Prospects and growth strategy for Home Textile brands through Hyper Markets

1. Prospects and growth strategy for Home Textile brands through Hyper Markets

2. Retail Industry: An opportunity.. • Background - • US retail is organized to the extent of 80%, while the share of organized retail in Western Europe is about 70%. • Share of organized retail in countries like Malaysia, Thailand, Brazil, • Argentina, Philippines is between 30- 50%. • However, share of organized retail in India is about 3% and is still at a • nascent stage. • Organized retailing in India has been largely an urban phenomenon with affluent classes and growing number of double-income households.

3. Emerging trends.. • Growing urbanization leading to a variety of customer needs. • Significant increase in the number of brands in the Indian • market leading to a larger option set for the Indian customer. • Media boom leading to an increased level of awareness and • exposure to the international trends and concepts. • Changing demographics propelling the growth of retail • industry. • There has been a shift from Hi-street shopping to malls or • hypermarkets. • Shopping is becoming an outing or a way of family • entertainment that means that families now spend greater • time in shops.

4. Broad understanding of retail formats Formats Size

5. What does a Hypermarket mean to us.. • Hyper market is largely a function of product mix, assortment and size. Broadly, they are driven by the following - • Store size – up to 40,000 sq ft • Assortment - Food, Grocery, Basic Range of General Merchandise • General Merchandise – Home, Apparel and Hardlines . • Customers look for value/ deals or promotions. • Store is managed by limited sales associates.

6. How brands can play an important role.. • Brands have their own equity and so, help retailer in getting more • footfall. • Brands understand their products and domestic market well and can • use their knowledge and market understanding to their advantage. • Understanding of seasonality. • Help in putting together “Home fashion concepts” and increase their • sales volume. • Consistent and focused approach.

7. Key Growth drivers for Home Textile brands… • Multiple drivers leading to a consumption boom:

8. Changing Paradigm

9. Home Textile - Category Mix 2010 2007 Source – Technopak 9

10. Impulse Vs Planned Purchase – Home Textiles Source – Technopak

11. Replacement Cycle of Home Textile Products Products Replacement Cycle

12. Approach: Supplier - Retailer partnership • Five Things Differentiate Manufacturers in the Eyes of Retailers – • Retailers view leading manufacturers as those: • Who are best aligned with their marketing plans and strategies; • With whom they have highly productive and cohesive relationships; • Who possess advanced shopper marketing competence; • Who develop unique and exclusive programs; and • Who can deliver powerful insights on the consumer and the shopper

13. Approach: Supplier - Retailer partnership • “Build Private label program” • How does it help to retailer – • Differentiate the products for retailer • Enhance margins • Retailer completely owns the property; so promote it • How does it help to manufacturer – • Commitment of retail space • Limited but continuous volume production • Enhance understanding of retail business

14. Understanding consumer needs..

15. How do we help customer in buying..

16. Winning Value Proposition

17. Points to ponder….. • Does customer get a feel that our products are affordable. • How can I create more fun and excitement for the customers. • Is she saving some money when buying from us • How can I provide all Essentials with some value add-ons. • Can we demonstrate some fashion or decorative concepts • in the store so that customer can relate to.