market research report : convenience store market in india 2014 - sample

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Convenience Store Market – India

October 2014

2

SAMPLE Executive Summary

Market

Drivers & Challenges

Competitive Landscape

Drivers

Rising Income Levels and Consumerism

Ease of Payment via Cards

Changing Demographics and Lifestyle

Growing Acceptance towards FDI in Retail

Government Participation

Challenges

Large Geographic Spread and Lack of Logistics Support

Regulatory Challenges

Human Resource Constraints

Customer Migration

Key Players

Player 1 Player 2 Player 3

Player 4 Player 5 Player 6

Global convenience store market has been growing rapidly along with the rising income and improving lifestyle across the globe

Organized convenience store market is growing at a rate of x1% in the country

FDI scenario in retail

Single brand retailing in India

Multi brand retailing in India

Goods and Services Tax

CONVENIENCE STORE MARKET IN INDIA 2014.PPT

Shopping Trends

Changing Shopping Trend in India

Consumer Spending – Major Segments

E-Grocery

3

•Macroeconomic Indicators

•Introduction

•Global Outlook

•Market Overview

Indian Retail Industry

Convenience Store Market

•Shopping Trends

•Drivers & Challenges

•Real Estate Challenges

•Government Participation

•Competitive Landscape

•Strategic Recommendations

•Appendix


4

Macroeconomic Indicators (1/3)

11

12

13

14

15

INR tn

Q4

c4

b4

a4

Q3

c3

b3

a3

Q2

d2

c2

b2

a2

Q1

d1

c1

b1

a1

2013-14 2012-13 2011-12 2010-11

GDP at Factor Cost: Quarterly

Inflation Rate: Monthly

-2

-1

0

1

2

Aug 2013 - Sep 2013

q p

%

Nov 2013 - Dec 2013 Sep 2013 - Oct 2013

-t

Oct 2013 - Nov 2013

s

Jul 2013 - Aug 2013

r


5

SAMPLE …of the major players and rising number of convenience stores in various countries across the globe

Convenience Store – Global Outlook (2/2)

Growth of Convenience Stores in US

0

no. x7

2013

x6

2012

x5

2011

x4

2010

x3

2009

x2

Types of Convenience Stores in UK (2013)

0

x9

Unaffiliated Independents

x8

x10

Symbol Groups Multiples

x11

Forecourts

x12

Co-operatives

%


6

Convenience store market in India to witness strong growth owing to the rising demand for convenience shopping

• Convenience stores in India is still at a nascent stage,

providing huge untapped market potential for future

growth

Currently, convenience stores market in India is approximately

valued at INR z1 bn and is expected to grow at a CAGR of z2%

to reach INR z3 bn in 2018

• Convenience stores cater to the basic needs of an Indian

consumer

• They are located in both residential as well as

commercial markets and often operate in conjunction

with a service station

• Convenience stores have become the preferred

shopping destinations for the Indian urban consumers,

demanding for convenience, quality and service

• However, convenience stores in India are only 75% as

efficient as stores in the US in terms of display,

accessibility of products and service

Organized Convenience Store Market Convenience Store Market – Overview

Convenience Store Success Factors

Store Appearance

Success Factors

Food

Layout Pricing

Service Distribution

Promotion Product Mix

0

INR bn

y7

2018e

y6

2017e

y5

2016e

y4

2015e

y3

2014e

y2

2013

y1


7

SAMPLE

Needs, desires and wants of the Indian consumers contributing to the country’s growing retail sector

Consumer Demands in Today’s Shopping Trend

• Text

• Text

n9

n8 n7 n6 n5

n4

n3 n2

n1

m9

m8

m7

m6

m5

m4

m3

m2

m1


8

Drivers & Challenges – Summary

Drivers

Rising Income Levels and Consumerism

Ease of Payment via Cards

Changing Demographics and Lifestyle

Growing Acceptance towards FDI in Retail

Challenges

Large Geographic Spread and Lack of Logistics Support

Regulatory Challenges

Human Resource Constraints

Customer Migration


9

SAMPLE Porter’s Five Forces Analysis

Competitive Rivalry • Text

Bargaining Power of Buyers • Text

Threat of New Entrants • Text

Impact Medium

Impact Low

Impact Medium

Bargaining Power of Suppliers • Text

Impact Medium

Threat of Substitutes • Text

Impact High


10

SAMPLE Key Ratios of Top 3 Companies – Operational Basis (FY 2012) (1/3)

Competitive Benchmarking (2/5)

0

%

Reliance Retail Ltd.

p6

p5

REI Six Ten Retail Ltd.

p4 p3

Mother Dairy Fruit and Vegetable Pvt. Ltd.

p2 p1

• Player 1 recorded operating margin of-%, higher than both Player 2 and Player 3 which recorded operating margin of -% and -% respectively

• Player 1 recorded net margin of %, higher than that of Player 2 which recorded net margin of -% but lower than that of Player 3 which recorded net margin of -%

Net Margin Operating Margin


11

SAMPLE Public: Player 1 (1/5)

Key People

Products and Services

Company Information Offices and Centres – India

Category Products/Services

Products & Services Convenience Store Name Designation

P1 D1

P2 D2

P3 D3

Head Office

Mumbai

Corporate Address

Tel No.

