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` PREFACE
Preparing a project of this nature is an arduous
task and I was fortunate enough to get support from alarge number o persons. I wish to express my deep
sense of gratitude to all those who generously helped
in successful completion of this report by sharing their
invaluable time and knowledge.
It is my proud and previledge to express my deep
regards to Respected HOD Dr.Pramesh
Gautam,Head of Department of Business
Management , SWAMI VIVEKANAND INSTITUTE OF
TECHNOLOGY, SAGAR for allowing me to undertake
this project.
I feel extremely exhilarated to have completed
this project under the able and inspiring guidance of
Mr. Ankur Gautam she rendered me all possible help
me guidance while reviewing the manuscript in
finalising the report.
I also extend my deep regards to my teachers ,
family members , friends and all those whose
encouragement has infused courage in me to
complete to work successfully.
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Ashish Kumar Singh
B.B.A. III SEM.
ACKNOWLEDGEMENT
Preparing a project of this nature is an arduous task
and I was fortunate enough to get support from a large
number o persons. I wish to express my deep sense of
gratitude to all those who generously helped in successful
completion of this report by sharing their invaluable time
and knowledge.
It is my proud and previledge to express my deep
regards to Respected , Head of DepartmentDr.Pramesh
Gautam, Department of Business Management , SWAMI
VIVEKANAND INSTITUTE OF TECHNOLOGY SAGAR for
allowing me to undertake this project.
I feel extremely exhilarated to have completed this
project under the able and inspiring guidance of He rendered
me all possible help me guidance while reviewing the
manuscript in finalising the report.
I also extend my deep regards to my teachers , family
members , friends and all those whose encouragement has
infused courage in me to complete to work successfully.
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CERTIFICATE
The project report titled " A STUDY ONMARKET SHARE OF GLOBUS " been prepared byASHISH
KUMAR SNGH BBA III Semester , under the guidance
and supervision of Miss ANKUR GAUTAM for the partial
fulfillment of the Degree of B.B.A.
Signature of the Signature of the Signature of the
Supervisor Head of the
Department
Examiner
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CONTENTS
S.No. Particulars Page No.
Part one : Introduction
Part two : Company Profile
Part three : Group Companies
Part four : Sector Synopsis
Part five : Major Industry
Contributors
Part six : Retail Format
Part seven : Company Outlets
Part eight : Product Offerings
Part nine : Channel of Distribution
Part ten : Company Strategies
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Part ten : Future Plan
INTRODUCTION
HISTORY
Launched in January 1998, is part of the Rajan Raheja group. The company
opened its first store at Indore in 1999, followed by the launch of its second
store in Chennai (T-Nagar). Soon to follow was another store in Chennai
located in Adyar. The flagship store was opened on 1st November 2001 in
Mumbai, followed by a vibrant store in New Delhi. Subsequently, its stores
were launched in Bangalore, Ghaziabad, Kanpur, Ahmedabad, Noida,
Lucknow, Varanasi and Hyderabad.
The sixth & seventh stores opened in Bangalore in Koramangala &
Richmond Road respectively. The eighth store opened in Ghaziabad at
Shipra Mall and was followed by the ninth at Kalaghoda in Mumbai; tenth in
Thane and eleventh in Ghaziabad. The twelfth, thirteenth, fourteenth stores
opened in Kanpur, Ahmedabad and Lucknow respectively.
As of May 2008, has opened its 24th Store in Nagpur. Stores Pvt. Ltd. was
formed to contribute in the revolution sweeping the retail industry. promises
to bring about a perceptible change in the way apparel and lifestyle retailinghas been carried so far. Recently has opened its Store in Indore, Aurangabad
and the journey continues...
Stores Pvt Limited
"Rahejas", Corner of Main Avenue and V.P. Road,
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Santacruz (West), Mumbai - 400 054
Tel: 26058731 / 32 / 33
E-mail: [email protected]
Web URL: www..in
The organization has an innovative and adaptive environment. has achieved
customer delight by presenting value products and services through
continuous improvement. It has a team of dedicated and passionate
employees maintained by constant training.
has developed long lasting relationships with its business partners. It
employs the best practices of the industry through cost analysis. It has
brought about a veritable revolution in the retail industry through its constant
efforts and innovation in apparels. It has been a benchmark for many
upcoming retailers. It has brought about an important change in the industry
and has distinguished itself from others. has acquired the best processes and
procedures in various fields, such as Marketing & Brand Development,
Research & Design, Human Resources, Services, Administering Policies &
Procedures and Production & Merchandising. It has blended its resources of
technology and people in such a way as to get a competitive advantage over
others.
