Multi Brand Retail Store

About Brand Retail Outlook

1. MULTI BRAND RETAIL STORES

2. Meaning : Marketing of similar and competing products by the same firm under different and unrelated brands. For example: Walmart, big bazar, Tesco **FDI in multi brand retail was not permitted in India. however, the Government of India proposed some policy changes in late 2011. they are as follows.. MULTI BRAND RETAIL IN INDIA

3.   With 51% FDI limit in multi-brand retailers, nearly half of any profits will remain in India.   Any profits will be subject to taxes, and such taxes will reduce Indian government budget deficit.   Many years ago, China adopted the retail reform policy India has announced; China allowed FDI in its retail sector. It has taken FDI-financed retailers in China between 5 to 10 years to post profits, in large part because of huge investments they had to make initially. Like China, it is unlikely foreign retailers will earn any profits in India for the first 5 to 10 years. Ultimately, retail companies must earn profits with hard work and by creating value. Work will be done by Indians, profits will go to foreigners

4. R i s i ng i nco m e an d d e m a n d f or q u a l i t y products t o b o ost c o n s u m er exp e n di ture. T ot a l c o n s u m pt i on e x p e n d i ture i s exp e c t ed t o re a c h n e ar l y U S $ 3,60 b i lli on b y 202 f rom U S $ 1,82 4 b i lli on i n 2017 . In di an ret ai l on e o f th e fas t est gro w i ng m a r k e t s i n th e w o r l d du e to eco n o m i c gro w t h . In di a i s th e w orl d’ s f i f th l argest g l o b al d e s t i n a t i on i n th e ret ai l s p a c e. Ret ai l m ar k e t i n In di a i s pro j ected t o grow f r o m a n est i m at e d U S $ 79 5 b i lli on i n 201 7 t o U S $ 1,20 b i lli on i n 2021 F. In di a ’ s m o d ern ret ai l t o d o u bl e i n s i z e o v er th e n e x t three y e a r s . T he m o d ern ret ai l m a r k et i n In di a i s exp e c t ed t o g row f rom U S $ 13.5 1 b i lli on i n 201 6 t o U S $ 26.6 7 b i lli on i n 2019 . E X EC U T IVE SUMMA R Y

5. Rob u s t c o n s u m pt i o n , rural m ar k ets t o a u g m e n t FMCG m ar k et. FMCG m a r k et e x p e c ted t o i ncre a s e t o U S $ 10 3 . 7 b i l l i on b y 2020 f rom Rs 3. 4 l a k h c rore (U S $ 52.7 5 b i lli o n ) i n F Y 2018 . Incre a s i ng p a rt i c i p a t i on f r o m fore i gn an d pri v ate p l a y e rs t o b o ost ret ai l i n f rastructur e . In di a's o nli ne ret a i l s ector gro w s 2 3 pe r c e n t t o U S $ 17 .8 b i ll i on in 2017 . On l i ne ret ai l s a l es i s f or e c asted t o grow a t t h e rate o f 3 1 pe r c e n t y e a r- on - y e a r t o re a c h U S $ 32.7 b i lli on i n 2018 . Re v e n ue g e n e rat e d f r o m o n l i ne ret a i l i s pro j ected t o grow t o U S $ 60 b i lli on b y 2020 . Re v enue f rom on li ne re t a i l i n I nd i a ( US$ bi lli on) F M CG ma r ket i n I nd i a ( US$ bi lli on) 70 60 50 40 30 20 10 2 15 2 16 2 17 2 18F 2 20 E 49.00 52.75 103.70 1 2 1 80 60 40 20 2 16 2 18^ 2 20 F 60.00 13.00 14.50 32.70 17.80

