Total Retail Market 07

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 85 81 55 40 30 20 3 15 19 45 60 70 80 97 Unorganized Organized

Source : Ernst & Young Retail Report

Total Indian Retail Market

06 07 08 (INR billion) (INR billion) (INR billion) Organized Value %Change Unorganized Value %Change Total Value %Change 12,000 11,450 550 783 29.8 12,517 8.5 13,300 9.7 1,120 30 13,680 8.5 14,800 10.1

Source : Images @ F&R Research

30 % 35% of total organized retail

25%-30% of total organized retail

15%-20% of total organized retail

15%-20% of total organized retail

Source : www.scribd.com

Geographic Segmentation in Major Cities

26%

30% Delhi & NCR Mumbai Hy eraba Pune Banglore Tier 2 cities

5% 5% 7% 27%

Source : In ian Reality News, 2007

Ahmedabad Bangalore Chennai Kolkata derabad Pune Mumbai Delhi 0 50 100 150 Source : Indian Realit News, 2007 Gross leasable area(mn. Sq. ft.) No. of malls

Growing Young India (population in million)

2020 2015 2010 2005 2000 0 200 400 600 800 1000 Source : India Census Over 65 15-64 under 15

Retail Sector Segment Analysis

Mono/Exclusive retail shops

Multi-Branded retail shops

Convergence retail outlets

Exclusive Showrooms Owned or franchised

Focus on particular product categoriesmostl Branded

Convergence, Consumer Electronics including IT & communication

Complete range of Brands with certified qualit

Customers get to have more choices as man brands are on displa

1 stop shop for customers, man product lines of different Brands

Modern Retail Formats

Malls Discounters Department Stores Cash and Carr Supermarkets permarkets Destination Stores

Sub-segment Analysis
Total Market Retail Segments Food & Grocer Clothing& Acess. Jeweller Consumer Durables 2006 2007 Growth 2006 07>06 (%) 6.5 15.7 15.3 19.5 5,800 21,400 1,680 5,000 Organized Retail 2007 Growth 07>06 (%) 55.2 39.3 36.9 42.0

7,43,900 1,13,500 60,200 48,100

7,92,000 1,31,300 69,400 57,500

9,000 29,800 2,300 7,100

Source : Images @ F&R Research

Sub-segment Analysis
Total Market Retail Segments 2006 2007 Growth 2006 07>06 (%) 25.1 15.6 11.9 3,940 1,100 3,700 Organized Retail 2007 Growth 07>06 (%) 44.7 40 35.1

Out-of57,000 home food Pharma Products omeoffice Furniture & acess. Mobile andsets &acess. 42,200 40,650

71,300 48,800 45,500

5,700 1,540 5,000

21,650

27,200

25.6

1,740

2,700

55.2

Source : Images @ F&R Research

Major Players
PANTALOON RETAIL as man firsts to its name in the Indian market ometown - a one-stop-shop for all home requirements Sports Bar A sports theme restaurant with game courts and screens for match views ealth Cit A value segment targeted spa and beaut care venture Setting benchmarks for new pla ers S OPPERS STOP Established in 1991 with its flagship store 100 Retail outlets spread across 1.1 mn sq ft. Private labels account for more than 21% retail revenues Strategic partnership with international retail pla ers like Mothercare Plc Britian. Aggressive expansion plans for coffee bars & bookstores

Major Players
TATA TRENT Ltd. Established in 1998 Revenues : US$ 53 mn for 06-07 Retail sector activit Apparel, books & music Future plans : New venture Infiniti Retail Ltd. Principal fascia : Westside, Landmark, Star India Bazaar RPG ENTERPRISES Established in 1996 Revenues : US$ 182 mn for 06-07 Retail Sector Activit Food & grocer , beaut products etc. Current store formats Convenience stores, supermarkets etc. Current Outlets 279 outlets Future Plans Set up 2000 stores b 09 Principal fascia Spencers, music world

Major Players
LANDMARK GROUP Present in India since 1999 Retail Sector Activit Apparel, home dcor & furnishing Current store formats Department stores, permarkets. Current Outlets Lifest le 10 & Max retail 4 outlets Future Plans Get presence in mini metros & tier 2 cities Principal fascia Lifest le, ome Centre, Max retail.

