Modern Retailing In

India
A Research on the Modern Retailing In India
and how different factors are leading to its
further growth.

Submitted By:- S.Sainath

Submitted To:- Dr. Shrirang Altekar
PRN:- 14021021071

Executive Summary

From customized administration to money down and even portion installment

frameworks, India's retail segment has unquestionably become an adult.

In the course of the most recent decade, the idea of shopping has likewise experienced
an ocean change regarding configuration and buyer purchasing conduct, introducing
an upset the nation over. Cutting edge Retailing has assumed control over the Indian
retail showcase as is seen in type of clamoring strip malls, multi-put away shopping
centers and the enormous buildings that offer shopping, stimulation and sustenance
under one rooftop.

The Indian client as well, has developed with time and this has prompted a sudden
spurt in worldwide brands entering the market with their arrangement of offerings.
This combined with an ascent in buying power has brought marked stock crosswise
over classifications like clothes, makeup, refreshments, nourishment and even gems
well inside reach of the potential client. Also, it's chance retailers observe the change
and profit by the chance to present more current configurations that clear path for
better items at the correct place.

With a steadily extending residential market and an estimate development rate of 15

percent a year, the Indian retailing scene appears to be to a great degree alluring for
abroad speculators why should looking attack into this fragment and make
tremendous profits for the back of an expansive buyer base of more than 600 million
clients. Today, a few worldwide names are quick to enter the Indian retail advertise,
however it's for the present government to choose the course.

Accepting into record such open doors and difficulties, I am cheerful to share a far
reaching report on the Indian Retail Market through my report.

Hope everybody finds the data applicable.

Table Of Contents

Part No.

Title

Pages

Introduction

3-10

Sector Information

11-25

Methodology

26-41

Research Methodology

42-45

Data

Analysis

and 46-57

Interpretation
6

Results and Findings

58-62

Conclusion

63-71

Bibliography

72-75

PART 1 : INTRODUCTION

Organized retail, which constitutes 8 % of the aggregate retail market, will develop
much quicker than conventional retail. It is relied upon to pick up a higher offer in the
developing pie of the retail market in India. Different evaluations put the share
of composed retail as 20 % by 2020.

Introduction

According to Walmart,
"It's not composed versus disorderly retail; it's just about the shade of cash".

As a run of the mill showcasing understudy would say,

"Retailing" insinuates any activity that incorporates the prompt arrangement to any
activity that incorporates the prompt arrangement to an individual customer or end
customer. Retailing has been the most dynamic and charming zone of the latest
decade. While the retailing business itself has been accessible all through the history
in our country, it is only the later past that has seen so much dynamism. Retailing
field today is inside and out various. It's the latest impermanent craze that has been
seeing hordes of players bouncing onto it. While overall retail store systems have
gotten the unrestrained of various voyagers abroad, the action was lost from the
Indian business scene, in any occasion till starting late.
Characterizing present day retail has dependably been a vague region. With the end
goal of our store-level field review of present day retail outlets, all stores in a
shopping center have been considered as current retail constituents. On account of
retail locations on shopping avenues, we have considered the stores to be part of the
current retail field on the premise of the accompanying qualities:
The store gives a buy receipt

 The store is a perceived outside/national brand, or has aerating and cooling

As needs be, all cutting edge retail locations in shopping centers and on major
shopping avenues in the city have been reviewed on
parameters, for example, brand starting point, item class and
store size/zone. This report has caught a lot of stores (even if the statistics are
secondary) that are involved and operational. Empty retail space in shopping centers
or shopping boulevards has not been considered. The target of the study is to profile
the elements of present day retail over parameters, for example, item classifications,
brand cause, store size and income in shopping centers and shopping boulevards,
furthermore to give a review of the course of present day retail and its constituents,
viz. physical cutting edge retail and E-tail, for the following five years (20152019).
Accordingly, retailers will be the essential recipients of this original work.

The improvement of organized retailing in India has more to do with:-

the extending purchasing power of buyers, outstandingly,

post movement,
increase in thing grouping, and
the extending monetary parts of scale, with the aide of front line supply and
dissemination organization courses of action.
The present retailing upset has been given boost from different sources. These
progressives fuse various:
Conventional stores overhauling themselves to present day retailing.
Companies in focused situations entering the business sector straightforwardly to
guarantee restrictive perceivability for their items.
Professional bind saves up to address the issue of the producers who don't fall into
both of the above classifications.

Attractiveness, openness and moderateness appear to be the key offerings of the

retailing chain.

So now, lets talk about the history of retail sector or the history of retailing in India.

Retailing in India had begun with the idea of haats (week by week markets), where
the dealers assembled at an open spot to offer their products consistently and every
day of the week they accumulated at better place. Individuals went to these haats to
purchase some basic needs for next one week. Town fairs and melas were additionally
basic as they conveyed amusement esteem too. As time got scarcer and individuals
got to be entrepreneurial, then developed the kirana shops (markets) in the area. After
autonomy, there came a Public Distribution System for day by day necessities for
family utilization, which were administered at sponsored rates through the apportion .
Indian consumer basically relied on upon the disorderly retail looks for the majority
of their needs. This was to a great extent due to an advanced staple retail framework
that was set up by the kirana stores and accordingly kept on meeting all the every day
needs of clients. The Hawkers/lari-galla (push-truck) sellers and the nearby kirana
were the two primary types of disorderly retail in the nation, which roughly
represented 92% of the aggregate retail exchange (as per the report of KPMG in
2014). Gradually as the nation advanced on numerous fronts, the composed retail
appeared and the essential retail arrangements were of the selective brand stores,
hypermarkets, markets, retail chains and shopping centers. Bit by bit, the quantity of
retail locations went up and the thickness of retail in India was among most
noteworthy in the World. According to an anonymous researcher, the relative
thickness of retail locations was as recorded in Table A which reported the quantity of
customary kirana stores in India at 12 million, which was likely most noteworthy on
the planet.

Country

Store Density (Retail) on an average

India

11

stores/1000

persons

45 stores/1000 persons in Delhi

U.S.A

4 stores/1000 persons

U.K.

5 stores/1000 persons

Singapore

5 stores/1000 persons

[Source: Upendra Kachru. India : Land of Billion Entrepreneurs (2011)]

Now, comes the Third Part about the Size of The Retail Sector,
India's retail market is relied upon to almost twofold to US$ 1 trillion by 2020 from
US$ 600 billion in 2015#, driven by salary development, urbanization and attitudinal
shifts.While the general retail market is required to develop at 12 for every penny for
each annum, present day exchange would extend twice as quick at 20 for each penny
for every annum and customary exchange at 10 for each cent.

India's Business to Business (B2B) e-trade business sector is relied upon to achieve
US$ 700 billion by 2020 while the Business to Consumer (B2C) e business sector is

required to achieve US$ 102 billion by 2020.## Online retail is required to be at

standard with the physical stores in the following five years.

India is relied upon to end up the world's quickest developing e-trade market, driven
by strong interest in the part and fast increment in the quantity of web clients.
Different organizations have exclusive requirements about development of Indian ebusiness markets. Indian e-trade deals are required to achieve US$ 120 billion! by
2020 from US$ 30 billion in FY2016.Further, India's e business sector is required to
achieve US$ 220 billion as far as gross stock worth (GMV) and 530 million
customers by 2025, drove by quicker speeds on solid telecom systems, speedier
appropriation of online administrations and better assortment and in addition
convenience.