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Mission
Achieve customer delight by offering quality products and services
through a process of continuous innovation and adaptation.
Build a dynamic team of committed and passionate employees
through sustained learning and grooming.
Develop mutually beneficial relationships with our business partners.
Employ cost-effective processes and thereby create a strong
organization.
INFRASTRUCTURE
Stores Pvt. Ltd. was formed to contribute to the revolution sweeping the
Indian retail industry. promises to bring about a perceptible change in the
way apparel and lifestyle retailing is carried out.
Towards this end, we have brought in modern international technology and
made heavy investments in investing and acquiring the best, tried and tested
processes and procedures of operation.
FUTURE
combines state-of-the-art international information technology, the highest
quality of human resources and sustained financial commitment to realize its
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long term vision. We are rapidly expanding and our target is to have an
additional 100 fashion stores by the end of 2012.
ABOUT GLOBUS GROUP
is an Apparel Retailing arm of Rajan Raheja Group, a group which has a
market experience of about 3 decades, turnover of Rs. 86 billion and about
19000 employees.
There are more interesting fact which can add your interest in the Group as
you came to know that this is the same group which has its hand in few very
famous brand name in different sector like Exide batteries, Outlook
publishing House, Prism Cement, Asianet cable Channel and many more.
Beside this they also have stake in many famous upcoming big retailing
projects with Big Retailer like Dairy Farm Int. as their partner.
The Rajan Raheja Group is led by Mr. Rajan Raheja, a renowned
businessman involved in the Real Estate Development business for over 3
decades. The company diversified into manufacturing and financial services
over the last two decades.
The emphasis is on setting up focused companies, which aim to be profitable
leaders in their respective fields with a long term outlook. All Group
Companies are professionally managed by independent CEOs. Most of the
Group Companies has a leading position in Market share, Technology,
Brand, Distribution or Profitability. The Rajan Raheja Group is a
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Strategic/Financial partner in many of the businesses where it has
management control.
Highlights:
Total Turnover: Over Rs. 86 billion ($ 2.1 billion)
Total Capital Employed: Over Rs. 57 billion ($ 1.4 billion)
Total Employees: 19,000
PrivilegeClub
Welcome to Privilege Club, a place where the customer comes first and
customer delight is a priority. At , we believe that shopping should not just
be a pleasant experience but also a rewarding one, which is why we have the
Privilege Club. The club is a token of appreciation to valued customers like
you. The Privilege Club card is as much a reflection of your good taste, as it
is a gateway to exclusive privileges.
PRIVILEGE CARD
A one-time purchase of Rs. 500 gives you access to the Privilege Club
through the Temporary card. Accumulate purchases worth Rs. 2,000 in
three months and get the most sought-after Silver Card.
For those in a hurry, the Silver Card can also be obtained by paying a
nominal fee of Rs. 150
GOLD CARD
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Make a distinctive statement with The Gold Card. You can upgrade to Gold
Card by accumulating shopping worth Rs. 15,000 in a year and get truly
Exclusive Benefits and Privileges.
CARD REWARDS AND PRIVILEGES
With Privilege Club earning rewards is simple and easy. As you accumulate
purchases you will earn Gift Vouchers (GV)
RENEWAL OF PRIVILEGE CLUB MEMBERSHIP
Cumulative PurchasePurchase of goods worth
(Rs.)
5,000/- GV worth 100/-
10,000/- GV worth 100/-
15,000/- GV worth 150/-
25,000/- GV worth 300/-
50,000/- GV worth 650/-
1,00,000/- GV worth 2000/-
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CardsPurchase of goods
worth (Rs.)
Validity
(Months)Automatic renewal on
Temporary 500 3
Upgrade to Silver Card on
cumulative purchase of
`2,000 in 3 months
Silver 2,000 24Cumulative purchase of
`10,000 in 24 months
Silver 15,000 12Cumulative purchase of
`15,000 in 12 months
PRIVILEGES AT A GLANCE
Privileges Silver Card Gold Card
Validity at all Stores Yes Yes
New product launch privileges Yes Yes
Birthday Discount Yes YesExclusive shopping day for end of season sale Yes Yes
Regular Updates: Sale & In Store Promotion Yes Yes
Automatic membership renewal Yes Yes
Special tie-ups* Yes Yes
Free home delivery of altered merchandise Yes
Reserved car parking* Yes
Special counters* Yes
Complimentary soft drinks* Yes
Free card in case of loss/damage Yes
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REMEMBER: CARD USAGE NORMS
Validate your card by signing on the reverse as soon as it is received.
