A

Project Report
On
Top 10 Trends in Retail Industry

Submitted To:-

Submitted By:-

Mrs. Priyanka Singh

1.Nitin Kumar Goyal (014-II-229)

2.Akash Saini (014-II-205)
3. Vibhaw (014-II-247)
4.Chatrapal Singh (014-II-24)
5.Sudhanshu Shekhar (014-III-31)
6. Amit Kumar (014-II-310)

Retail Industry in India

Introduction:India has occupied a remarkable position in global retail rankings on the back of high market
potential, low economic risk, and moderate political risk. In market potential, India ranks
fifth after the United States, China, Brazil and Canada. Retail market in India is expected to
reach US$ 1.3 trillion by 2020 from US$ 490 billion in 2013.

Of the overall retail market in India, unorganised players controlled 92 per cent market share
during 2013. Organised retail is expected to account for 24 per cent by 2020. Food and
grocery accounted for nearly 69 per cent of total revenues in the retail sector, followed by

apparel (8 per cent) in 2013. Rapid emergence of mega malls and hypermarkets are
augmenting the growth of organised retail in the country.

The Government of India has approved 51 per cent foreign direct investment (FDI) in multibrand retail and increased foreign direct investment (FDI) limit to 100 per cent in singlebrand retail and cash and carry (wholesale) trading and exports. It also plans to introduce
Goods and Service Tax (GST) as a single unified tax system from the next fiscal year.
India's strong growth fundamentals, along with increased urbanisation and consumerism,
offer immense scope for retail expansion for foreign players. Rapid emergence of organised
retail outlets, such as mega malls and hypermarkets, are augmenting the growth of organised
retail in the country. Retailers have made constant improvements in supply chain and logistics
for competitive advantage and meeting consumer demands. E-commerce is expected to be the
next major area for retail growth in India. The industry is projected to touch US$ 200 billion
by 2020.

The Indian retail industry has presently emerged as one of the most dynamic and fast paced
industries as several players have started to enter the market. It accounts for over 10 per cent
of the countrys gross domestic product (GDP) and around eight per cent of the employment
in India. The country is today the fifth largest global destination in the world for retail.
Several corporates have planned to exploit the opportunities in the Indian retail space, such as
Reliance Industries Ltd (RIL), which has lined up capital expenditure of Rs 1.8 trillion (US$
28.94 billion) for the next three years for its petrochemicals, telecom and retail ventures.
With the growth in the retail industry, the corresponding demand for real estate is also being
created. Further, with the online medium of retail gaining more and more acceptance, there is
a tremendous growth opportunity for retail companies, both domestic and international.

Market Size:Indias retail market is expected to double to US$ 1 trillion by 2020 from US$ 600 billion in
2015 driven by income growth, urbanisation and attitudinal shifts, highlighted the Boston
Consulting Group and Retailers Association of Indias report titled, Retail 2020: Retrospect,
Reinvent, Rewrite.
While the overall retail market will grow at 12 per cent per annum, modern trade will grow
twice as fast at 20 per cent per annum, and traditional trade at 10 per cent, according to a

report titled Retail 2020: Retrospect, Reinvent, Rewrite by Boston Consulting Group and
Retailers Association of India.
The retail spending in the top seven Indian cities of India currently amounts to Rs 3.58
trillion (US$ 57.56 billion), with organised retail penetration at 19 per cent in 2014. It is
expected that the online retail will be at par with the physical stores in five years

Market size of Indian retail industry:The total market size was US$ 490 billion in 2013, registering a CAGR of 6.1 per cent since
1998.

India is expected to become the worlds fastest growing e-commerce market on the back of
robust investment activity in the sector and the rapid increase in internet users. It is expected
that Indias e-commerce market will grow from US$ 2.9 billion in 2013 to over US$ 100
billion by 2020.
E-tailers are betting on more Indians switching to shopping online, with a projection of 200
million new consumers by 2017, according to a report released last year by Accel India,

Investments:-

The Indian retail industry in the single brand segment has received foreign direct investment
(FDI) equity inflows to the tune of US$ 275.38 million in the period April 2000January
2015, according to the Department of Industrial Policies and Promotion (DIPP).
With the rising need for consumer goods in different sectors including consumer electronics
and home appliances, many companies have invested in the Indian retail space in the past few
months. Some of them are:

