kinduz market scoping services
TRANSCRIPT
Retail Industry Services | KINDUZ Consulting | http://www.kinduz.com/
Enabling Sustained Excellence
MARKET SCOPING
SERVICES
•Location Mapping
•Competition Mapping
•Location Feasibility
Retail Industry Services | KINDUZ Consulting | http://www.kinduz.com/
Current Indian Retail Scenario
Spencer’s is in Cost Cutting, right sizing mode – 100 unviable stores
shut which led to a loss of 289 crore in 2008-09 and 150crore in 2007-08• Economic Times,17th June, 2009
Birla Nuvo plans to close 30 stores and save Rs 100 Cr on costs; also
open 150 new stores in viable centers• India Retail Biz, May 1st, 2009 ·
Foodland Fresh, a Mumbai-based retail chain, closed 39 of its 42 stores
across the city, last week.• Economic Times,10th February, 2009
Reliance Fresh is mulling closing 25 stores from its 590 stores at present
while the UK online and catalogue retailer• Economic Times,10th February, 2009
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Retail Industry Services | KINDUZ Consulting | http://www.kinduz.com/
Factors Leading to Successful Retail Stores
“The three most important things for a
successful retail store are
1) Location
2) Location
3) Location”
Sam Walton, founder Walmart
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Visibility Accessibility Feasibility ParkingMerchandise
Mix
KINDUZ, Retail Industry Research , February 2009
Retail Industry Services | KINDUZ Consulting | http://www.kinduz.com/
Locations are on every retailer’s mind
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“The modern retail opportunity is in the top 20 cities. Tier two towns could take five more years.”
CEO, Durables retail chain for KPMG retail report 2009
“All regions have potential key is in slicing the relevant customer segments and developing an
appropriate format/ value proposition.”CEO, Large Indian retailer for KPMG retail report 2009
“Out of town retail models will not work in India.”CEO, Global retail chain for KPMG retail report 2009
"No single format will be
suitable pan India - findingthe relevant format wouldbe key to success."
CEO, a large Indian retailer
“There are too manygeneral malls with similarvalue propositions in India.”
CEO, Furniture retail chain
Retail Industry Services | KINDUZ Consulting | http://www.kinduz.com/
KINDUZ MARKET SCOPING SERVICES
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Retail Industry Services | KINDUZ Consulting | http://www.kinduz.com/
KINDUZ Market Scoping ServicesA structured approach to retail location planning
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STEP I
1.Customer Profiling: Population Distribution/ Average Age Distribution/ Annual Income Distribution/Car ownership
2.Key Zone Mapping: Shopping Malls, Corporate Offices, Government offices, Entertainment Zones, etc.
3.Location Hunting: Key Retail Locations in Area, Anchor Tenants in these locations, Parking Availability, Asking Rate per sq.ft
STEP II
Competition Mapping: Existing Competitor Names & Locations, Sizes of stores in Area, Existing Average Revenue /sqft, Category Distribution within Store
STEP III
Location Feasibility: Trading Area Potential, CAPEX, OPEX Feasibility, Recommended Store Format, Recommended Store Size, Projected Breakeven Point
Retail Industry Services | KINDUZ Consulting | http://www.kinduz.com/
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3. COMPETITION ANALYSIS FOR TRADING
AREAExisting competitors names & locationsSizes of competition’ s stores
Existing revenue per square feetWeek and weekend footfall
Category MixSpecial features if anyAsking rate for these locations
4. LOCATION FEASIBILITY ANALYSISGrading all Location options on key parameters like:
rental•Competition
•Footfall•Revenue/sft•Parking
•Accessibility