Usage of the card indicates acceptance of terms and conditions of the
Privilege Club Membership.
Flash your Privilege Club card for availing of benefits at or our
program partners.
Privilege Club Cards are not Credit Cards and remain the property ofat all times and must be produced/ returned on request.
All rights to ownership and usage of the Card rest with . Report loss
of Card at our Customer Service Desk. Duplicate Cards will be issued
at a nominal cost of 100
Inform of any change in your address/ telephone numbers/e-mail at
the Customer Service Desk.
CONDITIONS
Privilege Club membership is open to individuals above 18 years of
age.
In case the applicant fails to achieve the required purchases within the
validity period, the total purchases will not be carried forward to the
next period.
reserved the right to refuse Privilege Club membership to any
applicant without assigning any reason.
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Usage of the Privilege Club Cards indicates the acceptance of all the
terms and conditions, which are subject to revision from time to time
by .
Privilege Club Cards are non-transferable and can be used only by the
member whose signature appears on the signature panel on the reverse
of the card.
Any employee has the right to verify members signature and to
ascertain the identity of the member. Benefits may be refused and the
card be taken back if a non-member is found using the card.
reserves the right to revise the terms and conditions as well as therules and regulations of this programme without prior notice.
Benefits available through programme partners may change from time
to time or be withdrawn without prior intimation. will not be
responsible for any liabilities arising from such situations or from use
of such offers. It is advisable to check with our programme partners,
validity of the scheme prior to participating in the same.
reserves the right to use the Privilege Club membership data for the
purpose of marketing or communication for enhancement of the
programme.
Any disputes arising under this programme are subject to Mumbai
Jurisdiction.
Gift Vouchers
Make gifting simple with . Gift your near and dear ones a gift voucher,
available in many flexible denominations. When you give someone Gift
Vouchers you give them exactly what they want. When it comes to
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birthdays, anniversaries and special celebrations, this is one gift that's
guaranteed to please.
Gift Vouchers are redeemable against any purchase made in the store. There
is no charge/tax on purchase of gift vouchers. For instance; if you want to
buy gift vouchers for Rs.1001, you need to tender Rs.1001 only and you can
buy anything worth Rs.1001 from any store.
Gift Vouchers are available in denominations of Rs.101, Rs.251, Rs.501 &
Rs.1001. However, you can also decide on your own denomination. Just
contact the service desk at any Stores and give the most thoughtful gift of
all.
Each one of us at aspires and strives for only one result - Your Delight. So
we would like to know how we are doing.
BRANDS
Youth Fashion Brand
aspires to be the iconic youth fashion brand in the country. is a completefashion brand its the apparel brand and the destination brand. Three words
which capture the spirit of the youth vibrant, maverick and expressive. is
exactly thatour vibrant and maverick designs are not just setting fashion
trends but more importantly helping our customers express themselves.
The entire fashion range comprises of apparel for men, women, kids and
accessories at amazing prices. The range spans across usage occasions work wear, campus wear, club and lounge dressing and genres Western,
Indian and mix-n-match. A well researched sizing
ensures a good fit for the Indian silhouettes.
Eye candy fashion
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F21 is an accessible hi-fashion brand, offering high-quality apparel. F21
the edgy fashion brand - is designed to appeal to the more experimentative
and adventurous consumers who seek cutting edge fashion. Styling and
fabric innovations help F21 offer high end fashion at prices which are
affordable for the young consumers. From everyday casual occasions to
clubwear, F21 promises consumers attention unlimited.
The Design Hub
The heart of our business lies in this creative workplace of our organization
named Design Hub. It has been recently launched in July07 in Andheri-
Mumbai and is at its early stages to becoming the leading design talent floor.
It is the most well equipped design studio in India in current times.
is on a mission to revolutionize fashion and become an iconic youth fashion
brand in India. We aim at creating a deep connection with the Indian youth
with inspiring product designs, signature store experiences and compelling
marketing.
will undoubtedly bring unique fashion products; spawn haute trends and
provide powerful inspiration to its young customers to experiment further
and make individual style statements. Energized by this mission, a dynamic
team of passionate employees and business partners is constantly evolving
and innovating with a view to delight the consumer.
FASHION .BE !
is one of the leading companies in the Indian Fashion Retail industry, one of
the most flourishing sectors in the current Indian economic scenario. Today,
is present in 27 locations around the country. We are committed to a long
term vision of bringing an international shopping experience to all of urban
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India. aims to be a company that delivers consistent value to customers and
exceed expectations.
