3. INDIAN RETAIL SCENARIO India ranks 1st for top international destination for retail investment. U.S $ 350 billion retail market. 96% market share is held by 12 million family run shops. 4th largest economy in purchasing parity terms after US , china & Japan. Retail sector will grow 35% in 2008. July 30, 2009 3 STRATEGIC MARKETING
4. ORGANISE SECTOR FACTS Virgin territory for organized retail investment. 2-6% of total retail. Expected to increase to 15-18% by 2011. Food retailing is expected to grow to US$ 1.6 billion. Apparel to increase by 9.5% by 2010. July 30, 2009 4 STRATEGIC MARKETING
5. RETAIL SECTOR Street cards . Corner shops. Open air market “ MANDIS” Kiryana Stores July 30, 2009 5 STRATEGIC MARKETING
6. ORGANISE SECTOR Hyper market Super market Specialty chain stores. Factory outlets Malls Multiplexes July 30, 2009 6 STRATEGIC MARKETING
7. CONTD…… HYPER MARKET BIG BAZAR(PANTALOON RETAIL INDIA LTD) GIANT(RPG GROUP) DEPARTMANTAL STORES WEST SIDE(TATA) SHOPPERS STOP(K.RAHEJA GROUP) July 30, 2009 7 STRATEGIC MARKETING
8. ABOUT RIL India largest company Market value US$ 35 billion Turn over of US$ 27 billion in 2007 Started by Dhirubhai Ambani with US$ 1000 Grown rapidly & went public to raise funds for polyester plant World’s Largest producer of polyester RIL has grown exponentially to diversify July 30, 2009 8 STRATEGIC MARKETING
9. RIL RETAIL STRATEGY Investing US$ 5 billion in pan-india retail including both small & super stores. Generating 1 million jobs Reaching annual sales of US$ 25 billion by 2011 July 30, 2009 9 STRATEGIC MARKETING
10. RIL FRESH 2200-4000 sq feet Trial partnership with struggling govt owned cooperative stores “SAHAKARI BHANDAR” in Mumbai. Consisted of revamping of stores & providing supply chain management services. July 30, 2009 10 STRATEGIC MARKETING
11. OBJECTIVES ACHIEVED First hand knowledge of retail business Small retailers are a powerful lobby Made RIL to take on international retail giants. July 30, 2009 11 STRATEGIC MARKETING
12. HYPER MARKET Ambani plans to built hyper markets, titled Reliance Mart spread over 150000 sq feet's Selling everything from groceries to clothes & consumer electronics July 30, 2009 12 STRATEGIC MARKETING
13. RELIANCE FRESH Targeting 784 small Indian towns with population greater than 50000 6000 outlets in 784 cities & towns by 2010-11 Opening & operating 100 millions sq feet By doing so it will be ahead of “TESCO” which has 58 million sq feet July 30, 2009 13 STRATEGIC MARKETING
14. SUPPLY CHAIN “ from farm to fork” Agro- Retail strategy Two modern India's most backward sector 1600 procurement & distribution hubs Named as “ Reliance Mandis” Supplied by rural farming centers with fresh produce & dairy products July 30, 2009 14 STRATEGIC MARKETING
15. WHY SUPPLY CHAIN MANAGEMENT? Lack of infrastructure, which leads to decay of half of the countries fresh produce before they reach stores. Cold storage , food processing facilities & also provides farmers with fertilizers , fuel & credit to suppliers(Farmers). Eliminate the middlemen , by this Reliance hopes to pass savings to farmers . July 30, 2009 15 STRATEGIC MARKETING
16. CONTD…. In Kerala farmers are able to sell their produce at the mandis without paying any commission and receive immediate payment of produce. 85 logistics centers to move food to retail outlets & to airports Stock is replenished 2 times a day , fresh produce comes from their own distribution center . July 30, 2009 16 STRATEGIC MARKETING
17. REAL ESTATE BANK Company wants to own most of its underline real estate . Motive behind this strategy is to protect its business margins by avoiding payment of high rents Reliance plans of consolidating about 15 million sq feet of property would mean shunting of competitors such as PANTALOONS & SHOPPERS STOP. July 30, 2009 17 STRATEGIC MARKETING
18. CONCLUSION Will the dreams turn into Reality!!! July 30, 2009 18 STRATEGIC MARKETING
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