Table of Content Particulars 1.
Page no.
Introduction to Retail Industry.
2. Evolution Evolution of Pantaloons. Pantaloons. 3. About About Futur Future e Group. Group. 4. Growth Growth of Panta Pantaloo loons. ns. 5. Format Format of Oper Operati ation. on. 6. Retail Retail Strate Strategy. gy. 7. Process Process & support function. function. 8. Future Future Growth Growth plan of the company. company. 9. Sales Sales Prom Promoti otion. on. 10. Competitors
of Pantaloons.
11.
Comparison wi with Pantaloons.
12.
Conclusion.
13.
Bibliography.
14.
Questionnaire.
INTRODUCTION
Introduction of Retail Industry:Retail consists of the sale of goods or merchandise from a fixe fixed d loca locati tion on,, such such as a depart department ment store store,, boutique or kiosk,, o r b y mail kiosk mail,, in smal smalll or indi ndividu vidual al lot lots for for dir direct ect consumption by the the purc purcha hase ser. r. Reta Retail iliing may may incl includ ude e subordinated services, such as delivery. Purchasers may be indivi individua duals ls or business businesses. es. In commerce commerce,, a "retailer" buys goods or products in large quantities from manufacturers or importers,, either directly or through a wholesaler importers wholesaler,, and then sells smaller quantities to the end-user.. end-user Retail establishments are often called shops or stores. Retailers are at the end of the supply chain. chain. Manufacturing marketers see the process of retailing as a necessary part of their overall distribution stra strate tegy gy.. The The term term "ret "retai aile ler" r" is also also applied where a service provider services the needs of a large number of individuals, such as a public utility, utility, like electric power. power. Shops may be on residential streets, shopping streets with few or no houses or in a shopping mall. mall. Shopping streets may be for pedestrians only. Sometimes a shopping street has a partial or full roof to prot protec ectt cust custom omer ers s from from precipitation.. Online retailing, a type of electronic precipitation of electronic commerce used for business-to-consumer (B2C) transactions and mail order,, are forms of non-shop retailing. order Shopping gene genera rall lly y refe refers rs to the the act act of buying products. Sometimes this is done to obtain necessities such as food and clothing; sometimes it is done as a recreational activity. Recreationa Recreationall shopping shopping often involves window shopping shopping (just looki ooking ng,, not not buyi buying ng)) and and brow browsi sing ng and and does does not not alwa always ys result in a purchase.
One of India’s major retailers with presence in following two segments:
Lifestyle Retailing - Pantaloons, Central, Fashion
Station, aLL, MeLa. Value Retailing - Big Bazaar, Food Bazaar.
Retailing is the world’s largest private industry Retail is the world’s largest private industry with global retail sales of roughly USD 8 trillion. Retailing is also one of the biggest contributors to the Gross Domestic Product (GDP) of most most coun countr trie ies s and and also also one one of the the bigg bigges estt empl employ oyer ers. s. (Source CII McKinsey Report titled “Retailing in India, the Emerging Revolution”) In India, however, the retail sector has seen a high level of frag fragme ment ntat atio ion n with with a larg large e shar share e held held by unor unorga gani nize zed d players.
Indian Retail Industry India has a large number of retail enterprises. With close to 12 million retail outlets India has one of the highest retail densities in the world. In terms of the structure, the industry is fragmented and predominantly consists of independent, owne ownerr-ma mana nage ged d shop shops. s. The The reta retail il busi busine ness sses es inclu nclude de a variety of traditional retail formats, such as "kirana" stores whic wh ich h stock stock basi basic c house househo hold ld necess necessit itie ies s (incl (includi uding ng food food prod product ucts) s),, stre street et mark market etss-reg regul ular ar market markets s held held at fixe fixed d centers retailing food and general merchandise items, street vendors-mobile retailers essentially selling perishable food item itemss-fr frui uits ts,, vege vegeta tabl bles es etc. etc. and and smal smalll non non spec specia iali lize zed d retailers. Fragmented nature of Indian of Indian Retail 100% = $
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1
Growth of Organized Retail in India
Accord Acco rdin ing g to the the 8th 8th An Annu nual al Glob Global al Reta Retail il Deve Develo lopm pment ent Index (GRDI) of AT Kearney, India retail industry is the most prom promis isin ing g emer emergi ging ng marke markett for for inve invest stme ment nt.. In 2007 2007,, the the retail trade in India had a share of 8-10% in the GDP (Gross Domestic Domestic Product) of the country. country. In 2009, 2009, it rose to 12%. It is also expected to reach 22% by 2010. According to a report by Northbride Capita, the India retail industry is expected to grow to US$ 700 billion by 2010. By the same time, the organized sector will be 20% of the total market share. It can be mentioned here that, the share of organized sector in 2007 was 7.5% of the total retail market. Drivers of Growth in Organized Retailing
We believe that India is experiencing demographic changes which are furthering organized retail while enablers such as quality quality real real estate estate are hasteni hastening ng the the transformation.
certain sociothe growth in availability of pace of this this
Risin Rising income levels
We believe believe increa increasing sing househol household d income income has has led to a substantial change in the profile of the Indian consumer. A larger number of households are getting added to the consuming class with growth in income levels. In the chart provided below the profile of the ‘Climbers’, ‘Consuming’ and ‘Very Rich’ consumers class is biased towards self indulgent consumption patterns. All India – Distribution of households by income (Rs per annum) Figures in million: Households (population) 1995 -96 The very
2001 - 02 The consu ing
The Climbers
2006 - 07 T h e
irants
The destitut e
1.2 (7)
2 . 6
32.5 (186 )
( 1 5 )
5.2 (30)
75.5 (432)
54.1 (312.2 )
46. 4 (26 5)
81.7 (472)
20.2 (117)
16.5 (95 44.0 (253.9) 33.0 (190.4)
74. 4 (42 9)
33. 1 (19 2)
24. 1 (14 0)
Rich Rich (Abo (Above ve Rs. Rs. 215, 215,000 000)) Climbers (Rs. 22,000-45,000) 22,000) Destitute (Less than Rs.16,000)
Cons Consum umin ing g (Rs (Rs 45,0 45,000 00-2 -215 15,00 ,000) 0) Aspirants (Rs. 16,000-
“The consuming class” and “the climbers” are expected to increase from 120.8 million households in 2001-02 to 157.2 million households in 2006-07 (source: The Marketing White book 2003-04, brought out by Business world) this large base of households with growing disposable income is expected to drive demand for organized retail. Of this, this, 56% (44.8 million million households households)) is expecte expected d to be concentrated in urban India. Young population with high disposable income
India has the lowest median age of 24, for its over 1,000 million strong population, among the other highly populous countries (Source: KSA Technopak) Thus India has the largest largest ‘young’ ‘young’ population population in terms of sheer sheer size and we believe this young segment is the major driver of consumption consumption as they have the ability (disposabl (disposable e income) income ) and willingness willingness (consume (consumerr confidence) confidence) to spend. Most Most of such upwardly mobile consumers consumers have little little personal personal time time and they seek greater variety and availability of items under a single roof and give highest preference to convenience, which is the basic proposition of modern retailing formats. The brand-conscious brand-conscious young population population forms the largest segment of demand for the majority of retailers.
Changing age demographics in India (1)Availability of br brands and an d merchandise
Consumerism and brand proliferation has been another enabler for organized retailing in India. Most of the world’s leading brands are now present in India. Brands like L’Oreal, Espirit, Louis Vuitton, Marks & Spencer, Tommy Hilfiger, Louis Philippe, Levis, Pepe, Lee, Arrow, Dockers, Hug o Boss, Tiffany, Bulgari, Ecco, Red Tape, Clarence, Hugo Chambor, Revlon, Revlon, Philips, Philips, Corel, Magpie, Magpie, Nike, Reebok, Reebok, Parker, Ray Ban, Lego, Mattel are now present in India. (2)Media (2)M edia Prolifera Prol iferation tion
Another factor that accelerated the concept of organized retail is media proliferation. The resultant exposure exp osure to advertisements and brand promotions across product categories has led to a growing consumer spending across a wide range of product categories. (3)A (3)Ava vail ilab abil ilit ity y of qual qu alit ity y real real estate
Availability of quality real estate has been one of the main constraints for development of organized retail in India. In the past, negative yield on leased property, lack of bank funding and the unorganized property market resulted in
between yield yield on property property and the financi financing ng cost has turned positive with with the fall in interest rates. Attractive yields on investments have resulted in sharp increase in property development. In addition, the various States governments have taken proactive steps to release large tracts of land for commercial development. Growth of property funds and permission for Real Estate Investment Trusts (REITs) to be set up will further help create a secondary market for real estate in the country. (4)E (4 )Enh nhan ance ced d Funding di ng Opti Op tion ons s
Supply side changes such as consumer finance help in shaping a markets buying power. Consumer Consumer credit, credit, especially through credit cards, has been growing healthily year on year. Financial card usage in India has witnessed tremendous growth with volume transactions experiencing greatest growth.
(5)Implementation complexity
of
VAT
to
reduce
cost
and
Differential sales tax rates across states and the incidence of multi point local levies added to costs and complexity, and have hampered aggregation of sourcing. The implementation of Value Added Tax (VAT) is also expected expected to narrow narrow down the cost advantage that unorganized retailers enjoy over the organized ones. (6)I (6 )Inb nbou ound nd to tour uris is ts, sho shopp ppin ing g
There is a large NRI population. Given that international lifestyle brands are readily available in their country of migration, this population shops for similar quality merchandise at lower prices in India on their visits here. Additionally, inbound tourists visiting India and shopping here seek similar products at lower costs costs in a similar similar
(7)Impact of of Gl Globalization
Globalizati Globalization on has removed removed trade barriers barriers and promoted promoted consumerism. consumerism. Over the last decade, there has been an incre crease in brande nded goods – both dome domes stic and international – in the Indian market across product categories. Both width and depth of product offering to the Indian consumers is increasing.
Types of Retail Outlets:A marketplace is a location where goods and services are exchanged. The traditional market square is a city square where traders set up stalls and buyers browse the merchandise. This kind of market is very old, and countless such markets are still in operation around the whole world. In some some part parts s of the the worl world, d, the ret retail ail busi busine ness ss is sti still domi dominat nated ed by smal smalll fami family ly-r -run un stor stores es,, but but this this marke markett is increasingly being taken over by large retail chains
Retail Reta il is usua usuall lly y clas classi sifi fied ed by type type of prod produc ucts ts as follows:
Food products Hard goods ("ha ("hard rdli line ne
reta retail iler ers" s")) - appl applia ianc nces es,, electronics, furniture, sporting goods, etc. Soft goods - clothing, apparel, and other fabrics.
