Table of Content

Particulars Page no.

1. Introduction to Retail Industry.

2. Evolution of Pantaloons.
3. About Future Group.
4. Growth of Pantaloons.
5. Format of Operation.
6. Retail Strategy.
7. Process & support function.
8. Future Growth plan of the company.
9. Sales Promotion.
10. Competitors of Pantaloons.

11. Comparison with Pantaloons.

12. Conclusion.
13. Bibliography.
14. Questionnaire.

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 INTRODUCTION

2|Page
Introduction of Retail Industry:-

Retail consists of the sale of goods or merchandise from a

fixed location, such as a department store, boutique or
kiosk, or by mail, in small or individual lots for direct
consumption by the purchaser. Retailing may include
subordinated services, such as delivery. Purchasers may be
individuals or businesses. In commerce, a "retailer" buys
goods or products in large quantities from manufacturers or
importers, either directly or through a wholesaler, and then
sells smaller quantities to the end-user. Retail
establishments are often called shops or stores. Retailers
are at the end of the supply chain. Manufacturing marketers
see the process of retailing as a necessary part of their
overall distribution strategy. The term "retailer" is also
applied where a service provider services the needs of a
large number of individuals, such as a public utility, like
electric power.

Shops may be on residential streets, shopping streets with

few or no houses or in a shopping mall. Shopping streets
may be for pedestrians only. Sometimes a shopping street
has a partial or full roof to protect customers from
precipitation. Online retailing, a type of electronic commerce
used for business-to-consumer (B2C) transactions and mail
order, are forms of non-shop retailing.

Shopping generally refers to the act of buying products.

Sometimes this is done to obtain necessities such as food
and clothing; sometimes it is done as a recreational activity.
Recreational shopping often involves window shopping (just
looking, not buying) and browsing and does not always
result in a purchase.

One of India’s major retailers with presence in

following two segments:

3|Page
Lifestyle Retailing - Pantaloons, Central, Fashion
Station, aLL, MeLa.
Value Retailing - Big Bazaar, Food Bazaar.

Retailing is the world’s largest private industry

Retail is the world’s largest private industry with global retail

sales of roughly USD 8 trillion. Retailing is also one of the
biggest contributors to the Gross Domestic Product (GDP) of
most countries and also one of the biggest employers.
(Source CII McKinsey Report titled “Retailing in India, the
Emerging Revolution”)

In India, however, the retail sector has seen a high level of

fragmentation with a large share held by unorganized
players.

Indian Retail Industry

India has a large number of retail enterprises. With close to

12 million retail outlets India has one of the highest retail
densities in the world. In terms of the structure, the industry
is fragmented and predominantly consists of independent,
owner-managed shops. The retail businesses include a
variety of traditional retail formats, such as "kirana" stores
which stock basic household necessities (including food
products), street markets-regular markets held at fixed
centers retailing food and general merchandise items, street
vendors-mobile retailers essentially selling perishable food
items-fruits, vegetables etc. and small non specialized
retailers.

Fragmented nature of Indian Retail

100% = $ 2325 115 20 22 ~100 ~75 55 325 180 18*bn

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Growth of Organized Retail in India

According to the 8th Annual Global Retail Development

Index (GRDI) of AT Kearney, India retail industry is the most
promising emerging market for investment. In 2007, the
retail trade in India had a share of 8-10% in the GDP (Gross
Domestic Product) of the country. In 2009, it rose to 12%. It
is also expected to reach 22% by 2010.

According to a report by Northbride Capita, the India retail

industry is expected to grow to US$ 700 billion by 2010. By
the same time, the organized sector will be 20% of the total
market share. It can be mentioned here that, the share of
organized sector in 2007 was 7.5% of the total retail market.

Drivers of Growth in Organized Retailing

We believe that India is experiencing certain socio-
demographic changes which are furthering the growth in
organized retail while enablers such as availability of
quality real estate are hastening the pace of this
transformation.

Rising income levels

We believe increasing household income has led to a
substantial change in the profile of the Indian consumer. A
larger number of households are getting added to the
consuming class with growth in income levels. In the chart
provided below the profile of the ‘Climbers’, ‘Consuming’
and ‘Very Rich’ consumers class is biased towards self
indulgent consumption patterns.

All India – Distribution of households by income (Rs

per annum)

Figures in million: Households (population)

1995 -96 2001 - 02 2006 - 07

The T
The consu The h
very ing Climbers e
rich class a
s
p
irants 1.2 2 5.2 (30)
(7) .
6
The 75.5 (432)
destitut 32.5 (
e (186 1
) 5
) 81.7 (472)

54.1
46.
(312.2 20.2 (117)
4
)
(26
5)
16.5 (95
44.0
(253.9) 74.
4
(42
33.0 9)
(190.4)

33.
1
(19
2)

24.
1
(14
0)
 Rich (Above Rs. 215,000) Consuming (Rs 45,000-215,000)
Climbers (Rs. 22,000-45,000) Aspirants (Rs. 16,000-
22,000)
Destitute (Less than Rs.16,000)

“The consuming class” and “the climbers” are expected to

increase from 120.8 million households in 2001-02 to 157.2
million households in 2006-07 (source: The Marketing
White book 2003-04, brought out by Business world) this
large base of households with growing disposable income is
expected to drive demand for organized retail.

Of this, 56% (44.8 million households) is expected to be

concentrated in urban India.

Young population with high disposable income

India has the lowest median age of 24, for its over 1,000
million strong population, among the other highly populous
countries (Source: KSA Technopak) Thus India has the
largest ‘young’ population in terms of sheer size and we
believe this young segment is the major driver of
consumption as they have the ability (disposable income)
and willingness (consumer confidence) to spend. Most of
such upwardly mobile consumers have little personal time
and they seek greater variety and availability of items under
a single roof and give highest preference to convenience,
which is the basic proposition of modern retailing formats.
The brand-conscious young population forms the largest
segment of demand for the majority of retailers.
Changing age demographics in India

(1)Availability of brands and merchandise

Consumerism and brand proliferation has been another
enabler for organized retailing in India. Most of the world’s
leading brands are now present in India. Brands like
L’Oreal, Espirit, Louis Vuitton, Marks & Spencer, Tommy
Hilfiger, Louis Philippe, Levis, Pepe, Lee, Arrow, Dockers,
Red Tape, Clarence, Hugo Boss, Tiffany, Bulgari, Ecco,
Chambor, Revlon, Philips, Corel, Magpie, Nike, Reebok,
Parker, Ray Ban, Lego, Mattel are now present in India.

(2)Media Proliferation
Another factor that accelerated the concept of organized
retail is media proliferation. The resultant exposure to
advertisements and brand promotions across product
categories has led to a growing consumer spending across
a wide range of product categories.

(3)Availability of quality real estate

Availability of quality real estate has been one of the main
constraints for development of organized retail in India. In
the past, negative yield on leased property, lack of bank
funding and the unorganized property market resulted in
dearth of quality retail space in the country. The spread
between yield on property and the financing cost has
turned positive with the fall in interest rates. Attractive
yields on investments have resulted in sharp increase in
property development.

In addition, the various States governments have taken

proactive steps to release large tracts of land for
commercial development. Growth of property funds and
permission for Real Estate Investment Trusts (REITs) to
be set up will further help create a secondary market for
real estate in the country.

(4)Enhanced Funding Options

Supply side changes such as consumer finance help in
shaping a markets buying power. Consumer credit,
especially through credit cards, has been growing
healthily year on year. Financial card usage in India has
witnessed tremendous growth with volume transactions
experiencing greatest growth.

(5)Implementation of VAT to reduce cost and

complexity
Differential sales tax rates across states and the
incidence of multi point local levies added to costs and
complexity, and have hampered aggregation of sourcing.
The implementation of Value Added Tax (VAT) is also
expected to narrow down the cost advantage that
unorganized retailers enjoy over the organized ones.

(6)Inbound tourists, shopping

There is a large NRI population. Given that international
lifestyle brands are readily available in their country of
migration, this population shops for similar quality
merchandise at lower prices in India on their visits here.
Additionally, inbound tourists visiting India and shopping
here seek similar products at lower costs in a similar
environment.
(7)Impact of Globalization
Globalization has removed trade barriers and promoted
consumerism. Over the last decade, there has been an
increase in branded goods – both domestic and
international – in the Indian market across product
categories. Both width and depth of product offering to the
Indian consumers is increasing.

Types of Retail Outlets:-

A marketplace is a location where goods and services are

exchanged. The traditional market square is a city square
where traders set up stalls and buyers browse the
merchandise. This kind of market is very old, and countless
such markets are still in operation around the whole world.

In some parts of the world, the retail business is still

dominated by small family-run stores, but this market is
increasingly being taken over by large retail chains.
Retail is usually classified by type of products as
follows:

 Food products
 Hard goods ("hardline retailers") - appliances,
electronics, furniture, sporting goods, etc.
 Soft goods - clothing, apparel, and other fabrics.

There are the following types of retailers by

marketing strategy:

 Department stores - A very large stores offering a

huge assortment of "soft" and "hard goods; often bear
a resemblance to a collection of specialty stores. A
retailer of such store carries variety of categories and
has broad assortment at average price. They offer
considerable customer service.
 Discount stores – It tend to offer a wide array of
products and services, but they compete mainly on
price offers extensive assortment of merchandise at
affordable and cut-rate prices. Normally retailers sell
less fashion-oriented brands.
 Supermarkets - It sell mostly food products.
 Warehouse stores - Warehouses that offer low-cost,
often high-quantity goods piled on pallets or steel
shelves; warehouse clubs charge a membership fee.
 Variety stores or "Dollar stores" - These offer
extremely low-cost goods, with limited selection;
 Demographic - Retailers that aim at one particular
segment (e.g., high-end retailers focusing on wealthy
individuals).
 Mom-And-Pop (or Kirana Stores as they call them in
India) - It is a retail outlet that is owned and operated
by individuals. The range of products are very selective
and few in numbers. These stores are seen in local
community often are family-run businesses. The square
feet area of the store depends on the store holder.
 Specialty stores - A typical specialty store gives
attention to a particular category and provides high
 level of service to the customers. A pet store that
specializes in selling dog food would be regarded as a
specialty store. However, branded stores also come
under this format.
 General store - A rural store that supplies the main
needs for the local community.
 Convenience stores - It is essentially found in
residential areas. They provide limited amount of
merchandise at more than average prices with a
speedy checkout. This store is ideal for emergency and
immediate purchases.
 Hypermarkets - It provides variety and huge volumes
of exclusive merchandise at low margins. The
operating cost is comparatively less than other retail
formats. A classic example is the Metro in Bangalore.
 Supermarkets - It is a self service store consisting
mainly of grocery and limited products on non food
items. They may adopt a Hi-Lo or an EDLP strategy for
pricing. The supermarkets can be anywhere between
20,000-40,000 square feet. Example: SPAR
supermarket.
 Malls - It has a range of retail shops at a single outlet.
They endow with products, food and entertainment
under a roof.