Paytm plans to set up 30,000 to 50,000 retail outlets where its customers can load
cash on their digital wallets. The company is also looking to enrol retailers - mostly
kirana stores - as merchants for accepting digital payments.
Mobile wallet company MobiKwik has partnered with Jabong.com to provide mobile
payment services to Jabong's customers.
DataWind has partnered with HomeShop18 to expand its retail footprint in the
country. Under the partnership, HomeShop18 and DataWind will jointly launch
special sales programs across broadcast, mobile and internet media to create greater
access of the latter's tablet range.
Amazon Inc and Flipkart India will invest nearly Rs 2,300 crore (US$ 369.87 million)
in the near term as they plans to acquire more customers in the country's fast-growing
online retail market.
FashionAndYou has opened three distribution hubs in Surat, Mumbai and Bengaluru
to hasten deliveries.
Abu Dhabi-based Lulu Group plans to invest Rs 2,500 crore (US$ 401.98 million) in
a fruit and vegetable processing unit, an integrated meat processing unit and a modern
shopping mall in Hyderabad, Telangana.

Investment options in organised retail India:Real estate's retail component is an attractive opportunity, which is currently attracting 29 per
cent of total investment in real estate.

Indian retail industry break-up by revenues:-

In 2013, food & grocery accounted for nearly 69 per cent of total revenues in the retail sector,
followed by apparel (8 per cent).

Government Initiatives:Ms Nirmala Sitharaman, Union Minister of Commerce and Industry, Government of India
has stressed on India building a culture of branding and marketing its products to the rest of
the world. The ministry is also willing to take steps to start a Free Trade Agreement (FTA)
with the European Union (EU).

The Government of India has taken various initiatives to improve the retail industry in India.
Some of these initiatives are:

The Foreign Investment Promotion Board (FIPB) has cleared five retail proposals
worth around Rs 420 crore (US$ 67.53 million) from companies such as Bestseller,
Puma SA and Flemingo. Additionally, the board cleared three 100 per cent singlebrand retail proposals worth Rs 222.5 crore (US$ 35.77 million), suggesting renewed
interest in Indias growing retail market.
IKEA has entered into a memorandum of understanding (MoU) with the Government
of Telangana to set up its first store in India at Hyderabad. IKEA retail outlets have a
standard design and each location entails an investment of around Rs 500-600 crore
(US$ 80.38-96.46 million).

The Government of India is also in the final phase of talks with the states for the
Goods and Services Tax Bill to be implemented. This Bill is seen as a key to
facilitating industrial growth and improving the business climate in the country.

Road Ahead:The share of e-Commerce is growing steadily. Customers have an ever increasing choice of
products at the lowest rates. E-Commerce is probably creating the biggest disruption in the
retail industry and this trend will continue in the year to come. Almost everything is sold on
the internet now and this means that pretty much all of the retail industry faces the challenge
of either being a part of e-commerce or taking it head on.
For better prospects of this industry, as a whole, both organized and unorganized retail
companies should work together to improve the overall retail industry, while generating new
benefits for their own customers.
Also, the retailers should take advantage of digital retail channels (e-commerce), which
would enable them to spend less money on real estate while reaching more customers in tier2 and tier-3 cities. Nevertheless, the long term outlook for the industry remains to be positive
on the back of rising incomes, favourable demographics, entry of foreign players and
increasing urbanization.
Exchange Rate Used: INR 1 = US$ 0.016 as on March 24, 2015.

Various Retail Sectors In India:-

Liberty Shoes have been fashioning footwear for well over

60 years for the style- conscious people around the globe.
Currently with an annual turnover exceeding Rs 6 billion
(US$ 150 million), the company is amongst the top 2
manufacturers of leather footwear industry in India,
producing more than 50,000 pairs a day using a capacity of
more than 0.3 million square feet of leather per month.
Helping to dress up the feet of the fashion-driven and
quality-seeking customers in more than 25 countries, which
includes major international fashion destinations like
France, Italy and Germany, is the worldwide distribution
network of 150 distributors, 400 exclusive showrooms and
more than 6,000 multi-brand outlets. The companys
commitment to quality is also evidenced by the ISO 9001:
2000 certification.