MADURA GARMENTS

Established in 1988 Retail Sector Activit Apparel Current Outlets Planet Fashion -50 & Trouser town 9 outlets Future Plans Projected to increase to 300 outlets b 09 Principal fascia Louis Philippe, Van eusen, Allen Solle , SF jeans, Peter England. Joint venture with international brand Espirit

Major Players
VIVEK GROUP Established in 1965 Revenues : US$ 91.5 mn Retail Sector Activit Food& Grocer , Beaut shop, Electronics & ome appliances Current store formats Supermarkets & permarkets Current Outlets Vivek23,Jaisons-26 & premier-3 outlets Future Plans Set up 60 stores in South India Principal fascia Vivek, Jaisons, Premier GLOBUS Established in 1998

Retail Sector Activit Apparel Current store formats Stand alone stores Current Outlets 21 Future Plans to set up 100 stores b 2008 Principal fascia - Globus

Players across Verticals

FOOD & GROCERY

CLOT ING & TEXTILES

o o o o o o o o o o o o

Unilever BJN Group Magna Caf Coffee Da Barista Reliance Fresh Apna Bazaar Spar Group ITC Adit a Birla Group Godrej

Fabindia Benzer BIBA Piram d Lee Levis Ebon Ra mond Pepe Jeans Kappa Mango LeeCooper

Key Players across Verticals

JEWELLERY & WATC ES

Consumer Durables

Tissot Damas Gili Tanishq Kiah Carbon TBZ

Croma Videocon Onida Whirlpool NEXT Staples Samsung Phillips Godrej BPL LG

Key Players across Verticals

Home Dcor & Furnishings

FOOTWEAR

Pantaloon retail Gautier Ra mond Carmichaelhouse Lifest le Durian Godrej Nilkamal Bomba D eing

Reebok Libert Nike New Balance Umbro Adidas Woodland Paragon

P.E.S.T Analysis Drivers &Constraints

Political and legal Economic Social Technological

Political and legal Constraints

International trade regulations & restrictions Contract enforcement law & Consumer protection Emplo ment laws Safet Regulations

Economic Drivers
Consumer confidence Increasing personal disposable income Private Labeling Credit Card Growth

Economic Drivers
Personal Disposible Income ($ bn)
2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 0 200 400 600 800 Source : Reserve Bank Of India Personal Disposible Income ($ bn)

Economic Drivers
Retailers Depth of Private Labelling in %age
Trent Reliance Pantaloon Piram d Shopper's Stop Spencers Ebon 0 20 40 60 80 100 Source : www.slideshare.com Retailers Depth of Private Labelling in %age

Economic Drivers
Credit Card Growth in million
March 06 March 05 March 04 March 03 March 02 0.00 5.00 10.00 15.00 20.00 Source : Crisil Research Credit Card Growth in million

Economic Constraints

Sk rocketing Rentals Inflation Rates

Skyrocketing Rentals
2008

2005

Rentals Profit Margin

2003

0%

20%

40%

60%

80%

100% Source : www.slideshare.com

Social Drivers
Demographics- Population growth rates, Age, Income Social mobilit Lifest le Stages Education Fashion Hypes

Social Constraints
Diverse customer segments to cater Changing buying behavior

Technological Drivers
New inventions Rate of technological transfer Information Technology

Technological Constraints
Life cycle and speed of technological obsolescence Energy use and costs

Key Issues in Retail

Descriptions: E-Commerce and Multichannel Customer Experience Store Operations CRM and Loyalty. Business Intelligence and Analytics Merchandising Trends

Sub - issues
  

E-Commerce and Multichannel Retail E-commerce practices v/s Technology Retail M-commerce practices v/s Technology Multichannel Practices and Technology.

Customer Experience:  Changing Customer shopping/Buying Beh.  Social Tech influencing Customer exp.

Sub - issues
 

Store Operations Improve Store operations by balancing cost reduction and increased productivity. Optimize Store infrastructure = Execute a multichannel strategy.

CRM and Loyalty  Retailers to leverage CRM tools and Tactics.

Sub - issues


Business Intelligence and Analytics. Retailers to leverage the above to grow their biz.

Merhandising


Improved pricing, promotion and merchandising practices with the help of tech.

3 Key Trends in Retail.

Technology.

Demographics.

Ethical Consumers.

Key future Opportunities

Emergence of India as Retail Sourcing Hub Increasing technology adoption Online Retailing Emerging Rural Retail Resplendent Luxury market Leisure and entertainment Tourism Related Opportunities

Growing Emerging & Potential Retail hubs

High Growth Cities Emerging Cities Potential cities Pune Ahmedabad Chandigarh Ludhiana

Amritsar

Jalandhar

Mangalore

Indore

Jodhpur

Patna

Varanasi

Meerut

Source : www.ibef.org

Top 3 Segments and players to focus on

Segments and % Growth 1 2 3

Food And Grocery - 55.2%

Unilever

Reliance Fresh

ITC

Apparel - 39.3%

Fabindia

Piramyd

Ebony

Consumer Durables 42.0%

Croma

Godrej

NEXT

Source : F&R Research

Top 3 Retailers to Focus on

Retailer Pantaloons No. of outlets 1000 220 36 Projected outlets by 2010 3000 690 40

RPG Shoppers Stop