Of course, we believe that this would not be possible without the hard work,
dedication and talent of our employees. We provide our employees with
Not just a job, but the chance to build and advance a lifelong career
At , we are looking for professionals with high intelligence, a quest for
knowledge and a burning desire to be amongst the best!
STORES CHALKS OUT RS 800-CR EXPANSION PLAN
Mumbai, Aug 27 :Fashion apparel retailing major Stores Pvt Ltd, a part of
the $1.5 billion Rajan Raheja Group, is on an expansion mode. The company
is planning to increase stores presence from 19 to 152 locations - spread
across 70 cities by 2012 - on a lease model. Vice-chairman Akshay Raheja
told FE, We are planning to invest Rs 800 crore, which will be sourced
from debt, equity and internal accruals. We hope to grow our real estate
space from 2 lakh sq ft to 1.6 million sq ft by 2012. Besides, we are planning
to start online sales for our apparels by launching a new e-commerce website
soon.
plans to set up its fashion apparel retail stores in Ludhiana, Faridabad, Vashi
(in Navi Mumbai), Nagpur, Vasant Kunj (in Delhi), Muradabad,
Jamshedpur, Kolkata, Pune and Jabalpur. According to Vinay Nadkarni,
CEO, , While the rental prices in Tier I cities is 65% of the total sales, it is
45% less in Tier II cities and even lesser at 35% in Tier III cities. As part of
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an emerging trend, the rental prices in these locations are expected to rise
further and hence it is the right time to focus on Tier II and Tier III cities for
expansion.
Besides, Stores is planning to foray into retailing of new product categories
such as footwear and sunglasses, which will be retailed under private label
brand through our stores. We are currently in talks with third party
manufacturers in order to enter into tie-ups for sourcing these products from
them, Nadkarni added.
The company has signed Bollywood actress Kareena Kapoor as a brand
ambassador on a two-year contract. Raheja said, We will invest 6-7% of
our overall sales turnover in launching new advertising campaigns. With our
new expansion plans on the anvil, we hope to grow our topline from Rs 145
crore as on March 2007 to Rs 1,700 crore by the 2012 end.
partners with Tata to open Wine Outlets
Wines has partnered with Tata's Star Bazaar to open its first store at
Dahisar, Mumbai. As per the arrangement, selects the wines and manages
the store too. has plans to open 75 more wine stores in the next two years.
They launched Miazma nine months ago and is distributing those wines
nationally.
Spread across 300 square feet, the Dahisar store will stock almost all major
wine and beer brands present in the country, including the company-owned
wine brand Miazma.
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WORKING HARD AT SOFT SELLING
Nothing these days sells without some sort of a promotional strategy backingit. From consumer durables to perishables to services to everything, there is
marketing promotion in some form happening all the time. With the fast
pace of life that everyone today shakes their head at, but is still loath to
change, the momentum of change has been steadily increasing. Every trick
in the book is being explored, tried and tested ones as well as daring and
innovative ones. Unlikely collaborations are experimented with, and what's
more, found to be coming up trumps, nevertheless.
PROMOTIONS IN THE RETAIL INDUSTRY
In the retail industry, with the advent of large players like Shoppers' Stop
and Pyramid earlier, and Lifestyle and more recently, the race has been to
retain customer base. Thus loyalty programmes for members were born. And
to keep up the enticement, new value additions are constantly sought and
implemented.
- adding on privileges
The Privilege Club card, based on the concept of instant gratification has
ensured 100% card to benefit ratio. Members are immediately rewarded for
purchases at any of the stores, in addition to a host of other privileges such
as exclusive tie ups, promotions and special shopping hours. offers two
different card categories, each with it own benefits. A shopper gets a
Privilege card on p urchase of merchandise worth over Rs. 2000/- and a
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Gold Card Membership on purchases worth Rs. 15000/-. But these
purchases can be spread across the first 3 months of the first purchase at .
Benefits include invites to specially arranged events, new product launch
privileges, like getting to check out and buy new products before anyone
else, exclusive shopping hours like special hours during festive seasons and
other occasions, exclusive offers on national and multinational brands and
services available at . Discount offers and privileges at other leading outlets
also can be availed of as part of the benefits of tie-ups.
Some promotional offers
A free holiday package of 2 nights and 3 days on purchase of goods
worth Rs 5000/-
A 4 night, 5-day free holiday package on purchase totalling Rs
10000/- and above.