India's immediate offering industry is relied upon to achieve a size of Rs 23,654 crore
(US$ 3.51 billion) by FY2019-20, according to a joint report by India Direct Selling
Association (IDSA) and PHD.
[Source: ibef]

Everybody on the other end of the point of purchase which is, so huge in retail that
scaling it will be hilarious wants that piece of the pie. Yesterday, it was Organized vs
Unorganized with Organized seemingly winning and then came e-commerce beating
both the players and now it has gone down to E-Commerce vs Brick and Mortar vs
Unconventional (grabbing the shares as usual).

In the understudy layman language,

If we aint getting it online well purchase it offline and that highlights a huge factor
ie., options. Options is what consumer have while purchasing food, clothes or apparel

as they call it, lifestyle products (not the firm warning 2750 crore of revenue last
term but in the aspect of products). The fight still goes on but what one fails to notice
from this fight is the factor that it will take the sector to a growth of 20%.

Solid rivalry and moderately low-level of administration/item separation make it

critical to pick up economies of scale and accomplish sizeable mass to stay in front of
the associates. Thus,
Players are excited to extend in existing markets/enter new markets. This has
come about into furor in subsidizing and obtaining space too.
India's retail part has been undergoing basic changes throughout the previous two
decades. Shopping Malls, fixed with claim to fame retailers, began dabbing the retail
markets of the nation's top urban areas amid the mid-1990s. From that point forward,
the shopping center culture bit by bit swarmed the populace, particularly in the metros
and smaller than usual metros proclaiming the start of the current retail development
in India,

The pace of shopping center development was moderate amid the initial 5-7 years and
increased generous energy after that. The effect of the worldwide money related
emergency on the Indian economy in 2008 and 2009 checked this paced, and this
pattern proceeds with today. A shopping center's prosperity relies on upon different
variables and the quantity of effective shopping centers in the metros and smaller than
usual metros is much lower than those that are failing to meet expectations. Truth be
told, numerous shopping centers have closed down in the last couple of years.

10

The following enormous wave that has changed the horizon of the retail segment in
India and quickened the nearness of advanced retail is e-following, or the offer of
items and administrations through the web, phone and TV. This pattern began in 2010
and has ended up noticeable in the most recent 3 years.

11

PART 2 : SECTOR INFORMATION

12

SECTOR INFORMATION

India's retail market is required to almost twofold to US$ 1 trillion by 2020 from US$
600 billion in 2015, driven by wage development, urbanization and attitudinal
shifts.While the general retail market is relied upon to develop at 12 for each penny
for every annum, present day exchange would extend twice as quick at 20 for each
penny for each annum and customary exchange at 10 for each cent.

India's Business to Business (B2B) e-trade business sector is relied upon to achieve
US$ 700 billion by 2020 though the Business to Consumer (B2C) e business sector is
required to achieve US$ 102 billion by 2020. Online retail is relied upon to be at
standard with the physical stores in the following five years.

India is relied upon to wind up the world's quickest developing e-business market,
driven by hearty interest in the segment and fast increment in the quantity of web
clients. Different organizations have exclusive requirements about development of
Indian e-trade markets. Indian e-trade deals are relied upon to achieve US$ 120
billion! by 2020 from US$ 30 billion in FY2016.Further, India's e business sector is
required to achieve US$ 220 billion as far as gross stock quality (GMV) and 530
million customers by 2025, drove by quicker speeds on solid telecom systems,
speedier appropriation of online administrations and better assortment and also
convenience.

India's immediate offering industry is required to achieve a size of 23,654 crore

(US$ 3.51 billion) by FY2019-20, according to a joint report by India Direct Selling
Association (IDSA) and PHD.

13

Now, coming to the players in the retail sector.

The Brick and Mortar Players

The

E-Tail

14

Players

And lastly, the thousand and ten thousand something anonymous unconventional
players.

About some Brick and Mortar Players taking the top 5 companies we have:-

1 |Reliance Retail Limited

Corporate office Mumbai, Maharashtra | Establishment 2006 |

Business Retail | Website www.ril.com |

Dependence retail constrained was joined in 2006, a some portion of Reliance

ventures. The organization has been evaluated among the best retail organizations in
India. It offers finish retail arrangements, for example, nourishment things, way of
life, form, buyer hardware items, home ornamental items and so on. The organization
has a sum of 1500 outlets in the nation.

2 | Pantaloons Retail Limited

Corporate office Mumbai, Maharashtra | Establishment 1997 |

Business Retail | Website www.pantaloonsfashion.com |

15

It is a leader organization of Future gathering and one of the main retail organization
in India. The organization has more than 1000 outlets over the India and 35000
workers. Organization's brands incorporate Big Bazaar, sustenance Bazaar Brand
manufacturing plant, Top 10 and Sitara.

3 |Provogue India Ltd

Corporate office Mumbai, Maharashtra | Establishment 1997 |

Business Retail and Manufacturing | Website www.provogue.com |

It is a way of life and form organization which was built up in 1997. The
organization's putting forth incorporate men's wear, ladies' wear, form frill, attire and
various different items. It has more than 250 stores all over the nation and evaluated
among the top most trusted brands in India by trust explore council in year 2011.

4| Shoppers Stop

Corporate office Mumbai, Maharashtra | Establishment 1991 |

Business Retail | Website www.shoppersstop.com |

Shoopers Stop is a notable name in retail industry in India and positioned among the
top retail organizations in India. The organization is worked and oversaw by K Raheja
Corp Group and was consolidated in year 1991. It has add up to 61 stores in India and
offers national and universal brands of clothing, form and way of life.

16

5 | ITC - LRBD

Corporate office Kolkata, West Bengal | Establishment 1910 |

Business Retail | Website www.itcportal.com |

Way of life Retailing Business division is a chief dress retail organization in India
marking through Wills Lifestyle and John players. The Company has an enhanced
scope of business exercises in FMCG, Hotels, Paper board, Packaging and
Agriculture.

6 | Trent Ltd.

Corporate office Mumbai, Maharashtra | Establishment 1998 |

Business Retail | Website www.mywestside.com |

It is a completely claimed Tata assemble organization which was fused in 1998 works
under brand name of Westside, Star Bazaar, Fashion yatra and Landmark. The
organization offers Men's and ladies' footwear, beauty care products and mold frill
from their retail location situated in more than 30 urban areas in the nation though
Landmark store bargains in book and music business.

7 | McDonald's

17

Corporate office Oak Brook, Illinois, U.S | Establishment 1940 |

Business Restaurants | Website www.aboutmcdonalds.com |

McDonald is driving worldwide sustenance benefit supplier which has presence in

more than 130 nations around the world. The organization began India operation in
1996 and has more than 300 evolved way of life eateries in the nation. It is a Joint
wander with two Indian organizations in north and east and south and western district
individually.

8 | Aditya Birla Retail

Corporate office Mumbai, Maharashtra | Establishment 2006 |

Business | Website www.adityabirla.com |

Aditya Birla retail constrained is a backup of Aditya Birla assemble built up in year
2006 which possesses more than 500 stores and 15 hypermarkets. The organization is
evaluated as main 10 retail organizations in India and got prestigious Master mark
Award 2012 by World Brand congress in retail mark class.

Presently discussing the E-posteriors

Flipkart

18

Flipkart is a main e-trade organization and snatch the principal position after procure
myntra in an arrangement of $3.1 billion. Flipkart was begun by Sachin Bansal and
Binny Bansal in 2007 and inside 5 years organization has turned into the main ebusiness player of Indian market. Flipkart began with internet booking stores and later
on it has included devices, electron things and attire. In these 5 years Flipkart can
manufacture obligation of trust among purchasers and on account of this Flipkart has
accomplish shocking development.