There are the following marketing strategy:
types
of
retailers
by
Department stores - A very large stores offering a
huge assortment of "soft" and "hard goods; often bear a resem resembl blanc ance e to a coll collec ecti tion on of speci special alty ty stor stores es.. A retailer of such store carries variety of categories and has has broa broad d asso assort rtme ment nt at aver averag age e pric price. e. They They offe offerr considerable customer service. Discount Discou nt store stores s – It tend to offer a wide array of prod product ucts s and serv servic ices, es, but but they they compe compete te main mainly ly on price price offers offers extensi extensive ve assortm assortment ent of merchan merchandis dise e at affordable and cut-rate prices. Normally retailers sell less fashion-oriented brands. Supermarkets - It sell mostly food products. Warehouse stores - Warehouses that offer low-cost, ofte often n high high-q -qua uant ntit ity y good goods s pile piled d on pall pallet ets s or stee steell shelves; warehouse clubs charge a membership fee. Variet Var iety y sto stores res or "Dollar Dollar stores stores" - These offer extremely low-cost goods, with limited selection; Demographic - Retailers that aim at one particular segment (e.g., high-end retailers focusing on wealthy individuals). Mom-And-Pop (or Kirana Stores as they call them in India) - It is a retail outlet that is owned and operated by individuals. The range of products are very selective and few in numbers. These stores are seen in local community often are family-run businesses. The square feet area of the store depends on the store holder. Specialty Speci alty store stores s - A typi typica call spec specia ialt lty y stor store e give gives s
leve levell of serv servic ice e to the the cust custom omer ers. s. A pet pet stor store e that that specializes in selling dog food would be regarded as a specia specialty lty store. store. Howeve However, r, branded branded stores stores also also come come under this format. General store - A rural store that supplies the main needs for the local community. Conven venien ience ce sto stores res - It is essentially found in Con resi reside dent ntia iall area areas. s. They They prov provid ide e limi limite ted d amou amount nt of merc mercha hand ndiise at more more than than ave average rage pric prices es with ith a speedy checkout. This store is ideal for emergency and immediate purchases. provides variety and huge volumes volumes Hypermarkets - It provides of exclusive merchandise at low margins. The operating cost is comparatively less than other retail formats. A classic example is the Metro in Bangalore. Supermarkets - It is a self service store consisting mainly of grocery and limited products on non food items. They may adopt a Hi-Lo or an EDLP strategy for pricing. The supermarkets can be anywhere between 20,000-40,000 square feet. SPAR Example: supermarket. Malls - It has a range of retail shops at a single outlet. They They endo endow w with with produ product cts, s, food food and ente entert rtai ainm nment ent under a roof.
By suppl supplyi ying ng wide wide assor assortm tment ent in a singl single e categ categor ory y for for lower prices a retailer can "kill" that category for other retailers. For few categories, such as electronics, the products are displayed at the Centre of the store and sale sales s pers person on will will be avai availa labl ble e to addr addres ess s cust custom omer er quer querie ies s and and give give sugges suggesti tions ons wh when en requi require red. d. Other Other retail format stores are forced to reduce the prices if a category specialist retail store is present in the vicinity. E-T ETai aile lers rs - The customer can shop and order through inter nterne nett and and the merc mercha hand ndis ise e are are drop droppe ped d at the cust custom omer er's 's door doorst step ep.. Here ere the the retai etaile lers rs use use dro drop shipping technique. They accept the payment for the Cate Ca tego gory ry
kille ki llers rs or
Catego Category ry
Specia Specialist list -
from the manufacturer or a wholesaler. This format is ideal for customers who do not want to travel to retail stores and are interested in home shopping. However it is important for the customer to be wary about bout defective products and non secure credit card transaction. Example: Amazon and E-bay. Vending Machines - This is an automated piece of equipment wherein customers can drop in the money in machine and acquire the products. For example: Soft drinks vending at Bangalore Airport.
Some stores take a no frills approach, while others are "mid-range" or "high end", depending on what income level they target. Other types of retail store include:
Automated Retail – Automates retail stores are self
service, robotic kiosks located in airports, malls and grocery stores. The stores accept credit cards and are Examples include include Zo usuall usually y open open 24/7. 24/7. Examples Zoom om Sh Shops ops and Red box. box. Big-bo -box x sto stores res – Big-b Big-box ox stor stores es encomp encompas ass s larg larger er Big depa depart rtme ment nt,, disc discou ount nt,, gene generral merc mercha hand ndiise, se, and and warehouse stores. Conven venien ience ce sto store re - a small store often with Con extended hours, stocking everyday or roadside items. General al store store - a store which sells most goods Gener needed, typically in a rural area. Retailers can opt for a format as each provides different retail mix to its cust ustomers based sed on thei heir cust ustomer demo demogr graph aphic ics, s, lifes lifesty tyle le and and purch purchas ase e behav behavio ior. r. A good good format will lend a hand to display products well and entice the target customers to spawn sales. Challenges for Organized retail (1)Availability of skilled manpower: The non availability
poses a key risk for the retail sector. With growing opportunities in the emerging service sectors, the ability of the retail business to hire and retain retain quality people is under pressure. pressure. Further, Further, as organize organized d retail grows rapidl rapidly, y, there there will be pressure on existing players as new entrants look for trained manpower at various levels. (2)S (2)Sup uppl ply y chai chain n issu issues es: Supp Supplly Cha Chain Managem gement effi effici cien enci cies es are are esse essent ntiial to ret retail ailers ers to main mainta tain in and and improv improve e margin margins. s. SCM include includes s vendor vendor managem management ent and logi logist stic ics s mana manage gemen ment. t. Vendo Vendorr selec selecti tion on is an impo import rtan antt outcome outcome of the sourcing process and a key to most efficient efficient sourcing. Logistics management aims to get the goods from the vendor to the store in the shortest possible time thereby avoi avoidi ding ng unne unnece cess ssar ary y stoc stocki king ng of good goods. s. In Indi India, a, both both vend vendor or manag manageme ement nt and and logi logist stic ics s mana managem gement ent are are stil stilll underdeveloped. However, with growing size of operations, supply chain efficiencies will become a key differentiator of profitability in retail. Simi Simila larl rly y, supp supply ly chain hain tools ools and and tech techni niq ques ues are are sti still developing in India with the increase in organized retailing and entry of international brands. Bar coding is now being impl implem emen ente ted, d, driv driven en by the the reta retail iler ers s for for wh whom om it is an essential ingredient for supply chain management. management.
85 15
81 19
55 45
60 40
64 36
70 30
80 20
80 15-20
9 98 8
99
ABOUT PANTALOONS
Evolution of Pantaloons: The Company was incorporated on October 12, 1987 as Manz Wear Wear Private Private Limite Limited. d. The Company Company was conve converted rted into into a publ public ic limi limite ted d comp compan any y on Sept Septem embe berr 20, 20, 1991 1991 and and on September September 25, 25, 1992 1992 the name was changed to Pantaloons Pantaloons Fashions Fashions (India) Limited Limited and and in the same year year the Company Company made an initial initial public public offering. offering. We later later changed changed our name name to Pantaloons Retail (India) Limited on July 7 1999. The Equity Shares of the Company were first listed on BSE, DSE and ASE, on July 30, 1992. The There reaf afte ter, r, the Equi Equity ty Share Shares s were were list listed ed on the NSE NSE on February 20, 2001. The company started his operations by selling branded garments under Pantaloons, Bare and John Mill Miller er bran brands ds.. They They set set up our our first first mens menswe wear ar Panta Pantalo loons ons Shoppe Shoppe Outle Outlett in 1993. 1993. The busine business ss has grown grown from from one store in Kolkata in 1997 occupying an area of 8,000 Sq. ft. to 72 stores stores,, apart from from our 22 factory factory outlet outlets s locate located d in the multiple cities occupying an aggregate area of 21,07,608 Sq. ft. They hey focus ocus on the the Lifestyl tyle segment thro hrough ugh 14 Pantaloons stores, 3 Central Malls, 2 aLL, 2 Fashion Station and 1 MeLa store. In the Value offering, they cater to the mass through our 21Big Bazaar and 30 Food Bazaar outlets. Objects of our Company our objects as contained in our Memorandum of Association include :
To To carr carry y on the the busi busine ness ss of manu manufa fact ctur urin ing, g, buyi buying ng,, sell elling, ng, excha xchang ngin ing g, alte alteri ring ng,, imp importi orting ng,, expo export rtiing, ng, distributing or otherwise dealing in ready made garments an hosiery made of cotton, silk, rayon, wool, nylon, manmade made fabric fabrics, s, polyes polyester ter,, canvas canvas,, jute, jute, leathe leather, r, any other other fabric coated with any chemical or not, or other preparation and other fabric.
To carry on the business of manufacturing, processing, dyeing, bleaching, buying, selling, exchanging, importing, exporting or otherwise dealing in yarns and textiles made of cotton, silk, rayon, wool, nylon, man-made fibres, polyester, canvas or any other substances. To carry on trade or retail business in India through retail form formats ats and and incl includ udin ing g but but not not limi limite ted d to hyper hyper marke markets, ts, super markets, mega stores/discount stores, cash & carry, departmental stores, shoppers plaza, direct to home, phone order and mail order, catalogue, through internet and other forms and multi level channels for all products an services, dealing in all kinds of goods, materials and items including but but not not limi limite ted d to food food & prov provis isio ions ns,, hous househ ehol old d good goods, s, consumer durables, jewellery, home improvement products, foot wears, lug gages, books & stationery, health care and beauty products, toys and music, computers & accessories, telecom prod roducts ucts,, agr agri inpu nput products, ts, furni rnitur ture & furnishings, automobile & accessories, and acquiring and running food, service and entertainment centers including but not limit limited ed to multip multiplex lexes, es, cinem cinemas, as, gaming gaming centre centres, s, amuse usement parks rks, restaur aurants ants and food courts urts and acquiring of land or building on lease or freehold or any commercial or industrial or residential building for running and management of retail business and to acquire flats, offices and retail spaces for carrying on retail business and to sell them, lease or sublet them and to undertake and execut execute e civil, civil, mechani mechanical cal,, electri electrical cal and structu structural ral works works contracts and sub contracts in all all their respective branches to carry on retailing business.
About Future Group
Future group:Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of India’s leading business houses with multiple businesses spanning across the consumption space. While retail forms the core business activity of Future Group, group subs ubsidia idiari rie es are are prese resent nt in cons consum ume er fina financ nce e, capi capita tall, insuran insurance, ce, leisur leisure e and entert entertainm ainment, ent, brand brand develo developm pment, ent, retail real estate development, retail media and logistics. Led by its flagship enterprise, Pantaloons Retail, the group operates over 16 million square feet of retail space in 73 cities and town towns s and 65 rural ral locatio tions across India. Head Headqu quar arte tere red d in Mu Mumb mbai ai (Bom (Bomba bay) y),, Pant Pantal aloo oons ns Reta Retail il employs around 30,000 people and is listed on the Indian
stock exchanges. The company follows a multi-format retail strategy that captures almost the entire consumption basket of India Indian n custo custome mers rs.. In the life lifest styl yle e segm segmen ent, t, the group group operates Pantaloons, a fashion retail chain and Central, a chain of seamless malls. In the value segment, its marquee brand, Big Bazaar is a hypermarket format that combines the look, touch and feel of Indian bazaars with the choice and convenience of modern retail. The The group group’s ’s spec specia ialt lty y retai retaill form formats ats inclu include de supe superm rmark arket et chai chain n - Food Food Baza Bazaar, ar, spor sports tswe wear ar retai retaile lerr - Plane Planett Sport Sports, s, electronics retailer - eZone, home improvement chain -Home Town and rural retail chain - Aadhaar, among others. It also operate operates s popular popular shoppi shopping ng portal portal - www.futurebazaar.com. Future Group believes in developing strong insights on Indian consumers and building businesses based on Indian ideas, as espo espous used ed in the the grou group’ p’s s core core valu value e of ‘Ind ‘India iann nnes ess. s.’’ The The group’s corporate credo is, ‘Rewrite rules, Retain values.’