For the above offers, where free stay extends to a couple and a child below 2
years, 22 national and 4 international destinations are up for grabs.
Targeting youth in a big way, has specific promos like Fashion remix, Pizza
hut offer etc. The former, conducted recently at all retail stores in the
country was very successful. The promotion allowed participants to join the
grooming sessions by leading industry specialists. It also included free tips
and vouchers from Dr. Batra's, Gold Gym, Anjali Mukherji's Health Total to
name a few, etc. They were given expert advice on personality, hair styling,
skin care and clothes. Fashion consultants helped them on fashion wear and
sartorial etiquette.
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also organises Rampage, a fashion show to showcase the chain's latest
apparel range.
Advertising the promotion
Youth being the target focus, uses the Internet and website very effectively
for all the campaigns as it has always generated a good response. also
actively participates in promotional tie-ups with the colleges for various
events through out the year. The mega store is also exploring the idea of
using music channels in the near future. ' extensive use of all kinds of media
to communicate its message effectively has included print, hoardings, radio,
magazines and other promotional activities that are implemented from time
to time in all the stores.
COMPANY PROFILE
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Globus (India) Limited, is Indias leading retailer that operates multiple retail
formats in both the value and lifestyle segment of the Indian consumer
market. Headquartered in Mumbai (Bombay), the company operates over 7
million square feet of retail space, has over 1000 stores across 51 cities in
India and employs over 25,000 people.
The companys leading formats include Globuss, a chain of fashion outlets,
Big Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a
supermarket chain, blends the look, touch and feel of Indian bazaars with
aspects of modern retail like choice, convenience and quality and Central, a
chain of seamless destination malls. Some of its other formats include, Depot,
Shoe Factory, Brand Factory, Blue Sky, Fashion Station, aLL, Top 10,
mbazaar and Star and Sitara. The company also operates an online portal,
futurebazaar.com.
A subsidiary company, Home Solutions Retail (India) Limited, operates
Home Town, a large-format home solutions store, Collection i, selling home
furniture products and E-Zone focused on catering to the consumer
electronics segment.
Globus was recently awarded the International Retailer of the Year 2007 by
the US-based National Retail Federation (NRF) and the Emerging Market
Retailer of the Year 2007 at the World Retail Congress held in Barcelona.
Globus is the flagship company of Future Group, a business group catering tothe entire Indian consumption space.
GROUP COMPANIES
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Future the word which signifies optimism, growth, achievement,
strength, beauty, rewards and perfection. Future encourages us to explore
areas yet unexplored, write rules yet unwritten; create new opportunities
and new successes. To strive for a glorious future brings to us our strength,
our ability to learn, unlearn and re-learn, our ability to evolve.
Future Group is one of the countrys leading business groups present in
retail, asset management, consumer finance, insurance, retail media, retail
spaces and logistics. The groups flagship company, Globus (India)
Limited operates over 7 million square feet of retail space, has over 1000
stores across 53 cities in India and employs over 25,000 people. Some of
its leading retail formats include, Globuss, Big Bazaar, Central, Food
Bazaar, Home Town, eZone, Depot, Future Money and online retail
format, futurebazaar.com.
Future Group companies includes, Future Capital Holdings, Future
Generali India Indus League Clothing and Galaxy Entertainment that
manages Sports Bar, Brew Bar and Bowling Co. Future Capital Holdings,
the groups financial arm, focuses on asset management and consumer
credit. It manages assets worth over $1 billion that are being invested in
developing retail real estate and consumer-related brands and hotels.
The groups joint venture partners include Italian insurance major,
Generali, French retailer ETAM group, US-based stationary productsretailer, Staples Inc and UK-based Lee Cooper and India-based
Talwalkars, Blue Food and liberty shoes.
BOARD OF DIRECTOR
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Mr. Kishore Biyani Mr. S Doreswamy
Managing director Director
Mr. Gopikishan Biyani Mr. Darlie Koshy
Wholetime Director Director
Mr. Rakesh Biyani Mr. Anil Harish
Wholetime Director Director
Mr. Shailesh Haribhakti Ms. Anju Podda
Director Director
Ms. Bala Deshpande Mr. Ved Prakash Arya
Director Director
FOUNDER: Mr. Kishore Biyani
GROWTH OF ORGANISED IN INDIA
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The total retail sector in India is estimated at around USD 320 billion.
Estimated organized retail in India to reach 12% to 13% of the total retailmarket by 2010 with sales of Rs 1700-1800 billion.
