                                                12.2 Supply Chain Management........................................................................ 134
                                                                   12.2.1 European Article Numbering............................................................................134
                                                                   12.2.2 Efficient Consumer Response ............................................................................135
                                                                12.3 Logistics Management ............................................................................... 136
                                                                12.4 Inventory Management .............................................................................. 137
                                                                12.5 Emerging Technologies.............................................................................. 137
INDUSTRY INSIGHT – INDIAN RETAIL INDUSTRY-January 2006




                                                                   12.5.1 CRM...............................................................................................................137
                                                                   12.5.2 OLAP..............................................................................................................138
                                                                   12.5.3 Systems Analysis and Program (SAP) ................................................................138
                                                                   12.5.4 Radio Frequency Identification (RFID) ................................................................138

                                                             13. Growth Drivers of Organized Retailing ................................................. 140
                                                                13.1 Media Proliferation ................................................................................... 140
                                                                13.2 Availability of quality real estate & Mall Management practices.................... 140
                                                                13.3 Availability of brands and merchandise ...................................................... 143
                                                                13.4 Enhanced Funding Options ........................................................................ 143
                                                                13.5 Implementation of VAT to reduce cost and complexity .................................. 143
                                                                13.6 Changing Demographic profile .................................................................. 143
                                                                13.7 Changing lifestyles .................................................................................... 144
                                                                13.8 Exposure to international trends ................................................................. 144
                                                                   13.8.1 Domestic outbound tourists – raised aspirations .................................................144
                                                                   13.8.2 Impact of globalization ....................................................................................145
                                                                   13.8.3 Inbound tourists, shopping ...............................................................................145




                                                         4                                                                © Cygnus Business Consulting & Research 2006
INDUSTRY INSIGHT – INDIAN RETAIL INDUSTRY


                                                             14. Critical Success Factors ....................................................................... 146
                                                                14.1 Location ................................................................................................... 146
                                                                14.2 Merchandise............................................................................................. 147
                                                                14.3 Knowledge and Information ....................................................................... 147
                                                                14.4 Customer Satisfaction ................................................................................ 147
                                                                14.5 Ability to Acquire the Right Products ........................................................... 148
                                                                14.6 Product Presentation / Placement ............................................................... 148
                                                                14.7 Traffic Building.......................................................................................... 148
                                                                14.8 Layout ...................................................................................................... 148
                                                                14.9 Keeping Pace with Technology ................................................................... 149

                                                             15. Emerging Trends In Indian Retailing ..................................................... 150
                                                                15.1 Unorganized retailing is getting organized ................................................. 150
                                                                15.2 Increased Focus of Global Players on Sourcing from India............................ 150
                                                                15.3 Forward integration / Alternative channels ................................................. 151
                                                                15.4 Rapid expansion and format migration ....................................................... 151
                                                                15.5 Creative Store Designs............................................................................... 152
                                                                15.6 Convenience stores at gas stations .............................................................. 153
                                                                15.7 Introduction of In-Flight Retailing by Airlines................................................ 153

                                                             16. Legal And Regulatory Information ........................................................ 154
                                                                16.1 Regulations and Policies ............................................................................ 154
                                                                   16.1.1 Shops and Establishments Acts .........................................................................154
                                                                   16.1.2 In respect of goods/products ............................................................................154
                                                                   16.1.3 Fiscal Regulations ............................................................................................155
                                                                   16.1.4 Value Added Tax ............................................................................................155
                                                                   16.1.5 Employment Related Regulations.......................................................................155
                                                                   16.1.6 Contract Labour (Regulation and Abolition) Act .................................................155
                                                                   16.1.7 Foreign Investment Regulations .........................................................................156
                                                                   16.1.8 Other Regulations............................................................................................156
INDUSTRY INSIGHT – INDIAN RETAIL INDUSTRY-January 2006




                                                                16.2 Government Support To The Retail Industry ................................................. 157
                                                                16.3 FDI in Retail .............................................................................................. 157
                                                                   16.3.1 Restrictions on FDI ...........................................................................................157
                                                                   16.3.2 Present Scenario..............................................................................................158
                                                                   16.3.3 Strategies of international retailers ....................................................................159
                                                                   16.3.4 FDI in retail – Required or Not? ........................................................................159
                                                                   16.3.5 Foreign Retailers Eying India ............................................................................163
                                                                   16.3.6 Case Study: Chinese Retailing .........................................................................164
                                                                   16.3.7 In-Depth Analysis – Why Fdi Is Good For India .................................................166
                                                                   16.3.8 Recommendations ...........................................................................................168
                                                                   16.3.9 Conclusion ......................................................................................................169

                                                             17. Issues & Challenges ............................................................................ 170
                                                                17.1 No industry status ..................................................................................... 170
                                                                17.2 Gaps in the Retail Sector............................................................................ 171
                                                                17.3 Limitations due to Land and property Laws .................................................. 172
                                                                17.4 Limitations due to stringent Labour laws ...................................................... 172
                                                                17.5 Other Regulatory Disadvantages ................................................................ 173



                                                         5                                                               © Cygnus Business Consulting & Research 2006
INDUSTRY INSIGHT – INDIAN RETAIL INDUSTRY


                                                                17.6 Lack of basic & secondary infrastructure ..................................................... 174
                                                                17.7 Non Availability of Quality Real estate at prime locations............................. 174
                                                                17.8 Extensive distribution network..................................................................... 175
                                                                17.9 Supply chain issues ................................................................................... 175
                                                                17.10 Revenue considerations ........................................................................... 175
                                                                17.11 Economies of trade.................................................................................. 176
                                                                17.12 Managing channel conflicts ..................................................................... 176
                                                                17.13 Non Availability of skilled manpower ....................................................... 177
                                                                17.14 Differentiation and Reach ........................................................................ 177
                                                                17.15 Growth in non-Metros ............................................................................. 177
                                                                17.16 Differences between urban-rural consumers .............................................. 178
                                                                17.17 Disadvantages of India as a country ......................................................... 178

                                                             18. Future Outlook ................................................................................... 179
                                                                18.1 Vision 2010 ............................................................................................. 179
                                                                   18.1.1 Investment will increase....................................................................................180
                                                                   18.1.2 Changing Consumer Demographics will affect Retail Sales .................................180
                                                                   18.1.3 Regional differences will stay............................................................................181
                                                                   18.1.4 Retailers would adapt more than one format......................................................181
                                                                   18.1.5 Dual focus on costs and time ............................................................................182
                                                                   18.1.6 24 hours of retailing ......................................................................................182
                                                                   18.1.7 Small retailers will coexist.................................................................................182
                                                                   18.1.8 Supply chain dynamics ....................................................................................183
                                                                   18.1.9 Internet ...........................................................................................................183

                                                             Annexure I. Business Models In India.......................................................... 184
                                                             Annexure II: Major Players In Apparel – 2004 - 05 ..................................... 185
INDUSTRY INSIGHT – INDIAN RETAIL INDUSTRY-January 2006




                                                         6                                                                 © Cygnus Business Consulting & Research 2006
INDUSTRY INSIGHT – INDIAN RETAIL INDUSTRY




