Grocery Business in India

Amareesh Kalra,

Grocery Market Size

• Indian grocery retail industry accounts for over 16 per cent of the country’s GDP.

• Currently estimated at $343 billion • Annual growth rate of 6 per cent • In market potential, India ranks eleventh

Retail Structure

Grocery Retail

Organized

Super Markets

Hypermarkets

Departmental Stores

Discount Stores

E-Tailers

Gourmet Store

Unorganized

General Store

Kirana Store

Street Markets

Convenience Store

Statistics and Drivers

Market Dynamics

Challenges

• Labor cost• Knowing the inventory• Higher productivity requirements and fewer

resources• Customer demand• Increasing competition• Operation management challenges• Issues in existing store systems technology

Future

• Data and data management • Inventory visibility and availability • Technology and innovation• Establish credibility and exceed expectations• Knowing the market• Understand shopping occasions and consider

specializing• Consider alternative approaches to ordering and

distribution• Bridging digital with In-Store

Conclusion

• Regardless of format, price, quality, convenience and selection are key drivers of store choice

• “Build it and they will come” approach will not work in the digital world

• Consider the entire retail landscape and respect the differences between channels

• Know your consumers for multi channel strategy.• Success will require collaboration between retailers and

manufacturers• Understand how shoppers are responding to marketing

touch points