 Category killers or Category Specialist - By

supplying wide assortment in a single category for
lower prices a retailer can "kill" that category for other
retailers. For few categories, such as electronics, the
products are displayed at the Centre of the store and
sales person will be available to address customer
queries and give suggestions when required. Other
retail format stores are forced to reduce the prices if a
category specialist retail store is present in the vicinity.
 E-Tailers - The customer can shop and order through
internet and the merchandise are dropped at the
customer's doorstep. Here the retailers use drop
shipping technique. They accept the payment for the
product but the customer receives the product directly
 from the manufacturer or a wholesaler. This format is
ideal for customers who do not want to travel to retail
stores and are interested in home shopping. However it
is important for the customer to be wary about
defective products and non secure credit card
transaction. Example: Amazon and E-bay.
 Vending Machines - This is an automated piece of
equipment wherein customers can drop in the money
in machine and acquire the products. For example:
Soft drinks vending at Bangalore Airport.

Some stores take a no frills approach, while others are

"mid-range" or "high end", depending on what income
level they target.

Other types of retail store include:

 Automated Retail – Automates retail stores are self

service, robotic kiosks located in airports, malls and
grocery stores. The stores accept credit cards and are
usually open 24/7. Examples include Zoom Shops
and Red box.
 Big-box stores – Big-box stores encompass larger
department, discount, general merchandise, and
warehouse stores.
 Convenience store - a small store often with
extended hours, stocking everyday or roadside items.
 General store - a store which sells most goods
needed, typically in a rural area.
Retailers can opt for a format as each provides different
retail mix to its customers based on their customer
demographics, lifestyle and purchase behavior. A good
format will lend a hand to display products well and entice
the target customers to spawn sales.

Challenges for Organized retail

(1)Availability of skilled manpower: The non availability

of trained manpower, especially at the management level,
poses a key risk for the retail sector. With growing
opportunities in the emerging service sectors, the ability of
the retail business to hire and retain quality people is under
pressure. Further, as organized retail grows rapidly, there
will be pressure on existing players as new entrants look for
trained manpower at various levels.
(2)Supply chain issues: Supply Chain Management
efficiencies are essential to retailers to maintain and
improve margins. SCM includes vendor management and
logistics management. Vendor selection is an important
outcome of the sourcing process and a key to most efficient
sourcing. Logistics management aims to get the goods from
the vendor to the store in the shortest possible time thereby
avoiding unnecessary stocking of goods. In India, both
vendor management and logistics management are still
underdeveloped. However, with growing size of operations,
supply chain efficiencies will become a key differentiator of
profitability in retail.
Similarly, supply chain tools and techniques are still
developing in India with the increase in organized retailing
and entry of international brands. Bar coding is now being
implemented, driven by the retailers for whom it is an
essential ingredient for supply chain management.

85
15 81
19 55
45 60
40 36
64 80 80 98 99
70
30 15-20
20
ABOUT PANTALOONS
Evolution of Pantaloons:-

The Company was incorporated on October 12, 1987 as Manz

Wear Private Limited. The Company was converted into a
public limited company on September 20, 1991 and on
September 25, 1992 the name was changed to Pantaloons
Fashions (India) Limited and in the same year the Company
made an initial public offering. We later changed our name
to Pantaloons Retail (India) Limited on July 7 1999.
The Equity Shares of the Company
were first listed on BSE, DSE and ASE, on July 30, 1992.
Thereafter, the Equity Shares were listed on the NSE on
February 20, 2001. The company started his operations by
selling branded garments under Pantaloons, Bare and John
Miller brands. They set up our first menswear Pantaloons
Shoppe Outlet in 1993. The business has grown from one
store in Kolkata in 1997 occupying an area of 8,000 Sq. ft. to
72 stores, apart from our 22 factory outlets located in the
multiple cities occupying an aggregate area of 21,07,608 Sq.
ft. They focus on the Lifestyle segment through 14
Pantaloons stores, 3 Central Malls, 2 aLL, 2 Fashion Station
and 1 MeLa store. In the Value offering, they cater to the
mass through our 21Big Bazaar and 30 Food Bazaar outlets.

Objects of our Company our objects as contained in

our Memorandum of Association include:
 To carry on the business of manufacturing, buying,
selling, exchanging, altering, importing, exporting,
distributing or otherwise dealing in ready made garments
an hosiery made of cotton, silk, rayon, wool, nylon, man-
made fabrics, polyester, canvas, jute, leather, any other
fabric coated with any chemical or not, or other preparation
and other fabric.
 To carry on the business of manufacturing, processing,
dyeing, bleaching, buying, selling, exchanging, importing,
exporting or otherwise dealing in yarns and textiles made of
cotton, silk, rayon, wool, nylon, man-made fibres, polyester,
canvas or any other substances.
 To carry on trade or retail business in India through retail
formats and including but not limited to hyper markets,
super markets, mega stores/discount stores, cash & carry,
departmental stores, shoppers plaza, direct to home, phone
order and mail order, catalogue, through internet and other
forms and multi level channels for all products an services,
dealing in all kinds of goods, materials and items including
but not limited to food & provisions, household goods,
consumer durables, jewellery, home improvement products,
foot wears, lug gages, books & stationery, health care and
beauty products, toys and music, computers & accessories,
telecom products, agri input products, furniture &
furnishings, automobile & accessories, and acquiring and
running food, service and entertainment centers including
but not limited to multiplexes, cinemas, gaming centres,
amusement parks, restaurants and food courts and
acquiring of land or building on lease or freehold or any
commercial or industrial or residential building for running
and management of retail business and to acquire flats,
offices and retail spaces for carrying on retail business and
to sell them, lease or sublet them and to undertake and
execute civil, mechanical, electrical and structural works
contracts and sub contracts in all their respective branches
to carry on retailing business.
 About Future
Group

Future group:-

Future Group, led by its founder and Group CEO, Mr. Kishore
Biyani, is one of India’s leading business houses with multiple
businesses spanning across the consumption space. While
retail forms the core business activity of Future Group, group
subsidiaries are present in consumer finance, capital,
insurance, leisure and entertainment, brand development,
retail real estate development, retail media and logistics.

Led by its flagship enterprise, Pantaloons Retail, the group

operates over 16 million square feet of retail space in 73
cities and towns and 65 rural locations across India.
Headquartered in Mumbai (Bombay), Pantaloons Retail
employs around 30,000 people and is listed on the Indian
stock exchanges. The company follows a multi-format retail
strategy that captures almost the entire consumption basket
of Indian customers. In the lifestyle segment, the group
operates Pantaloons, a fashion retail chain and Central, a
chain of seamless malls. In the value segment, its marquee
brand, Big Bazaar is a hypermarket format that combines the
look, touch and feel of Indian bazaars with the choice and
convenience of modern retail.

The group’s specialty retail formats include supermarket

chain - Food Bazaar, sportswear retailer - Planet Sports,
electronics retailer - eZone, home improvement chain -Home
Town and rural retail chain - Aadhaar, among others. It also
operates popular shopping portal - www.futurebazaar.com.

Future Group believes in developing strong insights on Indian

consumers and building businesses based on Indian ideas, as
espoused in the group’s core value of ‘Indianness.’ The
group’s corporate credo is, ‘Rewrite rules, Retain values.’

Future Groups Includes-

 Future Retail- Covering all retail business.

 Future Capital- covering consumers finance,
insurance and advisory services.
 Future brands- covering all brands owned and
managed by company.
  Future space- which includes development and
management of real states.
 Future logistics- which manages supply chain and
distribution.
 Future media- which develops and manages retail
media spaces.

Future Group Manifesto:-

“Future” – the word which signifies optimism, growth,
achievement, strength, beauty, rewards and perfection.
Future encourages us to explore areas yet unexplored, write
rules yet unwritten; create new opportunities and new
successes. To strive for a glorious future brings to us our
strength, our ability to learn, unlearn and re-learn our ability
to evolve.

Future Group will not wait for the Future to unfold itself but
create future scenarios in the consumer space and
facilitate consumption because consumption is development.
Thereby, we will effect socio-economic development for our
customers, employees, shareholders, associates and
partners.

Our customers will not just get what they need, but also get
them where, how and when they need.

We will not just post satisfactory results, we will write

success stories.

We will not just operate efficiently in the Indian economy, we

will evolve it.

We will not just spot trends; we will set trends by marrying

our understanding of the Indian consumer to their needs of
tomorrow.

It is this understanding that has helped us succeed. And it is

this that will help us succeed in the Future. We shall keep
relearning. And in this process, do just one thing.
Rewrite Rules, Retain Values:-

Group Vision
Future Group shall deliver Everything, Everywhere, Every
time for Every Indian Consumer in the most profitable
manner.

Group Mission
We share the vision and belief that our customers and
stakeholders shall be served only by creating and executing
future scenarios in the consumption space leading to
economic development.

We will be the trendsetters in evolving delivery formats,

creating retail realty, making consumption affordable for all
customer segments – for classes and for masses.

We shall infuse Indian brands with confidence and renewed

ambition.

We shall be efficient, cost- conscious and committed to

quality in whatever we do.

We shall ensure that our positive attitude, sincerity, humility

and united determination shall be the driving force to make
us successful.

Core Values

 Indianness: confidence in ourselves.

 Leadership: to be a leader, both in thought and
business.
 Respect & Humility: to respect every individual and be
humble in our conduct.
 Introspection: leading to purposeful thinking.
 Openness: to be open and receptive to new ideas,
knowledge and information.
 Valuing and Nurturing Relationships: to build long term
relationships.
 Simplicity & Positivity: Simplicity and positivity in our
thought, business and action.
 Adaptability: to be flexible and adaptable, to meet
challenges.
 Flow: to respect and understand the universal laws of
nature.

