Business model of Indian Retail Industry

Retail Industry

• Retail is the sale of goods and services from individuals or businesses to the end-user.

• A retailer

– purchases goods or products in large quantities

– from manufacturers directly or through a wholesale

– and then sells smaller quantities to the consumer for a profit.

• Single Brand and Multi Brand retail store

Retail Sector in India

• 14 to 15 percent of its GDP

• market is estimated to be $450 billion

• 1.2 billion people

• 8.1% organized Retail market

• 51% FDI in multi-brand retail

Business model

Slno

Elements Usage

1 Product features Select technology and features

2 Product benefits Benefits to customer on usage

3 segmentation Identify market segments

4 Revenue model Validate available revenue frame work

5 Value delivery Ensure the mechanism to deliver value to the customer

Slno.

Elements Constituents of elements

1 Customer value proposition

Target consumer jobs to be done offerings

2 Profit formula RevenueCostMarginStock Turns

3 Key processes Process evaluation criteria and benchmarksNorms and policy

4 Key resources People TechnologyEquipment InformationChannels Partnerships Brands

Chairman of CCD

V.G Siddhartha

Journey of CCD

• Agricultural family of Coffee with 500 acre land

• Investment banking in Mumbai• Inter market arbitration • Bought 400 acre for coffee with 75%

loan from bank• Coffee export and became India`s

largest exporter of coffee• Sold coffee powder in

Chennai and Bangalore

contd…

• A/C Coffee store and price 25 RS– 1996, 15 stores in 3 cities

• Cappuccino machine

• Internet café with free coffee

at 1st the name was Coffee Day Cyber Café

Then it became Café Coffee Day

Now CCD is having…

• 1500 stores in 210 cities• 18500 vending machine• Selling 50 million cup of coffee & tea per

day in 900 kiosks in schools colleges & railway platform

• 70% market share• 80% youth customers• 12 stores in Prague and 2 stores in Vienna• 100 stores in main high ways

Café Coffee Day

Parent company- Coffee Day Co.

Portfolios-

1. Agri-business

2. Retail

3. Logistics

4. Investments

5. Infrastructure

Agri-business

• Family heritage of coffee production

• Arabica coffee and Robusta

• Largest producer of Arabica in Asia

Retail Business

• Pioneer of coffee café in India

• It consists of – Café Coffee Day chain

– Coffee Day Xpress

– Coffee Day Beverages

– Coffee Day Fresh

– Coffee Day Exports

• Coffee Lab at Bangalore

Logistic Business

• Social logistic- single window multi modal logistic solution company

• Port-rail-road-ICD(Inland container depots)-CFS(container freight station)-dredger

• 26 million ton cargo

• Market leader in surface logistic

• Container chain operation between Chennai and Bangalore

Investment Business• Stock market operation

• Investment in multiple IT an Technology industry

Infrastructure Business• Tanglin development ltd.

• 120 acre campus in Bangalore

• Township at Mumbai

Business model of CCDSlno.

Elements illustration

1 People 17000+ employees, 20 in R&D,70 In HR

2 Technology Latest technology of coffee plantationCuring, roasting and Probat roasting machines

3 Channels Cafe, Lounge, Square

4 Value proposition Identifying target customer, defining the benefits and provide which best to satisfy

5 Profit formula Financial sustainability of the firm in long run basis

6 CSR Provides free education and training to villagers and offering them jobs

Conclusion

Indian retail industry has a prosperous future, it just need to take care the following things

1. Define different value proposition for the different customer segments.

2. For high market penetration it has to offer needs to satisfy the customer

3. Multiple channels & multiple formats to reach the customer

4. Communication with customer and employees are equally significant