Future Groups Includes
Future Retail - Covering all retail business. covering consu nsumers Future ture Capi Capittalal-
finance,
insurance and advisory services. vering all brand rands s own owned and and Futu Future re bran brands ds-- cover managed by company.
which whic h incl includ udes es deve develo lopm pmen entt and and management of real states. which mana manage ges s supp supply ly chai chain n and Future Future logisticslogistics- which distribution. Future media- which develops and manages retail media spaces. Futu Future re
spac spacee-
Future Group Manifesto:-
“Futu Future re” ” – the the word word wh whiich sign signiifies fies opti optim mism, ism, growt rowth, h, achi achiev evem emen ent, t, stre streng ngth, th, beaut beauty, y, rewar rewards ds and and perfe perfecti ction on.. Future encourages us to explore areas yet unexplored, write rule rules s yet yet unwr unwrit itte ten; n; crea create te new new oppo opport rtun unit itie ies s and and new 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 will not wait for the Future to unfold itself but create create future future scenar scenarios ios in the consum consumer er space space and facilitate consumption because consumption is development. Thereby, we will effect socio-economic development for our cust custom ome ers, rs, emplo mploye yee es, sha shareho rehold lde ers, rs, asso associ ciat ate es and and partners. Our customers will not just get what they need, but also get them where, how and when they need. We will not just post satisfactory results, we will write success stories. We will not just operate efficiently in the t he Indian economy, we will evolve it. We will not just spot trends; we will set trends by marrying our understanding of the Indian consumer to their needs of tomorrow. It is this understanding that has helped us succeed. And it is this that will help us succeed in the Future. We shall keep relearning. And in this process, do just one thing .
Rewrite Rules, Retain Values:Group Vision
Future Future Group Group shall shall delive deliverr Everyth Everything ing,, Everywh Everywhere ere,, Every Every tim time for for Eve Every Indi Indian an Consu onsume merr in the the most ost prof profit itab ablle manner. Group Mission
We shar share e the the visi vision on and and belie lief that that our our custo ustom mers and and stakeholders shall be served only by creating and executing futu future re scen scenar ario ios s in the the cons consum ump ption tion space pace lead leadin ing g to economic development. We will will be the trend trendse sette tters rs in evol evolvi ving ng deli delive very ry forma formats ts,, creating retail realty, making consumption affordable for all customer segments – for classes and for masses. We shall infuse Indian brands with confidence and renewed ambition. We shal shalll be effi effici cien ent, t, cost cost-- cons consci ciou ous s and and comm commit itte ted d to quality in whatever we do. We shall ensure that our positive positive attitude, sincerity, sincerity, humility and united determination shall be the driving force to make us successful. Core Values
Indianness: confidence in ourselves.
Leade adersh rship: to be a leader, both in thoug ought and business. Respect & Humility: to respect every individual and be humble in our conduct. Introspection: leading to purposeful thinking. Open Openne ness ss:: to be open open and and rece recept ptiv ive e to new new idea ideas, s, knowledge and information. Valuing and Nurturing Relationships: to build long term relationships. Simplicity & Positivity: Simplicity and positivity in our thought, business and action. Adap Ad apta tabi bili lity ty:: to be flex flexib ible le and and adap adapta tabl ble, e, to meet meet challenges. Flow: to respect and understand the universal laws of nature.
Growth of Pantaloons
Growth of pantaloons Pantaloons Retail (India) Limited, is India’s 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 16 million square feet of retail space, has over 1000 1000 stor stores es acro across ss 73 citi cities es in Indi India a and and empl employ oys s over over 30,000 people. The company’s leading formats include Pantaloons, a chain of fashion outlets, Big Bazaar, a uniquely Indian hype hyperm rmar arke kett chai chain, n, Food Food Baza Bazaar ar,, a supe superm rmar arke kett chai chain, n, ble blends nds the the look look,, touc touch h and and fee feel of Indi Indian an bazaa azaars rs with with aspects of modern retail like choice, convenience and quality and Central, a chain of seamless destination malls. Some of
its other formats include Brand Factory, Blue Sky, aLL, Top 10 and Star and Sitara. The company also operates an online portal, futurebazaar.com.. futurebazaar.com Future Value Retail Limited is a wholly owned subsidiary of Pantaloons Retail (India) Limited. This entity has been
created keeping in mind the growth and the current size of the the compa ompany ny’s ’s valu value e reta retail il bus business ness,, led led by its its form format at divisions, Big Bazaar and Food Bazaar . The company operates 148 Big Bazaar stores, 169 Food stores, res, amon among g othe otherr form format ats s, in over over 70 citi Bazaar sto cities es across the country, covering an operational retail space of over 6 million square feet. As a focussed entity driving the grow growth th of the group group's 's value value retai retaill busi busine ness ss,, Futur Future e Valu Value e Reta Retail il Limi Limite ted d will will cont contin inue ue to deli delive verr more more valu value e to its its customers, supply partners, stakeholders and communities across the country and shape the growth of modern retail in India. A subsidiary company, Home Solutions Retail (India) Limited, operates Home Town, a large-format home solutions store, Coll Collec ecti tion on i, sell sellin ing g home home furni furnitur ture e prod produc ucts ts and e-Zo e-Zone ne focused on catering to the consumer electronics segment. Pantaloons Pantaloons Retail is the flagship company company of Future Group, a busine business ss group group cateri catering ng to the entire entire Indian Indian consum consumpti ption on space.
Why Pantaloons Retail India Ltd. ? Pant Panta aloon loons s Retai etaill is not not just ust an organ rganiizati zation on - it is an institution, a Centre of learning & development. We believe that knowledge is the only weapon at our disposal and our quest for it is focused, systematic and unwavering.
At Pantaloons Retail, we take pride in challenging conventions and thinking out of the box, in travelling on the road less traveled. Our corporate doctrine ‘Rewrite Rules, Retain Values’ is derived from this spirit. Ove Over the the year years s, the the comp compan any y has has acce accele lera rate ted d growt rowth h through its ability to lead change. A number of its pioneering conc concep epts ts have have now now emer emerge ged d as indu indust stry ry stan standa dard rds. s. For For instance, the company integrated backwards into garment manufacturing manufacturing even as it expanded its retail presence at the fron frontt end, end, well well befo before re any any othe otherr Indi Indian an reta retail il comp compan any y attempted this. It was the first to introduce the concept of the retail departmental store for the entire family through Pantaloons in 1997. The company was the first to launch a hypermarket in India with Big Bazaar, a large discount store that it commissioned in Kolkata in October 2001. And the comp compan any y intr introd oduc uced ed the the coun countr try y to the the Food Food Baza Bazaar ar,, a unique 'bazaar' within a hypermarket, which was launched in July 2002 in Mumbai. Embracing our leadership value, the company launched aLL in July 2005 in Mumbai, making us the first retailer in India to open a fashion store for plus size men and women. Today pantaloons are the fastest growing retail company in India. The number of stores is going to increase many folds year on year along with the new formats coming up. The way we work is distinctly " Pantaloons". Our courage to dream and to turn our dreams into reality - that change people’s lives, is our biggest advantage. Pantaloons is an invitation to join a place where there are no boundaries to what you can achieve. It means never having to stop asking questions; it means never having to stop raising the bar. It is an opportunity to take risks, and it is this passion that makes our dreams a reality.
Come enter a world where we promise you good days and bad days, but never a dull moment!
Our CulturePassion for Retail is why we are here. At Pantaloons Retail, Empowerment is what you acquire and Free Freedo dom m at Work Work is wh what at you you get. get. We beli believ eve e our our most most valuable assets are our People. Young in spirit, adventurous in action, with an average age of 27 years, our skilled & qualified professionals work in an environment where change is the only constant. Powered Powered by the desire to create path-breaki path-breaking ng practices and hel held toge togeth the er by val values, ues, work work in this this peop people le inte ntensiv nsive e industry is driven by softer issues. In our world, making a difference to Customers’ lives is a Passion and performance is the key that makes it possible. Out of the Box thinking has become a way of life at Pantaloons Retail and living with the change, a habit. Lead Leader ersh ship ip is a valu value e that that is foll follow owed ed by one one and and all all at Pantaloons Retail. Leadership is the quality that motivates us to never stop learni rning, stre tretching to reach the next next challenge, knowing that we will be rewarded along the way. In the quest of creat reatiing an Indian model of retail ailing, ng, Pantaloons Retail has taken initiatives to launch many retail formats that have come to serve as a benchmark in the industry. Believing in leadership has given us the optimism to change and be successful at it. We do not predict the future, but create it. At Pantaloons Retail you will get an opportunity to handle multiple multiple responsibi responsibilitie lities, s, and therein, therein, the grooming to play a
larger role in the future. Work is a unique mix of preserving our core Indian values and yet providing customers with a service, on par with international standards. At Pant Pantal aloo oons ns you you will will work work with with some some of the the brig bright htes estt people from different spheres of industry. We believe it’s a place where you can live your dreams and pursue a career that reflects your skills and passions. The Indian retail industry is the fifth largest in the world. Comprising of organized and unorganized sectors, India retail indu indust stry ry is one of the the faste fastest st growi growing ng indu industr strie ies s in India India,, especially over the last few years. Though initially, the retail industry in India was mostly unorganized, however with the chang change e of taste tastes s and and pref prefer eren ence ces s of the the cons consum umer ers, s, the indu indust stry ry is getti getting ng more more popu popula larr these these days days and getti getting ng organized as well. With growing market demand, the industry is expected to grow at a pace of 25-30% annually. The India retail industry is expected to grow from ` 35,000 Crores in 2004-05 to ` 109,000 crores by the year 2010.
Major Retailers in India Pantaloons:
Pantaloons is one of the biggest retailers in India with more than than 1000 1000 stor stores es acro across ss the the coun countr try. y. Head Headqu quar arte tere red d in Mumb Mu mbai ai,, it has has more more than than 16 mill millio ion n sq. sq. ft reta retail il spac space e located across the country. It's growing at an enviable pace and is expected to reach 30 million sq. ft by the year 2010. In 2001, Pantaloons launched country's first hypermarket ‘Big Bazaar’. It has the following f ollowing retail segments:
Food & Grocery: Big Bazaar, Food Bazaar Home Solutions: Hometown, Furniture Bazaar, Collection-i
Consumer Electronics: e-zone Shoes: Shoe Factory Books, Music & Gifts: Depot Health & Beauty Care: Star, Sitara E-tailing: Futurebazaar.com Entertainment: Bowling Co.
Tata Group:
Tata group is another major player in Indian retail industry with its subsidiary Trent, which operates Westside and Star India Bazaar. Established in 1998, it also acquired the largest book and music retailer in India ‘Landmark’ in 2005. Trent owns owns over over 4 lakh lakh sq. sq. ft reta retail il spac space e acro across ss the the coun countr try. y.
