Indian Food Retail Industry

Content

1. Introduction 1.1 Industry Definition The food retail industry primarily includes companies selling a wide assortment of food and related products. 1.2 Rental Formats The Indian food retail industry is dominated by traditional stores such as kirana shops, or mom and pop stores. Retail formats in this industry consist of supermarkets, hypermarkets, cooperatives, discounters, convenience stores, specialty stores, independent grocers and all other retailers of food and drink for off-the-premises consumption. 2. Market Dynamics 2.1 Market Overview The retail food market in India is dominated by unorganized retailers running grocery shops, and vegetable and fruit vends in residential colonies and other locations. 2.2 Trend Analysis Retailers Moving Toward Tier-II Cities Increasing Demand for Private Labels Household Budgets Log Dip in Food Spending 2.3 Key Drivers Rising Middle Class Opportunities in Processed Food Liberalization of Retail Sector Entry of Corporate Houses 2.4 Major Issues and Implications Dominance of Unorganized Sector Stringent Property Regulations Lack of Skilled Labor Inadequate Infrastructure Huge Supply Chain and Distribution Costs 3. PEST Analysis 3.1 Political Factors Formation of Food Regulatory Authority Ease in Indian FDI Policy Government Initiatives Spur Food Industry 3.2 Economic Factors Indian Economy: Poised for Rapid Growth Higher Disposable Incomes 3.3 Social Factors Favorable Demographics Changing Lifestyles and Spending Behavior 3.4 Technological Factors Supply Chain Management Online Food Retail Stores 4. Competitive Landscape 4.1 Profiles of Leading Players Spencers (Formerly Food World) Food Bazaar Subhiksha Trading Services Limited 4.2 Comparative Analysis Sales Revenue Number of Outlets Geographical Presence Other Comparables 4.3 Key Strategies Spencers Four-Pronged Expansion Strategy Expansion with National Focus Food Bazaar Shrinking the Supply Chain Extensive Private Label Program Micro-Financing Schemes for Customers Subhiksha Organic Growth with Northern Focus Outlet Every 2 km Service-on-Demand Model 5. Outlook Food retailing is poised to become a major industry in India and is estimated to grow at a CAGR of 8.5% over 2004-09. The food processing industry, which is currently around 2% of the total production, is expected to increase to 10% by 2010 and to 25% by 2025. List of Tables/Figures Figure 1.1 Indian Food Retail Industry Format Figure 2.1 Indian Food Retail Industry Sales (2000-05) Figure 2.2 Comparative Penetration of Organized Retail Figure 2.3 Organized Retail Market Share (2005) Figure 2.4 Food Expenditure (1998 vs. 2005) Figure 2.5 Growth in Income Groups (FY1996 vs. FY2002 vs. FY2006) Figure 3.1 India GDP at Market Price (2000-01 to 2005-06) Figure 3.2 Proportion of Working Women Figure 4.1 Sales Revenue (2005-06) Figure 4.2 Number of Stores (June 2006) Figure 5.1 Indian Food Retail Sales (2004-09) Table 1.1 Industry Definition Table 1.2 Value Propositions of Modern Retail Formats Table 4.1 Geographical Presence of Retailers Table 4.2 Other Comparables