Foundation 2007

Site: www.flipkart.com

Snapdeal

Snapdeal was begun by former student of IIT Delhi in 2010 and inside 3 years catch
tremendous share of Indian e-trade industry. Snapdeal has various item classifications
that incorporate books, mobiles, electronic things, attire and so on. At first it was
begun as markdown coupon site however to catch developing ecommerce advertise
Snapdeal has change their plan of action.

Foundation 2010

Site: www.snapdeal.com

Myntra

19

Myntra was set up by IIT graduates in 2007 and has headquartered in Bangalore.
Organization works in corner showcase space of clothes and has tie up with
noticeable brands.

Foundation 2007

Site myntra.com

HomeShop 18

HomeShop18 gives the office to track the request and frequently send item dispatch
status on versatile and inbox. Online installment choice through credit/platinum cards
additionally accessible on site. To fabricate sound association with corporate,
HomeShop18 offers substantial rebate on corporate gifting and mass arrangements.

Foundation 2008

Site: www.homeshop18.com

Yebhi

Yebhi.com is another notable ecommerce organization began in 2009 and inside 4

years turn into the set up player in ecommerce industry. Yebhi was begun as
BigShoeBazaar.com and after that changed its personality to Yebhi. After observed

20

the potential in this organization Nexus Venture Partners and N. R. Narayana

Murthy's Catamaran Ventures put 40 crore in this organization.

Foundation 2010

Site: www.yebhi.com

Caratlane

Caratlane is a main gems site in India that has item extend from Diamond Jewelry,
Rings, Earrings, Pendants, Bangles, Necklaces, Nose Pins, Mangalsutra and so on.
Caratlane offers 5 installment choices that incorporate

Money down Customer will pay once he get the item.

Visa Customers can pay from Mastercards connected with AMEX, Visa,
MasterCard

Platinum card Have the alternative to pay from MasterCard, Visa, Maestro charge
cards

Check/DD From check/DD clients can do the installment however for these
situation, organization will dispatch the item once the credit the check.

21

From the clients perspective, money down is the best choice since it is secure and
helpful.

Site: www.caratlane.com

ShopClues

ShopClues is another developing ecommerce organization which go about as a

commercial center amongst merchant and purchaser. ShopClues give conveyance in
more than 12,000 areas and offers installment alternatives like Net Banking, Credit
cards, Debit cards, and Cash Cards. In 2013 ShopClues granted Best eRetailer of the
Year by Indian eRetail Awards 2013

Site - www.shopclues.com

Tradus

Tradus is the online wander of ibibo Group and considered as a part of the main 10
ecommerce organizations of India. It has tremendous item go that incorporate
footwear, wellbeing and games, watches, versatile, tablets and PC parts and so on.

Foundation 1997

Site - tradus.com

22

Jabong

Established in the year 2012 at Gurgaon, Jabong is driving design entryway of India.
They offer more than 90,000 items, 200000+ Styles and more than 2000 national and
worldwide brands of design attire, shoes, adornments and home-stylistic layout. They
are extremely mainstream among youthful web clients who are searching for marked
garments and other mold items at reduced costs. They likewise have a global store for
the sake of "Jabongworld.com".

Site: http://www.jabong.com/

ebay India

eBay India is a 100% backup of global top online e-trade organization - eBay Inc.

Begun operations in 2014, They are among the greatest oversaw online e-trade
players in the market with more than 2.1 million dynamic clients from 4000+ urban
areas in India. They have more than 1.1 million live item postings on their gateway
crosswise over greatest 2,000 classifications of items. There are around 30,000
shippers offer their items yearly on their site. It is said that a restorative item offers at
regular intervals, a TV offers in like clockwork, an auto adornment offers at regular
intervals on their entryway.

Site: http://www.ebay.in/

Naaptol

23

Built up in the year 2007, Naaptol began as value comparision site. In 2009, they
began their online commercial center and pitched their items to clients on the web,
disconnected, daily paper advertisings and by means of TV shopping. Their site has
90,000 guests going to them and directing 5000 exchanges a day, which create day by
day offers of Rs.1.5 crores. Headquartered in Mumbai, they convey to all states and
UT in India. Infact, it was first e-trade organization that uses the administrations of
"India Post" for their item conveyances. suit.

Site: http://www.naaptol.com/

Infibeam

Begun in the year 2007, Infibeam is a main online retailer for gadgets, books, autos,
way of life and blessings in India. They began as vehicle entryway and later
transformed into web shopping retailers. Their site has greatest scope of 1.2 Crore
items crosswise over classifications. They likewise have their own coordinations arm
known as Infibeam Logistics, which conveys to all real Indian urban communities.
Headquartered in Ahmedabad, they have workplaces in Delhi, Mumbai and Bangalore
utilizing around 1300 in number experts.

Site: http://www.infibeam.com/

Limeroad

LimeRoad is India's driving internet shopping stage for design and way of life items
solely for ladies customers. They have around 200,000+ items on special and have

24

extensive variety of neighborhood seller coordinate with offering of nearby mold

items extending from Kurtis, Sarees, Salwar Suits, footware, frill, ladies totes and
totes, kitchen items and so forth. The site is famous among working ladies customers
and their top of the line items are kurtis which are implied for authority wear.

Site: http://www.limeroad.com/
Pepperfry

Built up in the year 2012, pepperfry is an online furniture and home stylistic layout
commercial center. They are unique in relation to other e-business destinations and
offer all kind of furniture to give clients

It is a well known and one of the recognized Indian based home items and furniture Etrade commercial center. Headquartered in Mumbai, India, it has been incepted in
year 2012 by prestigious and surely understood Ambareesh Murty. Prior, it has been
managing and offering items crosswise over way of life classes. As of late in year
2014, it presented its first physical store, named Studio Pepperfry situated in Mumbai.
Adding to this, it has its stores accessible around Gurgaon, Bengaluru and Kolkata.
With in-house names managing in the fabricate and supply of way of life based items,
it has tie-ups with numerous spearheading and well known Indian based brands, for
example, Nilkamal, Godrej Interio, @Home, Spacewood, Furniture Kraft, Durian,
Evok, Hometown, and numerous other worldwide furniture based brands. Managing
and giving individuals practically everything differing from furniture to dacor items to
lights to quaint little inn based things to kitchen items to decorations to housekeeping
to eating and bar to garden items to equipment and electrical and the sky is the limit
from there, the stage promisingly and effectively satisfied a million client arranges as
of late in year 2015. Till date, it has delivered items to more than 1000 urban areas the
whole way across the country, according to the details it has around 2.6 million
enrolled clients. With more than 5 lakh Facebook adherents, it has been housed with
around 17 satisfaction center points based all around the nation. The e-trade stage

25

trusts high in supporting manageability and empowers a positive carbon based

impression and for the same has effectively tied up with NGOs helping in developing
more number of trees to offer back to the nature and environment.

Amazon India

The US based e-trade monster Amazon has propelled its India operations in the year
2013. They began in India with set number of items and gradually they have caught
the market with their stunning offers on their broad lists. They have trader amazon
setup of plan of action, where in vendors will offer their items on their site with an
ostensible expense charges by the organization. Amazon will give conveyance
coordinations to these venders. They have developed truly quick in India and today
they have more than 25 million items available to be purchased on their site which is
bigger than their real competition Flipkart.