V2 Retail Ltd is one of fastest growing retail groups in

India. The company offers a portfolio of products,
including apparel and non-apparel. The company sells
readymade, apparels, household merchandise and other
consumer goods like footwear, toys, games, handbags,
fragrance, cosmetics, home furnishing, dcor product,
sports items, crockery, novelties and gifts. V2 offer
affordable family fashion at prices to suit every pocket.
The outlets cater to almost all price ranges. The showrooms
have over 70,000 products range which fulfills all
household needs. V2, which stands for 'value and variety'
sell fashion garments at prices 50-70 per cent lower than
other clothing brands through large s

Bharti Retail Ltd is a wholly owned subsidiary of Cedar

Support Services Ltd which belongs to the Bharti Group of
companies. It owns and operates neighbourhood stores
called Easyday and compact hypermarket stores called
Easyday Market. These stores provide consumers immense
value and wide choice with products of great quality at
affordable prices. The neighbourhood format stores offer
more than 3,000 products at the lowest prices.
The first Easyday store was launched in Ludhiana and
Easyday Market in Jalandhar, in 2008. Currently, there are
over 210 stores across Punjab, Haryana, Uttar Pradesh,
Uttarakhand, Madhya Pradesh, Rajasthan, Himachal
Pradesh, Chhattisgarh, NCR Delhi, Jammu and Kashmir,
Maharashtra and Karnataka.

Bata India is the largest retailer and leading manufacturer

of footwear in India and is part of the Bata Shoe
Organisation. It was incorporated as Bata Shoe Company
Private Ltd in 1931 and was set up initially as a small
operation in Konnagar (near Kolkata) in 1932. In January
1934, the foundation stone for the first building of Bata's
operation - now called the Bata - was laid. In the years that
followed, the overall site was doubled in area. This
township is popularly known as Batanagar. It was also the
first manufacturing facility in the Indian shoe industry to
receive the ISO: 9001 certification.
The company went public in 1973 when it changed its
name to Bata India Ltd. Today, Bata India has established
itself as India's largest footwear retailer. Its retail network
of over 1,200 stores gives it a reach/coverage that no other
footwear company can match. The stores are present in
good locations and can be found in all the metros, minimetros and towns. The company also operates a large nonretail distribution network through its urban wholesale
division and caters to millions of customers through over
30,000 dealers.

Aditya Birla Retail Ltd is the retail arm of Aditya Birla

Group, a US $40 billion corporation. Aditya Birla Group has three
retail companies Aditya Birla Retail, Madura Fashion & Lifestyle
and Pantaloon Fashion & Retail Ltd. The Group has a presence
across 150 cities in India.
The company ventured into food and grocery retail sectors in 2007
with the acquisition of a south-based supermarket chain.
Subsequently, Aditya Birla Retail Ltd expanded its presence across
the country under the brand More with two formats

Top 10 Marketing Trends in Retail Industry:1.Boomers and Millennial will continue to heavily influence retail:Most boomers will be in their 60s and 70s next year, and retailers that cater to these
consumers would need to adjust to make shopping easier for them. As consulting firm PwC
noted, the Baby Boomer generation will age with increased financial resources and with a
greater emphasis on youth and vitality than previous generations. As a result, they not only
will tax manufacturers to adapt products to their specific post-retirement needs, but also will
require retailers to respond to their evolving needs as they approach the age of 70 in 2015.
Retail expert Georgenes Bender pointed out in VOAnews.com that this can already be seen
at some drugstore chains. Theyre re-setting their counters, not putting things too high or
too low, [and] theyre putting carpeting in the store, she told the publication.
On the flip side, Gen Ya young but equally largemarket segment will also be a major
influence in retail. Merchants who want to reach millennial will need to invest in mobile, as
they are the largest group of Smartphone owners (and adoption is still growing).
Speed is also an essential factor when it comes to reaching the Gen Y market. As a
generation that grew up in an age where almost anything is just a click away, millennial
have a tendency to be impatient. Retailers who want to engage them must invest in more
robust order fulfilment systems and fast (but excellent) customer service.

2. Social networks will serve as shopping platforms:The recent launches of shopping functionalities in the social realm (i.e. Facebooks and
Twitters buy buttons and Curalates Like2Buy platform for Instagram) tell us that social
is going to get a whole lot more shoppable in 2015.
Retailers that have already started participating in the trend include Nordstrom and Target,
which are using the Like2Buy platform on Instagram, and Home Depot, (RED), and
Burberry, which are testing Twitters buy button.
In the screenshots below, you can see how Nordstrom is leveraging Instagram and
Like2Buy to sell its products.
A customer whod like to purchase an item she sees on the retailers feed can tap on the
Like2Buy link found on Nordstroms Instagram profile. Clicking the link will take her to
the retailers Like2Buy site, which looks similar to its Instagram page. When the shopper
taps on an image, shell be taken directly to its product page, where she can find more
details and proceed to checkout.

3.Brands Will double down on Corporate Social Responsibility:Consumers these days are more drawn to retailers that invest in Corporate Social
Responsibility (CSR). A survey by Cone Communications and Echo Researchuncovered
that 87 percent of global consumers factor in CSR into their purchase decisions.

