Which Quantitative factors Matter for Success in Indian Retail ?

Quantitative Factors For Success in Modern Retail in IndiaWe have already seen the 4 Qualitative Factors for success in Modern retailing. Today we’d like to walk you through the Quantitative Factors that matter the most for Success in Retail in India.

Private label Vs Branded strategy
Private label (retailers’ own brands) has grown strongly in developed countries like US and Europe, but trend has been slow to catch on in Asia. Globally private label contributes 17% of retail sales with growth of 5% p.a. In India, the overall share of private labels within organized retail is just 5%, which makes it one (more…)

What Micro (Qualitative) factors Required for Success in Organized Modern Retailing ?

Qualitative Factors Required for Success in Organized RetailingThere are various macro factors which will continue to drive growth in organized retail sector going forward. However, there are certain Qualitative and Quantitative parameters which one should look for while building success in organized retail companies. The Qualitative factors are as explained below,

Retail Real Estate Matters
One of the key factors for the growth and expansion of organized retail is availability of prime location. Real estate developers were first to establish malls which helped develop the concept of organized retail in India. With changing economy and consumer trend retailers have realized (more…)

Jubilant’s Domino’s Pizza Selling Hot; Dunkin Donuts Indianized – Outlook

Jubilant Foodworks master franchisee of Dominos Pizza and Dunkin Donuts in India reported healthy 42% YoY revenue growth in 2QFY13. Company highlighted that consumer demand has seen a healthy pick-up since Sept-12. Same store sales growth came in at 20%. Online and mobile ordering platforms have been well accepted by the consumers reflected in the fact that 14% of delivery orders were made online.

The management told us that they have hiked the prices by 3% in November and is unlikely (more…)

Shoppers Stop – Tough Economy, Same Store Sales Muted

India’s Leading Lifestyle Retailer, Shoppers Stop’s same store sales growth remained muted at just 5%, despite of an extended sale season. Overall sales growth for the departmental store format was higher at 17% due to 11 new stores opened within the last one year.

Apparel Vs Non ApparelsApparels contributed 61.2% to total departmental store sales (flat YoY)—Men’s wear contributed 32.2%; good growth in sports formal (more…)

Shoppers Stop – India’s Largest Department Stores – Performance Outlook 2012

Shoppers Stop is the largest department store chain in India. The company also has a 51% stake in Hypercity, a hypermarket format. We’d like to review the performance in the past quarter and outlook going forward.

Trends in July and August were similar to those seen in Q1. However, September has been better than expected. Hopeful that the festive season will see some traction. Should have visibility starting mid October. What we have noticed is due to the slowdown, breakeven for new (more…)

Mainland China, Oh! Calcutta, Flame & Grill – Speciality Restaurant Chain – Business Review

Speciality Restaurants Ltd promoted by the Chaterjees forms part of the organized food-service market, which is in a nascent stage and forms only ~20% of the industry. It is estimated that various categories of the organized food industry combined is growing at ~25% a year, driven by demographic and socio-economic changes such as rising disposable income, increasing number of working women and growing urbanization.

Fine-dining restaurants are at the top of the evolution of eating habits. Specialty Restaurant [SRL] Chain operates 12 different brands in this category and is favorably placed in this market. Brands of SR are as follows, (more…)

Ears on the Ground – Indian Domestic Retailers Shift Gear – Move to Tier 2 and Tier 3 Cities for Expansion

The A T Kearney study on Indian retail suggests the size of the market is ~US$435bn. Organized retail currently accounts only for 7% of the total retail market and is expected to reach ~20% by 2020. Format like hypermarkets has gained higher acceptability. Among categories, food constitutes ~70% of Indian retail, although it has less penetration in modern retail where apparel and clothing continue to have ~31% share.

Domestic players are now drawing expansion plans more judiciously and increasingly focusing to tier-II and tier-III cities. So what are some of the major expansions that are planned in the immediate future ? (more…)

Reliance Retail – Promise in 2006-07 Vs Performance till 2012 – Report Card

Reliance entered the retail business in 2006 and had set ambitious growth targets for 5 years. Given the growth potential of organized retail in India combined with Reliance‟s financial and execution strengths, these targets were seen as realistic. Reliance Retail till date has established its presence across 17 Formats and has JV with 14 Global Brands.

We’d like to present to you the Report Card of how Mukesh Ambani has performed on his Promise of Reliance Retail in 2006 with what is achieved until March-2012.

Mukesh Ambani’s Promise for Reliance Retail in 2007 (more…)