RPG Group:
RPG Group is one of the earlier entrants in the Indian retail market, when it came into food & grocery retailing in 1996 with with its retai retaill Foodw Foodwor orld ld store stores. s. Late Laterr it also also open opened ed the pharmacy and beauty care outlets ‘Health & Glow’. Reliance:
Reli Relian anc ce is one one of the the bigg iggest est play player ers s in Ind Indian ian reta retaiil industry. More than 300 Reliance Fresh stores and Reliance Mart Mart are are quite uite popul opular ar in the the Ind Indian ian reta retail il marke arket. t. It's It's expecting its sales to reach ` 90,000 crores by 2010. AV Birla Group:
AV Birl Birla a Grou Group p has has a stro strong ng pres presen ence ce in Indi Indian an appa appare rell retai retaili ling ng.. The The bran brands ds like like Loui Louis s Phill Phillip ipe, e, Alle Allen n Soll Solly, y, Van Van
Heusen, Peter England are quite popular. It's also investing in other segments of retail. It will invest ` 8000-9000 crores by 2010.
Board of Directors
Mr. Kishore Biyani, Managing Director.
Kishore Biyani is the Managing Director of Pantaloons Reta Retail il (Ind (India ia)) Limi Limite ted d and and the Group Group Chie Chieff Exec Executi utive ve Officer of Future Group.
Mr. Gopikishan Biyani, Director
Gopi Gopiki kish shan an Biya Biyani ni,, is a comm commerc erce e gradua graduate te and and has more more than than twen twenty ty years years of expe experie rienc nce e in the texti textile le business.
Mr. Rakesh Biyani, Whole time Director
Rakesh Biyani, is a commerce graduate and has been actively involved in category management; retail stores operations, operations, IT and exports. He has been instrumental in the implementation of the various new retail r etail formats.
Mr. Vijay Biyani, Wholetime Director
Vijay Biyani has more than twenty years of experience in manufacturing, textiles and retail industry and has been een acti active vely ly invol nvolve ved d in the the fina financ ncia iall, aud audit and and corpo rporate rate govern verna ance related ted issues ues within hin the company.
Mr. Kailash Bhatia, Wholetime Director
He has over 28 years of valuable experience in the fashion business and has worked with some of the well known companies like Arvind Mills and Weekender.
Mr. Vijay Kumar Chopra, Independent Director
V.K. V.K. Chop Chopra ra is a fell fellow ow memb member er of The The Inst Instit itut ute e of Chartered Chartered Accountants of India (ICAI) by profession profession and is a Certified Associate of Indian Institute of Bankers (CAIIB). His banking career spans over 31 years and he has has serv served ed seni senior or manag managem emen entt posi positi tion ons s in Cent Central ral Bank ank of Indi India, a, Orie riental ntal Bank Bank of Com Commerc erce, SID IDBI BI,, Corporation Bank and SEBI.
Mr. Shailesh Haribhakti, Independent Director
Shri Shri Shai Shaile lesh sh Hari Haribh bhak akti ti,, is a Chart Charter ered ed Ac Acco coun untan tant, t, Cost Accountant, and a Certified Internal Auditor. He is the the Depu Deputy ty Mana Managi ging ng Part Partne nerr of Hari Haribh bhak akti ti & Co., Co., Chart Charter ered ed Ac Acco count untant ants s and and past past pres presid iden entt of Indi Indian an merc mercha hant nt Cham Chambe bers rs.. He is on the the Boar Board d of seve severa rall Public Limited Companies, including Indian Petr Petroc oche hemi mica cals ls Corp Corpor orat atio ion n Ltd. Ltd.,, Ambu Ambuja ja Ceme Cement nt Eastern Ltd. etc. He is on the Board of Company since June 1, 1999.
Mr. S Doreswamy, Independent Director
S. Dore Doresw swam amy, y, is a form former er Chair Chairma man n and and Manag Managing ing Dire Direct ctor or of Cent Centra rall Bank Bank of Indi India a and and serv serves es on the the board of DSP Merrill Lynch Trustee Co and CEAT Limited among others.
Dr. D O Koshy, Independent Director
Dr. Darlie Koshy, a PhD from IIT Delhi and rank holder in MBA MB A head heade ed NID NID (Mi (Minist nistry ry of Comm ommerce rce, GOI) OI) as Director for 2 terms of office prior to which he was the foundi founding ng Chairpe Chairperson rson of Fashion Fashion Managem Management ent at the Nati Nation onal al Insti Institut tute e of Fashi Fashion on Tech Technol nolog ogy y (Minis (Ministr try y of Texti Textiles les,, GOI). GOI). He is curren currently tly the Director Director General General &
CEO of ATDC Network of 58 Institutes / Center’s and two premier campuses of Institute of Apparel Management unde underr the the aegi aegis s of AEPC AEPC (Spo (Spons nsor ored ed by Mini Minist stry ry of Textiles, Textiles, GOI). GOI). Dr. Koshy receive received d the Delhi IIT Alumni Alumni Awar Aw ard d for for cont contri ribu buti tion on of Nati Nation onal al Deve Develo lopm pmen entt in 2008. Dr. Darlie Koshy was also conferred with the “Star of Italian Solidarity” one of the highest civilian awards of the Government of Italy. Dr. Koshy is the author of three pioneering books including the much acclaimed “Indian Design Edge”.
Ms. Bala Deshpande, Independent Director
Bala Bala Deshp Deshpan ande de,, is Indep Indepen ende dent nt Dire Direct ctor, or, Panta Pantalo loon on Reta Retail il (Ind (India ia)) Ltd. Ltd. and and also also serv serves es on the the boar boards ds of Deccan Aviation, Nagarjuna Construction, Welspun India and Indus League Clothing Ltd, among others.
Mr. Anil Harish, Independent Director
Anil Harish, is the partner of DM Harish & Co. Associates & Solicitors and an LLM from University of Miami. He also serves on the board of Mahindra Gesco, Unitech, IndusInd Bank and Hinduja TMT, among others.
Major Milestones
1987
Company incorporated as Menz Wear Private Limited. Launch of Pantaloons trouser, India’s first formal trouser brand.
1991
Launch of BARE, the Indian jeans brand.
1992
Initial public offer (IPO) was made in the th e month of May.
1994
The Pantaloons Shoppe– exclusive menswear store in fran franch chis isee ee form format at laun launch ched ed acro across ss the the nati nation on.. The The company company starts starts the distrib distributio ution n of brande branded d garmen garments ts through multi-brand retail outlets across the nation.
1995
John Miller – Formal shirt brand launched.
1997
Company enters modern retail with the launch of the first 8000 square feet store, Pantaloons in Kolkata.
2001
Three Big Bazaar stores launched within a span of 22 days in Kolkata, Bangalore and Hyderabad.
2002
Food Bazaar, the supermarket chain is launched.
2004
Cent Centra rall - Indi India’ a’s s firs firstt seam seamle less ss mall mall is laun launch ched ed in Bangalore.
2005
Group moves beyond retail, acquires stakes in Galaxy Entertainment, Indus League Clothing and Planet Retail. Sets up India’s first real estate investment fund Kshitij to build a chain of shopping malls.
2006
Futur Future e Capi Capita tall Hold Holdin ings gs,, the comp compan any’s y’s finan financi cial al is form formed ed to mana manage ge over over $1.5 $1.5 bill billio ion n in real real esta estate te,, priv private ate equi equity ty and retai retaill infr infras astru truct cture ure funds funds.. Plans Plans forays into retailing of consumer finance products. Home Town wn,, a home ome buil uilding and improv rovement products retail chain is launched along with consumer durables format, Ezone and furniture chain, Furniture Bazaar. Future Group enters into joint venture agreements to launch insurance products with Italian insurance major,
Generali. Forms joint ventures with US office stationery retailer, Staples.
2007
Future Group crosses $1 billion turnover mark. Specialized companies in retail media, logistics, IPR and brand development and retail-led technology services become operational. Pantaloons Retail wins the International Retailer of the Year at US-based US-based National Retail Retail Federation Federation convention in New York and Emerging Retailer of the Year award at the World Retail Congress held in Barcelona. Futu Future reb bazaa azaar. r.co com m shopping portal.
becom ecome es
Indi India’ a’s s
most ost
popul opular ar
2008
Futur Future e Capita Capitall Hold Holding ings s beco become mes s the seco second nd group group company to make a successful Initial Public Offering in the Indian capital markets. Big Bazaar crosses the 100store mark, marking one of the fastest ever expansion of a hyperm hypermarke arkett format format anywher anywhere e in the world. Total operational retail space crosses 10 million square feet mark.
Format of Operation
Format of operationPantalo ons Retail India Ltd.
Value Retaili ng
Lifestyle Retailing
Pantal oons
Centra l
Fashio n Station
Entert ainme nt, Leisur e Sports
aLL
MeLA
Big Baza ar
Food Baza ar
Pantaloons Pantaloons i s one of India’s largest largest organize organized d modernmodernformat retailers and have been promoted by Kishore Biyani. From our beginning in 1987, the organization have today evolved as one of the leading manufacturer-retailer and are among the pioneers in setting up a nation-wide chain of large format stores in India. They believe that the various initia initiative tives s taken taken by them have played played a key role in enhancing the standards of retail in the country. They are an entrepreneur driven, professionally managed retailer focused on meeting the customer requirements for a large component component of their spend across fashion, food, general merch merchand andis ise, e, home home in in both both va v a lu e and lif li f es t yl e segm segmen ents ts.. Pantaloons have also entered into partnerships/joint ventures to expand their offerings from home to apparel to household products to durables etc. they believe our focus on customers supported by systems and processes and a comm committ itted ed work work force force are the the key key facto factors rs that that have have contrib contributed uted to the organi organizati zations ons succes success s and will will help help us scale up as we embark on our strategic growth plan. The business has grown from one store in Kolkota in 1997,
occupying an area of 8,000 Sq. ft to 72 stores, apart from our 22 factory outlets located in multiple cities occupying an aggregate area of 2107608 2107608 Sq. ft. Pantaloons Pantal oons focus on the Lifestyle segment through 14 Pantaloons stores, 3 Central Malls, Malls, 2 aLL stores, 2 Fashion Station and 1 MeLa store. In the Value segment, they cater to the masses through our 21 Big Bazaar and 30 Food Bazaar outlets. They believe that managing customer expectation by offering them all the requirements for their entire family under one roof is the key to being a successful retailer, and hence have built our business model around ‘Family focus’ rath rather er than than ‘ind ‘indiv ivid idua uall focu focus’ s’.. Pant Pantal aloo oons ns beli believ eve e addressing addressing the family family attracts more customers into the store. Pantaloons retail a range of branded and Private Label apparel, footwear, perfumes, cosmetics, jewellery, leather products and accessories, home products, books, music and toys in our stores. To complete the idea of a family store, besides garments, we also retail household items, consumer durables, home furnishings, apart from food and personal care products. This is complemented by cafes, food stalls, entertainment, entertainment, personal care and various beauty related services. Promotions and events are an integral part of our service offering to our customer, which helps us create a unique shopping experience. Pantaloons’ Exclusive format includes-
1. Pantaloons: Life Lifest styl yle e prod produc ucts ts unde underr Priv Privat ate e Labels and third party brands. 2. Central:
Seamless mall providing the customer with a wide range of lifestyle products across multiple national and international
brands. 3. Big Bazaar: Value retailing with a range of products from apparel, toys, acce access ssor orie ies, s, cons consum umer er dura durabl bles es to household products and furnishing. 4. Food Bazaar: Food and personal personal care care produc products ts Bazaar: Food incl includ udin ing g dry groc grocer erie ies s and and FMCG FMCG products. Pantal Pantaloons oons believ believe e their their offeri offerings ngs provide provides s to our customers is a unique shopping experience, comprising of a vast range of lifestyle and value retail products, mix of retailing formats coupled with the facility of entertainment and leisure. Pantaloons Pantaloons loyalty program, called ‘Green Card’ in our format Pantaloons, currently has 219989 members as on August 31, 2005. The Green Card programmed accounted for about 31% of our sales in Pantaloons for the year ended June 30, 2005. We offer our Green Card holders rewards points on their purchases, special offers and discounts, and invitations to exclusive events and promotions. They They have four subsid subsidiar iaries ies and have two joint joint venture venture entities supplementing the business. In the initial initial stages stages the organizati organizations ons had small small format format outlets branded Pantaloons Shoppe, Shoppe, which were franchise franchise oper operati ations ons.. Reali Realizi zing ng the prob proble lems ms assoc associa iate ted d with with franchise franchise model, they decided decided to have their own retail outlets. They launched their own retail store “Pantaloons” in 1997. They also launched Big Bazaar- a hypermarket hypermarket with over 170000 products as the first offering in value retailing segment. Food is the largest basket in terms of
househo household ld expend expenditur iture, e, as a logica logicall extens extension ion they they launche launched d their their new format format Food Bazaar. Bazaar. They have introduced the concept of seamless malls in India through their new format ‘Central’. Recently they have launched new retail formats; aLL, Fashion Station and MeLa.