6. ADVA N T AGE INDIA Hea l thy eco n o m i c gro w th, c h a n gi ng d e m o g ra p h i c pro f il e, i ncre a s i ng d i s p o s a bl e i nco m es, c h a n gi ng c o n s u m er tastes a n d pre f erences are dri v i ng gro w th i n t he orga ni s ed ret ai l m ar k et i n In di a. Rap i d urban i s at i on w i th i ncre a s i ng p u r c h a s i ng p o w er h a s l ed to gro w i ng d e m a n d. Ret ai l s p a c e d e m a n d i s exp e c ted to i n cr ea se a t t h e r a te o f 8 1 pe r c en t to 7 .8 m illi on s q f t i n 2 1 8. Co l l ect iv e e f f orts of f i n a nc i al h o uses and b a n k s w i th ret ail ers are e n a bli ng c o n s u m ers to go f or d u ra bl e p ro d ucts w i th e a s y c re di t. Fore i gn ret ail ers are c o n t i n u o u s l y e n ter i ng the In di an m ar k et. Cu m u l at iv e FDI i n f l ow i n ret ai l as of J u n e 2 18 s to o d at U S $ 1 .42 b i lli o n . A s of S e p te m b e r 2 1 8 , S a m ara Cap i tal a n d A m a z on acq ui red M o re. A b o ut 51 p e r ce n t FDI i n m u l ti-brand ret ail . 1 p e r ce n t FDI i n s i n gl e -brand ret ai l u n d e r the a u to m at i c ro u te. G ood s an d S e r vi ce T a x (G S T ) w a s i ntrod u c ed as a f orm of s i n gl e u ni f i ed t a x s y s te m . T o pro vi de a l e v e l -p l a y i ng f i e l d t o s ta k e h o l d e r s , the g o v ern m e n t i s p l a n n i ng t o s y nchron i s e p oli c i es of ret ail , FMCG an d e - c o mm er c e w i th i n a s i n gl e p oli c y f ra m e w or k . A D V A N T A GE I ND IA Policy support

7. P re 1 9 9 s 1990 - 2005 2005 - 2010 2 10 o n w ards P ure-p l ay ret ail ers re ali s ed t h e p o te n t i al of the m ar k et. M o s t o f th e m i n a p p a rel s e g m e n t. S u b s ta n t i al i n v est m e n t c o mm i t m e nts by l arge I n d i an c orporat e . E ntry i n f o o d an d g e n e ral m er c h a n di s e c at e g o r y . P a n -In di a e x p a ns i on to top 10 c i t i es. Rep o s i t i o ni ng by ex i s t i ng p l a y er s . C u m u l a t iv e FDI i n f l o w f r o m A pril 2 00 to J u n e 2 1 8, i n t he ret ai l s ector, re a c h e d U S $ 1 .42 b i lli o n . Ret ai l 2 2 : Re t rosp e c t, Re i n v e n t, Re w r i te. M o v e m e n t to s m a l l er c i t i es and rural areas. M o re t h a n 5– 6 p l a y ers w i th re v e n u e s o v er US$ 1 tr illi on by 2020. L a rg e - sc a l e e n try of i nt e rn a t i o n al brands. A p p ro v al of FDI l i m i t i n m u l ti- brand ret ai l up to 51 p e r c e n t. R i s e i n p r i v ate l a b el brands by ret ai l p l a y er s . S o u r c i ng an d i n v est m e n t ru l es f o r s upe r m a rk e ts w e re r e l a x ed . E co mm er c e h a s e m erged as o n e of the m ajor s e g m e n ts. 1 p e r ce n t FDI i n s i n gl e brand ret ai l u n d e r t h e a u to m at i c ro u te. EVOL U T I O N OF RE T AIL IN INDIA M a n u f acturers o p e n ed th ei r o w n o u t l ets.

8. RE T AIL F O RMA T S IN INDIA Mo n o/exclusi v e bra n d e d retail s h o p s Mul t i -b r a n d e d retail shops C on v er g e n ce retail o u tlets E -retai l ers E x c l us i v e sh o w ro o ms o w n e d or f ra n ch i sed o u t by a ma n u f ac t u r er. C omp l ete ra n g e a v a il a b l e f or a g i v en brand, cer t i f i ed product q u a li t y . F o cus on p a rt i cu l ar product cate g ori e s and car r y most of the brands a v a il a b l e. C ustomers h a v e m ore ch o i ces as ma n y brands are on d i sp l a y . Di sp l ay most of co n v er g e n ce as w e l l as co n sumer/e l ect r o n i c products, i nc l u d i ng com m u n i cati o n an d IT g ro u p. On e -stop sh o p f or customers; ma n y product li n e s of d i ff e r e n t brands on d i sp l a y . It i s an o n li ne sh o p p i ng f ac ili ty f or b u y i ng an d se lli ng products an d ser vi ces; the f ac ili ty i s w i d e l y us e d f or e l ect r o n i cs, h e a l th a n d w e ll n e ss. Hi g h l y co n v e n i e n t as i t pro v i d e s 2 4 X 7 acc e ss, sa v es t i me an d e n sures sec u re tra n sacti o n.