                                                                                          LIST OF FIGURES
                                                             Figure 1: Organized Vs Traditional Retailing (2004)
                                                             Figure 2: Global Retail Sales Vs % Change (2000-2004)
                                                             Figure 3: Retail Sales in US (1998-2004)
                                                             Figure 4: Retail Sales in UK (1998-2004)
                                                             Figure 5: Retail Sales in Germany (1998-2004)
                                                             Figure 6: Retail Sales in Japan (1998-2004)
                                                             Figure 7: Retail Sales Vs Retail Sales/GDP (2004)
                                                             Figure 8: The different phases in growth of organized retail
                                                             Figure 9: Fragmented nature of Indian Retail
                                                             Figure 10: Retail Market Size 2002
                                                             Figure 11: Rural Versus Urban, the difference
                                                             Figure 12: Indian Retail Market Distributions
                                                             Figure 13: Transformation of the Retail Sector across the world
                                                             Figure 14: Percent Contribution of different categories to organized retail
                                                             Figure 15: Contribution of food in the total spend in consumers
                                                             Figure 16: Growth among different segments in Retail
                                                             Figure 17: No. of Consumer durable stores in India
                                                             Figure 18: No. of Consumer durable stores in India
                                                             Figure 19: No. of Book & Music Stores in India
                                                             Figure 20: Porter’s Five Forces Model of Industry Analysis
                                                             Figure 21: Changing Age Demographics of India
                                                             Figure 22: All India – Distribution of households by income (Rs per annum)
                                                             Figure 23: Urban India – Distribution of households by income (Rs per annum)
                                                             Figure 24: Private final consumption in India in FY 04
                                                             Figure 25: Indian Food Retail Industry – Market Size (2000-2004)
                                                             Figure 26: Indian Food Retail Industry – Market Segments Contribution in 2004
                                                             Figure 27: Literacy Rate & working women population
INDUSTRY INSIGHT – INDIAN RETAIL INDUSTRY-January 2006




                                                             Figure 28: Indian Apparel Market size (2000-2004)
                                                             Figure 29: Growth of Indian Apparel Market (2000-2004)
                                                             Figure 30: Share of Branded Market (2004)
                                                             Figure 31:Consumer expenditure in Apparel Segment (1999-2003)
                                                             Figure 32: Indian Apparel Market Segmentation
                                                             Figure 33:No. of retail outlets (2000-2005)
                                                             Figure 34: ECR Model
                                                             Figure 35: Evolution of Real Estate in Retail Sector in India
                                                             Figure 36: Operational Malls/Shopping Centres as on 31 August 2005
                                                             Figure 37: Current and projected mall space by end-2007
                                                             Figure 38: Median Age in Years
                                                             Figure 39: Evolution of Critical Success Factors in retail
                                                             Figure 40: Common Layouts in Supermarkets
                                                             Figure 41: Share of Organized Retail in FMCG sales
                                                             Figure 42: Benefits to the government
                                                             Figure 43: Total wholesale & retail trade in China
                                                             Figure 44: Employment in Retailing in China



                                                         7                                            © Cygnus Business Consulting & Research 2006
INDUSTRY INSIGHT – INDIAN RETAIL INDUSTRY




                                                                                              LIST OF TABLES
                                                             Table 1: Top four players in the US by revenue in 2004
                                                             Table 2: The top four players in the UK by revenue in 2005
                                                             Table 3: The top four players in Germany by revenue in 2004
                                                             Table 4: Top four players in the Germany by revenue in 2004
                                                             Table 5: GDP Average Annual Growth (2004 – 2008)
                                                             Table 6: Some interesting facts on Retail
                                                             Table 7: No. of Retail stores in India
                                                             Table 8: Organized retail is restricted to the top few cities of the country
                                                             Table 9: Market size – Organized Retail (1999 – 2005)
                                                             Table 10: Country Profile – India
                                                             Table 11: Evolving Consumer expectations
                                                             Table 12: Age distribution in India – 2005
                                                             Table 13: Distribution among the Consumer Shopping Basket (%)
                                                             Table 14: Hot Categories among Consumers in 03-04
                                                             Table 15: Foreign Brands are popular in these categories
                                                             Table 16: Factors underlying modernization in retailing
                                                             Table 17: Retail Formats - Summary Chart
                                                             Table 18: Traditional retail formats
                                                             Table 19: Evolving Size of Different Retail Formats
                                                             Table 20: Modern Retail Formats in India – Summary Chart
                                                             Table 21: Critical Success Factors for E- tail
                                                             Table 22: Bottlenecks in E-tailing
                                                             Table 23: Advantages of E-tailing
                                                             Table 24: India Food Retail Market Value
                                                             Table 25: Money Spending Priorities across Regions
INDUSTRY INSIGHT – INDIAN RETAIL INDUSTRY-January 2006




                                                             Table 26: Regional dominance in Food Retail
                                                             Table 27: Major Players in Food Retail
                                                             Table 28: Product and Services – PRIL
                                                             Table 29: The Business Brands - PRIL
                                                             Table 30: Upcoming Stores – PRIL
                                                             Table 31: Products – Shopper’s stop
                                                             Table 32: Services – Shopper’s stop
                                                             Table 33: The Business Brands – Shopper’s stop
                                                             Table 34: Store Area – Shopper’s stop
                                                             Table 35: Upcoming Stores – Shopper’s stop
                                                             Table 36: Product mix of Westside store
                                                             Table 37: Product mix of Star India Bazaar
                                                             Table 38: Gross Margin - Trent
                                                             Table 39: Upcoming Stores – Trent
                                                             Table 40: Retail outlets - Lifestyle
                                                             Table 41: The Business Brands - Piramyd
                                                             Table 42: Private Labels – Piramyd
                                                             Table 43: Retail outlets - Ebony



                                                         8                                                © Cygnus Business Consulting & Research 2006
INDUSTRY INSIGHT – INDIAN RETAIL INDUSTRY


                                                             Table 44: Current development of malls in the Tier 1 & Tier 2 Cities
                                                             Table 45: India Real State Development by 2006-07
                                                             Table 46: Loyalty programmes in Retail
                                                             Table 47: Formats adopted by key players
                                                             Table 48: New Formats being experimented currently
                                                             Table 49: Initiatives taken by Government of India for Indian Retail Industry
                                                             Table 50: State of Organized Retailing in South-East Asian Countries
                                                             Table 51: International Retailers with presence in India
                                                             Table 52: Case in Point - Food World
                                                             Table 53: International Retailers Eying India
                                                             Table 54: Development of Organized Retail Formats in China
                                                             Table 55: Comparison between China and India in terms of International Players’ Outlets
                                                             Table 56: Benefits and Impact on the Country



                                                                                            LIST OF EXHIBITS
                                                             Exhibit 1: The key issues faced by global retailers
                                                             Exhibit 2: Key forecasts on Global Retailing
                                                             Exhibit 3: Classification of Retailers based on target market served
                                                             Exhibit 4: Classification based on products carried
                                                             Exhibit 5: Classification based on pricing strategy
                                                             Exhibit 6: Classification based on promotional selling focus
                                                             Exhibit 7: Classification based on Distribution Method
                                                             Exhibit 8: Classification based on the basis of service level
                                                             Exhibit 9: Classification based on the basis of ownership structure
                                                             Exhibit 10: Nature of Indian Retail Industry
                                                             Exhibit 11: Implications of economic boom
                                                             Exhibit 12: Concerns on growth of Retail
INDUSTRY INSIGHT – INDIAN RETAIL INDUSTRY-January 2006




                                                             Exhibit 13: Things to look for in E-tailing
                                                             Exhibit 14: Factors Influencing E-tailing
                                                             Exhibit 15: Two primary cost-related forces that drive profitability in the eWorld
                                                             Exhibit 16: Challenges before modern formats
                                                             Exhibit 17: Shops closed due to inability to cope with the commercial stress
                                                             Exhibit 18: Factors adding to mall stress
                                                             Exhibit 19: Pace of Organized Retailing hampered by the following factors
                                                             Exhibit 20: Food consumption evolutionary pattern
                                                             Exhibit 21: Retail Models in India: Current & Emerging
                                                             Exhibit 22: Hurdles in going National
                                                             Exhibit 23: Fiscal relief and incentives by Government
                                                             Exhibit 24: Industry Initiative
                                                             Exhibit 25: Limitations due to Laws and regulations on Retailing
                                                             Exhibit 26: Emerging Technologies
                                                             Exhibit 27: Obstructions in path of organized Food Retailing
                                                             Exhibit 28: Growth drivers for apparel retail sector
                                                             Exhibit 29: The Indian apparel market is classified into two main categories
                                                             Exhibit 31: Pantaloon Retail (India) limited



