rls 2013 info graphics

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Retail Leadership Summit

Feb 7 and 8 2013. Mumbai.

Infographics pack


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Information presented including infographics

has been collated by RAI on a best effortbasis, and maybe subject to change

without notice


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Innovation in the Retail

ecosystem


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Whats instore

Retail

industry

2020


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India Retail

-Challenges

Source: Booze & Co analysis


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Leveraging the customer

asset base Loyalty

programs


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Source: MckinseyQuarterly, June 2009,

The consumer decision

journey


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Innovation in collaboration


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Impact of collaboration across the value

chain = 2 t0 10% operating marginimprovement.


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Impact of collaboration

across the value chain


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Sustainability in retail

Dashboard for measurement


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Source: RAI. Compiled from Reckitt Benckiser 2011 sustainability report, Storai Feb 2013 &Green marketing: The competitive advantage of sustainability @

http://www.ehp.qld.gov.au/register/p01860aa.pdf

Renewable Energy Usage Green House Gas (GHG)

Emissions

Water used, %recyled

Total & Hazardous wastegenerated, %recycled

Top 5 raw materials used,% recycled

Packaging recyclability(%)

Sustainable supply chains

Lost work days (LWD) accident rate

No of Fatalities

No / Frequency ofSevere incidents

Significant spills

Fines levied byregulators

% LED fixtures used

Natural lighting usage(%)

Subterranean cooling forACs

Solar panel usage

Low VOC paint usage

%Fixtures from recycledmaterial

Plastic bag usage

Nationalitiesemployed

% of women, inmanagement / Board/ Top 40

Volunteer hoursclocked

Product donations /safety

Animal testingSocial

Performance

GreenTail StoreDesign

Environmental

Health /Safety

KPIs


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How green is your store?

Source: Technopak

perspective, Vol 4,

2010


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Innovation in food service


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Source: National Restaurant Association of India

Food Service Industry Profile


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Key trends driving the food service industry

1

Customers are willing to

experiment with novelties

(from Truffles to Norwegian

salmon) and blend cuisines..

2

Improved transport options have

created new retail avenues at

airports and along highways for

To Go & street food, served in a

hygienic setting.

3Growing use of social media by

the industry to generate talk

value, run promotions or open

communication (quizzes, pollsetc)

4

Customers are using online

review / opinion sites

(zomato.com; burrp.com) to

drive consumption choices.

Source Technopak : Emerging Trends in Food & Beverage Services Retailing in India; June 2012


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Key challenges facing the food service industry

Challenges

Highoccupancy

costs

High churn ofstand alonerestaurants

New formats intransit

locations have

long breakeven periods.

Source; Aug 2012; Technopak

presentation at the Indian Restaurant

Congress


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Source: National Restaurant Association of India

Source: Indian Food Services story 2011 Maple Capital Adv.


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FDI Just the beginning notthe end


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FDI - Milestones

100% FDI in Single Brand Retail

permitted provided:1. 30% of merchandise to be

sourced domestically,

preferably from SMEs.

2. Only one foreign entity can

make investment in Indiancompany

3. E-commerce is prohibited

Any firm seeking waiver of themandatory 30% local sourcing

norms would have to set up a

manufacturing facility in the

country

Single Brand Retail

FDI Policy Summary

1991

Economic Reforms allow Foreigninvestment in select priority sectors

1997 100% FDI on Cash and Carry basis

2006

51% FDI in Single Brand Sector on

Approval Basis

2011

100% FDI in Single Brand Sector onApproval Basis with pre-conditions.

2012

51% FDI notified in Multi Brand Retail

with Pre-conditions

Source: Press Clippings


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States to have prerogative of

implementing 51% FDI policy in

Multi-Brand Retail (MBRT )

Minimum investment of USD 100

million

Min. 50% to be invested in back-

end infrastructure within 3 years of

induction of FDI

Minimum sourcing of 30% ofmanufactured/processed products

from Small Scale Industries

Stores to be set up in cities with

population of more than 1 million

as per 2011 census

Government of India to have the

first right to procurement of

agricultural products

Multi Brand Retail (MBRT)

Source:www.omretail.com

Figures in brackets indicates no of

cities > 1 mn population

Green = FDI norms approved by

State

Red = FDI norms not approved by

State Govt

APMC = APMC reforms completed

Retail FDI in MBRT Map

Source: Press Clippings


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Women leading innovation


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1 While women are under-represented on corporate boards


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2Organizations with gender diversity at the helm consistently ranked higher on

critical criteria from Leadership to Innovation


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3. And were also more profitable and commanded better valuations in

the market.