9. COMPE T I T IVE L A N D SCAPE IN I N D IA N RE T AIL SE C T OR R etail D e p artmental stores H y p e rmarkets S u p ermark e ts/ c o n v e n ie n ce st o res S p e cia l ty stores C a s h an d c a rry st o res P a n ta l o o n has 2 9 stores. W es t s i de o p erates 1 2 6 stores as of M ay 2 1 8 . S h o p p ers S top h a s 83 stores i n I n d i a, as of 2018. A s of F Y 1 8 , R e li a n ce R eta i l l a u nc h ed ‘ T re n ds’ i n th i s f or m at a n d cur r e n t l y h a s more th a n 3,300 stores across In d i a. P a n ta l o o n R e ta i l i s the l e a d e r i n t h i s f or m a t , w i th 2 5 9 Bi g B a z a a r stores a n d o n li ne f ra n ch i se e s. A d i t y a B i r l a R eta i l ( M ore H y p e rmar k et ) - 20 stores. H y p e r C I T Y (19 stores), T re n t, S p e nc e r ’ s ( S p e nc e r H y p e r), a n d R e li a n ce are other p l a y ers. A d i t y a B i r l a R eta il - M ore S u p er m ar k et (5 2 3 stores). S p e nc e r ’ s D a il y (1 2 stores). R e li a n ce Fresh (5 2 stores). R E I 6 T en (3 5 0 stores). B i g B a z a a r (2 5 9 stores). T i tan Industr i es i s a l ar g e p l a y er, w i th 438 W o rl d of T i tan, 200 T an i shq and 470 T i tan E y e+ shops. V i j ay Sa l es, Cro m a and E -Zone are i nto consu m er e l ectron i cs. Land m ark and Cross w ord f ocus on boo k s and g i f ts. M et r o star t ed the cash a n d car r y mo d el i n In di a; the company o p erates 24 stores across M umba i , K o l k ata, D e l h i , P u n j a b , H y d e ra b ad a n d B e n g a l uru. A s of F Y 1 8 , R e li a n ce R eta i l o p erates 43 cash a n d car r y stores ca ll ed ‘R e li a n ce M ar k et’.

10. S T RONG GRO W T H IN T HE INDIAN RE T AIL IND U S T RY T he ret ai l s ector i n In di a i s e m erg i ng a s on e o f t he l argest s ecto r s in th e eco n o m y . T he tota l m a r k et s i z e o f I n d i an ret ai l i n d ust r y re a c h e d a n est i m at e d U S $ 79 5 b i l l i on i n 201 7. I t i s fore c a s ted t o i ncre a s e t o U S $ 1,200 b i lli on b y 202 1 an d 1 , 75 0 b i lli on b y 2026 . In di a w il l b e c o m e a fa v o u ra bl e m a r k e t f or f ash i on r e ta i l ers o n the b a c k o f a l arge y o u ng a d u l t c o n s u m er b a s e, i ncre a s i ng d i s p o s a bl e i n c o m e s an d r e l a x e d FDI no r m s . V i sakhapatnam port t ra f f i c ( m illi on t onnes) M arket s i ze o v er t he past f ew y ears ( US$ bi lli on) 204 238 278 321 368 424 518 490 534 600 641 672 1,200 1,750 2 4 6 8 1, 00 1, 2 00 1, 4 00 1, 6 00 2 2 2 2 4 2 06 2 8 2 1 2 1 2 2 1 3 2 1 4 2 1 5 2 1 6 2 1 7 2 21F 2 26F * C A G R 10.97% 1, 8 00 2, 00