Pantaloons-‘Fresh Fashions’
Started in 1997 through one 8,000 square feet store in Kolkata, Kolkata, Pantaloons is the first organized organized departmental departmental store store format format targeti targeting ng the Indian Indian middle middle class and upper upper class customers across age and gender. The focus is largely on apparels and accessories and covers the entire family. They They offer offer a wide wide vari variety ety of of produc productt range range includ including ing trousers, shirts, casual wear, western and ethnic wear for women, children’s clothes, accessories, jewellery. They also provide provide a combination combination of private private label and third Party Label. Private Labels-“Pantaloons” is life style retailing format.
The objective is to offer differentiated differentiated products not available elsewhere. The focus is on Private Label products and fashion at affordable affordable prices. prices. The antecedent antecedent of the Company lie in garment garment and fabric manufacturing manufacturing and trading, trading, this ability ability to understand understand the apparel apparel business business has trans translat lated ed into into acti active ve and and stron strong g Priva Private te Labe Labell offering contributing to 77% of our total apparel revenues in Pantaloons in FY 2005. Few of our Initial Private Private Labels includes; Private label Pantaloon trousers Bare Jeans
Year of launch 1987 1991
John Miller Shrishti
1995 1998
Category Mens Wear Jeans, shirts, knit wear, gaberdines, jackets and other accessories Shirts Ladies wear
Scotsville
1999
Annabelle Ajile
1999 2000
Winter wear- sweaters, cardigans and blazers Ladies western wear Sports wear
The other Private Label in the apparel segment includes includes RIG, Euforia, JM Sport , Akkritti, Akkritti, Ghagroos, Arabesque, Arabesque, Honey, Chalk, F, Lombard. An intensive Private Privat e Label offering requires a proactive and innovative innova tive design team. To T o fulfill this objective a Design Studio was created at Mumbai. They have a design team comprising of 35 members, all qualified graduates graduat es form National Institute of Fashion Technology Technology (NIFT), Nationa Nationall Institut Institute e of Desig Design n (NID), (NID), Notting Nottingham ham Trent Trent University, University, UK (NTU) and other institutes. institutes. The team has a combination of senior designers and new recruits providing a mix mix of expe experi rienc ence e and youth. youth. In addi additi tion on to conceptualizing designs for apparels, the team also designs and develops logos, logos, labels and tags. Presence Presence of a dedicated design team has resulted in faster introduction of new Private Labels Labels as well well as ensures ensures that all existing existing Private Labels undergo frequent refurbishment. The organization has brought to India, Underground Music Movement Movement (UMM) a brand licensed licensed from Moda & Musica SEM of Italy Italy.. T h e y have exclus exclusive ive retail retail license license for international brands like Popeye and Disney. They have acquired 49% of the equity share capital in Planet Planet Sports Private Limited. Planet Sports, through its wholly owned subsidiary Supreme Trade Links Private Limited which is the sole franchisee of the UK-based Marks and Spencer in India. Planet Sports also holds exclusive exclusive distribution licensing rights for brands like Wilson, Speedo. It has six Mark and Spencer and 25 Planet Sports stores in India.
Big Bazaar- ‘Isse Sasta aur accha kahin nahin’
On October 12, 2001, they launched ‘Big Bazaar’ as the offering offering in the value retailing retailing segment. By removing removing inefficiencies from the distribution chain they are able to unleash attractive attractive savings which are passed passed on to the consumer. consumer. Big Bazaar is India’s first hypermarket hypermarket in the discount discount store format. format. Big Bazaar provides provides more than 2,00,000 2,00,000 items- food, grocery, utensils, kitchen needs, needs, home needs, bath needs, toys, stationery, electronics and white goods which are sold at a discount to the maximum retail price. price. Price is the principal principal value proposition proposition at these stores. A big driver at Big Bazaar is the product variety. This is achieved by selling a wide range of products and through the “Shop-in-Shop” format. As a result, a typical Big Bazaar comprises shops that stock medicines, optical accessories, camera rolls, bakery products, dry fruits, crockery, glassware, health and beauty products, ladies accessories, electronics, infant necessities, watches, clocks, computer accessories accessories,, food and beverages, beverages, stationery, readymade readymade garments, garments, household household appliances appliances,, home furnishings, furnishings, luggage. luggage. They believe this is a win- win situation as the customer is assured of product availability, the shop owner can benefit of the infrastructure infrastructure and they enjoy assured income without needing to stock inventory. Also the Shopin-Shop offering is able to increase the customer traffic into the stores. The Big Bazaar has been positioned positioned to the customer as a place where the customer can shop for each and everything for which it goes to a market. Gold Bazaar- ‘Sasta bhi shudh bhi’
The organizati organization on have opened opened ‘Gold ‘Gold bazaar’ bazaar’ within within Big
Bazaar in 2002, they foray into gold retailing. Gold Bazaar offers offers various various advanta advantages ges like like no weight weight reducti reduction on on exchang exchange, e, transpa transparen rentt and fixed fixed making making charge charges, s, purity purity check through Carat meter, certificate by World Gold Council, 100% free insurance against theft, burglary and loss by National Insurance Company with every product, no-questions asked 15 day return policy and free life time maintenance of the gold jewellery. Gold Bazaar operates as a part of Big Bazaar. Food Bazaar- ‘Wholesale prices
The organization organization ventured into food retailing with Food Bazaar in April 2002. It began as a part of Big Bazaar and now operates as standalone outlets in addition to being part of Big Bazaar. Food Bazaar provides a wide product range from fresh fruits and vegetables to FMCG products and ready-to-cook products. It stocks about 8,000 to 12,000 SKUs per location. Food Bazaar’s core concept is to create a blend of a typical Indian market and International supermarket supermarket atmosphere atmosphere with the objective objective of giving giving the customer all the advantages of Quality, Range and Price associated with large format stores. Food Bazaar offers the Indian consumers convenience, cleanliness and hygiene through pre-packed pre-packed commoditie commodities s while retaining retaining Indi I ndian an’s ’s preference of "See- Touch- Feel" created by displaying products in the open at competitive prices. Food Bazaar also provides home delivery services to the customers. cu stomers. Central- ‘Shop, Eat, Celebrate’ In the heart of the city’
Central is the second offering under the lifestyle format. Central is a seamless mall. The concept of seamless mall is relatively relatively new to India and Central is a pioneer pioneer of this format. The design of the mall does away with in-between
walls walls and and ShopShop-inin-Sh Shop ops s thus thus unobstructed shopping experience.
offe offeri ring ng
custom customer er’s ’s
The first Central opened in Bangalore on May 14, 2004. Located in the heart of the city the mall is spread over 125000 125000 Sq. ft. across five floors and provides provides customers with a wide wide array array of facili facilitie ties s ranging ranging from shoppin shopping, g, eating, leisure and entertainment. The mall allows customers customers to choose from amongst amongst a range of brands in apparel, toys, books, music, sports, lifestyle accessories and more under one roof. Central also has a Food Bazaar, food food cour courts ts and and rest restau aura rant nts. s. The The seco second nd Cent Centra rall was was launched in Hyderabad in November, 2004 covering an area of 216000 Sq. ft. In April, 2005 the third Central was launched in Bund Garden, Pune covering an area of 137000 Sq. ft. Central Central provides provides a platfor platform m to showca showcase se in house house labe labels ls amid amidst st othe otherr nati nation onal al and and inte intern rnat atio iona nall bran brands ds thereby improving brand visibility. Fashion Station
A thematic store, Fashion Station is an attempt to offer current fashion products to the mass market. The organization believe with increasing media penetration and a proliferatio proliferation n of television television channels some of which cover fash fashio ion n exte xtensi nsivel vely, the the ave average rage Indi Indian an is bein being g steadily exposed to bolder and more contemporary fashion. Fashion Station is positioned to meet the fashion requirements of this growing number of customers. They opened the first Fashion Station opened in Mulund, Mumbai in March 2005. Spread over 25,000 square feet, the store houses a mix of Private Labels sold in Big Bazaar and Pantaloons. These are backed by the requisite fashion
accessories and appropriate footwear, which lends an integrated feel to the store and meets the entire fashion requirements of a customer. The second Fashion Station has been opened in Ghaziabad which is spread over 15,000 Sq. ft. aLL-‘A little larger’
aLL is our latest format in the Lifestyle retail segment. aLL is the exclusive store dedicated to the fashion needs of both plus size men and women which has been launched as a single dedicated stand- alone store. It was launched in Vashi, Mumbai on July 16, 2005 and covers an area of 650 Sq. ft and at Andheri on August 21, 2005 covering an area of 2,000 Sq. ft. The ‘aLL’ store houses houses a wide range of ready-to-wear fashionable clothes and accessories that are otherwise not easily available for plus plus size customers. The store has a wide collection to select from - Western wear, Indo-western and Ethnic wear in both formal and casual categor categories ies.. Matching Matching access accessori ories es like like belts, belts, ties, ties, and handbags are also available. To complement the collection, the store layout is designed keeping in mind the requirements of its customers. The sales staffs are trained to provide a comfortable shopping experience to this new segment of customers. MeLa
MeLa marks the entry into the home solutions market through our subsidiary subsidiary Home Solutions Solutions Retail (India) (India) Limited. With a record number of houses being bought annually in India and the organized retailing being largely absent in this segment, home solutions is a logical expansion of the retail business. Under this business, they cater to the value and lifestyle segment through existing and new formats. MeLa provides a complete range of home furnishings, besides also offering a range of services that
includes tailoring facilities and customized home solutions by in-house interior designers. designers. The company currently currently has one MeLa store in Mumbai. Pant Pa ntal aloo oons ns Comp Co mpet et it ive iv e Stren Strengt gths hs--
The The follow following ing are our key strengths strengths,, which which we believ believe, e, enable us to compete in our business: Brand
Equity and early mover advantage
Pantaloons is one of India’s leading retailers with presence across multiple formats and stores across large and medium medium cities cities across across India. India. They They successf successfully ully introduc introduced ed their hypermarket format through Big Bazaar, introduced the concept of seamless seamless malls through Central, launched Fashion Station to offer fashion apparel and accessories to mass market buyers in a theme based style, opened aLL an exclusive lifestyle store for plus size people and continue to invest in new concepts and formats to capture a greater share of the consumer wallet, either directly and through our strategic investments. En trepre pr eneur Ent
led, prof ofe essio si onall al ly manag an age ed by an experienced te am
Pantaloons have an experienced professional management team led by their Promoter Mr. Kishore Biyani, who is one of the leading entrepreneurs in the retail sector in the country and has received various awards over the years, with the recent one being the Retail Face of the Year, 2005. Several of our management team members have experience experience of managing managing other retail / consumer consumer facing organizations. They have thus been able to complement rapid expansion with the ability to create adequate systems and processes.