Ideal category mix recommendation for shortlisted option
Market Scoping Package Details
1.DEMOGRAPHIC PROFILE FOR COMPLETE CITY
Total urban population in target catchmentAge distribution Sex ratio
Education levelsKey economic indicators
Hot Zones - Population concentration within city
2.LOCATION OPTION IDENTIFICATION
Key retail zone identification within city Rentals in identified Retail Zones
Detailed analysis for each option:1.Key Zones within trading area:
Shopping malls Corporate/government offices
Entertainment zones RestaurantsSchools/colleges
2. Micro Mapping for Primary, Secondary and Tertiary trading areas
3. Retail location accessibility from Hot Zones 4. Detailed Site Analysis
Retail Industry Services | KINDUZ Consulting | http://www.kinduz.com/
Demographic Indicators of Target Catchment
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•Total urban population in target catchment
•Sex Ratio
•Male Literacy Rate
•Female Literacy Rate
•Population less than 6yrs
•Children (6-14yrs) in private school
•Income Distribution
TOP FIVE
1. Allahabad 1,635,3872
2. Kanpur Nagar 1,549,5053
3. Lucknow (,250,8774
4. Agra 1,198,9915
5. Jaunpur 1,170,022
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Economic IndicatorsHousing Loan Accounts , Loans for Purchase of Consumer Durables , No. of Retail Trade Accounts
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TOP FIVE
1. Lucknow 47,9182
2. Ghaziabad 20,0253
3. Gautam Buddha Nagar 18,9664
4. Agra 17,1615
5. Kanpur Nagar 16,055
TOP FIVE
1. Moradabad 26,9022
2. Varanasi 22,3283
3. Gorakhpur 22,0894
4. Kanpur Nagar 21,3995
5. Saharanpur 21,009
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Hot Zones - Population Concentration within City
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Aspect/Location A B C D E F
Sq Km
Population
Residence type Apartments Independent houses Bungalows
Average Rentals
Property price
A
B
C
DE
F
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RETAIL LOCATION OPTION IDENTIFICATION
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Clear identification of existing key shopping areas in the city
A
B
C
DE
F
Identifying Key Retail Zones in City
Option 1
Option 2
Option 3Option 4
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Indication of rentals in high density retail shopping areas for exploring the option of a standalone store
C
D
Option 1
Rs 50-75/sftOption 2
Rs 55-85/sft
Option 3
Rs 95-120/sftOption 4
Rs 65-95/sft
Rentals in identified Retail Location Options in City
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DETAILED ANALYSIS FOR EACH OPTION
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Identifying Key Zones
in Target Catchment (Schools, Colleges, Offices, Shopping Malls etc.
Key Zones in Area Primary
Trading
Secondary
Trading
Tertiary
Trading
Schools 6 3 8
Colleges 2 5 3
Entertainment Zones
Government Offices 2 1
Corporate Offices 2
Multiplexes 1
Restaurants 6 7 47
Shopping Malls
Competitors
Trading Area Analysis of Options
Primary Trading Area – upto 5kms/ 5-10minutes
Secondary Trading Area – upto 10km/ 10-20minutes
Tertiary Trading Area – upto15kms/ 20-30 minutes
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Micro Mapping for Primary, Secondary and Tertiary Trading Areas.
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Galaxy Ginger Court
Wood Art
Hotel Kasani Grand
Babuji Teknoflon
Loreal
Karr Express
Images Hospital
Blackberrys
Louis Phillipe
Pizza Hut
Shoppers Stop
Competition
Raheja IT Park
Accenture
Siri Elite Sgency
Computer Sceince Corporation Verizon India
HSBC
Adcendas IT Park
Oracle
Oracle
NIFT
Restaurants RetailersCorporate OfficesColleges
Infotech
Van Heusen
Mapping each area in detail to showcase eating joints, offices, retail shops, competition etc.
