Some recent trends in the Indian retail markets:
Bharti Retail
Bharti Retail, a unit of Bharti Enterprises, has announced on 27th September 2010 to enter western India with its first hypermarket in Mumbai. Sunil Mittal's company has signed a 60,000 sq ft store in the Neptune Magnet mall of Mumbai's Bhandup area, and this is expected to open in Q1, 2011. Post this launch, the retailer also plans to open 20 such stores across Pune, Mumbai and Nanded.
The company is planning to set up a distribution centre on the Mumbai-Pune highway to cater to the western markets. Bharti, unlike Reliance, does not want to go pan-India at once, but focus and consolidate on one region before entering another.
Currently, Bharti Retail operates 90 stores in the northern states of Punjab, Haryana, Uttar Pradesh, Uttarakhand and New Delhi. These stores include the smaller 'Easyday' neighourhood stores and the hypermarket format called 'Easyday Market'. Bharti also runs cash and carry stores called Best Price Modern Wholesale under the joint venture with Walmart.
Bharti's ambitious plans also include opening stores in the south. Earlier this year, Bharti said that it had planned a total of 140 stores across the country by the year end. However, for these ambitious plans to succeed, Bharti has to work doubly hard. In 2007, it had talked about major plans of retail areas of 10 million square feet by 2015.
Reliance Retail
Mukesh Ambani's Reliance Retail, launched in 2006 expects to break even in a year or two. It was originally planned to break even in September 2009. In May, new plans for growth were announced post the scale-back on expansion due to the economic slowdown.
The new plan includes improving infrastructure to world-class levels, while strengthening presence in multi-format stores while leading in fresh food stores.
Reliance Retail today runs about 1,150 stores. It plans to open 3000 new stores across the country by 2014-15.
Dabur Retail
While, on one hand we see bigwigs setting up retails for expansion, Dabur has chosen to go the franchise route.
Dabur India has announced its plans to adopt the franchise route to spread its retail brand 'Newu', while focussing on smaller format stores to expedite expansion.
Dabur India's subsidiary, H&B Stores Ltd. that currently operates 22 'Newu' stores in North India, is looking to open up to 150 new stores in 2011-12 and enter in the western region.
It is also trying express or smaller formats that have quick turnaround time, besides focusing on 'beauty' as a category, as it looks to break even in the next two years.
It is also trying express or smaller formats that have quick turnaround time, besides focusing on 'beauty' as a category, as it looks to break even in the next two years.
The company wants to try franchise option in North India, while company-owned outlets will be set up by next year to mark its entry into the western region starting with Mumbai.
H&B Stores started operations in 2008. It suffered during the 2008-09 economic downturn forcing it to go slow on the expansion and closing down some stores.
H&B Stores started operations in 2008. It suffered during the 2008-09 economic downturn forcing it to go slow on the expansion and closing down some stores.
Aditya Birla Retail
Aditya Birla Group's retail arm, Aditya Birla Retail Ltd. came into being with the acquisition of Trinethra Super Retail, a south-based retail chain in 2007. 'More' chain of retail stores, is run in two formats, super markets and hypermarkets. Today, Aditya Birla Retail has over 600 super markets and 5 hypermarkets across the country.
The retail industry already bears the names of well-established players that include Big Bazaar (Future Group), Star Bazaar (Tata Group), Shoppers Stop (Raheja Group), Spencer's Retail, to name a few. Godrej operates a slightly niche 'gourmet' retail chain under the brand name 'Nature's Basket'. Most of these stores also promote their own brands that compete with the brands they stock.
For the 4th time in five years, India has been ranked as the most attractive nation for retail investment among 30 emerging markets by the US-based global management consulting firm, A T Kearney in its 8th annual Global Retail Development Index (GRDI) 2009.(Source: India Brand Equity Foundation)
With more and more established biggies coming into organized retail, India's retail market is expected to be worth about US$ 410 billion, with 5 per cent of sales through organised retail, meaning that the opportunity in India remains immense.
Interesting snapshot. I applaud the numbers...of 410 billion, 3000 stores...60k sq feet...phew..quite some numbers to digest..It does beg a question as to whether all these organised giants, who buy and sell anything and everything under one roof, are good for a country like ours'? What about the "Mama ka dukaan" and the "padma pushpams" of our country? Will they have a future..I hope they do..because that is where the true India lies. In any case...well written Veena..
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