Growth of
Pantaloons
Growth of pantaloons-

Pantaloons Retail (India) Limited, is India’s leading retailer

that operates multiple retail formats in both the value and
lifestyle segment of the Indian consumer
market. Headquartered in Mumbai (Bombay), the company
operates over 16 million square feet of retail space, has over
1000 stores across 73 cities in India and employs over
30,000 people.

The company’s leading formats include Pantaloons, a chain

of fashion outlets, Big Bazaar, a uniquely Indian
hypermarket chain, Food Bazaar, a supermarket chain,
blends the look, touch and feel of Indian bazaars with
aspects of modern retail like choice, convenience and quality
and Central, a chain of seamless destination malls. Some of
its other formats include Brand Factory, Blue Sky, aLL, Top
10 and Star and Sitara. The company also operates an online
portal, futurebazaar.com.

Future Value Retail Limited is a wholly owned subsidiary

of Pantaloons Retail (India) Limited. This entity has been
created keeping in mind the growth and the current size of
the company’s value retail business, led by its format
divisions, Big Bazaar and Food Bazaar.

The company operates 148 Big Bazaar stores, 169 Food

Bazaar stores, among other formats, in over 70 cities
across the country, covering an operational retail space of
over 6 million square feet. As a focussed entity driving the
growth of the group's value retail business, Future Value
Retail Limited will continue to deliver more value to its
customers, supply partners, stakeholders and communities
across the country and shape the growth of modern retail in
India.

A subsidiary company, Home Solutions Retail (India) Limited,

operates Home Town, a large-format home solutions store,
Collection i, selling home furniture products and e-Zone
focused on catering to the consumer electronics segment.

Pantaloons Retail is the flagship company of Future Group, a

business group catering to the entire Indian consumption
space.

Why Pantaloons Retail India Ltd. ?

Pantaloons Retail is not just an organization - it is an
institution, a Centre of learning & development. We believe
that knowledge is the only weapon at our disposal and our
quest for it is focused, systematic and unwavering.
At Pantaloons Retail, we take pride in challenging
conventions and thinking out of the box, in travelling on the
road less traveled. Our corporate doctrine ‘Rewrite Rules,
Retain Values’ is derived from this spirit.

Over the years, the company has accelerated growth

through its ability to lead change. A number of its pioneering
concepts have now emerged as industry standards. For
instance, the company integrated backwards into garment
manufacturing even as it expanded its retail presence at the
front end, well before any other Indian retail company
attempted this. It was the first to introduce the concept of
the retail departmental store for the entire family through
Pantaloons in 1997. The company was the first to launch a
hypermarket in India with Big Bazaar, a large discount store
that it commissioned in Kolkata in October 2001. And the
company introduced the country to the Food Bazaar, a
unique 'bazaar' within a hypermarket, which was launched in
July 2002 in Mumbai. Embracing our leadership value, the
company launched aLL in July 2005 in Mumbai, making us
the first retailer in India to open a fashion store for plus size
men and women.

Today pantaloons are the fastest growing retail company in

India. The number of stores is going to increase many folds
year on year along with the new formats coming up.

The way we work is distinctly "Pantaloons". Our courage to

dream and to turn our dreams into reality - that change
people’s lives, is our biggest advantage. Pantaloons is an
invitation to join a place where there are no boundaries to
what you can achieve. It means never having to stop asking
questions; it means never having to stop raising the bar. It is
an opportunity to take risks, and it is this passion that makes
our dreams a reality.
Come enter a world where we promise you good days and
bad days, but never a dull moment!

Our Culture-

Passion for Retail is why we are here.

At Pantaloons Retail, Empowerment is what you acquire and

Freedom at Work is what you get. We believe our most
valuable assets are our People. Young in spirit, adventurous
in action, with an average age of 27 years, our skilled &
qualified professionals work in an environment where change
is the only constant.

Powered by the desire to create path-breaking practices and

held together by values, work in this people intensive
industry is driven by softer issues. In our world, making a
difference to Customers’ lives is a Passion and performance
is the key that makes it possible. Out of the Box thinking has
become a way of life at Pantaloons Retail and living with the
change, a habit.

Leadership is a value that is followed by one and all at

Pantaloons Retail. Leadership is the quality that motivates us
to never stop learning, stretching to reach the next
challenge, knowing that we will be rewarded along the way.
In the quest of creating an Indian model of retailing,
Pantaloons Retail has taken initiatives to launch many retail
formats that have come to serve as a benchmark in the
industry. Believing in leadership has given us the optimism to
change and be successful at it. We do not predict the future,
but create it.

At Pantaloons Retail you will get an opportunity to handle

multiple responsibilities, and therein, the grooming to play a
larger role in the future. Work is a unique mix of preserving
our core Indian values and yet providing customers with a
service, on par with international standards.

At Pantaloons you will work with some of the brightest

people from different spheres of industry. We believe it’s a
place where you can live your dreams and pursue a career
that reflects your skills and passions.

The Indian retail industry is the fifth largest in the world.

Comprising of organized and unorganized sectors, India retail
industry is one of the fastest growing industries in India,
especially over the last few years. Though initially, the retail
industry in India was mostly unorganized, however with the
change of tastes and preferences of the consumers, the
industry is getting more popular these days and getting
organized as well. With growing market demand, the industry
is expected to grow at a pace of 25-30% annually. The India
retail industry is expected to grow from ` 35,000 Crores in
2004-05 to ` 109,000 crores by the year 2010.

Major Retailers in India-

Pantaloons:

Pantaloons is one of the biggest retailers in India with more

than 1000 stores across the country. Headquartered in
Mumbai, it has more than 16 million sq. ft retail space
located across the country. It's growing at an enviable pace
and is expected to reach 30 million sq. ft by the year 2010. In
2001, Pantaloons launched country's first hypermarket ‘Big
Bazaar’. It has the following retail segments:

 Food & Grocery: Big Bazaar, Food Bazaar

 Home Solutions: Hometown, Furniture Bazaar,
Collection-i
  Consumer Electronics: e-zone
 Shoes: Shoe Factory
 Books, Music & Gifts: Depot
 Health & Beauty Care: Star, Sitara
 E-tailing: Futurebazaar.com
 Entertainment: Bowling Co.

Tata Group:

Tata group is another major player in Indian retail industry

with its subsidiary Trent, which operates Westside and Star
India Bazaar. Established in 1998, it also acquired the largest
book and music retailer in India ‘Landmark’ in 2005. Trent
owns over 4 lakh sq. ft retail space across the country.

RPG Group:

RPG Group is one of the earlier entrants in the Indian retail

market, when it came into food & grocery retailing in 1996
with its retail Foodworld stores. Later it also opened the
pharmacy and beauty care outlets ‘Health & Glow’.

Reliance:

Reliance is one of the biggest players in Indian retail

industry. More than 300 Reliance Fresh stores and Reliance
Mart are quite popular in the Indian retail market. It's
expecting its sales to reach ` 90,000 crores by 2010.

AV Birla Group:

AV Birla Group has a strong presence in Indian apparel

retailing. The brands like Louis Phillipe, Allen Solly, Van
Heusen, Peter England are quite popular. It's also investing in
other segments of retail. It will invest ` 8000-9000 crores by
2010.

Board of Directors-
 Mr. Kishore Biyani, Managing Director.

Kishore Biyani is the Managing Director of Pantaloons

Retail (India) Limited and the Group Chief Executive
Officer of Future Group.

 Mr. Gopikishan Biyani, Director

Gopikishan Biyani, is a commerce graduate and has

more than twenty years of experience in the textile
business.
 Mr. Rakesh Biyani, Whole time Director

Rakesh Biyani, is a commerce graduate and has been

actively involved in category management; retail stores
operations, IT and exports. He has been instrumental in
the implementation of the various new retail formats.

 Mr. Vijay Biyani, Wholetime Director

Vijay Biyani has more than twenty years of experience

in manufacturing, textiles and retail industry and has
been actively involved in the financial, audit and
corporate governance related issues within the
company.

 Mr. Kailash Bhatia, Wholetime Director

He has over 28 years of valuable experience in the

fashion business and has worked with some of the well
known companies like Arvind Mills and Weekender.

 Mr. Vijay Kumar Chopra, Independent Director

V.K. Chopra is a fellow member of The Institute of

Chartered Accountants of India (ICAI) by profession and
is a Certified Associate of Indian Institute of Bankers
(CAIIB). His banking career spans over 31 years and he
has served senior management positions in Central
Bank of India, Oriental Bank of Commerce, SIDBI,
Corporation Bank and SEBI.
 Mr. Shailesh Haribhakti, Independent Director

Shri Shailesh Haribhakti, is a Chartered Accountant,

Cost Accountant, and a Certified Internal Auditor. He is
the Deputy Managing Partner of Haribhakti & Co.,
Chartered Accountants and past president of Indian
merchant Chambers. He is on the Board of several
Public Limited Companies, including Indian
Petrochemicals Corporation Ltd., Ambuja Cement
Eastern Ltd. etc. He is on the Board of Company since
June 1, 1999.

 Mr. S Doreswamy, Independent Director

S. Doreswamy, is a former Chairman and Managing

Director of Central Bank of India and serves on the
board of DSP Merrill Lynch Trustee Co and CEAT Limited
among others.

 Dr. D O Koshy, Independent Director

Dr. Darlie Koshy, a PhD from IIT Delhi and rank holder in
MBA headed NID (Ministry of Commerce, GOI) as
Director for 2 terms of office prior to which he was the
founding Chairperson of Fashion Management at the
National Institute of Fashion Technology (Ministry of
Textiles, GOI). He is currently the Director General &
 CEO of ATDC Network of 58 Institutes / Center’s and two
premier campuses of Institute of Apparel Management
under the aegis of AEPC (Sponsored by Ministry of
Textiles, GOI). Dr. Koshy received the Delhi IIT Alumni
Award for contribution of National Development in
2008. Dr. Darlie Koshy was also conferred with the “Star
of Italian Solidarity” one of the highest civilian awards of
the Government of Italy. Dr. Koshy is the author of three
pioneering books including the much acclaimed “Indian
Design Edge”.

 Ms. Bala Deshpande, Independent Director

Bala Deshpande, is Independent Director, Pantaloon

Retail (India) Ltd. and also serves on the boards of
Deccan Aviation, Nagarjuna Construction, Welspun India
and Indus League Clothing Ltd, among others.