Detailed Area Map – Option 1
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Retail Location Accessibility from Hot Zones
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CompetitionIdentifying all possible Locations within trading area highlighting competition if present
A
B
C
D
E
F
Retail Industry Services | KINDUZ Consulting | http://www.kinduz.com/
Detailed Site Analysis – Option 1
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LOCATION ANALYSIS A B C
Distance from Target Catchment 9.9 4.2 2
Size (sqft) 3,20000
Parking Availability 1000 cars
Anchor Tenants Hypercity, Lifestyle, Shoppers Stop
Rent/Sqft Rs120/sft
Developer’s Contact Details :
Actual Site Picture
Traffic
Flow
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COMPETITION MAPPING
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Competition Mapping in Trading AreaProduct Category and Retail Format which matches with Client Brief
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Van Heusen
@Home
Inner Space
Vijay Textiles
Louis Phillipe
Skipper Furnishings
Prakash Lights
Welhome
Blackberrys
Allen Solly
Peter England
DETAILS Raymond Blackberrys Van Huesen Zodiac Louis Phillipe Peter England
Location
Size (Sqft)
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Detailed Competition Analysis using Primary Research
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Raymond Louis Phillipe
Address
Raymond
Plot No. 204, E Venue, Road No. 14, Banjara
Hills, Hyderabad, Andhra Pradesh500034, India
040 23301603
Louis Phillipe
686, 2, Lane Adj To Aamoda Kitchen, Banjara
Hills, Hyderabad, Andhra pradesh500034, India
040 23324546
Rent/sqft
Size (Sqft)
Average Revenue /Sqft
Categories
Special Feature
Studying Each
Competitor present within Trading Area
Retail Industry Services | KINDUZ Consulting | http://www.kinduz.com/
Option 1 - Summary
Immediate Catchment: 5000 families at Whitefield alone
Primary Catchment of 13 lacs in vicinity
Secondary Catchment 12 Lacs
Excellent Infrastructure
Key Zones:
35 schools + 19 colleges/technical institutes + 3 parks , Several football & cricket clubs ,
Ample Social clubs & varied places of worship
25 corporate offices within primary trading area
Accessibility:
15 minutes from Jubilee Hills, 20 minutes from Banjara Hills
Easily accessible from high traffic zones like Madhapur highway
Competition Key Indicators:
No of Competitors
Average Footfalls
Average Revenue/sft
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Retail Industry Services | KINDUZ Consulting | http://www.kinduz.com/
LOCATION FEASIBILITY ANALYSIS
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Location and Competition Analysis
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Characteristic Weight Option 1 Option 2 Option 3 Option 4
Competition 40 1 40 3 120 4 160 6 240
Rental 60 2 120 4 240 6 360 8 480
Parking 20 8 160 1 20 3 60 3 60
Footfall 60 8 480 7 420 4 240 5 300
Typical Revenue /Sqft 40 6 240 4 160 3 120 3 120
Target Population accessible within
primary trading area20 6 120 7 140 6 120 5 100
Total: 1160 1100 1060 1300
Completely objective Analysis of each location option using predefined statistical parameters
benchmarking each characteristic based on the industry standard.
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Recommended Mix for Opening a Store in Shortlisted Location
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Premium Suitings17%
Medium Range Suitings
33%Mens Shirts
25%
Textiles17%
Accessories8%
Recommended Mix
Complete Demographic Details and Recommended Category Mix for Location Shortlisted through
the analysis
Option 4 - Catchment
Sq Km
Population
Education Levels
Average Income
Location Details
Rental
Competitiors in
Primary Trading
Average Footfall
Average
Revenue/sft
Parking
Availability
Retail Industry Services | KINDUZ Consulting | http://www.kinduz.com/
Zoning
The entire zoning should consider one single science of shopping
IMPULSE !!!
to promote that critical aspect of shopping, which will generate better conversion !!!
The scientific zoning & trade mix of the store will ensure equal footfall distribution on every floor.
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Retail Industry Services | KINDUZ Consulting | http://www.kinduz.com/
Design and Concept Planning
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Traffic Flow Analysis Sightlines
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ABOUT KINDUZ
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Retail Industry Services | KINDUZ Consulting | http://www.kinduz.com/
About KINDUZ
KINDUZ is a niche consulting firm that delivers focused 'Business Improvements',
with 'Business Results' for its customers. Headquartered in India, with branches in
Germany, U.S.A. and Canada, KINDUZ has completed over 35 assignments since its
inceptions in 2008, and has retained every single client it has worked with.".