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T-Nagar: Demystifying themagic mile


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T- Nagar Chennai.

500,000 customers every weekend.

Rs 10,000 crore of turnover every year. Regional retailers with a national clientele,

Is intensely competitive but enjoys high growth

and profitability,

Has a large number occasion-wear retailers but

no seasonality in footfall,

Does not tick the box in terms of infrastructure

such as high-street frontage, or parking but

attracts a significant number of global clientele.


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Real estate matching supplywith demand


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Sources: City population Census 2011; Per capital income (FY 11) various state govt sources; Retail metrics Real Estate Intelligence Services, JLL 2012

Growth of Retail stock in India to exceed 100 mn sq feet by 2015


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Sources: City population Census 2011; Per capital income (FY 11) various state govt sources; Retail metrics Real Estate Intelligence Services, JLL 2012

Top 7 key markets on growth path


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Average mall size is increasing.


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Property Affordability index in 385 cities around

the world.

Source: http://www.numbeo.com/property-investment/rankings.jsp


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India : Ranked 2nd globally in retailreal estate momentum

Source: JLL 2012


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E-commerce session


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India is ranked in the top 5 for retail attractiveness

Source: AT Kearney


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India is ranked among the top 30

in e-tail attractiveness

Source: AT Kearney


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With over 115 mio internet users, India is also the first

country to have more users accessing the net

through mobile devices ; than fixed connections.

Penetration of

technology

Indian market profile for e-commerce


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As per eBay

India Census

2011, ~40% of

onlinebusiness is

from Tier II

and III cities in

India

75% of users < 35 years

Indian market profile for e-commerce


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Technology based integration between Clicksand Bricks.


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Many retailers continue to focus their mobile investments on driving m-Commerceusuallythrough the organization that runs the e-Commerce channel, independent from the stores. This

view can make it difficult for a retailers mobile activities to get the attention or investment they

require, and tends to limit the focus and scope of how retailers leverage mobile.

US market: Treating mobile differently from e-commerce.

Source: Deloitte mobile influence survey, July 2012


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Online

activities via

Mobiles vs.Tablets


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Innovation in Indian business Just Jugaad?

Frugal innovation


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Relative decrease in cost of the innovation process

Relative

decrease incost of the

product

Low

Med

High

Low Efficient Dramatically

reduced

Aravind Eye

Care

Jaipur

Foot

Hole in the

wall OSDD

Reverse Engineered

Vaccines

Jaipur

Knee

Kerala Palliative careVortex

ATM

NH Heart Surgeries

Akash

tablets

Selco

Bharti Swach

GE Mac

400

Husk power

systems

Nano

1. Make things better not

cheaper2. Extends to services not

just products

3. Is about re-modelling not

just de-featuring

4. Low cost does not mean

low tech.


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The Retail Innovation Study

RAI Booz study


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Retail OperationsBenchmarking Excellence

SurveyRAI TCS Study


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Overall Process Maturity


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Industry agenda


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Most retailers use the phrases Loyalty and

Rewards interchangeably - not recognizing thatthey are part of a continuum. 44% of respondents do

not track loyalty data.

Those retailers who have invested in loyalty programs are

starting to see the results. For fashion and department stores;

25% of stores accrues from loyal customers. At the same

time, 44% of retailers in this category do not measure dataaround customer loyalty.


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88% of retailers Mystery Shop


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Merchandise Scanning seen as Quick Win for improving

Industry Bottom-lines


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Retail Leadership Summit

Feb 7 and 8 2013. Mumbai.

Infographics pack

rls 2013 info graphics

Documents