Site: http://www.amazon.in/

26

Part 3 :METHODOLOGY
E-tailing is opening the doors for modern retail in Tier-II and Tier-III cities.
- B.S. Nagesh , Trust for Retailers and Retail Associates Of India

27

METHODOLOGY

1. Introduction to the Topic

The Indian retail scene is among the most intricate over the globe, yet it offers
tremendous potential for the venturesome specialist. From the age-old kiranas or
mother and-pop stores, conventional retail in India offered approach to cutting edge
retail designs, which hoisted client experience to new levels. Presently, with a few
impetuses' at play, as recorded in our E-tail section, e-following or the offer of items
over media, for example, the Internet, phone and TV, has risen as a thought whose
time has come. I introduce this report in light of the industry's desires of a top to
bottom investigation of the changing present day retail scene in the nation. Taking
into account a mammoth essential study of more than 30,000 retail outlets, this report
catches the impression of 23 retail item classifications over the main three
metropolitan regions, to be specific Mumbai, Delhi & Bengaluru.

Structure of retail market profiling and investigation introduced in the report

India Level Examination

India level elements
Inter-city (3 urban areas) correlations
Product class astute (13 classifications) examinations

28

City Level Examination

City level elements
Inter-zone (5-8 zones) correlations
Product class astute (13 classifications) examinations

Zone Level Examination

Zone level elements
Product class astute (23 classifications) examinations

29

2. Literature Review
Characterizing current retail has dependably been an uncertain zone. With the end
goal of our store-level field review of cutting edge retail outlets, all stores in a
shopping center have been considered as cutting edge retail constituents. On account
of retail locations on shopping boulevards, I have considered the stores to be part of
the cutting edge retail field on the premise of the accompanying attributes:

The store gives a buy receipt

The store is a perceived remote/national brand, or has aerating and cooling

In like manner, all advanced retail locations in shopping centers and on major
shopping boulevards in the city have been overviewed on parameters, for example,
brand cause, item classification and store size/region. My review has caught all stores
that are involved and operational. Empty retail space in shopping centers or shopping
lanes has not been considered. The goal of the study is to profile the elements of
cutting edge retail over parameters, for example, item classes, brand starting point,
store size and income in shopping centers and shopping boulevards, furthermore to
give an outline of the bearing of present day retail and its constituents, viz. physical
advanced retail and E-tail
Product Types Analysed while collection of data
S.No.

Product Type at Country Product

Category

and City Level

Zonal Level

Apparel

Non Ethnic Menswear

30

at

Non Ethnic Womenswear

Non

Ethnic

Unisex

Clothing
Ethnic Wear
Kids Wear
2

Accessories

Accessories

Watches and Jewellery

Watches and Jewellery

Footwear

Footwear

Sportswear

Sportswear

Home and Lifestyle

Home and Lifestyle

Personal Care

Eyewear
Salons and Spas
Other Personal Care
Cosmetics

Food and Beverages

F & B Fine Dining

F& B Cafes
F & B QSR

Books, Gifts & Music

Books, Gifts & Music

10

Hyper/Supermarkets

Hypermarkets

and

Supermarkets
11

Department Stores

Department Stores

12

Electronics

Electronics

13

Entertainment

Family
Centres
Multiplexes

Some terms used in the Report

31

Entertainment

Brand categorisation of retail stores

Foreign Retail store claimed/worked by an outside national, eg. McDonald's, KFC,

Dominos
National Retail store present crosswise over India and claimed/worked by an Indian
national, eg. Bistro Coffee Day, Haldiram's
Regional Retail store present in various urban areas in one of the locales in the nation
and claimed/worked by an Indian national
Local Single retail location and possessed/worked by an Indian national

Physical current retail

Physical store offering items in the cutting edge retail organize.
Possessed present day retail space
Possessed or operational present day retail location.

Market sizing

a. Add up to retail spending - present day retail spending + non-current retail spending
b. Present day retail spending - physical advanced retail spending + E-tail spending

F&B QSR

32

QSR

Food and refreshment snappy administration eatery ie., Quick Service

Restaurants.
Shopping street
Associated stores with 40% or all the more retail and brand nearness
3. Importance of the Study
Now lets have a hierarchy of what has been going on in the Retail Sector of this
Country.

Technology
Digitization

It all used to be about

being technology
Came E-Tailing and
advanced back in 2010
the whole thing about
or 2011.
the market changed
with E-Tailing making
the Price Comparison
highly convenient for
the consumers

Omnichannel :)
Combining both and
hence consolidating to
meet the ever
intelligent consumers'
demands.

Omnichannel : The Next Step

Why this is critical: While retailing has certain shared characteristics, there are
remarkable examples by nation and society. The one unavoidable pattern worldwide
is that the omnichannel conduct of buyers is changing the eventual fate of retail until
the end of time.

33

India = An extraordinary business sector of 1.25 billion purchasers

By sheer numbers, India is the second biggest purchaser market on the planet. India is
genuinely a novel situation balanced for financial and retail development. Be that as it
may, the retail past of a large number of little shops is not the best indicator without
bounds for India's retail.

Much like China, India has super urban areas with millions and huge populace
thickness. Delhi is the third biggest city on the planet, with a populace drawing nearer
17 million. What's more, similar to China, India is an extensive nation with unlimited
regions of wide open, including bone-dry desert areas and the Himalayan Mountains.
This assorted qualities and broadness postures one of a kind difficulties too. India's
astounding differing qualities numerous think about India's swarmed urban areas
like Delhi, yet to the enjoyment of this picture taker there are still limitless timberland
jam where the last wild tigers wander indiscriminately.

Omnichannel versus Multichannel what's the distinction?

One of the takeaways from the OIC was extensive examination with respect to the
meaning of omnichannel and what it implies. Some of the OIC boards were centered
around characterizing the parameters of omnichannel, current state and how it will
change India's retailing. Steady with overall patterns, there is proceeded with level
headed discussion on whether there is any contrast between the expression
"omnichannel" and "multichannel." And, all the more significantly, are there any
qualifications that truly have any kind of effect?

Multichannel retailing is not new. Retailers have been utilizing lists, mail and
telephones to offer to shoppers past customer facing facades for quite a while. A great
part of the talk at OIC concentrated on the reality omnichannel goes past the

34

"channels" in which retailers offer. Shoppers today have remarkable capacity to shop
and assemble data from sources past retailers particularly from online networking
and sites.

Buyers today consider shopping to be an individual excursion of obtaining data and

settling on decisions, consistently crosswise over numerous sources. Omnichannel
alludes to "numerous," as well as a "ubiquity" or action by buyers day in and day
out/365. Regardless some contend its semantics, however OIC talks highlighted an
intriguing and valuable qualification:

Omnichannel depicts the buyer conduct of shopping at whatever time and all around.
Multichannel depicts how retailers must arrange to achieve today's omnichannel
shoppers.

Winds of progress in India retailing it's about the shopper!

By far most of India's 20,000 customer facing facades are still little "mother and pop"
shops. India's shoppers have truly been attracted to nearby dealers based upon trust
and individual connections. There are new open doors developing by means of
ecommerce that have opened purchaser's eyes to the broadness of choices accessible
on the web, regularly at much less expensive costs than what is accessible locally.

The development of India's major online player Flipkart, and in addition the nearness
of ecommerce goliaths like Amazon and Alibaba, makes quickly changing buyer
impression of decision and comfort. The shopper shopping voyage is all of a sudden
evolving from "store outings" to having the capacity to essentially snap to shop and
look at whatever time and all over the place. Like in whatever remains of the world, it
is the shopper's omnichannel shopping conduct that is driving retailing change.

35

Five elements making an "immaculate tempest" for omnichannel in India

As said already, India's directions and verifiable customer inclinations have brought
about a profoundly "sloppy" retail grid of numerous little shops. Also, under 10
percent of Indian customers use charge cards, which are an establishment for online
buys. Accordingly, online represented around 1.4 percent of shopper retail deals in
India a year ago. Things being what they are, the reason all the complain about
omnichannel in India?