                                                         9                                               © Cygnus Business Consulting & Research 2006
INDUSTRY INSIGHT – INDIAN RETAIL INDUSTRY


                                                              Exhibit 32: Shopper’s Stop
                                                              Exhibit 33: Trent limited
                                                              Exhibit 34: Madura Garments
                                                              Exhibit 35: Lifestyle International (Pvt) Limited
                                                              Exhibit 36: Piramyd Retail Limited
                                                              Exhibit 37: Provogue (India) Limited
                                                              Exhibit 38: Raymond Apparel limited
                                                              Exhibit 39: Ebony Retail holdings limited
                                                              Exhibit 40: Globus
                                                              Exhibit 41: Increasing demand for white shirts
                                                              Exhibit 42: Westside was the first to recognize the advantage of private labels in 2004
                                                              Exhibit 43: Key factors that will drive growth of organized retailing
                                                              Exhibit 44: Technology affects top line performance of retail industry through
                                                              Exhibit 45: ECR
                                                              Exhibit 46: Trends that will shape the future of IT in the area of logistics
                                                              Exhibit 47: An efficient ERP system helps the retailer in
                                                              Exhibit 48: RFID applications
                                                              Exhibit 49: Benefits of implementing SAP
                                                              Exhibit 50: Benefits by adopting RFID
                                                              Exhibit 51: Latest technologies in Retail
                                                              Exhibit 52: Case in Point – MusicWorld
                                                              Exhibit 53: Shop & Establishments Acts
                                                              Exhibit 54: Local & Municipal Regulations
                                                              Exhibit 56: Benefits to Retail sector due to industry status
                                                              Exhibit 57: Gaps in the Retail Sector
                                                              Exhibit 58: Limitations due to Land and property Laws
                                                              Exhibit 59: Limitations due to stringent Labour laws
INDUSTRY INSIGHT – INDIAN RETAIL INDUSTRY-January 2006




                                                         10                                              © Cygnus Business Consulting & Research 2006

More Related Content

What's hot

International Journal of Humanities and Social Science Invention (IJHSSI)
International Journal of Humanities and Social Science Invention (IJHSSI)International Journal of Humanities and Social Science Invention (IJHSSI)
International Journal of Humanities and Social Science Invention (IJHSSI)inventionjournals
 
Users innovation as a model for the development of handicraft
Users innovation as a model for the development of handicraftUsers innovation as a model for the development of handicraft
Users innovation as a model for the development of handicraftAracha
 
Growth of retail industry in rajasthan
Growth of retail industry in rajasthanGrowth of retail industry in rajasthan
Growth of retail industry in rajasthanTapasya123
 
67892460-Verka-Project-for-Mba.docx
67892460-Verka-Project-for-Mba.docx67892460-Verka-Project-for-Mba.docx
67892460-Verka-Project-for-Mba.docxPayalSharma713764
 
Automotive Cloud Market - Global Market Report By BIS Research
Automotive Cloud Market - Global Market Report  By BIS ResearchAutomotive Cloud Market - Global Market Report  By BIS Research
Automotive Cloud Market - Global Market Report By BIS ResearchBIS Research Inc.
 
Ngm market entry_assignment_north_india_group_19
Ngm market entry_assignment_north_india_group_19Ngm market entry_assignment_north_india_group_19
Ngm market entry_assignment_north_india_group_19David Luttrell
 
CUSTOMER SATISFACTION TOWARDS SHAREKHAN FOR INVESTING IN SHARES AND EQUITY MA...
CUSTOMER SATISFACTION TOWARDS SHAREKHAN FOR INVESTING IN SHARES AND EQUITY MA...CUSTOMER SATISFACTION TOWARDS SHAREKHAN FOR INVESTING IN SHARES AND EQUITY MA...
CUSTOMER SATISFACTION TOWARDS SHAREKHAN FOR INVESTING IN SHARES AND EQUITY MA...Sagar Sutar
 
India–Pakistan Trade: Perspectives from the Automobile Sector in Pakistan
India–Pakistan Trade: Perspectives from the Automobile Sector in PakistanIndia–Pakistan Trade: Perspectives from the Automobile Sector in Pakistan
India–Pakistan Trade: Perspectives from the Automobile Sector in PakistanSustainable Development Policy Institute
 
33 current scenario in retail marketing with special reference to organised r...
33 current scenario in retail marketing with special reference to organised r...33 current scenario in retail marketing with special reference to organised r...
33 current scenario in retail marketing with special reference to organised r...chelliah paramasivan
 

What's hot (17)

International Journal of Humanities and Social Science Invention (IJHSSI)
International Journal of Humanities and Social Science Invention (IJHSSI)International Journal of Humanities and Social Science Invention (IJHSSI)
International Journal of Humanities and Social Science Invention (IJHSSI)
 
El canal de los supermercados en China
El canal de los supermercados en ChinaEl canal de los supermercados en China
El canal de los supermercados en China
 
Users innovation as a model for the development of handicraft
Users innovation as a model for the development of handicraftUsers innovation as a model for the development of handicraft
Users innovation as a model for the development of handicraft
 
Growth of retail industry in rajasthan
Growth of retail industry in rajasthanGrowth of retail industry in rajasthan
Growth of retail industry in rajasthan
 
67892460-Verka-Project-for-Mba.docx
67892460-Verka-Project-for-Mba.docx67892460-Verka-Project-for-Mba.docx
67892460-Verka-Project-for-Mba.docx
 
Dmkg assignment final
Dmkg assignment finalDmkg assignment final
Dmkg assignment final
 
Automotive Cloud Market - Global Market Report By BIS Research
Automotive Cloud Market - Global Market Report  By BIS ResearchAutomotive Cloud Market - Global Market Report  By BIS Research
Automotive Cloud Market - Global Market Report By BIS Research
 
Ngm market entry_assignment_north_india_group_19
Ngm market entry_assignment_north_india_group_19Ngm market entry_assignment_north_india_group_19
Ngm market entry_assignment_north_india_group_19
 
India–Pakistan Trade: A Case Study of the Pharmaceutical Sector
India–Pakistan Trade: A Case Study of the Pharmaceutical SectorIndia–Pakistan Trade: A Case Study of the Pharmaceutical Sector
India–Pakistan Trade: A Case Study of the Pharmaceutical Sector
 
Session 14 leb
Session 14 lebSession 14 leb
Session 14 leb
 
FDI
FDIFDI
FDI
 
Brand comparison
Brand comparisonBrand comparison
Brand comparison
 
CUSTOMER SATISFACTION TOWARDS SHAREKHAN FOR INVESTING IN SHARES AND EQUITY MA...
CUSTOMER SATISFACTION TOWARDS SHAREKHAN FOR INVESTING IN SHARES AND EQUITY MA...CUSTOMER SATISFACTION TOWARDS SHAREKHAN FOR INVESTING IN SHARES AND EQUITY MA...
CUSTOMER SATISFACTION TOWARDS SHAREKHAN FOR INVESTING IN SHARES AND EQUITY MA...
 
