2. PRESENTATION CONTENTS
• Introduction of Retail Sector
• Reason of Revolution
• Prime Focus on Consumers
• Enhancing Growth of Retail Industry
• Grocers/General Stores – Biggest Contribution
• Pharmaceuticals Company: Growth
• Statistical Data
• FDI in Retail Sector
• Increasing E commerce and M Commerce
• Thank You
3. INTRODUCTION OF RETAIL SECTOR
Supermarkets, mini-marts, speciality stores and even online
grocery shopping have made life easier for consumers. Life for
manufacturers, however, is only getting more complicated. With
so many options available. Retail sector is one of the most
emerging sector in the world today.
Evolution Of Retail Channels In India
Grocers and general stores should continue to drive retail FMCG
growth
Chemists channel is growing 20% faster than total FMCG category
Modern trade channels are increasingly being used as laboratories
to test product innovations
4. REASON OF REVOLUTION
Prime Reason for Retail Revolution is increasing demand
of consumers and their needs.
Reasons:
• Increasing Consumer Needs and their demands
• Increasing Competition
• Globalisation- Quality Oriented Products and Services
• Variety of Options Available for selection
• Technology Upgradation – Introduction of E
Commerce and M Commerce
5. PRIME FOCUS : CONSUMERS
Trend in India has changed from what was
available few year back. Emerging trend of retail
shopping in India has changed drastically.
• Businesses prime focus is consumer needs
and satisfaction
• Offering Variety of Products just a click away
• Heavy Discounts for Prime Customers to keep
them motivated
• After Sales services to ensure that consumer
is at ease
6. ENHANCING GROWTH OF RETAIL INDUSTRY
• Improved customer perception
Stores who do create a seamless experience that
integrates all different forms of technology, however, can
gain significant customer loyalty. Those brands are
perceived as forward-thinking and responsive to
customer's needs — qualities that will keep customers
coming back.
• Increased sales
The primary driver for a retailer adopting any strategy is,
of course, increasing profit, most frequently by increasing
sales. Multi-channel retailing, by offering a variety of
engagement points for the customer to make a purchase,
increases the convenience and ease of sales, thus
boosting profit.
• Best practices
While every type of channel has its own unique set of
challenges, there are some strategies that are true across
all engagement points.
7. GROCERS/GENERAL STORES : BIGGEST CONTRIBUTION
In India Grocers Stores has provided the biggest
Contribution in country’s growth.
Due to retail industry coming into india for
establishment, the growth has doubled up.
Walmart, World’s Biggest Grocery stores wish to hit
the Indian Market and due to this, the domestic
Grocers like Reliance, Spencers and Big Bazzar are
focusing to provide the best to their consumers.
Increased Quality, More Discounts and Offers are
provided by Domestic Sellers so that they are not
washed away.
8. PHARMACEUTICAL COMPANY : GROWTH
Chemists channel is growing 20% faster than total FMCG category
Chemists have come a long way from just stocking medicines.
Today, chemists in India form a significant channel for FMCG
manufacturers. In fact, of the 20 categories that contribute to 80
percent of Chemists’ value sales, only eight are over the counter
(OTC) medications.
The bulk of these retailers’ sales comprise FMCG products. This
shift largely reflects the Food & Drug Administration’s (FDA)
increased regulations on sales of prescription drugs (Rx) and OTC
drugs, which require chemists to maintain purchase and sales
records, ensure one pharmacist is on duty at all times and collect
prescription copies for every sale.
9. STATISTICAL DATA
Statistical Data reveals that maximum
contribution in India’s growth is through
Grocery and Retail sector.
Pie Charts clearly represents that Food
and Grocery share the maximum portion
of 59.50% In the Country’s growth and
Development
Chemists and Pan Plus Growth has been
tremendously high. Food and Drug
Administration (FDA) has increased its
regulations on Sales of Prescription Drugs
to be sold
10. STATISTICAL DATA
Paan Plus stores, usually small kiosks selling tobacco-
based products and located near transport hubs like
railway stations and bus stops or in residential areas
and slums, are increasingly carrying a greater
assortment of consumer goods, making them another
important channel for FMCG manufacturers. More
importantly, these stands and small shops allow for
impulse, as well as regular purchases.
Despite being significantly smaller in store size than
grocers and chemists, Paan Plus stores have been
stocking up on FMCG categories including impulse
items as well as regular purchase categories like hair
oils and toothpastes. Paan Plus has motivated small
Vendors and in benefit of Social Class
11. FDI IN RETAIL SECTOR
The major benefit of FDI is that it is both supplementary and
complimentary with regards to local investment.
FDI lets a company gain better access to top class technology
and supplementary funds. They are also exposed to
management practices in vogue around the world and also get
the chance to become a part of the global market system.
The Indian government had commissioned Indian Council for
Research on International Economic Relations (ICRIER) to
perform a study on the effect of organized retailing practices on
its unorganized counterpart.
Benefits:
• More options and variety for consumers
• Best Prices to select
• More offers and discounts
• Advance Technology adopted from USA and other countries
12. E COMMERCE : BIGGEST REFORM IN RETAIL
E-commerce has been around for a while.
However, as per our estimates, its contribution
to FMCG is still less than 1.0 percent. Despite
the consumers’ increasing access to online
payment methods, shoppers restrict their use of
these options largely to travel and electronics.
Benefits of E Commerce:
• Variety of Options Available at a click
• Anytime Anywhere facility
13. M COMMERCE : NEW MARKET TREND
M-Commerce, on the other hand, is a relatively
new phenomenon. Players like Flipkart and
Amazon are leveraging the rapid growth in
mobile internet penetration to reach the 180
million potential consumers accessing mobile
internet from their smartphones. A number of
online retailers have created mobile
applications that can be downloaded and used
by consumers.
14. M COMMERCE BENEFITS:
1. BOOSTS CONSUMER CONFIDENCE
2. 24X7 BUYING FACILITY
3. USER FRIENDLY APPS
4. SAFE AND SECURE TRANSACTION OVER
THE MOBILE
5. DISCOUNT AND OFFERS DELIVERED
Source: Nelson India