The management team is complemented by a committed work force. Pantaloons’ Human Resources policies aim to create an engaged and motivated work force, which is essential for success in any service oriented industry such as their owns. Pr ojec ectt Proj
exec ex ecut ut ion and an d oper op erat atiions capabilities
Pantaloons Pantaloons have created a project project team which enables us to identify and roll out properties quickly and seamlessly. This has allowed us to grow from 561000 Sq. ft. in 2003 to 2107608 Sq. ft Pantaloons’ Pantaloons’ operations team facilitates facilitates new stores to be opened opened quickly and integrated integrated into their system and provides their customers with the similar experience across all the stores, and also enables their stores to quickly scale up to meet growing customer requirements. Vast
range of lifestyle and value retail products and services
Pantaloons’ merchandise ranges across apparel, accessories, food products, home and kitchen products, dry and and fre fresh groc groce erie ries, consu onsum mer dura durab bles les and and non non durables with over 270000 SKUs, which are complemented by their services offerings. Presence in both Lifestyle and Value retailing enables them to cater to a large segment of the population, besides benefiting from the synergies which exists between the two segments. Pantaloons offer their customers a variety of national and international brands as well as our Private Label brands under one roof.
Strong
focus on o n systems an a nd processes
Pantaloons focus on systems and processes. They are in the process process of revamp revamping ing their their current current IT setup setup to implement more advanced applications. Automated core transaction systems have been developed in house and have have evolve evolved d with with their their busines business. s. Existi Existing ng busine business ss application applications s handle all store operations such as billing, customer loyalty programmes, store inventory, management. Back office processes are also computerized which support procurement, procurement, supply chain logistics, logistics, ware house management and inventory control. All the locations are connected through company-wide VPN (Virtual Private Network). Busine Busi ness ss plann lannin ing g happ happen ens s thro throug ugh h a high high end planning tool called “Cognos Planning”. Oracle financials form the backbone of accounting functions and gives onli nline real real-t -tim ime e acc access ess to the the Comp Compan any’ y’s s ove overal rall financial position at any given point in time. Pantaloons believe this will help them as we embark on their growth strategy and enhance to reach with their customers customers and help us provide them a consistent consistent brand experience across all stores. Strong
dis di stribution and an d log lo gistics net network and and supp su pply ly chai ch ain n
Pantaloons have created a strong distribution and logistics network, with their 13 Distribution Centre covering 260000 Sq. ft, handling over 100000 SKUs, and working 24 hours a day and 7 days a week. The distribution distribution and logistics logistics set up is networked and are on line allowing them to deliver deliver merchandise merchandise to the store with within in 24 hour hours s of rec receip eipt / gene genera rati tion on of auto auto
replenishm replenishment ent order, which has helped helped them optimize optimize instore availability of merchandise. They believe their existing Distribution Centres, which have been designed to scale up, will be able to meet their growth requirements as we expand the number of all stores. The above initiatives have helped them in improving the efficiencies of their supply chain, which they believe is critical for any retailer. These aim at meeting the conflicting requirements of reducing their inventory inventory whilst ensuring availability of products at all stores as per customer needs, as well as reducing our operational costs. Large
base of loyal customers
Pantaloons had 42280682 customer entries in our stores in the year ended ended June 30, 2008. 2008. They They believ believe e that the emotional connect that they have been able to create good relationship with their customers through service offering and special promotions promotions has helped helped them convert convert many of them into loyal customers.
Pantaloons’ Retail Strategy
Pantaloons’ StrategyPantaloons intend to maintain and enhance their position as a leading retail entity through continued focus on the Indian market and investing further in their competitive strengths to grow their business. The key elements of Pantaloons business strategy include:
Increasing
offerings to meet a higher portion of the consumer spend
Pantaloons intend enhancing there share of the customers’ month monthly ly spen spend d by launc launchin hing g new new form format ats s or addi adding ng categories to their existing product range. They intend to implement this by launching such formats directly or by way of strategic tie ups in areas where they have the opportunity to tie up with an appropriate partner. Increasing penetration in existing expanding their reach across the country
cities and
Increasing their penetration in existing cities with a larger number of stores, increasingly of larger size, will enable us to penetrat penetrate e into new catchme catchment nt areas areas within within these these cities cities and optimize their infrastructure. Enhancing they reach to cover additional cities; will enable them to reach out to a larger population. This will help to provide a platform to domestic and international brands wanting to reach out to domestic consumers with the same profile as their customers. Enhancing
merchandise width by adding product categories
Consumer’s tastes are shifting and the propensity to spend on new categories of merchandise is increasing along with needs for new services. Pantaloons’ focus will be to add on such new categories in their stores along with developing developing existing categories categories to incr increa ease se thei theirr shar share e of the the spen spend d of not not only only exis existi ting ng customers, but also acquire new customers.
Introducing
new brands and developing more Priv Pr ivat ate e Labe La bels ls to of offe fer r a bett be tter er dep de pth in each category
Pantaloons continuously focus on enhancing the depth and width of their merchandise. Their Private Label and private brands initiative is part of such focus and offers us a differentiating factor as compared to their competition at the same time helps us enhance margins. They had a tie up with Popeye and Disney wherein they are their exclusive retail licensee for India. They continue to evaluate such opportunities for tie ups with national and interna internation tional al brands brands,, which which can be introdu introduced ced in India India through their stores. Utilising Utilisin
economies of scale as they grow in size and ex expand th their re r ea c h
Pantaloons believe that their existing corporate infrastructure and software systems have been designed for a higher scale of operations than their current size, and can help them grow grow with out the need to signifi significan cantly tly increase costs. They are having in place place their distributio distribution n and logistics logistics infras rastruc tructture, re, wh whiich can hand andle large rger busi usiness ess volumes volumes at marginal marginal addition to costs. costs. Higher business volume volumes s will will also also improve improve their negotia negotiatin ting g powers powers and help us get further economies of scale in their buying with opportunities of incremental margins. Enhancin
operational systems syst ems and processe roc esses s
efficiencies
through
They are having a consistent consistent focus on enhancing enhancing their operati operational onal effici efficienc encies ies and monitor monitor key operati operational onal parameters on an ongoing basis using concepts such as
gross margin return on floor space, gross margin return on labour and gross margin return on inventory to improve their productivity on space, labour and inventory. Pantaloons Pantaloons benchmark of the stores on performance performance parameters on a historical as well as on a comparable basi basis s to seek seek areas areas for impr improv ovem emen entt to reduc reduce e their their operating costs and enhance our productivity levels.
Enhancing
human capital
The aim at recruiting the best talent available in a cross section section of industries, industries, identifying identifying fresh talent, grounding them in the value system and providing opportunities opportunities for growth. They follow a Balanced Score Card approach which deals with the individual aspirations/goals and links them to the overall company strategy. Keeping Keeping in mind their needs and the industry’s industry’s future requ require ireme ment nt of profe profess ssio ional nals s and giv given en the the lack lack of educati educational onal facilitie facilities s plus a gap betwee between n demand demand and supply in the retail industry, they set up a two year Post Gradu raduat ate e Pro Progr gram amm me in in Re Retail tail Manag anage ement ment in coll ollabo aborati ation wit with Wellingkar Institute of Manage Managemen mentt Developm Development ent & Resear Research, ch, a Mumbai based management institute.
Processes and support functions
(1)Category Management: Pantaloons have employed
the concept of category management in our day-to-day merchandisi merchandising ng function as against the traditional traditional brand manage managemen mentt merchandi merchandisin sing g practi practice ce follo followed wed by by most most retailers. Category managers look at sales and margins of each brand in a category. category. The whole idea of category category management is to create products across length and breadt breadth h of a category category at differ different ent price price points, points, fabrics, fabrics, design, shape, seasons, colour and size. Functions ons under broken into:
category
manageme ement
can
be
Merchandising •
The The Catego Category ry manage managerr develo develop p a mercha merchandi ndisin sing g strategy strategy for the category category taking into considerati consideration on customer customer profile, profile, classifica classification, tion, resource resource structure, structure, vendors, vendors, fashion trends, trends, items and price points. points. The category manager visit stores regularly to check assortments of merchandise displays, stock levels and
old season merchandise, merchandise, consult with team leaders and sales people on problems and suggestions. Sourcing / Purchasing •
The category manager controls quantities to be purchased as per the sales forecast. The purchasing is done based on range plan made for the season and re-orders been placed based on sales and stock levels. The Category Manager reviews the actual sales versus plann planned ed sale sales s and and sourc source e the the mate materi rial al base based d on feedback from storefront.
Logistics •
Category manager ensure that goods are dispatched in right quantities and at right time to reach stores with with suffi suffici cien entt time time in hand hand to prom prompt ptly ly cate caterr to customer demands.
Promotions •
Cate Catego gory ry manager manager plans plans promotion promotions s / brand or product product build building ing scheme schemes. s. The category category manag manager er identifies slow movers and also disposal plan for the same.