According to this years Global Retail Development Index India is
positioned as the leading destination for retail investment. This followed
from the saturation in western retail markets and we find big westernretailers like Wal-mart and Tesco entering into Indian market. Indias
retail industry accounts for 10 percent of its GDP and 8 percent of the
employment to reach $17 billion by 2010. There are about 300 new
malls, 1,500 supermarkets and 325 departmental stores being built in the
cities very soon.
In organized retailing will grow faster than unorganized sector and thegrowth speed will be responsible for its high market share, which is
expected to be $ 17 billion by 2010-11.The organized sector is expected
to grow faster than GDP growth in next few years driven by favorable
demographic patterns, changing lifestyles, and strong income growth.
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This organized retail sector mix includes supermarkets, hypermarkets
discounted stores and specialty stores, departmental stores. For example,
Spencer network has 69 stores, which includes seven Spencer
hypermarkets, three Spencer super markets and 49 Spencer .
Break up of consumers expenditure in organized retail
Percentage of Organized Retail
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USA - 85%
Taiwan - 81%
Malaysia - 55%
Thailand - 40%
Brazil - 36%
Indonesia - 30%
Poland - 20%
China - 20%
MAJOR INDUSTRY CONTRIBUTORS
Name US $ Million
Future Group (Globus) 444
Shoppers Stop 133
Landmark (Lifestyle) 80
Trent 53
Subhiksha 44
Vishal Mega Mart 25
India is witnessing an unprecedented consumption boom. The economy is
growing between 7 and 9 percent and the resulting improvements in
income dynamics along with factors like favorable demographics and
spending patterns are driving the consumption demand.
Indian Retail Industry is ranked among the ten largest retail markets in
the world. The attitudinal shift of the Indian consumer in terms of
"Choice Preference", "Value for Money" and the emergence of organized
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retail formats have transformed the face of Retailing in India. The Indian
retail industry is currently estimated to be a US$ 200 billion industry and
organized Retailing comprises of 3 per cent (or) US$6.4 Billion of the
retail industry. With a growth over 20 percent per annum over the last 5
years, organized retailing is projected to reach US$ 23 Billion by 2010.
The Indian retail industry though predominantly fragmented through the
owner -run " Mom and Pop outlets" has been witnessing the emergence
of a few medium sized Indian Retail chains, namely Globus, RPG Retail,
Shoppers Stop, Westside (Tata Group) and Lifestyle International.
Given the attractiveness of the Indian retail sector, foreign retailers like
Wal-Mart, Carrefour SA( Europe's largest retailer) and Tesco Plc( the
UK's largest retailer) were keen to enter this growing market, despite the
Indian retail sector being closed to foreign direct investment (FDI). In
February 2006, the Indian Government had announced its decision to
allow FDI of upto 51% in single brand retailing. Wal-Mart had said that
India is high on its priority and that it is closely monitoring the
Government's policy on FDI in the retail sector.
In the last few years, Indians have gone through a dramatic
transformation in lifestyle by moving from traditional spending on food,
groceries and clothing to lifestyle categories that deliver better quality
and taste. Modern retailing satisfies rising demand for such goods and
services with many players entering the bandwagon in an attempt to tap
greater opportunities. According to the 'Global Retail Development Index
(GRDI) 2006' by the management consulting firm 'A.T. Kearney', India
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has retained it's topmost position in the annual study of retail investment
attractiveness among 30 emerging markets.
.The Domestic competitors of Globus in 2005:
RETAILER REVENUES
(Rs.bn)
TOTAL FLOORSPACE (lakh sq ft)
TOTAL NO. OFOUTLETS
2003-04
2004-05
2003-04
2004-05
(estimated)
2003-04
2004-05
(estimated)
Globus
RPG
Shoppersstop
Lifestyle
Westside
Ebony
Piramyd
6.50 13.00 11.0 30.0 31 74
5.45 8.00 5.2 7.5 110 130-134
4.04 5.45 6.3 8.5 13 40
2.30 3.10 3.2 3.2 7 0
1.20 N.A. 2.3 3.3 14 18/19
0.85 1.00 1.7 2.4 8 12
0.72 1.40 1.3 5.0 3 7/8
N.A. N.A. 1.5 6.0
(next3years)
7 14/15
(next3years)
Globuss Retail India Limited, which operates Globuss superstores, has
around 14 Globus Family Stores and 10 Globus `Shoppes' across the
country. In addition, they also run 4 hypermarkets under the `Big Bazaar'
brand. Since the opening of their first store in 1997, in terms of financial
size, Globus has already raced to the front to become the country's largest
public limited retail giant with a turnover of US$ 87 million. They have
managed to do so, among other strategies, by keeping costs down. Their
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policy of buying directly from manufacturers (to eliminate the middleman),
cash purchases (to get a cash discount) and optimum stock management has
helped them to pass on the benefits to the customers that work well in this
price sensitive market. Their future plans, to become a US$ 217 million
super retailer by 2005, include setting up eight new Big Bazaars
(hypermarkets), four new Globus stores, three independent food stores and a
mall in Bangalore
RPG Group: According to the above-mentioned survey, the most
enthusiastic player in organized retail in India is the Goenka group's RPG
Enterprises. RPGs retail empire is one of the largest in India, having more
than a 100 stores that includes Food World - an alliance with Dairy Farm
International of the Jardine Matheson Group; Music World - a 50:50 joint
venture with Dairy Farm International, Health & Glow (cosmetics, health
products and medicines) and Giant (hypermarkets). Primarily based in south
India, the turnover of RPGs retail empire is around US$ 98 million and
accounts for nine percent of the group's turnover.