 Mr. Anil Harish, Independent Director

Anil Harish, is the partner of DM Harish & Co. Associates

& Solicitors and an LLM from University of Miami. He
also serves on the board of Mahindra Gesco, Unitech,
IndusInd Bank and Hinduja TMT, among others.

Major Milestones-

 1987

Company incorporated as Menz Wear Private Limited.

Launch of Pantaloons trouser, India’s first formal trouser
brand.
 1991

Launch of BARE, the Indian jeans brand.

 1992

Initial public offer (IPO) was made in the month of May.

 1994

The Pantaloons Shoppe– exclusive menswear store in

franchisee format launched across the nation. The
company starts the distribution of branded garments
through multi-brand retail outlets across the nation.

 1995

John Miller – Formal shirt brand launched.

 1997

Company enters modern retail with the launch of the

first 8000 square feet store, Pantaloons in Kolkata.

 2001
 Three Big Bazaar stores launched within a span of 22
days in Kolkata, Bangalore and Hyderabad.

 2002

Food Bazaar, the supermarket chain is launched.

 2004

Central - India’s first seamless mall is launched in

Bangalore.

 2005

Group moves beyond retail, acquires stakes in Galaxy

Entertainment, Indus League Clothing and Planet Retail.
Sets up India’s first real estate investment fund Kshitij
to build a chain of shopping malls.

 2006

Future Capital Holdings, the company’s financial is

formed to manage over $1.5 billion in real estate,
private equity and retail infrastructure funds. Plans
forays into retailing of consumer finance products.

Home Town, a home building and improvement

products retail chain is launched along with consumer
durables format, Ezone and furniture chain, Furniture
Bazaar.

Future Group enters into joint venture agreements to

launch insurance products with Italian insurance major,
 Generali. Forms joint ventures with US office stationery
retailer, Staples.

 2007

Future Group crosses $1 billion turnover mark.

Specialized companies in retail media, logistics, IPR and

brand development and retail-led technology services
become operational.

Pantaloons Retail wins the International Retailer of the

Year at US-based National Retail Federation convention
in New York and Emerging Retailer of the Year award at
the World Retail Congress held in Barcelona.

Futurebazaar.com becomes India’s most popular

shopping portal.

 2008

Future Capital Holdings becomes the second group

company to make a successful Initial Public Offering in
the Indian capital markets. Big Bazaar crosses the 100-
store mark, marking one of the fastest ever expansion
of a hypermarket format anywhere in the world. Total
operational retail space crosses 10 million square feet
mark.
 Format of
Operation

Format of operation-

Pantalo
ons
Retail
India
Ltd.
 Entert
Value ainme
Lifestyle Retaili nt,
Retailing ng Leisur
e
Sports

Fashio Big Food

Pantal Centra MeLA Baza Baza
n aLL
oons l ar
Station ar

Pantaloons is one of India’s largest organized modern-

format retailers and have been promoted by Kishore
Biyani.

From our beginning in 1987, the organization have today

evolved as one of the leading manufacturer-retailer and are
among the pioneers in setting up a nation-wide chain of
large format stores in India. They believe that the various
initiatives taken by them have played a key role in
enhancing the standards of retail in the country. They are
an entrepreneur driven, professionally managed retailer
focused on meeting the customer requirements for a large
component of their spend across fashion, food, general
merchandise, home in both value and lifestyle segments.
Pantaloons have also entered into partnerships/joint
ventures to expand their offerings from home to apparel to
household products to durables etc. they believe our focus
on customers supported by systems and processes and a
committed work force are the key factors that have
contributed to the organizations success and will help us
scale up as we embark on our strategic growth plan.

The business has grown from one store in Kolkota in 1997,

occupying an area of 8,000 Sq. ft to 72 stores, apart from
our 22 factory outlets located in multiple cities occupying
an aggregate area of 2107608 Sq. ft. Pantaloons focus on
the Lifestyle segment through 14 Pantaloons stores, 3
Central Malls, 2 aLL stores, 2 Fashion Station and 1 MeLa
store. In the Value segment, they cater to the masses
through our 21 Big Bazaar and 30 Food Bazaar outlets.

They believe that managing customer expectation by

offering them all the requirements for their entire family
under one roof is the key to being a successful retailer, and
hence have built our business model around ‘Family focus’
rather than ‘individual focus’. Pantaloons believe
addressing the family attracts more customers into the
store.

Pantaloons retail a range of branded and Private Label

apparel, footwear, perfumes, cosmetics, jewellery, leather
products and accessories, home products, books, music
and toys in our stores. To complete the idea of a family
store, besides garments, we also retail household items,
consumer durables, home furnishings, apart from food and
personal care products. This is complemented by cafes,
food stalls, entertainment, personal care and various
beauty related services. Promotions and events are an
integral part of our service offering to our customer, which
helps us create a unique shopping experience.

Pantaloons’ Exclusive format includes-

1. Pantaloons: Lifestyle products under Private

Labels and third party brands.

2. Central: Seamless mall providing the customer

with a wide range of lifestyle products
across multiple national and international
 brands.

3. Big Bazaar: Value retailing with a range of

products from apparel, toys,
accessories, consumer durables to
household products and furnishing.

4. Food Bazaar: Food and personal care products

including dry groceries and FMCG
products.

Pantaloons believe their offerings provides to our

customers is a unique shopping experience, comprising of a
vast range of lifestyle and value retail products, mix of
retailing formats coupled with the facility of entertainment
and leisure.

Pantaloons loyalty program, called ‘Green Card’ in our

format Pantaloons, currently has 219989 members as on
August 31, 2005. The Green Card programmed accounted
for about 31% of our sales in Pantaloons for the year ended
June 30, 2005. We offer our Green Card holders rewards
points on their purchases, special offers and discounts, and
invitations to exclusive events and promotions.

They have four subsidiaries and have two joint venture

entities supplementing the business.

In the initial stages the organizations had small format

outlets branded Pantaloons Shoppe, which were franchise
operations. Realizing the problems associated with
franchise model, they decided to have their own retail
outlets. They launched their own retail store “Pantaloons”
in 1997. They also launched Big Bazaar- a hypermarket
with over 170000 products as the first offering in value
retailing segment. Food is the largest basket in terms of
household expenditure, as a logical extension they
launched their new format Food Bazaar. They have
introduced the concept of seamless malls in India through
their new format ‘Central’. Recently they have launched
new retail formats; aLL, Fashion Station and MeLa.

Pantaloons-‘Fresh Fashions’
Started in 1997 through one 8,000 square feet store in
Kolkata, Pantaloons is the first organized departmental
store format targeting the Indian middle class and upper
class customers across age and gender. The focus is largely
on apparels and accessories and covers the entire family.
They offer a wide variety of product range including
trousers, shirts, casual wear, western and ethnic wear for
women, children’s clothes, accessories, jewellery. They also
provide a combination of private label and third Party
Label.
Private Labels-“Pantaloons” is life style retailing format.
The objective is to offer differentiated products not
available elsewhere. The focus is on Private Label products
and fashion at affordable prices. The antecedent of the
Company lie in garment and fabric manufacturing and
trading, this ability to understand the apparel business
has translated into active and strong Private Label
offering contributing to 77% of our total apparel revenues
in Pantaloons in FY 2005.

Few of our Initial Private Labels includes;

Private label Year of launch Category

Pantaloon trousers 1987 Mens Wear
Bare Jeans 1991 Jeans, shirts, knit wear,
gaberdines, jackets and other
accessories
John Miller 1995 Shirts
Shrishti 1998 Ladies wear
 Scotsville 1999 Winter wear- sweaters,
cardigans and blazers
Annabelle 1999 Ladies western wear
Ajile 2000 Sports wear

The other Private Label in the apparel segment includes

RIG, Euforia, JM Sport , Akkritti, Ghagroos, Arabesque,
Honey, Chalk, F, Lombard.

An intensive Private Label offering requires a proactive

and innovative design team. To fulfill this objective a
Design Studio was created at Mumbai. They have a design
team comprising of 35 members, all qualified graduates
form National Institute of Fashion Technology (NIFT),
National Institute of Design (NID), Nottingham Trent
University, UK (NTU) and other institutes. The team has a
combination of senior designers and new recruits providing
a mix of experience and youth. In addition to
conceptualizing designs for apparels, the team also designs
and develops logos, labels and tags. Presence of a
dedicated design team has resulted in faster introduction of
new Private Labels as well as ensures that all existing
Private Labels undergo frequent refurbishment.

The organization has brought to India, Underground Music

Movement (UMM) a brand licensed from Moda & Musica
SEM of Italy. T h e y have exclusive retail license for
international brands like Popeye and Disney. They have
acquired 49% of the equity share capital in Planet Sports
Private Limited. Planet Sports, through its wholly owned
subsidiary Supreme Trade Links Private Limited which is
the sole franchisee of the UK-based Marks and Spencer in
India. Planet Sports also holds exclusive distribution
licensing rights for brands like Wilson, Speedo. It has six
Mark and Spencer and 25 Planet Sports stores in India.
Big Bazaar- ‘Isse Sasta aur accha kahin nahin’
On October 12, 2001, they launched ‘Big Bazaar’ as the
offering in the value retailing segment. By removing
inefficiencies from the distribution chain they are able to
unleash attractive savings which are passed on to the
consumer. Big Bazaar is India’s first hypermarket in the
discount store format. Big Bazaar provides more than
2,00,000 items- food, grocery, utensils, kitchen needs,
home needs, bath needs, toys, stationery, electronics and
white goods which are sold at a discount to the maximum
retail price. Price is the principal value proposition at these
stores.

A big driver at Big Bazaar is the product variety. This is

achieved by selling a wide range of products and through
the “Shop-in-Shop” format. As a result, a typical Big Bazaar
comprises shops that stock medicines, optical accessories,
camera rolls, bakery products, dry fruits, crockery,
glassware, health and beauty products, ladies accessories,
electronics, infant necessities, watches, clocks, computer
accessories, food and beverages, stationery, readymade
garments, household appliances, home furnishings,
luggage. They believe this is a win- win situation as the
customer is assured of product availability, the shop owner
can benefit of the infrastructure and they enjoy assured
income without needing to stock inventory. Also the Shop-
in-Shop offering is able to increase the customer traffic into
the stores. The Big Bazaar has been positioned to the
customer as a place where the customer can shop for each
and everything for which it goes to a market.

