Market Size
Unorganized market: Rs. 902 000 cr (to grow by 5 percent per annum)
Organized market: Rs. 35000 cr (to grow by 25 to 30 percent per annum)
Includes organized Food and Grocery Rs. 600 crore
(Govt. Statistics www.nic.in)
Categories of Retail Models in India
Discount store (supermarket, hypermarket and other formats)
E.g: Shubhiksha, Margin Free (kerala), Big bazaar etc
Dedicated brand outlets
Exclusive showrooms either owned or franchised out by a manufacturer. E.g: Nike, Reebok, Zodiac etc
Multi-brand outlets
These stores specialize in stocking products of different brands of singular category. They can also be classified as company owned and operated stores. E.g: Vijay Sales, Viveks, Witco, etc
Supermarkets
A large self-service grocery store selling groceries and dairy products and household goods
E.g: Food World, Nilgiris, Shubhiksha, Monday 2 Sundays etc
Hypermarkets
A store that combines a supermarket and a department store. The result is a gigantic retail facility that carries an enormous ranges of products under one roof, including full lines of fresh groceries and apparel.
E.g: Big Bazaar, Giant, Star India Bazaar etc
Department Stores
A Store that organizes its goods by departments, such as women's clothes, home furnishings, electronics, and the like, department stores range from collections of elaborate, fancy shops to practical outlets for ordinary merchandise. They differ from ordinary stores principally because of their size and range of merchandise.
E.g: Pantaloon, Lifestyle, Shopper stop, Westside etc
Specialty Chains
These are small stores that specialise in a specific range of merchandise and related items. Most stores have an extensive width and depth of stock in the item that they specify in and provide high levels of service and expertise. E.g: Furniturewalla (type of furniture), Evoluzons (designer cloths), Planet M etc
Company owned and operated stores
These stores are company operated and usually sell merchandising at seconds or at discounts. They are similar to the Multi- brand outlet, only difference is, they only showcase company owned brands.
E.g: Megamart
Leading National level Hypermarket
Spencer’s Hypermarket
Mega value. Maha khaushi
Spencer’s Hypermarket promoted by RPG group which also run chain of “Food World” supermarket in south, currently the hypermarket is operating from two locations Hyderabad and Mumbai, Spencer's Hypermarket sells all its goods below the Maximum Retail Price (MRP),
Brand: GIANT (Supermarket and Discount store format)
Widest range of products at the lowest price is the USP used
Air-conditioned, clean, comfortable, well-stocked and laid-out setting used as differentiator.
B2C and membership based B2B model in use.
Offers 3 levels of discounts. These levels are linked to the units purchased and translate into significant savings at each level of consumption.
Focus on own private label
50,000 products / 1,20 000 Sq.ft
Big Bazaar
Isse sasta aur accha kahin nahi
Big Bazaar Hypermarket promoted by Pantaloon India Ltd, which is in the business of retailing from 1987, since then it has expanded to large format supermarkets, departmental stores, hypermarkets and malls. Big Bazaar Currently operating in more than 13 locations, it sells all its goods below the Maximum Retail Price (MRP).
Brand: Food Bazaar, Gold Bazaar
Price and the wide array of products is the USP.
Targeted to the middle class and anyone who want goods at affordable price.
‘Family focus’, this strategy of the company is reflected in all its communications and product offerings.
More for less is the philosophy of the hypermarket
High service level and good ambiance used as differentiator.
Focus on own private label
1,70,000 products @ 6- 60 % discount
Star India Bazaar
Chota Budget, Lumbi Shopping!
Hypermarket promoted by Trent ltd a company of TATA GROUP, which is in the business of retailing; it runs famous “Westside” a large format departmental store. Star India bazaar Currently operating in Ahmedabad only, it sells all its goods below the Maximum Retail Price (MRP).
Focused on the requirements of the entire “Indian family”.
Added value by private label card (The Star India Bazaar private label card, which offers discounts to members),
Widest variety of products and great savings opportunities at the hypermarkets is the USP
Catering to the middle-class demand by offering products at affordable prices.
Each Star India Bazaar will be around 50,000 sq feet in size.
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The recent spurt of hypermarkets initiated by leading business houses targeting masses are one of its kind were focus is on low price and mass-market products.
Hypermarket business world over is price centric, and economic of scale dominates, similarity is seen in India too with likes of Big Bazaar, GIANT, and Star India Bazaar luring consumer with lowest price offerings and wide assortment of mass products.
In India it is at very nascent stage, known industrial group are cashing on the retail boom, expanding nationally to compete and to acquire greater market share and mind share. Some of the leading business houses like Reliance, Landmark Group (Dubai), Bharti (Airtel), Shopper stop ect will enter in near future. One will also find real estate biggies diversifying in to retail with joint ventures.
While Price, Product and Place playing major role in the initial stages of these hypermarkets to capture the market share. People, Process and Promotion will become important to sustain and grow the brand to compete for mind share in the future.
In the second phase of growth, one will see new kinds of specialist hypermarkets selling specific products targeted to all the segments of audience at various price points. This further will give way to theme base hypermarkets, hypermalls etc.
Share your thoughts, spot or predict the trend to come...(innovation, technology, consumer, competition, formats, promotions ect...