In 2015, we expect more merchants to launch ethical and good deed initiatives. Examples of
retailers pulling off CSR quite well include ModCloth, which recently signed an antiPhotoshop pledge, and Warby Parker, which implements a Give a Pair initiative to make
eye care more accessible to the less-fortunate.
How does CSR improve the shopping experience? Simple. It makes customers feel good
knowing that theyre contributing to a worthwhile cause. As Adrianne Weissman, owner of
apparel store Evelyn & Arthur told us, shoppers want to know the money they are
spending is not going into one persons pocket, but is truly making a difference in the
community they live in.

4. Loyalty-wise, the points-for-purchases model will no

longer be effective.:Enriching and personalizing the shopping journey will no longer be limited to tailored
product recommendations and offers. Forward-thinking retailers will find additional ways to
make each customers experience unique and memorable. We predict that one of the areas
that theyll focus on is customer loyalty.
Customized perks will also be a big part of loyalty program success in the
coming year. Research cited by eMarketer revealed that consumers
have begun to expect more personalized offers and servicesnot just
blanket discountsin return for their participation in rewards programs.
Moreover, according to the study, consumers cited relevant discounts
and personalized offers as the top benefits of such programs.

5. Retailers will adopt and experiment with

technology:Merchants will adopt and/or experiment with tech innovations and figure out how they can
use them to improve the shopping experience. Well likely see more of the following in the
coming year:

POS TECHNOLOGY
Initiatives to make the cash register extinct will continue to go strong in 2015. Cloud-based
point-of-sale systems have proven that they can outperform old-fashioned registers in all
aspects (performance, functionality, looks) and an increasing number of retailers will
recognize this and make the switch.
Will you be one of the savvy merchants upgrading to a cloud-based POS system next year?
Try Vend for free and see how it can help you transform your business in 2015.

3D PRINTING
We also anticipate 3D printing to slowly make its way into the retail world. Some
merchants, including online jewelry store Brilliance.com, have already found a use for the
technology. Brilliance is using 3D mock-ups to help customers try on different rings so they

can determine the right size, shape, carat, and diamond arrangement for their hands.

6. Data will be more accessible and powerful:-

Next year, we expect the number of SMBs using big data and analytics to grow. Retailers
will realize that they need to rely on data in order to get to know their customers and
provide customized shopping experiences.
Fortunately, there are plenty of solutions that make data analytics accessible and affordable
for small and medium retailers.
Swarm for instance, gives brick-and-mortar stores the ability to analyze foot traffic so they
can make better decisions and tailor customer interactions. Theres also Collect, which gives
merchants insights into the spending habits of their top customers, allowing them to send
personalized rewards and offers.
Vendors will continue to develop and refine their solutions so they can provide the most
accurate and insightful data in the fastest and most convenient ways possible.

7. Companies will find better ways to manage risk and

protect customers :The past couple of years have brought us far too many horror stories of data breaches in
retail.
As Chain Store Age cites, The 2014 Identity Fraud Study reported an increase of more
than 500,000 fraud victims to 13.1 million people in 2013, the second highest number since
the study began. Moreover, its been found that the average cost of a breach per
organization in 2014 is $3.5 millionan increase of 15 percent from the year before.
But its not just about the numbers. In this day and age, consumers arent just looking for
unique and convenient shopping experiencesthey also want their purchasing journeys to
be safe and secure.
Thats why in 2015, we anticipate risk mitigation and data security to be among retailers

top priorities.
There are a number of ways retailers can better manage risk in the coming year. One is to
instill awareness and training across the entire organization to ensure that everyone knows
the importance of risk mitigation. Retailers can also be more selective of their vendors that
handle their data and processes.
We also expect merchants and solutions providers to come up with better ways to protect
customer data.

8. More retailers will take control of their value chain

and improve order fulfilment :In their book, The New Rules of Retail, Robin Lewis and Michael Dart brought up an
excellent point about modern retail success. According to them, if retailers truly want to
provide compelling shopper experiences, they would have to take more control of how their
products are manufactured, marketed, and distributed.
As the authors put it, the most successful retailers will be the ones that have complete
control of their value chain, from creation all the way to consumption.
Notable retailers that have proven this strategy include Apple, Ralph Lauren, and Trade
Joes. Despite having higher prices, these retailers managed to achieve customer loyalty and
profitability thanks to their efforts to have complete value chain controla strategy that
results in excellent products and customer experiences.
Retailers will realize this in 2015, which is why well likely see an increase in value chain
initiatives, single product retail, and private label merchandise.
Additionally, more retailers will get creative with how they fulfill orders and distribute
products. Speed and convenience will become more important than ever, so merchants will
come up with better and faster ways to get products into the hands of their customers.