India–Pakistan Trade: Perspectives from the Automobile Sector in Pakistan
India–Pakistan Trade: Perspectives from the Automobile Sector in PakistanIndia–Pakistan Trade: Perspectives from the Automobile Sector in Pakistan
India–Pakistan Trade: Perspectives from the Automobile Sector in Pakistan
 
Beacon Newsletter for September 2013 from SIMCON Club
Beacon Newsletter for September 2013 from SIMCON ClubBeacon Newsletter for September 2013 from SIMCON Club
Beacon Newsletter for September 2013 from SIMCON Club
 
Theory shoppers stop
Theory shoppers stopTheory shoppers stop
Theory shoppers stop
 
33 current scenario in retail marketing with special reference to organised r...
33 current scenario in retail marketing with special reference to organised r...33 current scenario in retail marketing with special reference to organised r...
33 current scenario in retail marketing with special reference to organised r...
 

Viewers also liked

Prototyping is an attitude
Prototyping is an attitudePrototyping is an attitude
Prototyping is an attitudeWith Company
 
50 Essential Content Marketing Hacks (Content Marketing World)
50 Essential Content Marketing Hacks (Content Marketing World)50 Essential Content Marketing Hacks (Content Marketing World)
50 Essential Content Marketing Hacks (Content Marketing World)Heinz Marketing Inc
 
10 Insightful Quotes On Designing A Better Customer Experience
10 Insightful Quotes On Designing A Better Customer Experience10 Insightful Quotes On Designing A Better Customer Experience
10 Insightful Quotes On Designing A Better Customer ExperienceYuan Wang
 
How to Build a Dynamic Social Media Plan
How to Build a Dynamic Social Media PlanHow to Build a Dynamic Social Media Plan
How to Build a Dynamic Social Media PlanPost Planner
 
Learn BEM: CSS Naming Convention
Learn BEM: CSS Naming ConventionLearn BEM: CSS Naming Convention
Learn BEM: CSS Naming ConventionIn a Rocket
 
20 Ideas for your Website Homepage Content
20 Ideas for your Website Homepage Content20 Ideas for your Website Homepage Content
20 Ideas for your Website Homepage ContentBarry Feldman
 
SEO: Getting Personal
SEO: Getting PersonalSEO: Getting Personal
SEO: Getting PersonalKirsty Hulse
 

Viewers also liked (7)

Prototyping is an attitude
Prototyping is an attitudePrototyping is an attitude
Prototyping is an attitude
 
50 Essential Content Marketing Hacks (Content Marketing World)
50 Essential Content Marketing Hacks (Content Marketing World)50 Essential Content Marketing Hacks (Content Marketing World)
50 Essential Content Marketing Hacks (Content Marketing World)
 
10 Insightful Quotes On Designing A Better Customer Experience
10 Insightful Quotes On Designing A Better Customer Experience10 Insightful Quotes On Designing A Better Customer Experience
10 Insightful Quotes On Designing A Better Customer Experience
 
How to Build a Dynamic Social Media Plan
How to Build a Dynamic Social Media PlanHow to Build a Dynamic Social Media Plan
How to Build a Dynamic Social Media Plan
 
Learn BEM: CSS Naming Convention
Learn BEM: CSS Naming ConventionLearn BEM: CSS Naming Convention
Learn BEM: CSS Naming Convention
 
20 Ideas for your Website Homepage Content
20 Ideas for your Website Homepage Content20 Ideas for your Website Homepage Content
20 Ideas for your Website Homepage Content
 
SEO: Getting Personal
SEO: Getting PersonalSEO: Getting Personal
SEO: Getting Personal
 

Similar to Toc %20 indian%20retail%20

Fdi in indian retail sector analysis of competition in agri food sector
Fdi in indian retail sector analysis of competition in agri food sectorFdi in indian retail sector analysis of competition in agri food sector
Fdi in indian retail sector analysis of competition in agri food sectorshilpajeetu
 
Fdi in indian retail sector analysis of competition in agri food sector
Fdi in indian retail sector analysis of competition in agri food sectorFdi in indian retail sector analysis of competition in agri food sector
Fdi in indian retail sector analysis of competition in agri food sectorYashwanth Sharma
 
Fdi in indian retail sector analysis of competition in agri food sector
Fdi in indian retail sector analysis of competition in agri food sectorFdi in indian retail sector analysis of competition in agri food sector
Fdi in indian retail sector analysis of competition in agri food sectorArthur D. Little
 
Le retail en 2020 (étude PwC et Kantar Retail)
Le retail en 2020 (étude PwC et Kantar Retail)Le retail en 2020 (étude PwC et Kantar Retail)
Le retail en 2020 (étude PwC et Kantar Retail)Bertrand Jonquois
 
Bill stankiewicz copy of 2010 retail-consumer-products-supply-chain-report
Bill stankiewicz copy of 2010 retail-consumer-products-supply-chain-reportBill stankiewicz copy of 2010 retail-consumer-products-supply-chain-report
Bill stankiewicz copy of 2010 retail-consumer-products-supply-chain-reportBill Stankiewicz
 
Global Population Sequencing Market
Global Population Sequencing MarketGlobal Population Sequencing Market
Global Population Sequencing MarketBIS Research Inc.
 
China other synthetic fibre market report sample pages
China other synthetic fibre market report   sample pagesChina other synthetic fibre market report   sample pages
China other synthetic fibre market report sample pagesBeijing Zeefer Consulting Ltd.
 
Global OR Management Solutions Market.pdf
Global OR Management Solutions Market.pdfGlobal OR Management Solutions Market.pdf
Global OR Management Solutions Market.pdfBIS Research Inc.
 
Global Healthcare Service Robots Market
Global Healthcare Service Robots MarketGlobal Healthcare Service Robots Market
Global Healthcare Service Robots MarketBIS Research Inc.
 
China security equipment supplies market report sample pages
China security equipment supplies market report   sample pagesChina security equipment supplies market report   sample pages
China security equipment supplies market report sample pagesBeijing Zeefer Consulting Ltd.
 
Aid_for_Trade_Manual_2015
Aid_for_Trade_Manual_2015Aid_for_Trade_Manual_2015
Aid_for_Trade_Manual_2015Johanna Polvi
 

Similar to Toc %20 indian%20retail%20 (20)

Fdi in indian retail sector analysis of competition in agri food sector
Fdi in indian retail sector analysis of competition in agri food sectorFdi in indian retail sector analysis of competition in agri food sector
Fdi in indian retail sector analysis of competition in agri food sector
 
Fdi in indian retail sector analysis of competition in agri food sector
Fdi in indian retail sector analysis of competition in agri food sectorFdi in indian retail sector analysis of competition in agri food sector
Fdi in indian retail sector analysis of competition in agri food sector
 
Fdi in indian retail sector analysis of competition in agri food sector
Fdi in indian retail sector analysis of competition in agri food sectorFdi in indian retail sector analysis of competition in agri food sector
Fdi in indian retail sector analysis of competition in agri food sector
 
Le retail en 2020 (étude PwC et Kantar Retail)
Le retail en 2020 (étude PwC et Kantar Retail)Le retail en 2020 (étude PwC et Kantar Retail)
Le retail en 2020 (étude PwC et Kantar Retail)
 
Bill stankiewicz copy of 2010 retail-consumer-products-supply-chain-report
Bill stankiewicz copy of 2010 retail-consumer-products-supply-chain-reportBill stankiewicz copy of 2010 retail-consumer-products-supply-chain-report
Bill stankiewicz copy of 2010 retail-consumer-products-supply-chain-report
 
China leather tanning market report sample pages
China leather tanning market report   sample pagesChina leather tanning market report   sample pages
China leather tanning market report sample pages
 