Just put India's buyers are quickly entering a period of being engaged to shop and
buy where they need, how they need, and where to take conveyance on their terms.
Once engaged, customers don't do a reversal.

There are no less than five key components that are making the "ideal tempest" for
unstable omnichannel development in India.

Changing retail controls Government directions have changed in ways that now
empower outside speculation, national retail location networks, and new national
ecommerce retailers. Thus India's major online player, Flipkart, is presently
developing in twofold digits. Amazon and Alibaba are currently putting intensely in
tapping the second biggest buyer market. There is in no way like the limitless cluster
of items online to open buyers to the estimation of omnichannel decision.
Extraordinary costs with day in and day out access fortifies purchaser shopping at
whatever time and all over.

Cell phone development Like Asia, India is a country of cellular telephone clients.
India's shoppers will probably own a cell phone than a PC. A cell phone is truly the

36

new entry for ubiquity shopping at whatever time and all over the place. Cell phones
are the entry for internet shopping, as well as the essential way customers scan
various hotspots for data, and connect with on online networking about patterns and
items.

COD and installment choices While India have verifiably not trusted banks and
have opposed utilizing Visas, ecommerce and illuminated store based retailers have
quickly developed money installment endless supply of the buy.

Snap and Collect alternatives Omnichannel is about the development of more

channels, as well as how to upgrade the client experience, choices and adaptability
crosswise over channels. At OIC, not just did John Lewis introduce a contextual
investigation of snap and gather at store choices in the U.K., however Puma talked
about how they are quickly trying snap and gather alternatives, and additionally
offering direct from stores crosswise over India.

Mind blowing "last mile" conveyance in hours India has a portion of the densest
urban communities on the planet, with ghastly movement that opponents San Paulo,
Brazil. I can actually affirm that it can take hours to travel 5 kilometers in Bengaluru!
However, Amazon simply reported their "Now" benefit in Bengaluru, which gives
vital family things in less than two hours! How would they do that? The bicycles and
auto rickshaws have a mind blowing capacity to get past activity to make
conveyances to your entryway quicker than in the U.S.

Let's get straight to the point, India is not without its difficulties. India is a colossal
nation with unlimited rustic regions where snap and gather may be incomprehensible,
and conveyance will take days not hours. Yet, on a fascinating side note, ramble
conveyance is as of now being tried in rustic regions of China.

37

The key detract from India is much similar to whatever is left of the world
shoppers are driving the change, not the retailers. The subject of which retailers will
survive is to a great extent a matter of retailer's dedication and capacity to develop in
multichannel ways that best serve the changing desires of today's enabled
omnichannel buyers, who progressively anticipate that alternatives will have it their
way at whatever time and all over the place.

As we can see, Omnichannel has given a huge blow to both Brick and Mortar and ETailing by actually having advantages of both.

So we can say,

Use
Technology

Go Online

Be
Omnipresent

Since pictures represent the situations better here is an example:-

38

By 2020, we can say that

39

The omnichannel retail model will undoubtedly affect the physical retail space.
Shopping centers and stores inside will need to adjust to the changing buyer
prerequisites. Shopping at a shopping center won't be a need in the coming years.
Buys can be made anyplace and whenever easily and at the purchasers' comfort. Thus,
shopping centers need to give a great deal more than shopping to have the capacity to
draw in clients. Shopping centers will must be rebuilt or modified into amusement
focuses, offering more spaces to mingle, host occasions and shows and give sufficient
F&B alternatives.

The e-tail wave had hit different nations before India and there are a few illustrations
wherein shopping centers have been repositioned to oblige the advanced needs of the
purchasers. Amplified and developed spaces for diversion and F& B is the pattern
steady over all nations.
And thus, follow the illustrations:Madrid Xanadu, Spain
A huge mall featuring go karts, bowling, balloon rides, billiards and ski slope.

West Edmonton Mall, Canada

Boasts of miniature golf courses, one of the worlds most huge amusement park, and
underground aquarium.

Mall Of America, Minnesota US

The mall has a museum specially made for dinosaur walks, a theme park and an
underwater aquarium.

40

One truth can't be denied ie., comparable changes are taking spots in the Indian
Market too. The offer of diversion and F&B in the general shopping center space
beforehand ran between 8-9% and has developed to 15-20%. Various existing
shopping centers, for example, Inorbit and Oberoi in Mumbai, DLF Promenade and
Mall Of India in NCR, have deliberately cut out more space for excitement and F& B.

Also, various new shopping centers in Bengaluru, for example, Brigade Orion and
Pheonix Market City, have assigned generous space for family amusement focuses
(FECs). One of the most recent augmentations to India's shopping center rundown is
DLF Mall of India, Noida, where the share of these two classes is as high as 40%.
Also, one can say,

Development

Consistent
Integration

Restoration of
Existing Brick
and Mortar
Spaces

Associations

41

India's retail market is relied upon to develop manifold in the following five years.
With the right backing from the administration, cutting edge retail will witness
colossal development and climb the development bend. The omnichannel model,
which concentrates on the client will be the key, as client mindfulness prompts higher
desires, comfort being the essential variable.

It could be as associations, or mergers and acquisitions. Physical spaces will need to

rehash, with an emphasis on shopper experience. The current shopping centers, which
are either confronting challenges or were closed down as of late, can be resuscitated if
the essential things are set up, ie., a great area, plan and suitable size.

Retailers need to advance keeping in mind the end goal to take into account the
shopping needs of the new age purchaser who has restricted time and a plenty of
choices to look over. The retailer procedure has additionally to accept into record the
open door for associations the whole business needs to function as a biological
community. Some of this is now being done-Shoppers Stop understood the
requirement for an online nearness and improved it by going into an organization with
Snapdeal to reach to more buyers.

42

Part 4 : Research Methodology

We look forward to the government facilitating retail growth in India, with suitable
policies and the required infrastructure.
-

Kishore Bhatija, Managing Director, Real Estate Development, K. Raheja

Corp.

43

RESEARCH METHODOLOGY
Research Design
The type of Research Design this Research Project is using is Descriptive and it
describes the situation of the modern retail market by using statistics from various
organizations to observe the scenario of the Modern Retail Market and reach a
conclusion.
The nature of my Research Design is flexible since more freedom was given in
collecting the data in the situations .

At the same time, the Research Design is also Quantitative in Nature since it comes to
different results through analysis from different graphs and tables that required
quantitative data to design.

44

Sources Of Data

Due to time being a limitation the source of data was secondary and was collected
from various organizations, them being :Walmart
IBEF
Retailers Association Of India
Euromonitor International
Landmark Group

45

Population
The population in this report is the population of the top three
metropolitan cities in modern retail ie., NCR, Mumbai and Bengaluru.
The population of the three cities appeared to be :-

Population in 2015-16 (in Millions)

30
25
20
15

Population in 2015-16 (in

Millions)

10
5
0
Mumbai

NCR

Bengaluru

46

Part 5 : Data Analysis and Interpretation

The mall business is a unique cusp between an FMCG business and
Services Sector.
- Pushpa Bector
Executive Vice President
Head, DLF Mall Of India

47

Data Analysis and Interpretation

As said earlier, that the scale of analysis will be around three cities or regions.
So firstly lets focus on the Customer Base
This is the Population of all 3 cities in 2001
18

Population in 2001

16
14
12
10
8

Population in 2001

6
4
2
0
Mumbai

NCR

Now looking at the population in 2011,

48

Bengaluru

Population in 2011
25

20

15
Population in 2011
10

0
Mumbai

NCR

Bengaluru

Growth from 2001 to 2011,

Decadal Growth
50.00%
45.00%
40.00%
35.00%
30.00%
25.00%

Decadal Growth

20.00%
15.00%
10.00%
5.00%
0.00%
Mumbai

NCR

Bengaluru

49

And now, the Population in 2015,

Population in 2015-16 (in Millions)

30
25
20
15

Population in 2015-16 (in

Millions)

10
5
0
Mumbai

NCR

Bengaluru

Customer Base : Bengaluru

Throughout the years, Bengaluru has developed as a looked for after retail advertise ,
with a few outside and national brands setting up their stores in the city. The city
houses extensive organization retail shopping centers, focusing on both the
extravagance portion and esteem customers, while accommodating present day retail
space in shopping lanes too.