11. S T RA T EG I ES ADOP T ED T he Future G roup w i l l set u p 400 “ne i ghbo u rhood” r eta i l stores i n th e next 3 -5 y ears a s a part o f i ts fo c us o n s m a l l s tores. T he brand w il l i n c rea s e the nu m ber of s tores f rom 538 i n Ma rc h 2017 t o 1000 by Septe m ber 201 8 . T o i m pro v e c on s u m er outrea c h A m w ay Ind i a w il l open 25 new X pre s s P i c k and Pay ( X P P ) s tores i n Ind i a . O n Augu s t 9 , 2018 IK E A w o r l d's l arge s t f urn i ture reta il er opened i ts f i r s t reta i l s tore i n H y de r abad and i t p l ans t o open 24 m ore s tores by 202 5 . Fl i p k art t o e x pand i ts on li ne gro c e r y s er v i c es ‘ Supe r m ar t ’ i n 5 -6 m a j or c i t i es by 201 8 , due t o i n c rea s i ng r i v a l r y f r o m A l i bab a -ba c k ed B i gBas k e t , So f tBan k - f un d ed G ro f ers and A m a z on Ind i a . Bata Ind i a w il l i n v e s t Rs 1 b i ll i on (U S $ 1. 49 m i l li on) t o u pg r ade f a c ili t i e s , and r e f urb i s h s tor e s. T h e y a i m t o s et u p 100 o w n and 50 f ran c h i s e s tores by 201 8 . I t i s i m p e rat iv e f or a ret a i l er t o h a v e a s tro n g d i s tr i b u t i on an d l o gi s t i c n e t w ork t o s uc c e ed i n th i s s ector. Pl a y e rs f o l l o w a d i s tr i b u t i on n e t w ork tha t s u i ts th e m th e b e s t. For e x a m p l e, S h o p p ers S top f o l l o w s a “h u b an d s p o k e” m o d el f or i t s d i s tr i b u t i on n e t w ork t o i ncre a s e e f f i c i e n c y an d product iv i t y . Certa i n ret a il ers adop t ‘ f i r s t price r i g h t ’ a p proac h . R et ail ers d o no t o f f er d i sc o u n ts unde r th i s s trat e g y : t h e y d i rec t l y c o m p e te o n th e s e l li ng price b y o f f eri n g a b e s t price w i th o ut an y m ar k d o w n s . Lo w e r in g pr i ces Ca f e C o f f ee D a y (C C D) a i m s t o e x pand i ts bu s i ne s s b y add i ng about 100 s tores e v e r y y ear t o h a v e a ne t work o f aro u nd 2, 500 s tores i n the ne x t s e v en t o e i ght y ea r s. T he F uture G roup w i l l s et up 4000 “ne i ghbourhood” r eta i l s tores i n the ne x t 3 -5 y ea r s as a pa r t o f i ts fo c us on s m a l l s tores. T he brand w il l i n c rea s e the nu m ber of s tores f rom 538 i n Ma rc h 2017 t o 1000 by Septe m ber 201 8 . T o i m pro v e c on s u m er outrea c h A m w ay Ind i a w il l open 25 new X pre s s P i c k and Pay ( X P P ) s tores i n Ind i a i n 201 8 . O n Augu s t 9 , 2018 IK E A w o r l d's l arge s t f urn i ture reta il er opened i ts f i r s t reta i l s tore i n H y de r abad and i t p l ans t o open 24 m ore s tores by 202 5 . Fl i p k art t o e x pand i ts on li ne gro c e r y s er v i c es ‘ Supe r m ar t ’ i n 5 -6 m a j or c i t i es by 201 8 , due t o i n c rea s i ng r i v a l r y f r o m A l i bab a -ba c k ed B i g Bas k et, So f tBan k - f un d ed G ro f ers and A m a z on Ind ia . Expans i on Reta il ers are opt i ng f or m a n y c hannel t o m a x i m i s e s a l e s , O m n i - c hannel reta ili ng i s be i ng adopted b y m a n y reta il ers in Ind i a . F or e x a m p l e, Shop p ers Stop i s m a k i ng ef f or t s t o be an o m n i -c hannel reta il e r . E z one has l aun c hed an on li ne p l at f or m , w h i c h has l ed t o i n c rea s e i n s a l es. A s of Sept e m ber 201 8 , V -Ma r t Reta i l a i m s t o e x p and i ts bu s i ne s s w i th o m n i - c han n el s trate g y t o rea c h c u s t o m ers through on li ne reta i l . O mn i - chan n el re t a i li ng I t i s i m p e rat iv e f or a ret a i l er t o h a v e a s tro n g d i s tr i b u t i on an d l o gi s t i c n e t w ork t o s uc c e ed i n th i s s ector. Pl a y e rs f o l l o w a d i s tr i b u t i on n e t w ork tha t s u i ts th e m th e b e s t. For e x a m p l e, S h o p p ers S top f o l l o w s a “h u b an d s p o k e” m o d el f or i t s d i s tr i b u t i on n e t w ork t o i ncre a s e e f f i c i e n c y an d product iv i t y . S t rong dis t r i bu t i on and l og i st i c ne t w o r k A s o f O c t o b er 2018 , P roct e r & Ga m b l e In di a ( P& G In di a) l a u nch e d In n o v at i on S o u r c i ng Fu n d, a m u l t i m i ll i on-d oll ar f u n d to i n v est i n In di an s tart- up s . Col l aborat i v e gro w t h