Global Population Sequencing Market
Global Population Sequencing MarketGlobal Population Sequencing Market
Global Population Sequencing Market
 
China leather apparels market report sample pages
China leather apparels market report   sample pagesChina leather apparels market report   sample pages
China leather apparels market report sample pages
 
Sample Global Canned Pineapple
Sample Global Canned Pineapple  Sample Global Canned Pineapple
Sample Global Canned Pineapple
 
China apparel market report
China apparel market reportChina apparel market report
China apparel market report
 
Indu
InduIndu
Indu
 
China dyestuff market report sample pages
China dyestuff market report   sample pagesChina dyestuff market report   sample pages
China dyestuff market report sample pages
 
China other synthetic fibre market report sample pages
China other synthetic fibre market report   sample pagesChina other synthetic fibre market report   sample pages
China other synthetic fibre market report sample pages
 
Global OR Management Solutions Market.pdf
Global OR Management Solutions Market.pdfGlobal OR Management Solutions Market.pdf
Global OR Management Solutions Market.pdf
 
China canned foods market report sample pages
China canned foods market report   sample pagesChina canned foods market report   sample pages
China canned foods market report sample pages
 
China instant noodle market report sample pages
China instant noodle market report   sample pagesChina instant noodle market report   sample pages
China instant noodle market report sample pages
 
China milk dairy market report sample pages
China milk dairy market report   sample pagesChina milk dairy market report   sample pages
China milk dairy market report sample pages
 
Global Healthcare Service Robots Market
Global Healthcare Service Robots MarketGlobal Healthcare Service Robots Market
Global Healthcare Service Robots Market
 
China security equipment supplies market report sample pages
China security equipment supplies market report   sample pagesChina security equipment supplies market report   sample pages
China security equipment supplies market report sample pages
 
Aid_for_Trade_Manual_2015
Aid_for_Trade_Manual_2015Aid_for_Trade_Manual_2015
Aid_for_Trade_Manual_2015
 