Filled by the coming of the IT/ITeS part, which saw the expansion of countless from
different districts, Bengaluru is the third most crowded city of India today, supporting
an assorted demography.

Amid the most recent decade (2001-2011) the populace development was seen to
have been critical, at a decadal development rate of 33%, which was generously
higher than the development seen in the Mumbai Region.
Customer Base : Mumbai

50

With a populace base of 22mn, Mumbai is one of the greatest urban agglomerations in
India. Amid 2001-11, the populace expanded at decadal development rate of 24%,
which is a bit lower than other urban focuses of the nation.
All things considered, Mumbai remains the monetary capital of the nation and is the
center point for managing an account, money related administrations and protection
(BFSI) organizations in India.
The sheer size of the locale as far as populace and its financial profile make it a
standout amongst the most essential retail advertises in the nation. Almost 57% of the
city's populace includes family units gaining above 300,000 per annum.
Customer Base : NCR
Presently, discussing NCR, it is one of the real retail centers in the nation. The
business sector's noticeable quality rises up out of its assorted qualities in demography
and lifestylr, which has hugy affected molding its retail business.

NCR's development was filled significantly by the development in the administration

business, which opened up boundless openings for work in the locale, prompting
colossal movement from its neighboring states.

Among the main three urban areas, NCR has encountered the most elevated decadal
development of 47% somewhere around 2001 and 2011, and is evaluated to have a
populace of 24 million starting 2016. A generous 48% of the city's populace involves
family units acquiring above 300,000 per annum. An expected 11.4 million
individuals have made the top level augmentation to NCR's cutting edge retail
advertise.

Populace Crosswise over Household Income Brackets

51

According to the Retailers Association of India,

a) Bengalurus total Population stands at approximately 10 million as of January
2016.

% Share of Population
30%
25%
20%
15%
% Share of Population
10%
5%
0%
more than 75k to
75k
150k

150k to
300k

300k to
500k

500k to more than

1000k
1000k

As we can see, 5.2 million people, comprising of 54% of Bengalurus population,

earn more than 3,00,000 per annum and contribute the most towards modern retail
growth.

b) According to Retailers Association Of India, Mumbais population stands at

24 million in January 2016.

52

% share of total population

30%
25%
20%
15%
% share of total population

10%
5%
0%
more
75k to
than 75k 150k

150k to 300k to 500k to

300k
500k
1000k

more
than
1000k

c) According to the Retailers Association Of India, NCRs population in January

2016 stands at 22 million.

%share of total population

25%
20%
15%
10%

%share of total population

5%
0%
more
75k to
than 75k 150k

150k to 300k to 500k to

300k
500k
1000k

more
than
1000k

As we can see, 11.4 million people, comprising of 48% of NCRS total

population earn more than 3,00,000 per annum and contribute the most
towards modern retail growth.

53

MARKET SIZE

In defining the market size certain parameters were taken, them being:a) Total Consumption Expenditure in 2015 ( Billion)
b) Per Capita Consumption Expenditure 2015 ()
c) Total Retail Expenditure 2015 ( Bn)
d) Per Capita Retail Expenditure 2015 ()
e) Total Modern Retail Expenditure 2015 ( bn)

Firstly, analyzing the Total Consumption Expenditure we get,

Total Consumption Expenditure in 2015 (

bn)
4,500
4,000
3,500
3,000
2,500
Total Consumption
Expenditure in 2015 ( bn)

2,000
1,500
1,000
500
0
Mumbai

NCR

Bengaluru

Second comes the Per Capita Consumption Expenditure in 2015 (in )

54

Per Capita Consumption Expenditure 2015

( )
2,50,000

2,00,000

1,50,000
Per Capita Consumption
Expenditure 2015 ( )

1,00,000

50,000

0
Mumbai

NCR

Bengaluru

Thirdly, we analyze the Total Retail Expenditure 2015 ( bn)

Total Retail Expenditure 2015 ( bn)

1,400
1,200
1,000
800
Total Retail Expenditure 2015 (
bn)

600
400
200
0
Mumbai

NCR

Bengaluru

55

At number four comes the Per Capita Retail Expenditure 2015 ()

Per Capita Retail Expenditure 2015 ()

80,000
70,000
60,000
50,000
40,000

Per Capita Retail Expenditure

2015 ()

30,000
20,000
10,000
0
Mumbai

NCR

Bengaluru

Lastly, we analyze the Total Modern Retail Expenditure 2015 ( bn)

Total Modern Retail Expenditure 2015 (

bn)
300
250
200
150

Total Modern Retail

Expenditure 2015 ( bn)

100
50
0
Mumbai

NCR

Bengaluru

56

Market Size: Bengaluru

The Bengaluru retail market is described by a reasonable dissemination of
present day retail, to a great extent affected by rising shopper salary levels. I
have measured the city's client spending to get a comprehension of the
aggregate utilization consumption design.

A key perception in such manner is the city's higher per capita utilization
consumption.

With a developing populace base, the aggregate utilization use in Bengaluru is

on the heels of NCR and Mumbai, and stands at 2,020 bn.

While the city lingered behind NCR and Mumbai in all out utilization and
aggregate retail use, it developed as the locale with the most elevated per
capita utilization use and per capita retail use. Its per capita retail use stands ar
67,289.

Market Size : Mumbai

Mumbai is frequently anticipated as a standout amongst the most costly urban
areas in India. The Mumbai area has the most astounding utilization
consumption in the nation, and stands at 4,113 bn. As far as volume it is
about twofold of Bengaluru's utilization consumption.

The Mumbai Region additionally leads regarding absolute retail use. At

1,214 bn, the area adds to about 29% of the aggregate retail use in the nation.
Such high retail consumption is a major open door for retailers, and is one the
reasons why numerous worldwide brands want to open their stores in Mumbai.

Regardless of having the most astounding retail consumption, the Mumbai

market falls behind NCR as far as advanced retail entrance. The Mumbai
advanced retail advertise size stands ar 164 bn. Indeed, even today, Mumbai
has various non-present day shopping roads. A significant high volume of
retail spending happens in these conventional shopping zones.

57

In like manner, the per capita current retail spending in the Mumbai Region is
far underneath that of Bengaluru and NCR.

Market Size: NCR

Impelled by surging family unit livelihoods and other financial elements,
customer spending is expanding at a quicker pace in NCR.

In spite of a bigger populace base, the aggregate utilization use in NCR is not
as much as Mumbai and stands at 3,494 bn.

NCR is a nearby second to Mumbai in the aggregate retail consumption too.

Together, both urban communities represent more than 59% of the retail
utilization pie of the main seven urban areas.

Nonetheless, NCR surpasses Mumbai and Bengaluru in the aggregate cutting

edge retail expenditure.NCR advanced retail showcase size stands at 269 bn.