Gold Bazaar- ‘Sasta bhi shudh bhi’

The organization have opened ‘Gold bazaar’ within Big
Bazaar in 2002, they foray into gold retailing. Gold Bazaar
offers various advantages like no weight reduction on
exchange, transparent and fixed making charges, purity
check through Carat meter, certificate by World Gold
Council, 100% free insurance against theft, burglary and
loss by National Insurance Company with every product,
no-questions asked 15 day return policy and free life time
maintenance of the gold jewellery. Gold Bazaar operates
as a part of Big Bazaar.

Food Bazaar- ‘Wholesale prices

The organization ventured into food retailing with Food
Bazaar in April 2002. It began as a part of Big Bazaar and
now operates as standalone outlets in addition to being
part of Big Bazaar. Food Bazaar provides a wide product
range from fresh fruits and vegetables to FMCG products
and ready-to-cook products. It stocks about 8,000 to 12,000
SKUs per location. Food Bazaar’s core concept is to create
a blend of a typical Indian market and International
supermarket atmosphere with the objective of giving the
customer all the advantages of Quality, Range and Price
associated with large format stores. Food Bazaar offers
the Indian consumers convenience, cleanliness and hygiene
through pre-packed commodities while retaining Indian’s
preference of "See- Touch- Feel" created by displaying
products in the open at competitive prices. Food Bazaar
also provides home delivery services to the customers.

Central- ‘Shop, Eat, Celebrate’ In the heart of the

city’
Central is the second offering under the lifestyle format.
Central is a seamless mall. The concept of seamless mall is
relatively new to India and Central is a pioneer of this
format. The design of the mall does away with in-between
walls and Shop-in-Shops thus offering customer’s
unobstructed shopping experience.

The first Central opened in Bangalore on May 14, 2004.

Located in the heart of the city the mall is spread over
125000 Sq. ft. across five floors and provides customers
with a wide array of facilities ranging from shopping,
eating, leisure and entertainment. The mall allows
customers to choose from amongst a range of brands in
apparel, toys, books, music, sports, lifestyle accessories
and more under one roof. Central also has a Food Bazaar,
food courts and restaurants. The second Central was
launched in Hyderabad in November, 2004 covering an
area of 216000 Sq. ft. In April, 2005 the third Central was
launched in Bund Garden, Pune covering an area of 137000
Sq. ft. Central provides a platform to showcase in house
labels amidst other national and international brands
thereby improving brand visibility.

Fashion Station
A thematic store, Fashion Station is an attempt to offer
current fashion products to the mass market. The
organization believe with increasing media penetration and
a proliferation of television channels some of which cover
fashion extensively, the average Indian is being
steadily exposed to
bolder and more contemporary fashion. Fashion Station is
positioned to meet the fashion requirements of this growing
number of customers.

They opened the first Fashion Station opened in Mulund,

Mumbai in March 2005. Spread over 25,000 square feet,
the store houses a mix of Private Labels sold in Big Bazaar
and Pantaloons. These are backed by the requisite fashion
accessories and appropriate footwear, which lends an
integrated feel to the store and meets the entire fashion
requirements of a customer. The second Fashion Station
has been opened in Ghaziabad which is spread over 15,000
Sq. ft.

aLL-‘A little larger’

aLL is our latest format in the Lifestyle retail segment.
aLL is the exclusive store dedicated to the fashion needs
of both plus size men and women which has been launched
as a single dedicated stand- alone store. It was launched in
Vashi, Mumbai on July 16, 2005 and covers an area of 650
Sq. ft and at Andheri on August 21, 2005 covering an area
of 2,000 Sq. ft. The ‘aLL’ store houses a wide range of
ready-to-wear fashionable clothes and accessories that are
otherwise not easily available for plus size customers. The
store has a wide collection to select from - Western wear,
Indo-western and Ethnic wear in both formal and casual
categories. Matching accessories like belts, ties, and
handbags are also available. To complement the collection,
the store layout is designed keeping in mind the
requirements of its customers. The sales staffs are trained
to provide a comfortable shopping experience to this new
segment of customers.
MeLa
MeLa marks the entry into the home solutions market
through our subsidiary Home Solutions Retail (India)
Limited. With a record number of houses being bought
annually in India and the organized retailing being largely
absent in this segment, home solutions is a logical
expansion of the retail business. Under this business, they
cater to the value and lifestyle segment through existing
and new formats. MeLa provides a complete range of home
furnishings, besides also offering a range of services that
includes tailoring facilities and customized home solutions
by in-house interior designers. The company currently has
one MeLa store in Mumbai.

Pantaloons Competitive Strengths-

The following are our key strengths, which we believe,
enable us to compete in our business:

 Brand Equity and early mover advantage

Pantaloons is one of India’s leading retailers with presence

across multiple formats and stores across large and
medium cities across India. They successfully introduced
their hypermarket format through Big Bazaar, introduced
the concept of seamless malls through Central, launched
Fashion Station to offer fashion apparel and accessories to
mass market buyers in a theme based style, opened aLL an
exclusive lifestyle store for plus size people and continue to
invest in new concepts and formats to capture a greater
share of the consumer wallet, either directly and through
our strategic investments.

 Entrepreneur led, professionally managed by an

experienced team

Pantaloons have an experienced professional management

team led by their Promoter Mr. Kishore Biyani, who is one
of the leading entrepreneurs in the retail sector in the
country and has received various awards over the years,
with the recent one being the Retail Face of the Year,
2005. Several of our management team members have
experience of managing other retail / consumer facing
organizations. They have thus been able to complement
rapid expansion with the ability to create adequate systems
and processes.
The management team is complemented by a committed
work force. Pantaloons’ Human Resources policies aim to
create an engaged and motivated work force, which is
essential for success in any service oriented industry such
as their owns.

 Project execution and operations capabilities

Pantaloons have created a project team which enables us

to identify and roll out properties quickly and seamlessly.
This has allowed us to grow from 561000 Sq. ft. in 2003 to
2107608 Sq. ft

Pantaloons’ operations team facilitates new stores to be

opened quickly and integrated into their system and
provides their customers with the similar experience across
all the stores, and also enables their stores to quickly scale
up to meet growing customer requirements.

 Vast range of lifestyle and value retail products

and services

Pantaloons’ merchandise ranges across apparel,

accessories, food products, home and kitchen products,
dry and fresh groceries, consumer durables and non
durables with over 270000 SKUs, which are complemented
by their services offerings. Presence in both Lifestyle and
Value retailing enables them to cater to a large segment of
the population, besides benefiting from the synergies which
exists between the two segments.

Pantaloons offer their customers a variety of national and

international brands as well as our Private Label brands
under one roof.
  Strong focus on systems and processes

Pantaloons focus on systems and processes. They are in

the process of revamping their current IT setup to
implement more advanced applications. Automated core
transaction systems have been developed in house and
have evolved with their business. Existing business
applications handle all store operations such as billing,
customer loyalty programmes, store inventory,
management. Back office processes are also computerized
which support procurement, supply chain logistics, ware
house management and inventory control. All the locations
are connected through company-wide VPN (Virtual Private
Network).
Business planning happens through a high end
planning tool called “Cognos Planning”. Oracle financials
form the backbone of accounting functions and gives
online real-time access to the Company’s overall
financial position at any given point in time.

Pantaloons believe this will help them as we embark on

their growth strategy and enhance to reach with their
customers and help us provide them a consistent brand
experience across all stores.
 Strong distribution and logistics network and
supply chain
Pantaloons have created a strong distribution and logistics
network, with their 13 Distribution Centre covering 260000
Sq. ft, handling over 100000 SKUs, and working 24 hours a
day and 7 days a week.

The distribution and logistics set up is networked and are

on line allowing them to deliver merchandise to the store
within 24 hours of receipt / generation of auto
replenishment order, which has helped them optimize in-
store availability of merchandise. They believe their
existing Distribution Centres, which have been designed to
scale up, will be able to meet their growth requirements as
we expand the number of all stores.
The above initiatives have helped them in improving the
efficiencies of their supply chain, which they believe is
critical for any retailer. These aim at meeting the conflicting
requirements of reducing their inventory whilst ensuring
availability of products at all stores as per customer
needs, as well as reducing our operational costs.

 Large base of loyal customers

Pantaloons had 42280682 customer entries in our stores in

the year ended June 30, 2008. They believe that the
emotional connect that they have been able to create good
relationship with their customers through service offering
and special promotions has helped them convert many of
them into loyal customers.
 Pantaloons’ Retail
Strategy

Pantaloons’ Strategy-

Pantaloons intend to maintain and enhance their position as

a leading retail entity through continued focus on the Indian
market and investing further in their competitive strengths
to grow their business. The key elements of Pantaloons
business strategy include:
  Increasing offerings to meet a higher portion of
the consumer spend
Pantaloons intend enhancing there share of the customers’
monthly spend by launching new formats or adding
categories to their existing product range. They intend to
implement this by launching such formats directly or by
way of strategic tie ups in areas where they have the
opportunity to tie up with an appropriate partner.

 Increasing penetration in existing cities and

expanding their reach across the country
Increasing their penetration in existing cities with a larger
number of stores, increasingly of larger size, will enable us
to penetrate into new catchment areas within these cities
and optimize their infrastructure.
Enhancing they reach to cover additional cities; will enable
them to reach out to a larger population. This will help to
provide a platform to domestic and international brands
wanting to reach out to domestic consumers with the same
profile as their customers.

 Enhancing merchandise width by adding product

categories
Consumer’s tastes are shifting and the propensity to spend
on new categories of merchandise is increasing along with
needs for new services.

Pantaloons’ focus will be to add on such new categories in

their stores along with developing existing categories to
increase their share of the spend of not only existing
customers, but also acquire new customers.
  Introducing new brands and developing more
Private Labels to offer a better depth in each
category
Pantaloons continuously focus on enhancing the depth and
width of their merchandise. Their Private Label and private
brands initiative is part of such focus and offers us a
differentiating factor as compared to their competition at
the same time helps us enhance margins.
They had a tie up with Popeye and Disney wherein they are
their exclusive retail licensee for India. They continue to
evaluate such opportunities for tie ups with national and
international brands, which can be introduced in India
through their stores.

 Utilising economies of scale as they grow in size

and expand their reach
Pantaloons believe that their existing corporate
infrastructure and software systems have been designed
for a higher scale of operations than their current size, and
can help them grow with out the need to significantly
increase costs.