Toc %20 indian%20retail%20

  • 1. INDUSTRY INSIGHT: INDIAN RETAIL INDUSTRY The retail industry is among the largest industries in India, accounting for over 10 percent of the country’s GDP and about 8 percent of the employment in 2004. It has also emerged as one of the dynamic and fast- growing industries. According to the Global Retail Development Index 2005, India is the leading destination for retail investment. The Industry Insight: Indian Retail Industry 2006, introduced by Cygnus, provides the comprehensive industry analysis. The Industry Insight answers the following key questions: a. What is the Global Scenario – major markets, & outlook b. How the industry is evolving in India c. The Current Scenario in organized and unorganized retail d. Different market segments of the industry e. Characteristics and Changing Trends in the Indian Consumer behavior f. What is the role of technology in retail? g. What are the external factors and how do they affect the industry? The report includes Companies analyzed/mentioned Executive Summary, Major Players in Food Retailing – Introduction, Global Retail Food World, Trinethra, Apna Bazaar, big Bazaar – Pantaloons, Margin Free, Industry Scenario, Indian Subhiksha, Nilgiris, MTR Retail Industry, Role of Major players in Apparel Retailing – Indian Consumer In Pantaloon Retail (India) Limited, Shopper’s Stop Limited, Trent Limited, Madura Evolving Retail Industry, Garments, Lifestyle International (Pvt) Limited, Piramyd Retail Limited, Factors Underlying Provogue (India) Limited, Raymond Apparel Limited, Ebony Retail Holdings Evolution of Modern Retail Limited, Globus in India, Organised Retail Formats, Mall Additional Information Phenomenon: The Possible The report makes a Michael Porter analysis of discusses the FDI in detail Implications, Food Retail In covering the restrictions, present scenario and strategies of International India, Apparel Retail In players for Indian market. It presents a case study on Chinese retailing India, Other Retail and gives an in- depth analysis of “Why FDI is good for India?” In the end, Segments, Technology, report gives Vision 2010. Growth Drivers of This report is an insightful resource in identifying potential and opportunities Organized Retailing, Critical in retail industry. Success Factors, Emerging Trends In Indian Retailing, Who should buy the report? Legal And Regulatory The report is a must – buy for those who wish to enter in retailing or the Information, Issues & existing players to improve upon their strategies and retailing formats. Challenges, Future Outlook This report is suitable to individuals responsible for and interested in: Total No. of Pages – 191 a. Board and executive management Total No. of Figures – 44 b. Business strategy / Business development Total No. of Tables – 56 c. Retail Vertical Team in ITES BPO to understand the evolving industry Total No. of exhibits - 59 d. Business school students e. Consultants f. Entrepreneurs To place order Send your request to mktg@cygnusindia.com or fax to 040 – 23430201 Contact us for more details- Corporate Office: 4th & 5th Floors, Astral Heights, Road No. 1, Banjara Hills, Hyderabad-500034, India, Tel: +91-40-23430203-05, Fax: +91-40-23430201,E-mail: info@cygnusindia.com ; Website: www.cygnusindia.com Branches: Ahemdabade: 079-26404728/29/30/31 Bangalore: 080-41311229 Chennai: 044-42122168, 42122819 Hyderabad: 040-23430209 Kolkata: 033-22890642/43 Mumbai: 022-22870612/14 New Delhi: 011-41520651/52
  • 2.
  • 3. INDUSTRY INSIGHT – INDIAN RETAIL INDUSTRY CONTENTS 1. Executive Summary................................................................................. 11 2. Introduction .......................................................................................... 16 3. Global Retail Industry Scenario ................................................................ 18 3.1 Introduction .................................................................................................. 18 3.2 Current Market Scenario- Retail the biggest industry ........................................ 18 3.3 Consumer Demographic Trends...................................................................... 19 3.3.1 Changing Households..........................................................................................19 3.3.2 Changing Income ................................................................................................20 3.3.3 Aging Population ................................................................................................20 3.4 Major Markets .............................................................................................. 20 3.4.1 Unswerving: the US .............................................................................................20 3.4.2 Shining star of Europe: the UK..............................................................................21 3.4.3 Restructure of Germany........................................................................................22 3.4.4Revolution in Japan ..............................................................................................23 3.5 Growth Drivers ............................................................................................. 23 3.5.1 GDP growth ........................................................................................................23 3.5.2 Consumers’ desire for something unique ...............................................................24 3.5.3 Increased spending on IT by Retailers....................................................................24 3.5.4 Online shopping..................................................................................................24 3.5.5 Looking east for growth........................................................................................25 3.6 Recent Trends and Developments.................................................................... 25 3.6.1 Radio Frequency Identification (RFID) technology ...................................................25 3.6.2 Consolidation and Global Expansion ....................................................................25 3.6.3 Consumer trends .................................................................................................26 3.6.4 Augmented use of Smart cards .............................................................................26 INDUSTRY INSIGHT – INDIAN RETAIL INDUSTRY-January 2006 3.6.5 Self Service .........................................................................................................26 3.7 Issues and Challenges.................................................................................... 26 3.7.1 Supply Chain Efficiency .......................................................................................27 3.7.2 Smart pricing ......................................................................................................27 3.7.3 Books and Records in smaller businesses ...............................................................27 3.7.4 Shifting demographic trends.................................................................................27 3.8 Outlook ........................................................................................................ 28 4. Indian Retail Industry .............................................................................. 29 4.1 Introduction .................................................................................................. 29 4.2 The Evolution of the Indian Retail Industry........................................................ 30 4.3 Number of Retailers ...................................................................................... 31 4.4 Ways to Categorize Retailers ......................................................................... 33 4.4.1 On the Basis of Target Markets Served ..................................................................33 4.4.2 On the Basis of Products Carried ..........................................................................34 4.4.3 On the Basis of Pricing Strategy............................................................................34 4.4.4 On the Basis of Promotional Focus ........................................................................35 4.4.5 On the Basis of Distribution Method ......................................................................36 4.4.6 On the Basis of Service Level ................................................................................37 1 © Cygnus Business Consulting & Research 2006
  • 4. INDUSTRY INSIGHT – INDIAN RETAIL INDUSTRY 4.4.7 On the Basis of Ownership Structure.....................................................................38 4.5 Industry Structure .......................................................................................... 39 4.6 Current Market Scenario................................................................................ 42 4.6.1 Unorganized Retail..............................................................................................43 4.6.2 Organized Retail .................................................................................................43 4.7 Market Segments in Retailing ......................................................................... 46 4.7.1 Food retailing......................................................................................................46 4.7.2 Apparel retailing .................................................................................................46 4.7.3 Household /Consumer durables retailing ..............................................................47 4.7.4 Indian Music and Books Retailing .........................................................................48 4.8 Michael Porter Analysis ................................................................................. 49 5. Role of Indian Consumer In Evoving Retail Industry .................................... 53 5.1 Characteristics of the Indian Consumer Behavior.............................................. 53 5.2 Changing Demographics: Young population with high disposable income......... 54 5.3 Rising income levels....................................................................................... 55 5.4 Consumption Growth now visible ................................................................... 57 5.5 Urban consumer’s shopping basket is changing............................................... 58 5.6 Increasing Awareness of Indian Consumers..................................................... 60 5.7 Changing Trends in the Indian Consumer Behaviour ........................................ 60 6. Factors Underlying Evolution of Modern Retail in India ............................... 62 6.1 Economic development .................................................................................. 62 6.2 Improvements in civic situation ....................................................................... 63 6.3 Changes in consumer needs, attitudes and behaviour ...................................... 63 7. Organised Retail Formats ........................................................................ 64 7.1 Different Retail Formats across the World ........................................................ 64 7.2 Retail Formats in India ................................................................................... 67 7.2.1 Traditional retail formats ......................................................................................67 INDUSTRY INSIGHT – INDIAN RETAIL INDUSTRY-January 2006 7.2.2 Modern Retail Formats Existing In India.................................................................69 7.3 Emerging Retailing Format: E-Tailing .............................................................. 71 7.3.1 E-tailing – Why does it stand apart.......................................................................72 7.3.4 Conveniences looked for by consumers in E-tailing.................................................73 7.3.5 The Challenges of E-tailing ...................................................................................74 7.3.6 Issues Concerning Modern Formats/ Organised Retailers .......................................76 7.4 How to Increase the Power of Organised Retail ............................................... 77 7.5 Barriers to implementation ............................................................................. 78 8. Mall Phenomenon: The Possible Implications ............................................. 79 8.1 Issues to Be Addressed By Shopping Malls ...................................................... 79 8.1.1 Competition from unorganised sector – Pricing and Perception ...............................79 8.1.2 Unrealistic Real Estate Pricing ...............................................................................80 8.1.3 Lack of planned facilities ......................................................................................80 8.1.4 Lack of adequate parking facilities ........................................................................81 8.1.5 Fit and Forget Attitude of Mall Developers .............................................................81 8.1.6 Inexperience in Mall Management ........................................................................81 8.1.7 Need of Right type of Architectural Expertise and Design .......................................82 8.1.8 Broker Driven Leasing ..........................................................................................82 2 © Cygnus Business Consulting & Research 2006