Nonetheless, NCR's per capita cutting edge retail consumption is considerably

lower than Bengaluru.

58

Part 6 : Results and Findings

Every business has its own strategy to move forward.
- Kamal Tandon
COO, Nalli

59

RESULTS AND FINDINGS

MODERN RETAIL POTENTIAL : BENGALURU

The yearly present day retail capability of the F&B classification in Bengaluru is
around 34bn.
The entrance of current retail in the fine eating classification is the most astounding in
Central Bengaluru, which houses various fine feasting choices, creating more business
than the aggregate retail spending of the catchment populace. This might be attrivuted
to the spending from different districts too.
The abundance of F and B bistro and Quick Service Restaurants in East Bengaluru,
the greater part of which are in shopping centers, has driven them to secure sound
cutting edge retail showcase sizes. The business produced in these fragments is to a
great extent represented by the workers of the various IT anticipates in Whitefield.
The potential for the general F& B fragment in South and West Bengaluru is
evaluated to be 9 bn and 13 bn per annum, individually. The advancement of more
f and b choices found essentially in shopping center spaces, and a spending populace
base are required to use this open door in these zones.
Characterizing present day retail has dependably been an uncertain exercisem and,
with the end goal of this concentrate, all stores in a shopping center have been
considered as current retail constituents. On account of retail locations on shopping
avenues, stores that give a buy receipt, and have a fundamental structure and aerating
and cooling have been considered as current retail.

60

MODERN RETAIL POTENTIAL : MUMBAI

The entrance of current retail is to a great degree low in Mumbai, principally due to
the indiscriminate and chaotic retail advertises over the city. A portion of the greatest
shopping regions in Mumbai, for example, Crawford Market, Lamington Road, and
so forth are still non-present day, not at all like NCR and Bengaluru, where shopping
boulevards are changing into cutting edge retail goals.
The present business sector size of cutting edge retail in Mumbai remains at 164 bn,
showing a generously low infiltration of advanced retail in the area (13.5%),
contrasted with numerous urban areas in developing economies. In the meantime, the
retail consumption of Mumbai at 1,214 bn, showcase the locale's potential for cutting
edge retail in the coming years.

The capability of cutting edge retail in Mumbai remains at an expected 1,050 bn.

Somewhere around 2015 and 2019, the cutting edge retail showcase size in Mumbai is
required to develop at a CAGR of 23%, from 164 bn in 2015 to more than 381 bn
in 2019.

61

MODERN RETAIL POTENTIAL : NCR

Characterizing current retail has dependably been equivocal, and, with the end goal of
this concentrate, all stores in a shopping center have been considered as cutting edge
retail constituents. On account of retail locations on shopping boulevards, stores that
give a buy receipt and have an essential structure and aerating and cooling have been
considered as present day retail.

Around, 59% of the cutting edge retail locations in NCR are on shopping boulevards
and the rest, in shopping centers. Be that as it may, because of confined store sizes,
the space possessed by present day retail locations in shopping centers is a great deal
all the more, taking up 57% of NCR's aggregate current retail space.

The aggregate utilization consumption (which incorporates rent, transportation,

utilities, training, therapeutic and protection) in NCR remains at 3,494 bn, of which
1,047 bn contains the aggregate retail use.

The present business sector size of cutting edge retail remains at 269 bn. Since the
entrance of cutting edge retail in NCR is considerably low (26%) when contrasted
with numerous urban communities in rising economies, NCR has a colossal potential
to expand its offer of advanced retail in the aggregate retail market of the city.

62

The capability of present day retail in NCR remains at 779 bn.

63

Part 7 : Conclusion
A product with better distribution
will always win over a superior
product with poor distribution or
customer access. Its not fair. Its
not right. But its reality."
Stephen Davis

64

CONCLUSION

Bengaluru has the highest per capita annual modern retail expenditure, at 16,191,
across all seven urban centres, making it an ideal catchment for retail.
The city has a potential for 486 bn of modern retail, which augurs well for the
growth of modern retail.
52 % of the total spending in modern retail in Bengaluru is contributed by apparel,
F&B, entertainment and daily needs (super/hypermarkets)
46 bn is the estimated annual modern retail potential in apparel in Bengaluru.
Growing at a CAGR of 16 %, Bengalurus total retail spending is projected to
increase from 640 bn in 2015 to 1,155 bn in 2019.
Modern retail penetration is set to increase from the current 24% to 50 % by 2026.
The annual modern retail potential for daily needs in the city is estimated to be
234bn.
On the other hand, Mumbai has the second largest customer base for retail across
India, making it an ideal market for retail development.
At 1,050 bn, Mumbai has the highest potential for modern retail in the country. The
region offers big opportunities for retailers across all four product cateogires- apparel,
F & B, entertainment and daily needs.
There is market potential of 70 bn in the F & B category in Mumbai.
Beating both Mumbai and Bengaluru, NCR has the largest customer base across
India making it an ideal catchment for retail.
It has a 779bn potentital for modern retail, making it second only to Mumbai, which
has a potential of 1,050bn.

65

Modern retail penetration in NCR is set to increase from the current 26% to 50% by
2028.
NCR could be called the Mall Capital Of India as it houses 69 operational malls
across its six zones- Delhi, Gurgaon, Noida Ghaziabad and Faridabad.
Mumbai on the other hand, has 33 operational malls, A number of malls have shut
down in the last two years. While Mumbai ranks second in the country in terms of
mall space, it lags when compared to population density.
Thirdly, Bengaluru has witnessed a relatively gradual and lower concentration of
malls compared to NCR and Mumbai. Mall development, which commenced in the
central and off-central locations of the city has now spread to the peripheral locations
as well. At present, Bengaluru has 26 malls, adding up to approximately 9.3 million
sqft of modern retail space.
etailers around the globe are beginning to change their associations with their clients
by offering an omnichannel shopping knowledge. With the omnichannel approach,
customers can settle on their buys by means of their selection of offers settings: They
can channel-bounce among online and physical stores, cell phones, tablets, online
networking, call focuses, and email, for instance. This gives purchasers more
approaches to shop and connect with a retailer, more data about items or
classifications of items that intrigue them, and more prominent item accessibility. In a
perfect world, retailers are compensated with more lucrative associations with their
clients and a more profound comprehension of client conduct and inclinations
alongside the opportunity to target item proposals and rebate or limited time battles
straightforwardly at individual purchaser needs.

To assess the ways that omnichannel shopping is starting to redraw the retail scene,
Strategy& directed an investigation of omnichannel's market entrance and potential in
19 nations or areas. With the information we got from industry sources (see
Appendix), we developed the Global Omnichannel Retail Index, which surveys
omnichannel status in nine retail fragments inside each of the 19 nations or areas. The
list sets a rating for every nation on a size of 1 to 100 taking into account four
measurements: purchaser conduct, level of digitization, omnichannel potential, and

66

base. A portion of the list's decisions are surprising; for instance, China is number one
in both the omnichannel basic need section and the omnichannel attire and footwear
fragment. Different results are more natural: It is no awesome amaze that the main
three omnichannel nations the U.S., the U.K., and Australia are e-business
powerhouses. In any case, we trust that the majority of the file's discoveries will be
amazingly valuable to retailers in deciding future vital methodologies, paying little
heed to whether their omnichannel cooperation status can be portrayed as standing
out, falling behind, not yet prepared, or going to make a plunge.

