Presentation on theme: "Retail Industry: An opportunity.."— Presentation transcript:
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 anascent 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 moreorganize 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 Indianmarket leading to a larger option set for the Indian customer.Media boom leading to an increased level of awareness andexposure to the international trends and concepts.Changing demographics propelling the growth of retailindustry.There has been a shift from Hi-street shopping to malls orhypermarkets.Shopping is becoming an outing or a way of familyentertainment that means that families now spend greatertime in shops.
4 Broad understanding of retail formats Hyper marketsSuper marketsDepartment storesSuper CentresSpeciality storesShop –in –shopup to 40,000 sq ftup to 10,000 sq ft50,000 sq ft – 100,000 sq ft10,000 sq ft – 50,000 sq ft500 sq ft – 3000 sq ftApprox. 500 sq ftFormats 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 ftAssortment - Food, Grocery, Basic Range of General MerchandiseGeneral 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 morefootfall.Brands understand their products and domestic market well and canuse their knowledge and market understanding to their advantage.Understanding of seasonality.Help in putting together “Home fashion concepts” and increase theirsales 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 addedservices.
8 Changing Paradigm SOLUTION END TO END Product Solution To Customer BuyerPositioningPriceFashionTextile
10 Impulse Vs Planned Purchase – Home Textiles Source – Technopak
11 Replacement Cycle of Home Textile Products Bed Sheet – DoubleBed Sheet- SingleFace and Hand TowelsPillow CoversLess than one yearProducts Replacement CycleTable Covers and MatsBath TowelsCurtains and UpholsteryQuilts and BlanketsMattressesCarpets1-3 years1-2 yearsMore than 5 years2-4 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; andWho 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 retailerEnhance marginsRetailer completely owns the property; so promote itHow does it help to manufacturer –Commitment of retail spaceLimited but continuous volume productionEnhance 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 QualityLowest pricesGood product rangeGood serviceBrand Offers-Right assortmentProduct mixPrice pointsNo of SKUsIn – stocks (availability)Good displaysBrand promotionsRetailer offers -Enhance shopping experiencecourteous sales associatesProvide good ambienceValue added services.Build loyaltyBuild 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 usHow can I provide all Essentials with some value add-ons.Can we demonstrate some fashion or decorative conceptsin the store so that customer can relate to.