Our retail vertical is managed by experts from varied retail domains like real estate,
financial planning, space design and assortment planning. The CORE Team jointly holds
over 60yrs of industry experience with established developers and retailers.
Retail Industry Services | KINDUZ Consulting | http://www.kinduz.com/
Our Retail Services
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29
Financial Services
Mergers and
Acquisitions
Equity and Debt
Funding
IPO Management
Registration & Licensing
Market Scoping
Demographic Mapping
Competition Mapping
Location Feasibility
Shopping Mall Services
City Profiling
Market Micro Analysis
Feasibility Analysis
Concept Design
Project Management
Mall Management
K-Star(Mumbai) Mega Mall(Mumbai)
Palm Beach Magneto Mall
(Mumbai) (Raipur)
Retail Industry Services | KINDUZ Consulting | http://www.kinduz.com/
Shop Design Partner – Shopworks Bengaluru, Dhaka, Mumbai, Colombo, Delhi, Frankfurt, Istanbul, Lisboa, London, Melbourne, Moskva, Shanghai
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KINDUZ EXPERT PANEL
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Retail Industry Services | KINDUZ Consulting | http://www.kinduz.com/
Aartee Roy
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Education:
Certified in Production and
Inventory Management (CPIM)
from APICS (USA)
Six Sigma Black Belt
Advanced Diploma in Fashion
Design from NIFT (Delhi)
Bachelors in Arts from Panjab
University (Chandigarh)
Key Skills: Market Research , Category Mix Planning,
Roles Played
Senior Vice President at Kinduz ConsultingHeading the Retail vertical at KINDUZ
Responsible for def ining focus areas, marketing strategy and business development in the retail sector
Vice President Merchandising at Odyssey India Ltd.Heading all India merchandising for multiple categories including perfumes, jewellery , leather accessories
home and branded gif ts. Responsible for sales, margins and inventory management for all above.
Instrumental in merchandise mix planning for the bid for Delhi International Airport which Odyssey won.
Introduced 44 new suppliers to Odyssey which helped limit its top line depletion during the 2008 economic
downturn. Designed merchandise mix for Odyssey’s EXPRESS format which led the category to be the
top grosser of sales.
Senior Buyer at Lifestyle (UAE)Worked for Lifestyle heading home decor buying for nine countries in the Middle East. Helped Lifestyle
manage their inventory and replenishment across 64 stores spread in the GCC. Instrumental in category
management and vendor relationship management for Lifestyle enhancing their Like for Like top line by
12%Helped Lifestyle streamline their pricing strategy across the GCC, improving margins by 25% Helped
drive strategic contracts with suppliers to improve Odyssey’s margins by 5% and limit the exposure to
excess inventory.
Senior Merchant at Monsoon AccessorizeHeading merchandising for the Monsoon ladies and kids accessories at the India liaison of f ice.
Responsible for establishing the Indian supplier base for Monsoon Home.
Merchant at William E. Connor & Associates Ltd.Handling complete sourcing and merchandising for brands like Red envelope, the Body shop, Neiman
Marcus and Nordstrom. Helped supplier’s achieve Ethical Trading Compliance, thus limiting exposure of
Body Shop and Monsoon to unacceptable manufacturing practices.
Retail Industry Services | KINDUZ Consulting | http://www.kinduz.com/
Key Skills : Business Planning and Strategy Definition. Revenue Model Design and
Location Feasibility Analysis.
Roles Played:
COO - Retail Tadawi Healthcare Group, Saudi Arabia
Transitioned the Tadawi is the largest healthcare company in Kingdom with over 500
pharmacy stores and turnover over US$ 350 million. Created and employed first Format
Category Management Program, monitoring expenditures and supplier performance,
improving shelf space productivity, and driving on going price improvements.
Director – Operations (Cash & Carry), Wal-Mart India
Responsible for operations and strategic direction with full responsibility for bottom -line
factors, including long-range planning. Spearheaded vision, strategy, and execution of
business operations. Led the planning team in the start-up operation in making the
feasibility study, format definition, project-plan and co-ordinating with HO team in
devising the timeframe for implementation.