Informative supplement: The Global Omnichannel Retail Index Methodology

The Global Omnichannel Retail Index was produced as a method for measuring
omnichannel retailing development, nearness, and achievement in 19 nations and
locales and in addition in nine retail fragments. The file depends on an appraisal of
four separate measurements:

Shopper conduct: how much clients in the particular nations as of now satisfy their
retail buys through an omnichannel approach, e.g., Web-to-store or store-to-Web.
Information focuses are accessible per nation and retail fragment. The first values are
scaled to 0100 and weighted at 40 percent of the general list. (Information source:
PwC Total Retail Study)

Level of digitization: the level of offers channel digitization. Values depict the
consolidated share of Internet and versatile buys in the particular nation and retail
portion. Qualities are scaled to 0100 and weighted at 20 percent of the general file.
(Information source: Euromonitor)

Omnichannel potential: the development capability of Internet and versatile retailing.

Values depict the normal anticipated CAGR for both Internet and portable deals

67

entrance between the years 2012 and 2016. The qualities are scaled to 0100 and
weighted at 20 percent of the general record. (Information source: Euromonitor)

Base: The entrance of omnichannel gadgets and administrations in the particular

nation. This metric comprises of four submetrics: broadband infiltration as a rate of
family units, in addition to versatile, cell phone, and tablet entrances as rates of
populace. The level of digitization is inferred as the normal of these four submetrics,
scaled to 0100, and weighted as 20 percent of the general record. (Information
source: PwC Global Media and Entertainment Outlook)

The examination was directed all through 2015 and depends on 2014 information.
The file evaluated the accompanying nine retail fragments: purchaser hardware and
machines, clothing and footwear (counting sports gear/open air), media items,
housewares and home decorations, individual frill and eyewear, do-it-without
anyone's help and home change, staple, customary toys and recreations, and
magnificence and individual care (counting customer social insurance).

The examination inspected the accompanying 19 nations or locales for omnichannel

movement: United States, United Kingdom, Australia, Denmark, Canada, China,
Belgium, Japan, Middle East, France, Italy, Germany, Russia, Switzerland, Chile,
Turkey, India, South Africa, and Brazil (requested by positioning). Nation scores are
inferred as non-weighted midpoints over all retail fragments.

Buyers need a decision of shopping channels

PwC's 2015 study of customers in 19 nations uncovered that shoppers need what they
need when they shop.1 Those requirements incorporate appealing costs;
accommodation; awesome client administration; and snappy, if not prompt,
satisfaction. Prior to the development of e-business and particularly before portable

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trade, buyers infrequently got the full bundle in one shopping knowledge; in any case,
the development of e-business has encouraged a change that goes well past Web buys.
In a significant number of the biggest deals classifications, retailing is in the throes of
transforming from a solitary channel, solely online or disconnected movement into a
more multifaceted omnichannel scene that gives purchasers numerous more
alternatives for shopping.

In this new environment, purchasers can channel-bounce among online and physical
stores, cell phones, tablets, and online networking, to give some examples of the
developing cluster of potential outcomes. Omnichannel retailing permits them to
choose the channel that is most advantageous for making buys, perusing item audits,
looking at components and costs, and getting client bolster. For instance, an
individual can shop online for a TV with the elements she is searching for at the value
she needs to pay, read surveys from different shoppers who have as of now bought the
model, then save the thing to purchase later. In this manner, she can go to the store to
see the TV firsthand, buy it with a versatile application on her cell phone, and have it
conveyed to her home inside hours.

Retailers accomplish critical advantages from omnichannel shopping too. They pick
up a complete picture of individual clients and their inclinations by consolidating
information and bits of knowledge got through purchaser exercises crosswise over
channels. This investigation helps retailers better comprehend client conduct and
wishes, which permits them to create and convey deals and limited time substance and
item suggestions focused at their prompt needs. Thusly, these omnichannel projects
can create noteworthy picks up in transformation rates and buys. Sports attire supplier
Peak Performance, similar to a few different retailers, has an omnichannel technique
that incorporates a possibility for the client to arrange on the web, then have the thing
transported from an adjacent store.

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Some outstanding retail organizations have created fruitful ways to deal with this
better approach for shopping. Croma, for instance, blended its online and
disconnected divisions in 2014, so that the same group regulates promoting,
arranging, and advertising for its physical stores and its e-business. All things
considered, on a worldwide premise, the lion's share of retailers have not completely
grasped omnichannel conveyance in this way. Some of their hesitance needs to do
with the hindrances they should overcome to actualize the technique. First and
foremost, they need to contribute huge capital in advance to incorporate front-and
back-end frameworks and operational techniques and to reallocate assets to the new
plan. Similarly vital, the storehouses that are common in numerous retail firms an
online/disconnected/online networking isolate that prompts channel-driven conduct
must be dispensed with and supplanted by another client driven, channelfreethinker retail display. In the meantime, the greater part of buyers we concentrated
on in our exploration said that having numerous channels is something they have
come to esteem in the shopping background channels should, as much as possible.
Retailers hazard surrendering different roads of client development to their more
forceful rivals on the off chance that they don't oblige this shopper desire.

In the Strategy & Global Omnichannel Retail Index, every market and portion was
assessed with four particular measurements:

Purchaser conduct: how much clients in the particular nations or districts as of now
satisfy their retail buys by means of an omnichannel approach, e.g., Web-to-store or
store-to-Web rather than unadulterated online or immaculate disconnected shopping

Level of digitization: the level of offers channel digitization inside a market

Omnichannel potential: the normal compound yearly development rate (CAGR) of

Internet and also portable retailing

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Foundation: the infiltration of omnichannel gadgets and administrations, for example,

versatile applications, cell phones, and tablets
Developed omnichannel markets have a tendency to be comparable in having
advanced and flourishing computerized channels, which typically incorporate set up
immaculate e-rears that drive disconnected players to venture into an omnichannel
setting. For sure, for retailers themselves, three conditions are basic to the
accomplishment of omnichannel methodologies:

Improved mechanical framework.

This incorporates systems administration and correspondence advances, for example,
broadband portable Internet and cell phone entrance; area based administrations for
offering arrangements and advancements to clients important to where they are;
modern applications that give top to bottom item and estimating data, client audits,
and examination shopping; practical versatile installment arranges; and purchase instore/ship-to-client and also snap and-gather abilities.

High client desires.

At the point when shoppers request "the best of both universes in both universes,"
they expect a disconnected segment that gives individual item guidance and proposals
and

moment

item

accessibility joined

with

an

online

part

that

offers

straightforwardness as far as stock and evaluating, client surveys, basic item

examination highlights, and advantageous and solid transportation and installment
programs.

71

Retailer status.
To receive the omnichannel display, retailers require a progression of qualities that a
considerable lot of them have not yet viably grasped, including a corporate culture
that treats online and disconnected business and deals techniques as a solitary
element; the merger of hierarchical units and destroying of storehouses; the
harmonization of frameworks and investigation; the advancement of inventive and
convincing ideas, apparatuses, and applications for consistent channel move; and
coordination into the application biological communities famous among purchasers

In spite of the fact that omnichannel conveyance is making solid advances in

numerous retailing fragments, the procedures are still in their early stages. In any
case, as innovation proceeds with its quick propel, the refinement, comfort,
inventiveness, and estimation of omnichannel methodologies will increment also.

Most importantly, the broadening nearness of cell phones and the extended utilization
of portable systems as e-business motors will serve as impetuses to a mixed
online/disconnected retailing knowledge. Buyers will vote with their cash, shopping
with the retailers that best address their inclinations for the best of the advanced and
physical environment. What's more, as the lines amongst online and disconnected get
to be vague, omnichannel retailing will just be the way we shop; it will be universal
and no more a differentiator. It will be what retailers must do to be beneficial.

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73

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