They are having in place their distribution and logistics

infrastructure, which can handle larger business
volumes at marginal addition to costs. Higher business
volumes will also improve their negotiating powers and
help us get further economies of scale in their buying with
opportunities of incremental margins.

 Enhancin operational efficiencies through

systems and processes
They are having a consistent focus on enhancing their
operational efficiencies and monitor key operational
parameters on an ongoing basis using concepts such as
gross margin return on floor space, gross margin return
on labour and gross margin return on inventory to improve
their productivity on space, labour and inventory.

Pantaloons benchmark of the stores on performance

parameters on a historical as well as on a comparable
basis to seek areas for improvement to reduce their
operating costs and enhance our productivity levels.

 Enhancing human capital

The aim at recruiting the best talent available in a cross
section of industries, identifying fresh talent, grounding
them in the value system and providing opportunities for
growth. They follow a Balanced Score Card approach which
deals with the individual aspirations/goals and links them to
the overall company strategy.

Keeping in mind their needs and the industry’s future

requirement of professionals and given the lack of
educational facilities plus a gap between demand and
supply in the retail industry, they set up a two year Post
Graduate Programme in Retail Management in
collaboration with Wellingkar Institute of
Management Development & Research, a Mumbai
based management institute.
 Processes and
support functions
(1)Category Management: Pantaloons have employed
the concept of category management in our day-to-day
merchandising function as against the traditional brand
management merchandising practice followed by most
retailers. Category managers look at sales and margins of
each brand in a category. The whole idea of category
management is to create products across length and
breadth of a category at different price points, fabrics,
design, shape, seasons, colour and size.

Functions under category management can be

broken into:

Merchandising
• The Category manager develop a merchandising
strategy for the category taking into consideration
customer profile, classification, resource structure,
vendors, fashion trends, items and price points. The
category manager visit stores regularly to check
assortments of merchandise displays, stock levels and
 old season merchandise, consult with team leaders
and sales people on problems and suggestions.

Sourcing / Purchasing
• The category manager controls quantities to be
purchased as per the sales forecast. The purchasing
is done based on range plan made for the season and
re-orders been placed based on sales and stock levels.
The Category Manager reviews the actual sales versus
planned sales and source the material based on
feedback from storefront.

Logistics
• Category manager ensure that goods are dispatched
in right quantities and at right time to reach stores
with sufficient time in hand to promptly cater to
customer demands.

Promotions
• Category manager plans promotions / brand or
product building schemes. The category manager
identifies slow movers and also disposal plan for the
same.

(2)Visual Merchandising-
In modern retail, we believe that visual merchandising is
key to encourage a customer to purchase the products.
Visual merchandising involves store window, store
directories, in- posters, unit top poster / visual, placement of
products, highlighting products in the store. Pantaloons use
visual merchandising skills to present their merchandise at
its best, in order to appeal to the customer. This is a critical
in store activity with their visual merchandising team
deciding on the theme as well as the manner in which the
merchandise is proposed to be displayed across their stores
nation wide.

(3)Supply Chain management-

Availability of products at the right time and at affordable
cost is of utmost importance in retail business. Supply
Chain management ensures this. The diverse requirements
of different retail formats in which they operate requires a
model which is flexible enough to meet the diverse
requirement of their various formats; incase of Pantaloons-
the time to market is of paramount importance whereas for
Big Bazaar – the cost to market is crucial. Keeping this in
mind, we have created their own supply chain and logistics
model. The Supply Chain function involves vendor
management, quality assurance and transportation.

Vendor management assumes critical importance in retail

business where one has to deal with multiple products. They
have in place a robust vendor management system.
Vendors are identified all over the country and strategic
relationships are developed. A transparent vendor rating
system rates each vendor across a variety of parameters.
Regular interaction and rating system ensures that the
vendor remain in sync with the Company’s goals and
targets. Improvement in communication with vendor and
vendor development initiatives like standardization of norms
for size and fits, and implementation of a vendor
rationalization program enable them to increase the
number of “A” rated vendors by over 80 %. The Supply
chain department has been awarded the ISO 9001:2000
certificate by Det Norske Veritas.
The quality assurance function has been strengthened
with the implementation of internal quality control
measures. Quality hubs have been established at zonal level
with a view to proactively prevent quality defects.

They have one central warehouse and 12 regional

warehouses. These warehouses are located in Pune, Delhi,
Ghaziabad, Nasik, Ahmedabad, Bangalore, Hyderabad,
Gurgaon, Mumbai, Nagpur and Kolkata.

In case of lifestyle retailing, the entire apparel stock is

generally delivered to the central warehouse. The central
warehouse then services individual stores. In addition to
central buying, there is restricted local buying. A unique
aspect of the supply chain model is the factory outlet. Its
the last level of supply chain model which ensures that
slow-moving merchandise are disposed off on a regular
basis.

While pantaloons outsource intercity transport of goods to

third parties, intra city movement form warehouse to the
stores is handled by the own fleet of vehicles. For lifestyle
retail formats, they use the services of logistic solution
providers in order to deliver products on time to the stores.
For value retail, low cost transport arrangements have been
secured to optimize transportation cost.

Warehouse operations have been streamlined through the

standardization of racking system, scientific layouts and
implementation of automatic replenishment system.

Pantaloons’ Corporate Functions

1. Information Technology
 2. Human Resources
3. Retail Information System
4. Internal Controls
5. Measurement of Customer Satisfaction

1. Information Technology
A key element of the corporate functions is the Information
Technology strategy and set up. They are in the process of
revamping their systems to address the growing demands
of the customer and to have a seamless flow of activities.

The IT vision is to address multiple aspects like connectivity,

infrastructure, security, real time information and tools for
financial management amongst others. The IT strategy has
been framed keeping in mind the growth in formats, chains,
product categories and locations.

The most rudimentary issue is that of connectivity, it means

ensuring seamless flow of data to the head office from
regional offices, zonal centre, stores and warehouses. All
locations are connected through company wide virtual
private network, stock and sales data from each store is
consolidated on a daily basis allowing close monitoring and
quick decision-making.

At present, business planning occurs through a high-end

planning tool called ‘Cognos Planning’, while data analysis is
undertaken through ‘Cognos Powerplay’, a highly analytical
platform that enables data to be drilled down to the lowest
level. ‘Oracle Financials’, the backbone of accounting
function, is the integrator between planning, buying,
moving, selling and analysis functions, and gives on-line
real time access to the company’s overall financial position
at any given point in time.

Strategic Direction
The organization is in the midst of upgrading the IT set up
with a strategic relationship with SAP, business software
solutions provider. They intend to implement my SAP
Business Suite, SAP Advanced Planning Tool for
Merchandise and Assortment Planning and SAP Apparel and
Footwear Solutions.

The organization also in the process of installing Closed

Circuit Television at stores (CCTV) , using the virtual private
planning, live feeds from the CCTV’s will be relayed to the
head office and the zones. This will compliment the video
conferencing facility that already exists between the stores
and the head office. To enable quicker decision-making and
reduce the lag time, different needs of different users are
being addressed through the creation of a personalized
‘dash-board’(a graphical personalised interface through
which one can access information available in the central
database). Individual users will be able to receive alerts
based on their profiles and categories on various aspects
related to stock, sales etc. Graphs pertaining to key
performance areas will be generated enabling better control
and informed decision-making.

They had begun to implement fully a integrated transaction

system, which would accumulate accurate real time data as
each key function of the organization performs its day-to-
day operations, this would include merchandise
management, procurement, manufacturing, warehousing,
logistics, inventory management, store operations and
customer management. A data warehouse and Business
Intelligence Tool are in the process of being installed,
advanced corporate planning tools that facilitate decision
making in budgeting, forecasting, space planning and
inventory planning are being put in place.
2. Human Resource
In a business where individuals comprise the principal
asset, the structure of the people pyramid influences the
quality of knowledge captured, the speed with which
decisions are made and the morale of the organization.
Human Resource is one of the critical support functions and
forms another key element of the corporate backbone.
Pantaloons have more than 8000 employees as a very
young and energetic organization with average employee
age being 30 years.

They believe that service is the core philosophy and

people are the most important resources. The organization
attempt has always been to create an environment where
the employees feel pride of being called ‘Pantaloonians’.

Human Resource philosophy is driven through our ‘The

Pantaloons People Management System’.

The Pantaloons People Management System

Pantaloons People management system is built on 5 pillars
of people based growth:
 Culture Building.
 Performance Management through Balanced Score
Card.
 People Processes.
 Management Processes.
 Leadership Excellence.

Organization Structure
The organization is headed by our Managing Director. The
employees follow an inverse pyramid structure; as a result
decisions are taken closest to the point of customer action.
Sales executive are encouraged to think customer first.
They are empowered to run their respective departments
like ‘small business owners’.

Inverse Pyramid Structure

Sales &staff support

HR Manager
Department Manager
-organizational
Store Mgr., Buyers,
Department planning
Merchadise Mrg, -systems building
RM, GM -Performance mgmt.
-Personal enhancement
-Competency mapping
Board & building
-Compensation policy

Performance Management: Appraisal, Rewards and

Recognition
The organization’s Compensation philosophy is ‘Pay for
Performance, promote for potential’ and is designed to
meet the following key objectives:

 Attract and Retail Qualified Employees

 Externally Competitive
 Performance based pay
 Internally Equitable
  Legal Compliance

The organization’s compensation policy is performance

based and they believe it is competitive with industry
standards in India. The compensation packages are
adjusted annually based on industry salary correction
compensation surveys and individual performance. From
time to time employees who have met or exceeded
performance standards are awarded bonuses.

The employees post retirement benefits include a

provident fund and a gratuity. Both the provident fund
and the Gratuity have been approved by the relevant
statutory authorities. They have set up a “Pantaloon
Foundation”- an employee welfare fund with effect from
August 2004. The fund provides financial assistance in all
cases wherein the employee seeks the Company’s
financial support in medical emergency for him/herself or
their families. The contribution to the fund is voluntary.

Employee Insurance
Pantaloons’ provide all the employees with group life
insurance. They also provide medical insurance coverage
for employees who are not covered under ESIC (Employee
State Insurance Corporation) benefit which includes
hospitalization benefits.

Recruitment and Selection

The organizations’ recruitment takes place through any of
the following option or combination of this option:
 • In-house data bank
• Walk-in advertisement
• Internal Referrals
• NGO’
The selection processes are defined to evaluate the skill
sets required for each job and also to evaluate the fitment
to the various formats of retailing.