Landmark Group: Owned by the $600 million Landmark Group, which
operates 170 stores worldwide, Lifestyle forayed into the Indian retail
market in 1998. Lifestyle India achieved a turnover of US$ 29 million in
2002-03 with five stores in operation. One of the primary reasons for their
success in India has been their experience in running retail chains overseas.
Their strategic decision to set up everything under one roof versus setting upseparate stores in different segments has stood them in good stead. Another
advantage they have is that Lifestyle has developed its own in-house label,
which comprises 11 percent of total merchandise. In addition, its parent
company does bulk purchases of commodities that are sold at these stores so
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that the products can be sold at a cheaper rate. Lifestyle plans to open six
more stores aiming to offer around 500,000 square feet of shopping space by
next year and to achieve a turnover of US$ 50 million in 2003-04. Globus
and Lifestyle are considered to be the powerhouses of retail in India.
According to industry sources, in the next 12 to 18 months, both these
superstores will offer two million square feet of retail space between them.
K. Raheja Group: The K Raheja promoted Shoppers' Stop, credited with
starting the retail revolution in India, is said to be the leader in department
store format. At present, Shoppers' Stop has 10 stores across India. Shoppers'
Stop also runs the 13 stores of the bookstore chain `Crossword' which it
acquired two years ago. The future plans of this chain, having a turnover of
US$ 66 million, are to open 24 more Shoppers' Stop Stores in the next two
years and 12 more Crossword stores by the end of this year. A unique
feature of Shoppers' Stop operations is that their private labels such as Stop,
Kasish, Life and Carrot contribute 20 percent to its turnover.
Tata Group: The US$ 9.7 billion Tata Group's retail arm Trent runs the
Westside chain of stores. Trent has already established 11 Westside
departmental stores measuring 20,000 square feet each, in Mumbai,
Bangalore, Hyderabad, Chennai, Pune, New Delhi, Kolkata, Nagpur and
Ahmedabad. The company hopes to expand rapidly with similar format
stores that offer a balance between style and price retailing. Future plans
include establishing the Westside brand in all large towns with a populationof over 100,000. Trent is also planning to venture into food and grocery
retailing through a chain of hypermarkets. Group company Tata Coffee,
which holds over 32 percent in Barista Coffee Company, has targeted 160
espresso bars in India and abroad in the recent future. Some of the other
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well-known names in the Indian retail arena are ITC Lifestyle, , Nilgiris,
Caf Coffee Day, Quickys, Amorettos, Bata, Super Sabka Bazaar, and
Subhiksha etc.
GLOBUS OUTLETS
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As on 30th june , 2006,the total number of Globus stores stood at 21 ,
with 9 stores opening during the year under review .
These are as follows-
City mall-Ahmedabad 20000sq. ft
Sigma hall-Bangalore 20000sq. ft
Borivali-Mumbai 30000sq. ft
Sahara mall-Luck now 20000sq. ft
Kalani mall-Indore 20000sq. ft
Runwal mulund-Mumbai 19500sq. ft
Cross river mall-Shahdara 25000sq. ft
Cinepux mall-Mangalore 23550sq. ft
Rajkot 18000sq. ft
PRODUCT OFFERINGS
Globus is positioned as an entire family store and it deals in mens wear,
ladies wear and kids wear. It mainly focuses on its Private label program
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me because the share of private label has increased over the previous year
and stands at nearly 75%. Below are some of the companys private labels:
MENS WEAR
John Miller
JM Sports
Bare Denim
Rig
Ajile
Lombard
T-2000
Bare Leisure
LADIES WEAR
Honey
Akkriti
Annabelle
Mix & Match
Ajile
Rig
KIDS WEAR
Chalk
Bare 7214
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ACCESSORIES
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PROMOTIONAL STRATEGIES
1. Green Card is passport to a whole new world of exclusive benefits and
privileges.