  • 5. INDUSTRY INSIGHT – INDIAN RETAIL INDUSTRY 8.2 Steps to Be Adopted By Shopping Malls to Ensure Success ............................... 82 8.2.1 Catchment Analysis .............................................................................................82 8.2.2 Right Component Mix ..........................................................................................83 9. Food Retail In India ................................................................................ 84 9.1 Evolution of Organized Food Retailing In India................................................ 84 9.2 Current Market Scenario................................................................................ 85 9.3 Characteristics of Organized Food Retail ........................................................ 87 9.3.1 Region wise Preferences exist among consumers ....................................................87 7.3.2 Regional Players dominate in Food Retail ..............................................................87 9.3.3 Hurdles in going National ....................................................................................88 9.4 Key Driver of Food Retail In India - Integration of Food Industry ........................ 88 9.4.1 Increased government support ..............................................................................89 9.4.2 Industry initiatives ................................................................................................89 9.4.3 Emergence of new players ...................................................................................90 9.5 Major Players - India’s Top Food Retailers....................................................... 90 9.5.1 Food World ........................................................................................................90 9.5.2 Trinethra .............................................................................................................91 9.5.3 Apna Bazaar ......................................................................................................92 9.5.4 Big Bazaar – Pantaloons ......................................................................................92 9.5.5 Margin Free ........................................................................................................92 9.5.6 Subhiksha ...........................................................................................................92 9.5.7 Nilgiris ...............................................................................................................93 9.5.8 MTR ...................................................................................................................93 9.6 Regulatory Issues in Organized Food Retailing ................................................ 94 9.6.1 Government Policy on Food Retailing - India .........................................................94 9.6.2 Food Safety Issues ...............................................................................................94 9.6.3 Food Labelling In India with Special Reference to Codex Guidelines ........................95 9.7 Emerging Trends ........................................................................................... 96 9.7.1 Likely Transformation of the Supply Chain .............................................................96 9.7.2 Changing Supplier Retailer Relationships...............................................................97 9.7.3 Innovations in Transportation Logistics...................................................................98 INDUSTRY INSIGHT – INDIAN RETAIL INDUSTRY-January 2006 9.7.4 Developing Social Trends .....................................................................................98 9.7.5 Increasing Impact of Technology...........................................................................99 9.8 Challenges of Organized Food retailing ....................................................... 100 9.9 Outlook of Food Retailing ............................................................................ 100 10. Apparel Retail In India ........................................................................ 102 10.1 Introduction .............................................................................................. 102 10.2 Current Market Scenario............................................................................ 102 10.2.1 Development of India’s branded market ............................................................103 10.2.2 Market segmentation .......................................................................................105 10.2.3 Mens Apparel Market ......................................................................................105 10.2.4 Women Apparel Market ..................................................................................105 10.2.5 Kids/Children Apparel Market .........................................................................106 10.3 Major Players ........................................................................................... 106 10.3.1 Pantaloon Retail (India) Limited.........................................................................106 10.3.2 Shopper’s Stop Limited.....................................................................................110 10.3.3 Trent Limited....................................................................................................112 10.3.4 Madura Garments ...........................................................................................114 3 © Cygnus Business Consulting & Research 2006
  • 6. INDUSTRY INSIGHT – INDIAN RETAIL INDUSTRY 10.3.5 Lifestyle International (Pvt) Limited .....................................................................116 10.3.6 Piramyd Retail Limited......................................................................................117 10.3.7 Provogue (India) Limited...................................................................................121 10.3.8 Raymond Apparel Limited ................................................................................125 10.3.9 Ebony Retail Holdings Limited...........................................................................126 10.3.10 Globus .........................................................................................................128 10.4 Recent Trends and Developments................................................................ 129 10.4.1 Emerging large format stores in India................................................................129 10.4.2 Preference for RTW garments ...........................................................................129 10.4.3 Focus on technology to reduce cost and improve efficiency .................................130 10.4.4 Growth of Private Label....................................................................................130 10.5 Outlook .................................................................................................... 130 10.5.1 Apparel exports to grow post quota removal .....................................................130 10.5.2 Implementation of VAT to reduce cost and complexity ........................................131 10.5.3 Huge growth potential .....................................................................................131 11. Other Retail Segments......................................................................... 132 11.1 Health and beauty products retailers........................................................... 132 11.2 Home furniture and household goods retailers............................................. 132 11.3 Durable goods retailers ............................................................................. 132 11.4 Leisure and personal goods retailers ........................................................... 132 11.5 Alternative selling channels ........................................................................ 133 12. Technology ........................................................................................ 134 12.1 Role of Technology in Retail ....................................................................... 134 12.2 Supply Chain Management........................................................................ 134 12.2.1 European Article Numbering............................................................................134 12.2.2 Efficient Consumer Response ............................................................................135 12.3 Logistics Management ............................................................................... 136 12.4 Inventory Management .............................................................................. 137 12.5 Emerging Technologies.............................................................................. 137 INDUSTRY INSIGHT – INDIAN RETAIL INDUSTRY-January 2006 12.5.1 CRM...............................................................................................................137 12.5.2 OLAP..............................................................................................................138 12.5.3 Systems Analysis and Program (SAP) ................................................................138 12.5.4 Radio Frequency Identification (RFID) ................................................................138 13. Growth Drivers of Organized Retailing ................................................. 140 13.1 Media Proliferation ................................................................................... 140 13.2 Availability of quality real estate & Mall Management practices.................... 140 13.3 Availability of brands and merchandise ...................................................... 143 13.4 Enhanced Funding Options ........................................................................ 143 13.5 Implementation of VAT to reduce cost and complexity .................................. 143 13.6 Changing Demographic profile .................................................................. 143 13.7 Changing lifestyles .................................................................................... 144 13.8 Exposure to international trends ................................................................. 144 13.8.1 Domestic outbound tourists – raised aspirations .................................................144 13.8.2 Impact of globalization ....................................................................................145 13.8.3 Inbound tourists, shopping ...............................................................................145 4 © Cygnus Business Consulting & Research 2006
  • 7. INDUSTRY INSIGHT – INDIAN RETAIL INDUSTRY 14. Critical Success Factors ....................................................................... 146 14.1 Location ................................................................................................... 146 14.2 Merchandise............................................................................................. 147 14.3 Knowledge and Information ....................................................................... 147 14.4 Customer Satisfaction ................................................................................ 147 14.5 Ability to Acquire the Right Products ........................................................... 148 14.6 Product Presentation / Placement ............................................................... 148 14.7 Traffic Building.......................................................................................... 148 14.8 Layout ...................................................................................................... 148 14.9 Keeping Pace with Technology ................................................................... 149 15. Emerging Trends In Indian Retailing ..................................................... 150 15.1 Unorganized retailing is getting organized ................................................. 150 15.2 Increased Focus of Global Players on Sourcing from India............................ 150 15.3 Forward integration / Alternative channels ................................................. 151 15.4 Rapid expansion and format migration ....................................................... 151 15.5 Creative Store Designs............................................................................... 152 15.6 Convenience stores at gas stations .............................................................. 153 15.7 Introduction of In-Flight Retailing by Airlines................................................ 153 16. Legal And Regulatory Information ........................................................ 154 16.1 Regulations and Policies ............................................................................ 154 16.1.1 Shops and Establishments Acts .........................................................................154 16.1.2 In respect of goods/products ............................................................................154 16.1.3 Fiscal Regulations ............................................................................................155 16.1.4 Value Added Tax ............................................................................................155 16.1.5 Employment Related Regulations.......................................................................155 16.1.6 Contract Labour (Regulation and Abolition) Act .................................................155 16.1.7 Foreign Investment Regulations .........................................................................156 16.1.8 Other Regulations............................................................................................156 INDUSTRY INSIGHT – INDIAN RETAIL INDUSTRY-January 2006 16.2 Government Support To The Retail Industry ................................................. 