Training
The organizations place special emphasis on the training of
the employees to enable them to develop their skills to
meet changing retail technology and to provide efficient
and effective customer services.

The Company has a well defined Learning & Development

(L &D) team that is responsible for training at all the levels
across the country. The L & D team focuses on primary and
secondary research into various aspects of retail and
assessment of training needs across Knowledge, Skills &
Attitude areas at all levels.

'Prarambh' for Induction and 'Guru-School' for Trainer

Development are a couple of programs created and
disseminated by the L & D Team from last couple of years.

They are also in the process of establishing a training

centre at each zone that will be equipped with extensive
and up-to-date facilities and which offers relevant training
programmes.

Retention Strategy
Pantaloons strive to foster a feeling of well-being in our
employees through care and respect; they have several
structured processes including employee mentoring and
 grievance management programmes which are intended to
facilitate a friendly and cohesive organization culture. Off-
site activities are encouraged to improve inter-personal
relationship. They also acknowledge the efforts exerted by
our employees by organization an annual celebration called
‘Pantaloons Day’ where we recognize employees who have
shown exceptional talent, sincerity and dedication. They
have implemented an employee suggestion programme
called ‘Prerna’ wherein the employee can give their
suggestions. Every quarter the best suggestions received
per zone per format is awarded prize called “Golden Cap”.

3. Internal controls and Risk Management

The company uses the services of Ernst & Young for
process audit and risk management and the scope of their
work covers all the company’s formats i.e. Pantaloons, Big
Bazaar, Food Bazaar and Factory Outlet. The objectives are
to:
 Gain an understanding of the various Business Processes
 Identify the strengths and weaknesses in the
existing systems and procedures
 Review use of technology in the function
 Identify key business process risks and review the
adequacy of the controls and mitigate them
 Test the effectiveness of controls the most
significant risks and provide recommendations to
improve controls
 Identify potential areas for improving process
efficiency
 Broadly develop on improvement portfolio and raise
the level of awareness of how business is impacted by
inadequately controlled risks inherent in the business
process.
Internal audit of the each store is also undertaken by an
independent audit firm on monthly/quarterly basis.

4. Measurement of Customer Satisfaction

Pantaloons have devised a model called CEM- Customer
Experience Management Model to measure customer
satisfaction in the stores. The Customer Experience
Management Model focuses on the customer’s
experience at every touch point in the store ranging from
their first impression of the store, to their experience at the
trial rooms, toilets, with our staff through various
processes such as billing and exchanges. They have hired
a research agency called MACRO-Market Analysis and
Consumer Research Organization. This agency sends
people who are called ‘Mystery Shoppers’ to visit the stores
and then their experience is documented on a feedback
form which is then sent to head office. Based on the
feedback formed analysis is done and the stores are
given scores. This allows us to track performance on
customer expectation at overall, format and store levels,
determine critical improvement areas are all levels and also
identify opportunities that they can leverage upon.

Besides, they have also started an in-house initiative called

‘Pragati’ whereby one person from the head office
operations team visits the stores and observes the stores
with respect to certain pre-parameters like store exteriors,
baggage window, customer service, store ambience etc.
This activity is done on a quarterly basis and three best
stores under each format are announced. This encourages
the stores to improve the efficiency of their store
operations.
Future Growth Plan of
the Company
Future Growth of plan of the Pantaloons-

The retail industry in India is currently growing at a great

pace and is expected to go up to US$ 833 billion by the year
2013. It is further expected to reach US$ 1.3 trillion by the
year 2018 at a CAGR of 10%. As the country has got a high
growth rates, the consumer spending has also gone up and is
also expected to go up further in the future. In the last four
year, the consumer spending in India climbed up to 75%. As
a result, the India retail industry is expected to grow further
in the future days. By the year 2013, the organized sector is
also expected to grow at a CAGR of 40%.

Future Group announces its plan to double the number of its

flagship multi-brand ‘Pantaloons’ stores in the next three-
four years. The expansion of new stores would embark on an
image makeover for the apparel and accessories chain to
target youngsters. Group Company Pantaloons Retail India,
which opened its 50th store spread across 31,109 sq ft in
New Delhi, plans to add another 50 Pantaloons stores across
metros and smaller cities. Such landmark expansion plan of
the retail chain would be a new sunshine opportunity for the
signage companies dealing with in-store displays and others.

The retail business is expected to end 2010

with revenues of Rs 14,000 crore, followed by the FMCG and
consumer durables entity with Rs 1,800-2,000 crore and the
fashion venture with Rs. 2,000-2,200 crore, according to the
Future Group’s own projections.

Once the restructuring is complete, there could be a second

round of changes, though this depends on the success of the
group’s talks with a foreign retailer for a JV. If they indeed
succeed, Pantaloons Retail will spin off two of its biggest
revenue grossers in retail—Big Bazaar and Food Bazaar, into
a new entity, to be called Future Value Retail. The two
formats constitute over 55% of the turnover of the country’s
biggest retailer.

Pantaloon Retail is currently believed to be in talks with

Carrefour, the world’s second-largest French supermarket
group, for a JV in India.

Besides Big Bazaar, Future runs formats such as Food

Bazaar, KB’s Fair Price shops, Pantaloons, Central, Home
Town, eZone, Aadhaar and Brand Factory. Group officials
said sales from their own private FMCG brands are
comparable to a mid-rung Indian FMCG company.

Future is launching private brands in categories like

toothpaste, soap, dairy, detergent, beverages and shampoo,
among others. The group sells consumer electronic products
under the Koryo brand name. The group’s fashion brands
include John Miller, Bare, Indigo Nation, Urbana, Scullers, Rig,
Ajile, DJ&C, Knighthood and Annabelle.
 Sales Promotion

Sales Promotion
Sales promotion is different promotion, Sales promotion
refers to those marketing activities other than personal
selling, advertisement and publicity, which stimulate
consumer purchasing and dealer effectiveness, such as
displays, shows and expositions, demonstrations and various
non-recurrent selling efforts not in the ordinary routine. Its
purpose is to increase the desire of salesman, distributors
and dealers to sell a certain brand and to make consumers
more eager to buy that brand. This includes sales activities
which supplement both personal selling and advertising.

Sales promotion is only a part of promotion. Promotion

includes sales promotion, advertising, personal selling etc.
Promotion helps to make all other marketing activities more
effective and efficient, but sales promotion helps only to
sales activity. Sales promotion may be done with the help of
tools like displays, exhibitions, free sample coupons,
premium etc. Sales promotion acts as a link between
advertisement and personal selling.

To sum up, promotion is to make the demand inelastic, while

there is change in the price. So promotion must stimulate the
consumers to buy more.

Effects of Promotion

 The present day market is very competitive due to the

large number of rivals and substitutes. With the help of
promotion producer must create product differentiation
in the minds of consumers.
 Promotion is very essential to communicate the use of
the product and the nature of the product to consumers
and middlemen.
 Now days most of the consumers market their products
in wider area and the consumers are also very large in
number. In such cases personal selling alone cannot be
used and so all the steps for promotion are to be
followed.
  During the periods of depression it is essential to
maintain at least some minimum market. Therefore it is
very essential to use promotion.

Major tools used in Promotion –

 Free Samples.
 Premium or Bonus Offer.
 Exchange Schemes
 Price-off offer
 Coupons
 Fairs and Exhibitions
 Trading Stamps
 Scratch and win offer
 Money Back Offer.

Objectives of Sales Promotion-

i) To compare usage across exclusive and multi brand outlets.

ii) To explore rationale behind such activities by
examining consumer behavior.
iii) To pose challenges ahead.
iv) To attract new customers and retain the existing ones.

Methodology used by Pantaloons-

 Tie-ups with major Hotels, Restaurants and Pubs

(e.g. Sayaji Grand, Princess Palace, Rajdhani,
E=MC2) of Indore in Balter System through
Standee and Tent cards.
 Promoting sale activity through tie up with major
organizations like- AirTel, Satyam Multiplex,
 Gitanjali Jewels, Talwalkers Gym, Barista, Baskin
and Robbins, US pizza, Ziva, E-Zone, INOX
Multiplex, Tanishq, and etc.
 Promoting through distribution of discount
vouchers of hotels and redeemable vouchers for
Gitanjali Jewels of Rs. 500, 1000 and 2000 while
shopping with pantaloons.
 Pantaloons also attract customers through
organizing event management like Femina MISS
INDIA contest in the store.
 Promoting Through Mall Branding at Treasure
Island.
 Promoting through ARAMEX courier packets on the
pasting of Pantaloons sandwiches label of offer and
Pantaloons’ T-shirts distribution to staff members
on road show.
 Promoting Sales through Hording at Pause areas
and Road poll Kiosk sandwiches in highly pose area
of Indore like- Vijay Nagar Square, Tower square,
MG road, Annapurna, Airport road etc..
 Providing corporate discount voucher to all major
corporates in Indore.
 Promoting through SMS blast to more than 10 lakh
Indore Customer database.
 Promoting in major societies of Indore like Saket
Nagar, Manorama Ganj, AB road and etc. through
No Parking sandwiches and Leaflets and Posters.
 Promoting Sale through organizing contests like-

 SMS dikhao and Inaam pao for Airtel

customers and also get a chance to win
Videocon DVD player.
 Special shopping with pantaloons and
get chance to win Gitanjali Jewels Pearl
set.
 Get shopping with pantaloons and get a
Airtel SIM Card connection free.
 Competitors of
Pantaloons

Major Competitors of Pantaloons-

 Vishal Retail
Vishal Retail is a leading retail company involved in the
business of manufacturing and retailing of readymade
garments (apparels), non-apparels and FMCG products.
The company is expanding its operations at a rapid pace
and focuses on tier II and III cities in the country. Its
manufacturing facilities are located in Gurgaon, Haryana,
Dehradun and Manesar, with a capacity of 5,000 garment
pieces per day in each unit. The company was a pioneer
in discount retailing and had opened India’s first
 hypermarket in Delhi. The company has about 135
showrooms in 87 cities and 20 states in India.