12. Mo s t reta il ers ha v e ad v an c ed o f f - s ea s on s a l es f r o m 15 d a y s t o a m onth w i th d i sc ounts o f 2 - 7 per c ent on c erta i n produ c t s . A l s o h i gher d i sc ounts and other v a l u e -added s er v i c es f or m e m be r s . O ff er i ng discou n t s Co m pan i es o ffer i nno v at iv e v a l u e -added s er v i c e s , lik e c u s to m er l o y a l t y prog r a mm es and hap p y hou r s on s hoppi n g dea ls . O ff ers f or s en i or c i t i z en s , c onte s ts f or s tudents and l ottery ga i ns are now v ery c o mm o n . O ff er i ng v a l u e - added ser v i ces T o k eep c u s t o m ers on s h o p f l oo r s for a l onger t i m e a nd i n c rea s e c on v er s i on s , reta il ers are now p i tch i ng t o pa r tner w i th m anu f a c t u rer s , s er v i c e pro vi de rs , f i nan c i al c o m pan i e s , etc. t o c reate a bu z z around c erta i n produ c t c atego r i e s . Le v erag i ng par t nersh i ps Cr i t i c al c o m po n ents o f s u p p l y c ha i n p l ann i ng app l i c at i ons he l p reta il ers t o m a i nta i n pro f i t m arg i n s. I n no v at i v e s o l ut i ons li k e pe r f o r m a n c e m anag e m ent, f req u ent s a l es ope r at i o n m ana g e m ent, d e m a n d p l ann i ng, i n v ento r y p l ann i ng, produ c t i o n p l ann i ng and l ean s y s te m s c an he l p reta il ers t o get ad v antage o v er c o m pet i tor s . S t rong supp l y cha i n T o d i v er s i f y the produ c t of f er i ngs and tab the grow i ng l u x u r y reta i l s eg m ent, r e ta il ers are fo r m i ng j o i nt v e ntures w i th f ore i gn l u x u r y brand s . Re l i a n c e Brands Lt d . f o r m ed a j o i nt v enture w i th Ba l l y , a S w i s s l u x u r y brand, t o e xc l u s i v e l y m ar k e t i ts produ c ts i n Ind i a . Jo i nt Ven t ures T o c rea t e pe rc ept i on that t he i r s tore brands t o ha v e c on s i s tent and c o m pa r ab l e qua li t y and a v a i l ab il i t y i n re l at i on to branded produ c t s . Reta il e r s are pro vi d i ng m ore a ss o r t m e nts f or pr i v ate l e v e l br a nds t o c o m pete w i th s upp li er's bran d . N e w produ c t de v e l o p m ent, agg r e s s i v e reta i l m i x and e v e r y d a y l o w pr i c i ng s trate g y he l p t o get edge o v er s upp li er's bran d . Chang in g t he percept i on In di an ret ail ers use h y p er -p e r s o n a l i s at i on m o d e l s b a s ed o n b e h a v i oral d a t a, brands p e r f o r m a nce, d e m o g ra p h i c pre f erence an d p i n c o d es a s m ar k et i ng s trat e gy w h i c h b o osts s a l e s . H y per- Persona l i sat i on O n li ne reta i l s eg m ent o f f e rs c a sh -o n -de li v e r y and m an u f a c ture r s ’ w arran t y t o boo s t e -re t a i l i ng i n c on s u m er du r ab l e s e c tor. Ca s h -o n -de li v ery i s the m o s t pre f erred pa y m ent opt i on w i th o v er 30 per c ent of bu y ers opt i ng f or i t i n Ind i a . Cas h - on - De l i v ery

13. GRO W T H D R IVERS FOR RE T AIL IN INDIA Gro w th Dri v ers Easy consum e r credit and increase in quality prod u cts Fa v ourable demo g rap h ics Brand cons c iousness Rise in income and p u rchasing po w er C h ange in consum e r mindset

14. GRO W T H VA L UE PROPOSI T I O N Dem a nd Fact o rs Indi a n r e tail opportunity Supply Fact o rs R i s ing inco m es and p u r chas i n g p o w er. H i g h e r brand consc i o u s ne ss. Ch a n g ing consu m e r pre f er e nc e s and g ro w ing urbanis a ti on . Gro w ing y oung popul a ti o n and w ork i ng w o m en. Gro w ing a spi r ation le v els and appetite to e x per i m e n t. C r edit a v ai l abi l it y . Easy a v ai l abi l ity of credit. Ra p id real est a te and in f rastructure de v elo pm en t. R & D , inn o v ation a n d new product de v elo p m e nt. D e v elop m en t of supply chain impro v ing e ff ic i e n c y . E m er g ence of new cat e g or i es. E x pansion pla n s of e x isting pla y ers.

15. As far as organized sector is concerned there should be regulatory framework. On the one hand, because of penetrating pricing and because of the fact that it definitely creates monopolistic market and because it has potential to create loss to crores of families, which will occur to unorganized sector. FDIs shall not be allowed in Retail sector. Whereas, on the other hand, the concept of global village forces the theme of liberalization. By closing door of your home, world outside will not stop from upgradation. Accepting changes and challenges is the truth of life CONCLUSION