(2)V 2) Visual su al Mer Me rchandis di sing-
In modern modern retail, retail, we we believe believe that visual visual merchandis merchandising ing is key to encoura encourage ge a custome customerr to purchas purchase e the product products. s. Visual merchandising merchandising involves store window, store directories, in- posters, unit top poster / visual, placement of products, highlighting products in the store. Pantaloons use visual merchandising skills to present their merchandise at its best, in order to appeal to the customer. This is a critical in store activity activity with their visual merchandising merchandising team deciding on the theme as well as the manner in which the
merchandise is proposed to be displayed across their stores nation wide. (3)Supply Chain management-
Availability of products at the right time and at affordable cost is of utmost importance importance in retail business. business. Supply Supply Chain management management ensures this. The diverse requirements of different retail formats in which they operate requires a model which is flexible enough to meet the diverse requirement of their various formats; incase of Pantaloonsthe time to market is of paramount importance whereas for Big Bazaar – the cost to market is crucial. Keeping this in mind, we have created their own supply chain and logistics model. model. The Supply Chain function involves vendor management, quality assurance and transportation. Vendor management assumes critical importance in retail business where one has to deal with multiple products. They have in place place a robust vendor management management system. Vendors are identified all over the country and an d strategic relationships are developed. A transparent vendor rating system rates each vendor across a variety of parameters. Regular Regular interaction and rating system system ensures that the vendor vendor remain in sync with the Company’s goals and targets. targets. Improvement Improvement in communicati communication on with vendor and vendor development initiatives like standardization of norms for size and fits, and implementation of a vendor rationalization program enable them to increase the number of “A” rated vendors by over 80 %. The Supply chain chain departm department ent has been been awarded awarded the ISO 9001:2 9001:2000 000 certificate by Det Norske Veritas.
The qualit quality y assuranc assurance e function function has has been been strength strengthene ened d with with the impl implem ement entat atio ion n of inter internal nal quali quality ty contr control ol measures. Quality hubs have been established at zonal level with a view to proactively prevent quality defects. They have one central warehouse warehouse and 12 regional warehouses. These warehouses are located in Pune, Delhi, Ghaziabad, Ghaziabad, Nasik, Nasik, Ahmedabad Ahmedabad,, Bangalore, Bangalore, Hyderabad, Hyderabad, Gurgaon, Mumbai, Nagpur and Kolkata. In case of lifestyle retailing, the entire apparel stock is generally delivered to the central warehouse. The central warehouse warehouse then services services individual stores. In addition addition to centr central al buyi buying, ng, there there is rest restric ricte ted d local local buyi buying ng.. A uniqu unique e aspect aspect of the supply supply chain chain model model is the factory factory outlet. outlet. Its the last last leve levell of suppl supply y chai chain n mode modell wh whic ich h ensu ensure res s that that slow-moving slow-moving merchandise merchandise are disposed disposed off on a regular regular basis. While While pantalo pantaloons ons outsourc outsource e interci intercity ty transpo transport rt of goods goods to third parties, intra city movement form warehouse to the stores is handled by the own fleet of vehicles. vehicles. For lifestyle lifestyle retail formats, they use the th e services of logistic solution providers in order to deliver products on time to the stores. For value retail, low cost transport arrangements have been secured to optimize transportation cost. Warehouse operations have been streamlined through the standardizati standardization on of racking racking system, system, scientific scientific layouts and implementation of automatic replenishment system.
Pant Pantal aloo oons ns’’ Corpor rporat ate e Funct Functio ions ns 1. Information Technology
2. Human Human Resources Resources 3. Retail Retail Information System System 4. Internal Internal Controls Controls 5. Measurement of Customer Satisfaction Satisfaction
1. Information Technology
A key element of the corporate functions is the Information Technology strategy and set up. They are in the process of revamping their systems to address the growing demands of the customer and to have a seamless flow of activities. The IT vision is to address multiple aspects like connectivity, infrastructure, security, real time information and tools for financial management amongst others. The IT strategy has been framed keeping in mind the growth in formats, chains, product categories and locations. The most rudimentary issue is that of connectivity, it means ensurin ensuring g seamle seamless ss flow flow of data to the head office office from regional offices, zonal centre, stores and warehouses. wa rehouses. All locations locations are connected through company company wide virtual private network, stock and sales data from each store is consolidated on a daily basis allowing close monitoring and quick decision-making. At present, business business planning planning occurs through a high-end high-end planning tool called ‘Cognos Planning’, while data analysis is undertaken through ‘Cognos Powerplay’, a highly analytical platform that enables data to be drilled down to the lowest level. level. ‘Oracle Financials’, Financials’, the backbone backbone of accounting accounting function function,, is the integrat integrator or betwee between n planning planning,, buying buying,, moving, moving, selling and analysis analysis functions, and gives on-line real time access to the company’s overall financial position
at any given point in time. Strategic Direction
The organization is in the midst of upgrading the IT set up with a strategic strategic relationship with SAP, business software solutions solutions provider. They intend to implement implement my SAP Business Suite, SAP Advanced Planning Tool for Merchandise and Assortment Planning and SAP Apparel and Footwear Solutions. The organization organization also in the process process of installing installing Closed Circuit Television Television at stores (CCTV) , using the virtual private planning, live feeds from the CCTV’s will be relayed to the head office and the zones. This will compliment the video conferencing facility that already exists between the stores and the head office. To enable quicker decision-making and reduce the lag time, different needs of different users are being addressed addressed through the creation creation of a personalize personalized d ‘dash‘dash-boar board’( d’(a a graphi graphical cal persona personalis lised ed interfac interface e through through which one can access information available in the central database). database). Individual Individual users will be able to receive receive alerts based on their profiles and categories on various aspects related related to stock, sales sales etc. Graphs pertaining pertaining to key performance areas will be generated enabling better control and informed decision-making. They had begun to implement fully a integrated transaction system, which would accumulate accurate real time data as each key function of the organization performs its day-today operations, this would include merchandise management, management, procurement procurement,, manufacturing, manufacturing, warehousing, warehousing, logist logistics ics,, invent inventory ory managem management ent,, store store operati operations ons and customer customer management. management. A data warehouse and Business Business Intelli Intelligenc gence e Tool are in the proces process s of being being install installed, ed,
advanced advanced corporate corporate planning tools that facilitate facilitate decision making making in budget budgeting ing,, forecas forecastin ting, g, space space plannin planning g and inventory planning are being put in place. 2. Human Resource
In a business where individuals comprise the principal asset, the structure of the people pyramid influences the quality of knowledge captured, the speed with which decisions decisions are made and the morale of the organization. organization. Human Resource is one of the critical support functions and forms another key element of the corporate backbone. Pantal Pantaloons oons have more more than than 8000 8000 employe employees es as a very young and energetic organization with average employee age being 30 years. They believe that service is the core philosophy and people are the most important resources. The organization attempt has always been to create an environment where the employees feel pride of being called ‘Pantaloonians’. Huma Human n Reso Resourc urce e philo philoso soph phy y is drive driven n throug through h our ‘The ‘The Pantaloons People Management System’. The Pa P antaloons Pe P eople Ma M anagement S ystem
Pantaloons People management system is built on 5 pillars of people based growth: Culture Building. Performance Management through Balanced Balanced Score Performance Card. People Processes. Management Processes. Leadership Excellence. Organiz Orga nizatio ation n Structure Struc ture
The organization is headed by our Managing Director. The
employees follow an inverse pyramid structure; as a result decisions are taken closest to the point of customer action. Sales executive are encouraged to think customer first. They are empowered to run their respective departments like ‘small business owners’.
Inverse Pyrami d Structure Sales &staff support Department Manager r a p e D Store t n Mgr., Buyers, e m t Merchadise Mrg, RM, GM
Board
HR Manager
-organizational planning -systems building -Performance mgmt. -Personal enhancement -Competency mapping & building -Compensation policy
Performance Management: Appraisal, Rewards and Recognition
The organization’s Compensation philosophy is ‘Pay for Performance, promote for potential’ and is designed to meet the following key objectives:
Attract and Retail Qualified Employees Externally Competitive Performance based pay Internally Equitable
Legal Compliance
The organization’s organization’s compensation compensation policy is performance performance based and they believe it is competitive with industry standar standards ds in India. India. The compen compensat sation ion package packages s are adjusted annually based on industry salary correction compensatio compensation n surveys and individual individual performance performance.. From time to time employees employees who have met or exceeded exceeded performance standards are awarded bonuses. The employees post retirement benefits include a provident fund and a gratuity. Both the provident fund and the Gratuity have been approved approved by the relevant statutory statutory authorities. They have set up a “Pantaloon “Pantaloon Foundation”Foundation”- an employee employee welfare fund with effect from August 2004. The fund provides financial assistance in all case cases s wh wher erei ein n the the empl employ oyee ee seek seeks s the the Comp Compan any’ y’s s financial financial support support in medical medical emergency emergency for him/herself him/herself or their families. The contribution to the fund is voluntary. Employee Insurance
Pantaloons’ Pantaloons’ provide all the employees with group life insurance. They also provide medical insurance coverage for employees who are not covered under ESIC (Employee State Insurance Corporation) benefit which includes hospitalization benefits.
Recruit Recruitment and Selection
The organizations’ recruitment takes place through any of the following option or combination of this option:
In-house data bank Walk-in advertisement Internal Referrals NGO’ The selection processes are defined to evaluate the th e skill sets required for each job and also to evaluate the fitment to the various formats of retailing. •
•
•
•
Training
The organizations place special emphasis on the training of the employees to enable them to develop their skills to meet meet changi changing ng retail retail techno technolog logy y and to provid provide e effici efficient ent and effective customer services. The Company has a well defined Learning & Development (L &D) team that is responsible for training at all the levels across the country. The L & D team focuses on primary and secondary secondary research into various aspects of retail and assessment of training needs across Knowledge, Skills & Attitude areas at all levels. 'Prarambh' 'Prarambh' for Induction Induction and 'Guru-School' for Trainer Trainer Develo Developme pment nt are a couple couple of program programs s create created d and disseminated by the L & D Team from last couple of years. They are also in the process of establishing a training centre at each zone that will be equipped with extensive and up-to-date facilities and which offers relevant training programmes. Retentio Retention Strategy
Pantal Pantaloons oons strive to foster foster a feelin feeling g of well-b well-bein eing g in our employees employees through care and respect; they have several several structured processes including employee mentoring and
grievance management programmes which are intended to facilitate a friendly and cohesive organization culture. Offsite activities are encouraged to improve inter-personal relationship. They also acknowledge the efforts exerted by our employees by organization an annual celebration called ‘Pantaloons Day’ where we recognize employees who have shown exceptional exceptional talent, sincerity and dedication. dedication. They have implemented an employee suggestion programme called ‘Prerna’ wherein the employee can give their sugge suggesti stions. ons. Every Every quarter quarter the best best sugges suggestio tions ns receiv received ed per zone per format is awarded prize called “Golden Cap”. 3. Internal controls and Risk Management
The company uses the services of Ernst & Young for process audit and risk management and the scope of their work covers all the company’s formats i.e. Pantaloons, Big Bazaar, Food Bazaar and Factory Outlet. The objectives are to: Gain an understanding of the various Business Processes Identify the strengths and weaknesses in the existing systems and procedures Review use of technology in the function Identify key business process risks and review the th e adequacy of the controls and mitigate them Test the effectiveness of controls the most significant risks and provide recommendations to improve controls Identify potential areas for improving process efficiency Broadly develop on improvement portfolio and raise the level of awareness of how business is impacted by inadequately controlled risks inherent in the business process.
