1. Prospects and growth strategy for Home Textile brands through Hyper Markets

2. Retail Industry: An opportunity..
Background -
US retail is organized to the extent of 80%, while the share of organized retail in Western Europe is about 70%.
Share of organized retail in countries like Malaysia, Thailand, Brazil,
Argentina, Philippines is between %.
However, share of organized retail in India is about 3% and is still at a
nascent stage.
Organized retailing in India has been largely an urban phenomenon with affluent classes and growing number of double-income households.
This brings a point that there lies an opportunity for retail to get more
organize and grow at a faster pace.

3. Emerging trends..
Growing urbanization leading to a variety of customer needs.
Significant increase in the number of brands in the Indian
market leading to a larger option set for the Indian customer.
Media boom leading to an increased level of awareness and
exposure to the international trends and concepts.
Changing demographics propelling the growth of retail
industry.
There has been a shift from Hi-street shopping to malls or
hypermarkets.
Shopping is becoming an outing or a way of family
entertainment that means that families now spend greater
time in shops.

4. Broad understanding of retail formats
Hyper markets
Super markets
Department stores
Super Centres
Speciality stores
Shop –in –shop
up to 40,000 sq ft
up to 10,000 sq ft
50,000 sq ft – 100,000 sq ft
10,000 sq ft – 50,000 sq ft
500 sq ft – 3000 sq ft
Approx. 500 sq ft
Formats Size

5. What does a Hypermarket mean to us..
Hyper market is largely a function of product mix, assortment and size. Broadly, they are driven by the following -
Store size – up to 40,000 sq ft
Assortment - Food, Grocery, Basic Range of General Merchandise
General Merchandise – Home, Apparel and Hardlines .
Customers look for value/ deals or promotions.
Store is managed by limited sales associates.

6. How brands can play an important role..
Brands have their own equity and so, help retailer in getting more
footfall.
Brands understand their products and domestic market well and can
use their knowledge and market understanding to their advantage.
Understanding of seasonality.
Help in putting together “Home fashion concepts” and increase their
sales volume.
Consistent and focused approach.

7. Key Growth drivers for Home Textile brands…
Multiple drivers leading to a consumption boom:
- Favorable demographics
- Change in Family structure
- Increasing population of women
- Increase in buying power
- Growth in Housing sector
- Raising aspirations : Value added
services.

8. Changing Paradigm SOLUTION END TO END Product Solution To Customer
Buyer
Positioning
Price
Fashion
Textile

9. Home Textile - Category Mix
MW-WMR
Home Textile - Category Mix
2007
2010
Source – Technopak 9 9 9

10. Impulse Vs Planned Purchase – Home Textiles
Source – Technopak

11. Replacement Cycle of Home Textile Products
Bed Sheet – Double
Bed Sheet- Single
Face and Hand Towels
Pillow Covers
Less than one year
Products Replacement Cycle
Table Covers and Mats
Bath Towels
Curtains and Upholstery
Quilts and Blankets
Mattresses
Carpets
1-3 years
1-2 years
More than 5 years
2-4 years

12. Approach: Supplier - Retailer partnership
Five Things Differentiate Manufacturers in the Eyes of Retailers –
Retailers view leading manufacturers as those:
Who are best aligned with their marketing plans and strategies;
With whom they have highly productive and cohesive relationships;
Who possess advanced shopper marketing competence;
Who develop unique and exclusive programs; and
Who can deliver powerful insights on the consumer and the shopper

13. Approach: Supplier - Retailer partnership
“Build Private label program”
How does it help to retailer –
Differentiate the products for retailer
Enhance margins
Retailer completely owns the property; so promote it
How does it help to manufacturer –
Commitment of retail space
Limited but continuous volume production
Enhance understanding of retail business

14. Understanding consumer needs..
- I want the best quality at the lowest prices.
- I want to see the best range
- I want to be treated special as I am a regular customer
- I want everything under one roof.
- I don’t want to travel very far to shop for my basic needs.
- I shop at a store I can trust.
(what does a customer want…)

15. How do we help customer in buying..
Wants -
Good Quality
Lowest prices
Good product range
Good service
Brand Offers-
Right assortment
Product mix
Price points
No of SKUs
In – stocks (availability)
Good displays
Brand promotions
Retailer offers -
Enhance shopping experience
courteous sales associates
Provide good ambience
Value added services.
Build loyalty
Build store promotions

16. Winning Value Proposition
Price positioning
(lowest prices – value for money)
Service
(Assortment, availability, in-stocks, ambience, in-store assistance, home ideas)
Product
(Quality, range, differentiated range)

17. Points to ponder…..
Does customer get a feel that our products are affordable.
How can I create more fun and excitement for the customers.
Is she saving some money when buying from us
How can I provide all Essentials with some value add-ons.
Can we demonstrate some fashion or decorative concepts
in the store so that customer can relate to.