Website

Year of Incorporation

Ticker Symbol

Stock Exchange


12

SAMPLE Financial Snapshot Key Ratios

Financial Summary

Key Financial Performance Indicators

Indicators Value (17/09/2014)

Market Capitalization (INR mn)

Total Enterprise Value (INR mn)

EPS (INR)

PE Ratio (Absolute)

Improved Decline

Net Profit/Loss

Total Income

0 0

Profit INR mn

Revenue INR mn

2014

g8

g7

2013

g6

g5

2012

g4

g3

2011

g2

g1

Particulars y-o-y change

(2014-13) 2014 2013 2012 2011

Profitability Ratios Operating Margin

Net Margin

Profit Before Tax Margin

Return on Equity

Return on Capital Employed

Return on Working Capital

Return on Assets

Return on Fixed Assets

Cost Ratios Operating costs (% of Sales)

Administration costs (% of Sales)

Interest costs (% of Sales)

Liquidity Ratios Current Ratio

Cash Ratio

Leverage Ratios Debt to Equity Ratio

Debt to Capital Ratio

Interest Coverage Ratio

Efficiency Ratios Fixed Asset Turnover

Asset Turnover

Current Asset Turnover

Working Capital Turnover

Capital Employed Turnover

• The company incurred a net profit of INR u1mn in FY 2014 and INR u2 mn in FY 2013

• The company reported total income of INR u3 mn in FY 2014, registering an increase of u4% over FY 2013

• The company earned an operating margin of u5% in FY 2014, an increase of u6 percentage points over FY 2013

• The company reported debt to current ratio of u7 in FY 2014, a decrease of u8% over FY 2013

Public: Player 1 (2/5)


13

SAMPLE Key Business Segments Key Geographic Segments

Description Details

Overview

• Text

• Text

• Text

Business Highlights

Public: Player 1 (3/5)

2014

p4

2013

p3

2012

p2

p9

p8

2011

p1

p7 p6

p5

p11

p12

p10

2014

q4

2013

q3

2012

q2

2011

q1

q6

q5

q8

q7


14

SAMPLE • Text

• Text

• Text • Text

T O

W S

Public: Player 1 – SWOT Analysis (5/5)


15

SAMPLE

Key People

Products and Services

Company Information Offices and Centres – India

Registered Address

Tel No.

Website

Year of Incorporation

Head Office

Kolkata

Category Products/Services

Services Convenience Store

Private: Player 2 (1/5)

Name Designation

P1 D1

P2 D2

P3 D3


16

SAMPLE Shareholders of the Company Ownership Structure

Name No. of Shares held

S1 N1

S2 N2

S3 N3

S4 N4

S5 N5

Total

Private: Player 2 – Shareholding Pattern (2/5)

s7

s6

s9 s8


17

SAMPLE Financial Snapshot Key Ratios

Financial Summary

• Company incurred a net loss of INR x1 mn in FY 2013, as compared to net loss of INR x2 mn in FY 2012

• It reported total income of INR x3 mn in FY 2013, registering a decrease of x4% over FY 2012

• Earned an operating margin of x5% in FY 2013, a decrease of x5 percentage points over FY 2012

• The company reported a debt to equity ratio of x6 in FY 2013, a decrease of x7% over FY 2012

Particulars y-o-y change

(2013-12) 2013 2012 2011 2010

Profitability Ratios Operating Margin

Net Margin

Profit Before Tax Margin

Return on Equity

Return on Capital Employed

Return on Working Capital

Return on Assets

Return on Fixed Assets

Cost Ratios Operating costs (% of Sales)

Administration costs (% of Sales)

Interest costs (% of Sales)

Liquidity Ratios Current Ratio

Cash Ratio

Leverage Ratios Debt to Equity Ratio

Debt to Capital Ratio

Interest Coverage Ratio

Efficiency Ratios Fixed Asset Turnover

Asset Turnover

Current Asset Turnover

Working Capital Turnover

Capital Employed Turnover

Improved Decline

Total Income Profit / Loss

0

INR mn

INR mn

2013

y8

y7

2012

y5

y6

2011

y3

y4

2010

y1

y2



18

SAMPLE Business Highlights

Description News

Overview • Text

• Text

Financials • Text

Recent Update • Text

• Text



19

SAMPLE • Text

• Text

• Text • Text

T O

W S

Private: Player 2 – SWOT Analysis (5/5)


20

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