fmcg & retail
TRANSCRIPT
The FMCG & Retail SectorAnalysis
Introduction-[FMCG]
FMCG is Fast Moving Consumer Goods, also known as packaged consumer Goods.
Daily or periodic use items like: soap ,packaged & processed foods, toothpaste,pickles,tea,coffee etc.
Introduction-[Retail] The basic place of exchange.
Interface between seller and individual consumer.
Shopping Malls, super markets, hyper markets, mini stores , showrooms and kirana stores.
History [FMCG] Origin undefined.
Early Prominent Players like ,HLL(Hindustan lever),ITC(Imperial Tobacco company),Colgate, Nestlé etc.
Provided items of daily use.
History (Retail) Presence of Unorganized* retail
from a long time back in history.
Organized* Retail from early 90s
Pantaloons was the 1st.
Classification of FMCG
FMCG
HouseHoldCare
PersonalCare
Food &Beverage
s
House Hold Care like – Dish soaps, pot holders , paper towels ,Cleaning agents etc.
Personal care like – Deodorants, perfumes , make up , hair gel, mouthwash etc.
Food & beverages like – Wheat,Rice,Vegetables,Tea,pizza etc.
Classification of Retail
RETAILON
THE BASISOF
EXISTANCE
ORGANIZED RETAIL
UNORGANIZED
RETAIL
RETAIL ON THE BASIS OF PRODUCT
FOOD & GROCERY
BOOKS &
MUSIC
CLOTH & FOOTWERE
CONSUMER DURABLES
JEWELS
PHARMA &COSMETICS
Organized Retail Are those retail which are licensed
& Registered for sale and service tax and are nation wide.
Wall-mart, Tesco, Big bazaar, Easy day etc are examples of Organized Retail stores.
Unorganized Retail Stores which operate on local
level.
Stores like local kirana stores, paan thelas, local vegetable vendors and road side stall are example of unorganized Retail.
According to Products
Food and grocery
Consumer durable
Jewllery & Gems
Clothing & Retail
Pharmaceutical and Cosmetics
Books & Music
Analysis Of The Sector
Part I
Governing Body The FICCI -> Federation of Indian
Chamber Of Commerce & Industries.
Set up In 1927,the largest and oldest apex business organization in India.
Nationwide membership of 500 regional chambers of commerce & business associate.
Also focuses on social work & National Issues.
What Does FICCI do? Defines Rules and regulation on
which a industry or Retail works.
Monitors trade frame work.
Organizes Trade fairs.
Regulates Regional chambers of commerce.
Provides license for authentication.
The Introduction to
Liberalization,
Privatization & Globalization
L.P.G & its Effects The Liberalization, Privatization &
Globalization Policy. i.e. L.P.G.
Introduced in 1991,during the government of Late.Mr.P.V.Narsimha Rao of The Indian National Congress, Basic idea was of Privatization by late Mr. Rajiv Gandhi in the Mid 1980s.Improved Later.
India opened Its gate for the International Market for Trade.
Before L.P.G.The Pre `91 scenario.
Growth rate of economy in 1980 was 3.5%
Huge public sectors, State owned enterprises made heavy losses because of inferior technology & insufficient research.
Infrastructural investments were poor because of the Public sector Monopoly due to lack of modernization.
No or less scope of foreign Investments.
. Less avaibility of variety products.
No foreign trade treaties.
Less Exports & high imports caused the disturbance of balance of trade.
Industrial sickness.
High import duties
The Post `91 effect. Decreased import duty.
New Export policy was adopted. Like LERMS [Liberalized Exchanged Rate Management System].
The FDI limit was increase from 40 to 50%, auto mobile was given 100 %.
Foreign institutes & corporate were allowed to operate in the capital market of India.
India signed GATT on 15 April 1994,which is for relaxing trade restrictions.[General Agreement on Trade & Tariff],Now replaced by WTO [World Trade Organization].
Arrival of MNCs Increase in industrial growth. Increased Privatization. Development of Export
Oriented Industries. Increase of growth rate at
around 5 %*. [up till 2010]
Major Change From 1990 t0 2000 in FMCG
Segments Major Brands in India,Pre ’91
Major Brands in India,Post ’91
Creams & Lotions
Pond’sHimalaya
Olay,Garnier
Processed Food
M.D.H., EVERESTParle
NISSINHeinz
Detergents Fena,Lakhani,Ghadi.
Ariel ,Tide
Soaps Nirma,lifeboy
Dove,Dettol
The Famous FMCG Brands.
Major Emergence in Retail
Big Bazaar
Wal Mart
Nike
Adidas
Pantaloons
FDI limits FDI. The Foreign Direct
Investments
Limited to certain sectors
Limited up to 51 % in one brand Retail .
100 % in wholesale Trading.
51 % in FMCG.
Current Trends.YEARS MOVING
REVENUE (US. $ billion)
MOVING AVG. REVENUE (US. $ billion)
FLUCTUATION(US. $ billion)
1998 201 ---- ----
2000 204 202.5 1.5
2002 238 221 17
2004 278 258 20
2006 321 299.5 21.5
2008 368 344.5 23.5
2010 421 394.5 26.5
AVG.ANNUAL GROWTH-- 36.66 %.
1998 2000 2002 2004 2006 2008 20100
50
100
150
200
250
300
350
400
450
MOVING AVG. REVENUE
MOVING AVG. REVENUE
Predicted Avg. Revenue
YEARSMOVING AVG.
REVENUE
2010 394.5
2012 434.5
2014 472.5
2016 520
2018 596
2020 619
1 2 3 4 5 60
100200300400500600700
MOVING AVG. REVENUE
MOVING AVG. REVENUE
Data for succeeding ten years
And so..
In present, The FMCG & Retail sector contributes 17.2 % in the GDP.
The expected FMCG & Retail Contribution will be around 24 % towards GDP.
Sectorial AnalysisPart II
Major Changes Expected
Entry of new Players.
More variety.
New technology
New Mergers Acquisitions.
Extension of present Retail chains.
And Also… Employment Creation.
Social welfare.
Cost efficient.
Top Ten Players FMCG
1. Hindustan Unilever.
2. ITC Ltd.
3. Nestle India
4. GCMMF [AMUL]
5. Dabur India
6. Asian Paints
7. Cadbury
8. Britannia
9. P & G
10. Marico
Top Ten Retail Players
1. Shoppers Stop
2. Westside
3. Pantaloons
4. Lifestyle
5. RPG retail
6. Crossword
7. Wills Lifestyle
8. Globus
9. Pirmals
10. Ebony Retail
Recommendations Globalization should not exploit local
kirana stores.
Special courses to enhance manpower for these sectors.
Should be concerned towards ‘Social Marketing’.
Bringing more retail shops for better shopping and convenience.
Stretching their reach to rural sector through mini store etc. for development of rural face of India
Government should be more strict towards malpractices.
Mega retail store should avoid heavy pricing.
Better Customer relationship and after sales service which creates a feeling of security to the consumers.
More environment friendly products.
Street Analysis
Face 2 Face with the Retailers.
The Final Cut
The Dark Past. The Awakening. A Slow & Steady Start. The Promising Present. The Shining Future.
END