157 16.3 FDI in Retail .............................................................................................. 157 16.3.1 Restrictions on FDI ...........................................................................................157 16.3.2 Present Scenario..............................................................................................158 16.3.3 Strategies of international retailers ....................................................................159 16.3.4 FDI in retail – Required or Not? ........................................................................159 16.3.5 Foreign Retailers Eying India ............................................................................163 16.3.6 Case Study: Chinese Retailing .........................................................................164 16.3.7 In-Depth Analysis – Why Fdi Is Good For India .................................................166 16.3.8 Recommendations ...........................................................................................168 16.3.9 Conclusion ......................................................................................................169 17. Issues & Challenges ............................................................................ 170 17.1 No industry status ..................................................................................... 170 17.2 Gaps in the Retail Sector............................................................................ 171 17.3 Limitations due to Land and property Laws .................................................. 172 17.4 Limitations due to stringent Labour laws ...................................................... 172 17.5 Other Regulatory Disadvantages ................................................................ 173 5 © Cygnus Business Consulting & Research 2006
  • 8. INDUSTRY INSIGHT – INDIAN RETAIL INDUSTRY 17.6 Lack of basic & secondary infrastructure ..................................................... 174 17.7 Non Availability of Quality Real estate at prime locations............................. 174 17.8 Extensive distribution network..................................................................... 175 17.9 Supply chain issues ................................................................................... 175 17.10 Revenue considerations ........................................................................... 175 17.11 Economies of trade.................................................................................. 176 17.12 Managing channel conflicts ..................................................................... 176 17.13 Non Availability of skilled manpower ....................................................... 177 17.14 Differentiation and Reach ........................................................................ 177 17.15 Growth in non-Metros ............................................................................. 177 17.16 Differences between urban-rural consumers .............................................. 178 17.17 Disadvantages of India as a country ......................................................... 178 18. Future Outlook ................................................................................... 179 18.1 Vision 2010 ............................................................................................. 179 18.1.1 Investment will increase....................................................................................180 18.1.2 Changing Consumer Demographics will affect Retail Sales .................................180 18.1.3 Regional differences will stay............................................................................181 18.1.4 Retailers would adapt more than one format......................................................181 18.1.5 Dual focus on costs and time ............................................................................182 18.1.6 24 hours of retailing ......................................................................................182 18.1.7 Small retailers will coexist.................................................................................182 18.1.8 Supply chain dynamics ....................................................................................183 18.1.9 Internet ...........................................................................................................183 Annexure I. Business Models In India.......................................................... 184 Annexure II: Major Players In Apparel – 2004 - 05 ..................................... 185 INDUSTRY INSIGHT – INDIAN RETAIL INDUSTRY-January 2006 6 © Cygnus Business Consulting & Research 2006
  • 9. INDUSTRY INSIGHT – INDIAN RETAIL INDUSTRY LIST OF FIGURES Figure 1: Organized Vs Traditional Retailing (2004) Figure 2: Global Retail Sales Vs % Change (2000-2004) Figure 3: Retail Sales in US (1998-2004) Figure 4: Retail Sales in UK (1998-2004) Figure 5: Retail Sales in Germany (1998-2004) Figure 6: Retail Sales in Japan (1998-2004) Figure 7: Retail Sales Vs Retail Sales/GDP (2004) Figure 8: The different phases in growth of organized retail Figure 9: Fragmented nature of Indian Retail Figure 10: Retail Market Size 2002 Figure 11: Rural Versus Urban, the difference Figure 12: Indian Retail Market Distributions Figure 13: Transformation of the Retail Sector across the world Figure 14: Percent Contribution of different categories to organized retail Figure 15: Contribution of food in the total spend in consumers Figure 16: Growth among different segments in Retail Figure 17: No. of Consumer durable stores in India Figure 18: No. of Consumer durable stores in India Figure 19: No. of Book & Music Stores in India Figure 20: Porter’s Five Forces Model of Industry Analysis Figure 21: Changing Age Demographics of India Figure 22: All India – Distribution of households by income (Rs per annum) Figure 23: Urban India – Distribution of households by income (Rs per annum) Figure 24: Private final consumption in India in FY 04 Figure 25: Indian Food Retail Industry – Market Size (2000-2004) Figure 26: Indian Food Retail Industry – Market Segments Contribution in 2004 Figure 27: Literacy Rate & working women population INDUSTRY INSIGHT – INDIAN RETAIL INDUSTRY-January 2006 Figure 28: Indian Apparel Market size (2000-2004) Figure 29: Growth of Indian Apparel Market (2000-2004) Figure 30: Share of Branded Market (2004) Figure 31:Consumer expenditure in Apparel Segment (1999-2003) Figure 32: Indian Apparel Market Segmentation Figure 33:No. of retail outlets (2000-2005) Figure 34: ECR Model Figure 35: Evolution of Real Estate in Retail Sector in India Figure 36: Operational Malls/Shopping Centres as on 31 August 2005 Figure 37: Current and projected mall space by end-2007 Figure 38: Median Age in Years Figure 39: Evolution of Critical Success Factors in retail Figure 40: Common Layouts in Supermarkets Figure 41: Share of Organized Retail in FMCG sales Figure 42: Benefits to the government Figure 43: Total wholesale & retail trade in China Figure 44: Employment in Retailing in China 7 © Cygnus Business Consulting & Research 2006
  • 10. INDUSTRY INSIGHT – INDIAN RETAIL INDUSTRY LIST OF TABLES Table 1: Top four players in the US by revenue in 2004 Table 2: The top four players in the UK by revenue in 2005 Table 3: The top four players in Germany by revenue in 2004 Table 4: Top four players in the Germany by revenue in 2004 Table 5: GDP Average Annual Growth (2004 – 2008) Table 6: Some interesting facts on Retail Table 7: No. of Retail stores in India Table 8: Organized retail is restricted to the top few cities of the country Table 9: Market size – Organized Retail (1999 – 2005) Table 10: Country Profile – India Table 11: Evolving Consumer expectations Table 12: Age distribution in India – 2005 Table 13: Distribution among the Consumer Shopping Basket (%) Table 14: Hot Categories among Consumers in 03-04 Table 15: Foreign Brands are popular in these categories Table 16: Factors underlying modernization in retailing Table 17: Retail Formats - Summary Chart Table 18: Traditional retail formats Table 19: Evolving Size of Different Retail Formats Table 20: Modern Retail Formats in India – Summary Chart Table 21: Critical Success Factors for E- tail Table 22: Bottlenecks in E-tailing Table 23: Advantages of E-tailing Table 24: India Food Retail Market Value Table 25: Money Spending Priorities across Regions INDUSTRY INSIGHT – INDIAN RETAIL INDUSTRY-January 2006 Table 26: Regional dominance in Food Retail Table 27: Major Players in Food Retail Table 28: Product and Services – PRIL Table 29: The Business Brands - PRIL Table 30: Upcoming Stores – PRIL Table 31: Products – Shopper’s stop Table 32: Services – Shopper’s stop Table 33: The Business Brands – Shopper’s stop Table 34: Store Area – Shopper’s stop Table 35: Upcoming Stores – Shopper’s stop Table 36: Product mix of Westside store Table 37: Product mix of Star India Bazaar Table 38: Gross Margin - Trent Table 39: Upcoming Stores – Trent Table 40: Retail outlets - Lifestyle Table 41: The Business Brands - Piramyd Table 42: Private Labels – Piramyd Table 43: Retail outlets - Ebony 8 © Cygnus Business Consulting & Research 2006
  • 11. INDUSTRY INSIGHT – INDIAN RETAIL INDUSTRY Table 44: Current development of malls in the Tier 1 & Tier 2 Cities Table 45: India Real State Development by 2006-07 Table 46: Loyalty programmes in Retail Table 47: Formats adopted by key players Table 48: New Formats being experimented currently Table 49: Initiatives taken by Government of India for Indian Retail Industry Table 50: State of Organized Retailing in South-East Asian Countries Table 51: International Retailers with presence in India Table 52: Case in Point - Food World Table 53: International Retailers Eying India Table 54: Development of Organized Retail Formats in China Table 55: Comparison between China and India in terms of International Players’ Outlets Table 56: Benefits and Impact on the Country LIST OF EXHIBITS Exhibit 1: The key issues faced by global retailers Exhibit 2: Key forecasts on Global Retailing Exhibit 3: Classification of Retailers based on target market served Exhibit 4: Classification based on products carried Exhibit 5: Classification based on pricing strategy Exhibit 6: Classification based on promotional selling focus Exhibit 7: Classification based on Distribution Method Exhibit 8: Classification based on the basis of service level Exhibit 9: Classification based on the basis of ownership structure Exhibit 10: Nature of Indian Retail Industry Exhibit 11: Implications of economic boom Exhibit 12: Concerns on growth of Retail INDUSTRY INSIGHT – INDIAN RETAIL INDUSTRY-January 2006 Exhibit 13: Things to look for in E-tailing Exhibit 14: Factors Influencing E-tailing Exhibit 15: Two primary cost-related forces that drive profitability in the eWorld Exhibit 16: Challenges before modern formats Exhibit 17: Shops closed due to inability to cope with the commercial stress Exhibit 18: Factors adding to mall stress Exhibit 19: Pace of Organized Retailing hampered by the following factors Exhibit 20: Food consumption evolutionary pattern Exhibit 21: Retail Models in India: Current & Emerging Exhibit 22: Hurdles in going National Exhibit 23: Fiscal relief and incentives by Government Exhibit 24: Industry Initiative Exhibit 25: Limitations due to Laws and regulations on Retailing Exhibit 26: Emerging Technologies Exhibit 27: Obstructions in path of organized Food Retailing Exhibit 28: Growth drivers for apparel retail sector Exhibit 29: The Indian apparel market is classified into two main categories Exhibit 31: Pantaloon Retail (India) limited 9 © Cygnus Business Consulting & Research 2006
  • 12. INDUSTRY INSIGHT – INDIAN RETAIL INDUSTRY Exhibit 32: Shopper’s Stop Exhibit 33: Trent limited Exhibit 34: Madura Garments Exhibit 35: Lifestyle International (Pvt) Limited Exhibit 36: Piramyd Retail Limited Exhibit 37: Provogue (India) Limited Exhibit 38: Raymond Apparel limited Exhibit 39: Ebony Retail holdings limited Exhibit 40: Globus Exhibit 41: Increasing demand for white shirts Exhibit 42: Westside was the first to recognize the advantage of private labels in 2004 Exhibit 43: Key factors that will drive growth of organized retailing Exhibit 44: Technology affects top line performance of retail industry through Exhibit 45: ECR Exhibit 46: Trends that will shape the future of IT in the area of logistics Exhibit 47: An efficient ERP system helps the retailer in Exhibit 48: RFID applications Exhibit 49: Benefits of implementing SAP Exhibit 50: Benefits by adopting RFID Exhibit 51: Latest technologies in Retail Exhibit 52: Case in Point – MusicWorld Exhibit 53: Shop & Establishments Acts Exhibit 54: Local & Municipal Regulations Exhibit 56: Benefits to Retail sector due to industry status Exhibit 57: Gaps in the Retail Sector Exhibit 58: Limitations due to Land and property Laws Exhibit 59: Limitations due to stringent Labour laws INDUSTRY INSIGHT – INDIAN RETAIL INDUSTRY-January 2006 10 © Cygnus Business Consulting & Research 2006