 TATA TRENT Limited

TRENT Limited is among one of the major retailers in
India, operating a chain of retail stores under t h e b r a n d
name Westside. The Westside s t o r e s o f f e r
a p p a r e l s , cosmetics, perfumes, handbags, footwear,
household accessories, lingerie and gifts for men,
women and kids. The company has about 31 Westside
stores located in major Indian cities including Mumbai,
Bangalore, Hyderabad, Jaipur, Chennai, Pune, Delhi,
Noida and others. Trent also operates discount
hypermarkets under the brand name Star Bazaar. Star
Bazaar offers a wide range of consumer products
including staple fo o d s , b ev er a g es , h ea l t h an d
b eau t y p ro d u c t s , v eg et a b l es , fr u i t s , d a ir y products,
consumer electronics and household items at reasonable
and economical prices. The company’s subsidiaries
include Trent Brands Ltd, Fiora Services Limited, Satnam
Developers and Finance Private Ltd and Nahar Theatres
Private Ltd. Trent holds about 79% stake in Landmark
Limited, a retailer of books, toys, stationery and music.
As of March 31, 2008, Landmark Limited had 18 stores.

 Reliance Retail Limited

Reliance Retail has plans to cover 1,500 cities and towns
across India with 5,500 outlets in formats such as
convenience stores, supermarkets, specialty stores and
hypermarkets. The company plans to have 14 verticals
while putting more focus on food. It has planned
investments of USD5.5-6.0bn (USD2.5bn equity).
Investment of USD750 mn has already been cleared by
the board. The company expects revenues of USD20-25
 bn and total retail space of 100 mn sq ft by 2010. Also,
the company plans to employ 500,000 people. Reliance
Retail will form a joint venture with leading European
supply chain specialist Wincanton for its food and grocery
and hypermarket businesses. The company will open 50-
60 'i-stores' in the next 18 months and plans to open 150
Reliance Digital stores by 2011-12.

 Globus
Launched in January 1998, Globus is part of the Rajan
Raheja group. The company opened its first store at
Indore in 1999, followed by the launch of its second store
in Chennai (T-Nagar). Soon to follow was another store in
Chennai located in Adyar. The flagship store in Mumbai
opened on 1st November 2001 followed by a swanky new
outlet in New Delhi in South Extension Part-2.

The sixth & seventh stores opened in Bangalore in

Koramangala & Richmond Road respectively. The eighth
store opened in Ghaziabad at Shipra Mall and was
followed by the ninth at Kalaghoda in Mumbai; tenth in
Thane and eleventh in Ghaziabad. The twelfth, thirteenth,
fourteenth stores opened in Kanpur, Ahmedabad and
Lucknow respectively. Recently Globus has opened its
Store in Indore, Aurangabad and the journey continues...

Globus Stores Pvt. Ltd. was formed to contribute to the

revolution sweeping the Indian retail industry. Globus
promises to bring about a perceptible change in the way
apparel and lifestyle retailing is carried out.

Towards this end, we have brought in modern

international technology and made heavy investments in
investing and acquiring the best, tried and tested
processes and procedures of operation.
 Globus combines state-of-the-art international information
technology, the highest quality of human resources and
sustained financial commitment to realize its long term
vision. We are rapidly expanding and our target is to have
an additional 100 fashion stores by the end of 2012.
 Central

Launched in May'04 at Bangalore, Central is a showcase,

seamless mall and the first of its kind in India. The
thought behind this pioneering concept was to give
customers an unobstructed and a pure shopping
experience and to ensure the best brands in the Indian
market are made available to the discerning Indian
customer.

Central offers everything for the urban aspirational

shopper to shop, eat and celebrate. Located in the heart
of the city, Central believes its customers should not have
to travel long distances to reach us; instead we must be
present where customers frequently visit.

Central houses over 300 brands across categories, such

as apparel, footwear and accessories for women, men,
children and infants, apart from a whole range of Music,
Books, Coffee Shops, Food Courts, Super Markets (Food
Bazaar), Fine Dining Restaurants, Pubs and Discotheques.
The mall also has a separate section for services such as
Travel, Finance, Investment, Insurance, Concert/Cinema
Ticket Booking, Bill Payments and other miscellaneous
services. In addition, Central houses Central Square, a
dedicated space for product launches, impromptu events,
daring displays, exciting shows, and art exhibitions.
Central is an integral part of the city and in the long run a
City should become part of CENTRAL!
In a short span of its existence Central has revolutionized
and redefined the shopping experience in India. At
Central, customers no longer only shop, they get SHOP-
ATAINED!

We invite you to experience this irresistible retail

destination at Bangalore, Hyderabad and Pune cities.

Comparison with
Pantaloons
 Store profile and information on Sales Promotion
Activities

Store Pantalo Central Reliance Globus Westsid

Name ons Tr. e
Format Multibrand Multibrand Multibrand Exclusive Exclusive
Type Brand Tata
Brand
Positionin Family Family Store Family store Style & Style &
g Store Affordabili Affordabili
ty ty
Floor Size 18000 sq 150000 sq ft 60000 sq ft 20000 sq 40000 sq
ft ft ft

Location MG. Road, AB Road, AB Road, Race

Indore YN Road, Indore Indore Course
pose Indore Road,
locality Indore
Categorie Apparel & Apparel & Apparel & Stylish Stylized
s accessorie accessories accessories Cloths for clothes,
s for for for men & footwear
men, men, women men, women & &
women & & children, women & accessorie accessorie
children apparels & children, s s
 Accessories apparels &
Accessories

# of skus 45000 100000 60000 NA NA

# of 20-25 50-60 35-45 8-15 NA

Suppliers

Avg. 1800 2000-2500 1500 800-1000 199-1500

billing per
Customer
Average 800- 400-800 on 650-800 on 200-400 100-150
Footfalls 1000on weekday & weekdays & on on
weekday 1000-1200 on 1000-1200 weekdays weekdays
& 1500- weekends on & 500-700 & 200-400
2500 on weekends on on
weekends weekends weekends

Sales Promotions

End of Yes Yes Yes Yes Yes

Season

Festive Yes Yes Yes No Yes

Promotio
ns e.g.
Diwali,
Christma
s

Loyalty Yes No Yes Yes Yes

 Card
Program
me

Special Yes Yes Yes No Yes

Promotio
n
(events)

Joint No No No No No
Promotio
n

Media Hording, Hording, Hording, In In store, Print,

Used Print, Print, store, Hording Hording, In
Electronic, Electronic, electronic store
In In
store(SMS, store(SMS,
Email) Email)
Promotio Price off, Price off, Price off, Discounts, Cause
n Type Exchange contests, contests, Combo Related,
offer, Free combo combo offers gift
Gifts, offer, offer, vouchers,
Discounts discounts discounts discounts,
combo
offers
Evolutio Sales, Sales, Sales, Sales, Sales,
n of Quarterly Quarterly Quarterly Average Bill Quarterly
Promotio Profit Profit Profit Size, Profit
n Conversion

From the above table which gives comparative picture of

various sales promotion activities and manner of
announcement, evaluation etc., it is clear that all five stores
engage in end of season sale. Thus stock clearance seems
to be very important objective for apparel retailer in using
end of season sale twice in a year where in discount given is
upto 50% of the MRP(Maximum retail price).
Two stores, both mulitbrand and exclusive use loyalty cards
to reward loyal users and encourage them to visit the store
often and buy more by offering wide range for men, women
and children. Some store also offer home furnishings,
accessories and footwear, thereby providing convenience for
one stop shopping. Examining the various terms and
conditions of loyalty programme revealed that some
rewards were quite complex and confusing. The conditions
to be fulfilled are not very clear to a card member. For
example, if any other promotions are prevalent then
purchase made during those promotions would entitle for
the card reward points or not was not very clear.

All the stores used in store media to announce promotions.

However use of mass media and electronic media varied
across the sample under study. Use of only in store media
would restrict the announcement to those who walk into the
store. It can be assume that only loyal/ frequent visitor
would know about the offers. Whereas variety of media used
would enhance footfalls to the store and trigger word of
mouth. No other store has yet explored avenue of joint sales
promotion. Such joint promotions have advantages in terms
of sharing costs of promotions, cross selling opportunities to
each other’s customers, higher visibility etc.

In terms of type of consumer sales promotions, almost

everyone used discount, coupon programmes and few used
lucky draws, contests, gift, and buy one get one free type of
promotions. Only Pantaloons had a unique scheme of an
exchange offer which is normally prevalent in durable goods
industry. Relating it to a cause- donating old pairs collected
in exchange scheme to charity would enhance the brand
value among the customers.
Conclusion
Conclusion –

Pantaloons Retail (India) Ltd is a company where it strives

for lifestyle and value through its products and services.
Through the study, it is observed that Pantaloons can be
said an organization where the P’s of marketing is taken
seriously for the maximum profitability through large
range of products, promotional activities for the company
through newspapers , magazines , internet ,banners and
posters and a solid sales organization monitoring that the
P’s are worked effectively. The store has been well
maintained in accordance with the latest demands of the
consumers and through all these strategies. Pantaloons
ensures repeated customer patronage.
Bibliography-

Marketing Management – Philip Kotler

www.pantaloonretail.in

http://en.wikipedia.org/wiki/Pantaloon

www.pantaloon.com

www.future-group.com

www.riedelresearch.com/.../34_Pantaloon%20Retail%20India
%20Ltd%2004Sep2008

WWW.INDIANREALTYNEWS.COM
 Questionnaire-

Name - Gender- Male/Female

Contact No. –
Age Group- a) 15-25yrs b) 26-35yrs c)36-45yrs d)
above 45yrs

. Q1. Which Retail store is more comfortable for your

shopping-
(a)Pantaloons (b) Central (c) Reliance Trend (d) Globus
(e) Westside

Q2. Which store products/merchandise collection available

is more trendy or latest?
(a)Pantaloons (b) Central (c) Reliance Trend (d) Globus
(e) Westside

Q3. Which retail store’s coordination of staff members at

more comfortable for you?
(a)Pantaloons (b) Central (c) Reliance Trend (d) Globus
(e) Westside

Q4. From where you heard about the sale available at

pantaloons store?
(a)TV (b)Radio (c) Newspapers (d) Hording (5)
others.
 Q.5 Are you happy with the available offers at the store –
(a)Satisfied (b) Highly Satisfied (c) Dissatisfy

Q.6 you prefer to shopping with us due to-

(a) Attractive offers (b) High Quality (c) Variety (d)
Better Assistant

Q.7 on which time you prefer for shopping apparels?

(a) During offers (b) fresh stock (c) on festivals (d)
anytime

Q.8 which store is having the best ambience in Indore?

(a)Pantaloons (b) Central (c) Reliance trend (d) Globus
(e) Westside

Your Valuable
comments…………………………………………………….