Instant discounts* for every time you shop at Globuss.
Exclusive shopping days to get hold of latest merchandise.
Regular updates on collections and promos via catalogues, sms and
email.
2. Globus continued to be the title sponsor for femina miss India 07 peagent
3. The companys flagship format, Globuss went in for an exiting makeover
during the year under review, the highlight being the signing up of style
icons BIPASHA BASU & ZAYED KHAN as its brand ambassadors.
PRICING STRATEGY
-The largest player in the organized retail Globus came-up with 1500 -2000
sq ft no-frills KB fair Price shops in this year. They propose to provide
branded products at 10% less than the Mrp and 20% off on the local brands,
which is similar to what has been carried out in Big bazaar.
Keeping costs down is clearly the cornerstone of policy at both chains.
Globus chief Biyani ensures cheaper prices by keeping watch at every step.
Says Biyani: "We do three things -- buy directly from the manufacturers so
that the middle man is eliminated. We buy in cash and get a cash discount,
and manage our stocks turns so that we don't have money stuck up. The
benefits are passed on to the customers.
http://www.pantaloon.com/http://www.indiaretailbiz.com/blog/2007/08/10/biyani-announces-entry-into-small-format-last-mile-neighbourhood-retail-space-plans-to-se-up-1500-fair-price-shops-in-two-years/http://www.pantaloon.com/http://www.indiaretailbiz.com/blog/2007/08/10/biyani-announces-entry-into-small-format-last-mile-neighbourhood-retail-space-plans-to-se-up-1500-fair-price-shops-in-two-years/ -
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Cash discounts (for buying goods upfront in cash) on the other hand could
range from 2 per cent to 10 per cent. And the company pushes for a stock
turn of 40-50 times a year for its food items, and once a month for ready to
wear.
Backward integration is the name of the game in Globus stores -- and they
help to keep costs down dramatically. Almost 70 per cent of the ready-to-
wear products in the store are manufactured by the group's own garment
units. As a result it is able to offer prices in ready-to-wear that are virtually
30 per cent cheaper than competitors. They increase there margins by
pushing their own in-house labels.
POSITIONING STRATEGY
The first Globuss was opened in Gariahat in 1997. Over the years, it has
undergone several transitions. When it was first launched, this store mostly
sold external brands. Gradually, it started retailing a mix of external brands
while at the same time introduced its own private brands. Initially
positioned as a family store, it finally veered towards becoming a fashion
store with and emphasis on youths and clear focus on FRESH
FASHION. .
Globus is in revamp mode. Changing its positioning from a family-
oriented store to a fashion store, Globus stores are being re launched on the
`youth' platform. Sporting a new baseline, Globus will now carry the
`Fresh Fashion' statement across its 12 stores. India is a young country
compared to the others and we wanted our brand to get associated with this
emerging target audience. This is the first time that we are re launching our
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stores targeting youth and even women, since they are the ones defining
most purchasing decisions.
FUTURE PLANS
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1 The country's largest retailer, Globus, is cooking up plans to significantly
increase its presence in the rapidly growing domestic food industry. The
retailer is also working towards getting closer to the Indian homemaker by
offerings in store which will take away the negative labour back home with a
range of products in a` live kitchens' format, including home style gravies,
dals, cooked rice.
2 GLOBUS is increasing number of FOOD BAZAAR outlet from 40 to150
3 Globus to raise funds; plans IPO of Future Capital finance unit
Leading Indian retailer Globus India Ltd has announced that it would sell
shares and warrants to investors and founders of the company to raise over
$300 million and also sell 10% of Future Capital Holdings.
4. Diversifying its retailing initiatives, the Rs 650-crore Globus (India) is
planning to start its own company parlors at its Big Bazaar outlets.
5 GLOBUS announced its plans to form a joint venture with ITALY based
GENERALI group to tap insurance sector
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BIBLIOGRAPHY
BOOKS AND MAGAZINES
Essentials of Marketing Reddy and Appaniah
Marketing Management Phillip Kotler
India Today
Business World and Money Regulator.
News Papers
The Times of India
The Economic Times
The Business Standards
INTERNET
www.google .com
www.icicilombard.c.com
For any query please contact [email protected]