9. More ecommerce sites will set up shop offline :In 2014, we saw a number of ecommerce-first businesses expand into the offline realm.
Former online pure-play Birchbox, for example, opened its first physical shop in Soho last
July, while companies like Bonobos and Warby Parker doubled down on brick-and-mortar

by opening even more physical stores in 2014.

We anticipate this trend to continue in 2015. Why? For one thing, the majority of overall
retail sales are still taking place offline, and ecommerce sites have realized that they need to
set up physical shops if they want to gain significant market share. Additionally, the need to
provide seamless online to in-store experiences continues to grow, and successfully pulling
this off requires both a digital and physical presence.
Ecommerce sites setting up shop offline is, on one hand, good news for the brick-andmortar realm because it validates the need for physical retail. However, this also means that
Main Street is going to get a whole lot more competitive, and traditional brick-and-mortar
retailers must step up their game in order to win.
To do this, we predict that merchants will further enrich the in-store experience by offering
services on top of stuff. Take for example, Birchboxs Soho location. In addition to
playing video tutorials to keep shoppers informed and inspired, the retailer also offers hair,
makeup and nail services in its store.

10. Retailers that localize their product mix and store

formats will win :Localization will be more important than ever. Merchants that customize their stores and
merchandise according the needs of their local communities will find great success in 2015.
Take for instance, OReilly Auto Parts, a retailer that tailors its merchandise mix from store
to store. As Retail Info Systems News reported, Each OReilly store is also a local store,
carrying the tools, equipment and accessories that match the specific auto aftermarket needs
of the stores customer base as well as the vehicles they own.
Its important to note however, that neighbourhood-specific merchandise is only one part of
a good local strategy. In addition to inventory, retailers will also need to tailor each of their
store formats based on their respective communities and locations.
Consider what retailers such as Starbucks, Target, and Chipotle are doing. In order to tap
into dense, urban markets, these chains have started to deviate from their usual store
formats to establish smaller, express stores in specific locations.
Target opened its first express branch in Minnesota this year, while Starbucks and Chipotle
both announced plans to build smaller format stores.
We predict more stores will follow suit and tailor experiences, merchandise, and even store
formats to the neighbourhoods they belong to. The ones that do (or that continue to do so)

will win big in 2015.

Future Growth Rate of Retail Industry from 2013 to 2018:Retail sales worldwideincluding both in-store and internet purchaseswill reach $22.492
trillion this year, according to new figures from eMarketer. The global retail market will see
steady growth over the next few years, and in 2018, worldwide retail sales will increase
5.5% to reach $28.300 trillion.

This is eMarketers first-ever forecast of the global retail market and retail ecommerce sales
worldwide. The complete forecast also includes a breakdown of total retail and retail
ecommerce sales in 22 countries, as well as the number of consumers who shop and
purchase goods via the internet in each of those markets.
When it comes to retail products and services purchased on the internet, ecommerce will
account for 5.9% of the total retail market worldwide in 2014, or $1.316 trillion. By 2018,
that share will increase significantly to 8.8%, yet retail ecommerce will still account for just

a fraction of in-store purchases even as it nears $2.5 trillion by the end of our forecast.

Retail Ecommerce Sales as a Percent of Total Retail Sales In

Select Countries,2013-2018:-

The other two largest ecommerce markets, China and the UK, have much higher
proportions of online-to-total retail sales than the US, and ecommerce trends in each market
are unique. For example, digital buyersconsumers who purchase online at least once
during the yearwill represent only 27.5% of Chinas population in 2014, while more than
10% of all retail purchases occur via the internet. This points to the fact that consumers in
China who buy online do so often.

On the other hand, more than 73% of the UKs population will make a purchase online this
year. With ecommerce accounting for 13.0% of total retail sales in the UKleading all
countries by this metricthis high volume of digital buyers who purchase online often
positions the UK as the third-largest ecommerce market, despite being only eighth-largest in
total retail sales.

References :1. https://www.vendhq.com/university/retail-trends-and-predictions-2015

2. http://www.emarketer.com/Article/Retail-Sales-Worldwide-Will-Top-22Trillion-This-Year/1011765
3. http://www.ibef.org/industry/retail-india.aspx