Retail Revolution in India

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Retail Revolution in India its impact in the
Middle East

• Presented by
• Mr. B. S. Nagesh
• Customer Care Associate MD

2
India Retail Report 2005 HighlightsImages
Retail Study 2006 (collation from various data
sources)
3
Organized Retail - 2010
4
Rising Consumer IncomeKey Driver
1995 -96
2001 - 02
2006 - 07
URBAN
5.2 (30)
The very rich
1.2 (7)
2.6 (15)
The consuming class
32.5 (186)
46.4 (265)
75.5 (432)
81.7 (472)
54.1 (312.2)
74.4 (429)
The Climbers
20.2 (117)
33.1 (192)
44.0 (253.9)
The aspirants
33.0 (190.4)
24.1 (140)
16.5 (95)
The destitute
Figures in Mn Households (Population)
Source BW Marketing Whitebook 2003-04
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Future Outlook of the Organized Retail
Market (Images Retail Study 2006)

• The next 3 years will see
• US 560m investment for retail expansion
  nationwide.
• Result in 50 Hyper Markets.
• 305 large Department Stores.
• 1500 Super Markets.
• 10,000 exclusive retail showrooms
• One third through conversion from multi-brand to
  exclusive outlets.
• Largest growth in the field of entertainment with
  or without shopping.
• Volumes in Food Grocery, Office Home
  Utilities.
• Organized and traditional formats will co-exist.

6
Gold Jewellery market in India(Source India
Retail Report, 2005)

• Jewellery market, the largest market in the world
  is estimated at US 9.7 bn.
• Gold contributes 98 of the above (approx. US
  9.5 bn).
• 65 of jewellery bought during weddings with 5
  6 mn weddings happening in the country every
  year.
• Organized jewellery retailing is at 2 of the
  total market.

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Branded Jewellery market in India(Source India
Retail Report, 2005)

• Branding of Jewellery commenced in 1996 with
  Tanishq.
• Branded jewellery retailing stands at US 0.26 bn
  and is growing at 40 p.a.
• Other major players are Nakshatra, Orra,
  Oyzterbay, Gili, Asmi, Carbon, DDamas.
• Brands sold at stand alone specialty stores and
  department stores.
• Huge potential as 98 of market is still
  unorganized.

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Branded Jewellery market in India(Source India
Retail Report, 2005)

• Key to the success of branded jewellery
• Huge footfalls in modern formats due department
  stores being destination stores.
• Comfortable attractive shopping experience.
• Reliability quality from the perspective of the
  customer.
• Brand exclusivity wide range of designs.
• Malls are the preferred choice
• Recent phenomenon is the launch of Specialty
  Jewellery, Gold Souk, near Delhi.

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Jewellery Sales by Shoppers Stop
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Indian Retail Impact in the Middle East

• India is still the largest gold consuming country
  in the world.
• Consumers are gradually shifting towards branded
  jewellery but Gold continues to remain high on
  the consumers fascination.
• A shift in preference to Department Stores and
  specialty stores for purchases.
• With organized retail in India growing at 30 per
  annum, the trend towards purchase of Gold
  Jewellery by Indians is shifting to Malls
  Specialty stores in India.

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Impact on the Middle East

• Outbound tourism impact
• Will continue to attract tourists from India as
  Middle East Gold (retailer) more trusted than
  Indian Gold (retailer).
• With Modern retail evolving at a fast pace in
  Middle East, will attract more Indian tourists
  for shopping.
• Indian retail would be fully evolved in the next
  5 yrs, products likely to be cheaper in India by
  way of local sourcing tax reforms.
• Many Middle East retailers being of Indian
  origin, a lot of Middle East business houses
  would enter India.
• A reverse drain of people from Middle East to
  India expected, Middle East will feel the heat of
  manpower shortage cost escalation.

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Conclusion

• Emerging India to boost Middle East retail for
  the next 5 years.
• The same emerging India to take away a share
  from Middle East in the next 5 to 10 years.

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• THANK YOU