COO - NEXT India (400 consumer durable & electronics retail chain)
Lead operations and strategies direction with full responsibility for top-line growth and
bottom-line profitability. Provide cross-functional management; direct four National
Buying Heads, three Regional Heads and eight District Managers; and general oversight
of 250 employees. Redefine organizational structure; oversee major pricing decisions and
perform monthly financial evaluation of company results.
General Manager, Retail Operations - Pharmasave Canada , (Health & Wellness Retail
Pharmacy Chain)
Managed 55 stores in Ontario. Responsible for over profitability and network expansion.
Manager - Jeans Pvt Ltd. District (25 Store Casual Fashion Retailer)
Mohit Mohan
Education:
MBA (Strategic Marketing)
Monash
UniversityAustralia
Franchise Management
University of
NSW, Australia
Real Estate - R M Institute
of Technology, Australia
Health & Safety Certification
- WSIB Canada
Retail Industry Services | KINDUZ Consulting | http://www.kinduz.com/
Key Skills : Property evaluation for all various retail formats, strategizing business
development expansion plans, streamlining the process of Business
development, computational research on demand dynamics required for expansion plan
Roles Played:
Senior Consultant Transaction Services – Retail at Cushman & Wakefield ( India )
Pvt. Ltd
Transaction services – Retail (Western India) worked for projects in cities like
Mumbai, Pune, Ahmedabad, Surat, Baroda, Jamnagar, Nagpur, Raipur.
Worked for Mall Developers with planning, leasing for developments like Atria Mall
(Mumbai) Mega Mall (Mumbai) Palm beach galleria (Navi Mumbai), K-Stars
(Mumbai), Imperial Mall (Surat), Magneto Mall (Raipur), Venus Square
(Ahemdabad), Express Avenue (Chennai).
Actively involved in creating Business Plan for esteemed clients like Hanes &
Mautriz, Marks & Spencers, Mango, Swarowski, Jumbo Electronics, Redmond.
Actively worked with retailers like Koutons, Spykar, Lilliput, The Mobile Store, Kiah, Snap
Fitness, Subway, Kailash Parbat, Levis, Nike
Involved in preparing business development pitch for the retail vertical with clients like
Shoppers’ Stop group, Odyssey, Gitanjali Lifestyle, Tata International, Trent Ltd, Brand
House Retail.
Narendra Kumar
Education:
MBA (International
Business) -
Symbiosis, Pune
B E (Electrical) MDU
Haryana
Retail Industry Services | KINDUZ Consulting | http://www.kinduz.com/
Key Skills : Space Design, Project Management
Roles Played:
Retail Real Estate Architect – Emaar MGF Land Ltd.
Involved in architectural co-ordination of their entire retail exploits pan India, including
review of layouts for over a dozen retail ventures and shopping malls.
Responsible for a wide gamut of activities ranging from approving proposals for new
projects at the retail level, mediating between the management strategies and architect
conceptualizations to achieve the perfect balance design and saleability.
A consultant for design issues, prioritizing space for anchors, vogue brands and
hypermarkets in the micro level.
Determining circulation patterns, traffic flows, frontages etc on the macro level. Serving as
the interpreter between the architect's conceptualization and developer's vision.
Design Head – Select Citywalk
Work profile included a comprehensive shopping mall exposure, from inception to
completion - all exercises and niceties amid and beyond.
Know-how at parity with latest developments in the design and construction industry.
Experience in retail design, inter-relationship between brand management and the
consequent orientation of spaces.Approving tenant layouts, modifications of existing shops
etc. Coordinating and mediating between Singapore and Local architects.
Ekta Prasad
Education:
B.Architecture from BMS
College of Engineering
Retail Industry Services | KINDUZ Consulting | http://www.kinduz.com/
Contact
© 2009 KINDUZ - All rights reserved 36
Aartee RoySenior Vice President
Website: http://www.kinduz.com/retail/
Email: [email protected]
India Mobile: +91-9999-102366
India Office: +91-40-40165594
US Phone: +1-312-473-9766