Internal audit of the each store is also undertaken by an independent audit firm on monthly/quarterly basis. 4. Measurement of Customer Satisfaction
Pantaloons have devised a model called CEM- Customer Expe Experi rien ence ce Manag Managem emen entt Mode Modell to meas measure ure custom customer er satisfaction in the stores. The Customer Experience Management Model focuses on the customer’s experience at every touch point in the store ranging from their first impression of the store, to their experience at the trial rooms, toilets, with our staff through various processes such as billing and exchanges. They have hired a research agency called MACRO-Market Analysis and Consu Consume merr Rese Researc arch h Organi Organiza zati tion on.. This This agen agency cy send sends s people who are called ‘Mystery Shoppers’ to visit the stores and then their experience is documented on a feedback form which is then sent to head office. office. Based on the feedback formed analysis is done and the stores are given scores. This allows us to track performance on customer expectation at overall, format and store levels, determine critical improvement areas are all levels and also identify opportunities that they can leverage upon. Besides, they have also started an in-house initiative called called ‘Praga ‘Pragati’ ti’ whereby whereby one person person from the head head office office operations team visits the stores and observes the stores with respect to certain pre-parameters like store exteriors, baggage window, customer service, store ambience etc. This activity is done on a quarterly basis and three best stores under each format are announced. This encourages the the store stores s to impr improv ove e the effi effici cien ency cy of their their store store operations.
Future Growth Plan of the Company
Future Growth of plan of the Pantaloons-
The retail industry in India is currently growing at a great pace and is expected to go up to US$ 833 billion billion by the year 2013. It is further expected to reach US$ 1.3 trillion by the year 2018 at a CAGR of 10%. As the country has got a high growth rates, the consumer spending has also gone up and is also expected to go up further in the future. In the last four year, the consumer spending in India climbed up to 75%. As a result, the India retail industry is expected to grow further in the future days. By the year 2013, the organized sector is also expected to grow at a CAGR of 40%. Future Group announces its plan to double the number of its flagship multi-brand ‘Pantaloons’ stores in the next threefour years. The expansion of new stores would embark on an image makeover for the apparel and accessories chain to target youngsters. Group Company Pantaloons Retail India,
which opened its 50th store spread across 31,109 sq ft in New Delhi, plans to add another 50 Pantaloons stores across metros and smaller cities. Such landmark expansion plan of the retail chain would be a new sunshine opportunity for the signage companies dealing with in-store displays and others. The retail business is expected to end 2010 with revenues of Rs 14,000 crore, followed by the FMCG and consumer durables entity with Rs 1,800-2,000 crore and the fashion venture with Rs. 2,000-2,200 crore, according to the Future Group’s own projections. Once the restructuring is complete, there could be a second round of changes, though this depends on the success of the group’s talks with a foreign retailer for a JV. If they indeed succeed, Pantaloons Retail will spin off two of its biggest revenue revenue grossers grossers in retail—Big retail—Big Bazaar and Food Bazaar, into a new new enti entity ty,, to be call called ed Futu Future re Valu Value e Reta Retail il.. The The two two formats constitute over 55% of the turnover of the country’s biggest retailer. Panta Pantaloo loon n Retai Retaill is curre currentl ntly y beli believ eved ed to be in talks talks with with Carrefo Carrefour, ur, the world’s world’s second second-la -large rgest st French French superm supermark arket et group, for a JV in India. Besi Beside des s Big Baza Bazaar ar,, Futu uture runs runs form format ats s suc such as Food Food Bazaa Bazaar, r, KB’s KB’s Fair Fair Price Price shop shops, s, Panta Pantalo loons ons,, Centr Central al,, Home Home Tow Town, n, eZone eZone,, Aadh Aadhaa aarr and and Brand Brand Factor Factory. y. Grou Group p offic officia ials ls said sales from their own private FMCG brands are comparable to a mid-rung Indian FMCG company. Futu uture is launc unching priv rivate brand rands s in cate ategories like toothpaste, soap, dairy, detergent, beverages and shampoo, among others. The group sells consumer electronic electronic products products under the Koryo brand name. The group’s fashion brands
include John Miller, Bare, Indigo Nation, Urbana, Scullers, Rig, Ajile, DJ&C, Knighthood and Annabelle. Anna belle.
Sales Promotion
Sales Promotion Sale Sales s prom promot otio ion n is diff differ eren entt prom promoti otion on,, Sale Sales s prom promoti otion on refe refers rs to thos those e mark market eting ing acti activi vitie ties s other other than than pers persona onall sell selliing, ng, adve advert rtiiseme sement nt and and publ public icit ity y, wh whic ich h sti stimula mulate te
cons consum umer er purc purchas hasin ing g and deal dealer er effe effecti ctive vene ness ss,, such such as displays, shows and expositions, demonstrations and various non-recurrent selling efforts not in the ordinary routine. Its purpose is to increase the desire of salesman, distributors and dealers to sell a certain brand and to make consumers more eager to buy that brand. This includes sales activities which supplement both personal selling and advertising. Sale Sales s prom promot otio ion n is only only a part part of prom promot otio ion. n. Prom Promot otio ion n includes sales promotion, advertising, personal selling etc. Promotion helps to make all other marketing activities more effe effecti ctive ve and effi effici cien ent, t, but but sales sales prom promoti otion on help helps s only only to sales activity. Sales promotion may be done with the help of tool tools s like like displ isplay ays s, exhi xhibiti bition ons s, free ree sam sample coupo oupons ns,, prem remium ium etc. etc. Sales ales prom romoti otion acts cts as a link link betw betwe een advertisement and personal selling. To sum up, promotion is to make the demand inelastic, while there is change in the price. So promotion must stimulate the consumers to buy more. Effects of Promotion The
present day market is very competitive due to the large number of rivals and substitutes. With the help of promotion producer must create product differentiation in the minds of consumers. Promotion is very essential to communicate the use of the product and the nature of the product to consumers and middlemen. Now days most of the consumers consumers market their products in wider area and the consumers are also very large in number. In such cases personal selling alone cannot be used used and and so all all the the step steps s for for prom promot otio ion n are are to be followed.
uring g Durin
the the peri period ods s of depre epress ssio ion n it is esse ssenti ntial to maintain at least some minimum market. Therefore it is very essential to use promotion.
Major tools used in Promotion – Free Samples. Premium or Bonus Offer. Exchange Schemes Price-off offer Coupons Fairs and Exhibitions Trading Stamps Scratch and win offer Money Back Offer.
Objectives of Sales Promotioni)
iii) iv)
To compare usage across exclusive and multi brand outlets. ii) To explore rationale behind such activities by examining consumer behavior. To pose challenges ahead. To attract new customers and retain the existing ones.
Methodology used by Pantaloons Tie-ups with major Hotels, Restaurants and Pubs (e.g (e.g.. Saya Sayaji ji Gran Grand, d, Prin Prince cess ss Pala Palace ce,, Rajd Rajdha hani ni,, E=MC2) of Indore ore in Balter System throug rough h Standee and Tent cards. Promoting sale activity through tie up with major orga organi niza zati tion ons s lik like- AirT AirTel el,, Satya atyam m Mu Mult ltip iple lex x,
Gitanj Gitanjali ali Jewels, Jewels, Talwal Talwalker kers s Gym, Gym, Barista Barista,, Baskin Baskin and Robbins, US pizza, Ziva, E-Zone, INOX Multiplex, Tanishq, and etc. Promoti oting thr throug ough distrib ributi ution of discount unt vouchers of hotels and redeemable vouchers for Gitanjali Jewels of Rs. 500, 1000 and 2000 while shopping with pantaloons. Pantaloons also attract customers through organi organizin zing g event event manage managemen mentt like like Femina Femina MIS MISS S INDIA contest in the store. Prom Promot otin ing g Thro Throug ugh h Mall Mall Bran Brandi ding ng at Trea Treasu sure re Island. Promoting through ARAMEX courier packets on the pasting of Pantaloons sandwiches label of offer and Pantaloons’ T-shirts distribution to staff members on road show. Promoting Sales through Hording at Pause areas and Road poll Kiosk sandwiches in highly pose area of Indore like- Vijay Nagar Square, Tower square, MG road, Annapurna, Airport road etc.. Providing corporate discount voucher to all major corporates in Indore. Promoting Promoting through SMS blast to more than 10 lakh Indore Customer database. Promoting in major societies of Indore like Saket Nagar, Manorama Ganj, AB road and etc. through No Parking sandwiches and Leaflets and Posters. Promoting Sale through organizing contests like
SMS dik dikhao hao and and Inaa Inaam m pao pao for for Airte irtell customers and also get a chance to win Videocon DVD player.
Spec Specia iall shopp shoppin ing g with with panta pantalo loon ons s and and get chance to win Gitanjali Jewels Pearl set. Get shopping with pantaloons and get a Airtel SIM Card connection free.
Competitors of Pantaloons
Major Competitors of Pantaloons
Vishal Retail
Vishal Retail is a leading retail company involved in the business business of manufacturing manufacturing and retailing retailing of readymade readymade garments (apparels), non-apparels and FMCG products. The company is expanding its operations at a rapid pace and focuses on tier II and III cities in the country. Its manufacturing facilities are located in Gurgaon, Haryana, Dehradun and Manesar, with a capacity of 5,000 garment pieces per day in each unit. The company was a pioneer in disc discoun ountt reta retail ilin ing g and had had open opened ed India India’s ’s firs firstt
hype hyperm rmar arke kett in Delhi elhi.. The The com company pany has has abou aboutt 135 showrooms in 87 cities and 20 states in India.
TATA TRENT Limited
TRENT Limited is among one of the major retailers in India, operating a chain of retail stores under the brand name Westside. The We Westside s t o r e s o f f e r a p p a r e l s , cosmet cosmetics ics,, perfume perfumes, s, handba handbags, gs, footwe footwear, ar, household household accessorie accessories, s, lingerie lingerie and gifts for men, women and kids. The company has about 31 Westside stores located in major Indian cities including Mumbai, Bangalore, Bangalore, Hyderabad, Hyderabad, Jaipur, Jaipur, Chennai, Chennai, Pune, Delhi, Delhi, Noida and others. Trent also operates discount hypermarkets under the brand name Star Bazaar. Star Bazaar offers a wide range of consumer products including staple f oo o o ds d s , b ev e v er e r ag a g es e s , h ea e a lt l t h a nd nd bea ut y p rod uct s, veget abl es, frui ts, dair y pro products, consumer electronics and household items at reasonable and economical economical prices. prices. The company’s company’s subsidiarie subsidiaries s include Trent Brands Ltd, Fiora Services Limited, Satnam Developers and Finance Private Ltd and Nahar Theatres Private Ltd. Trent holds about 79% stake in Landmark Limited, a retailer of books, toys, stationery and music. As of March 31, 2008, Landmark Limited had 18 stores.
Reliance Retail Limited
Reliance Retail has plans to cover 1,500 cities and towns acr across oss Indi ndia wit with 5,50 ,500 outl utlets in format rmats s such as convenience convenience stores, supermarke supermarkets, ts, specialty specialty stores and hypermarkets. The company plans to have 14 verticals while putting more focus on food. It has planned inve nvestme tments nts of USD5.5-6.0bn (US (USD2.5bn equity). Investment of USD750 mn has already been cleared by the board. The company expects revenues of USD20-25
bn and total retail space of 100 mn sq ft by 2010. Also, the company plans to employ 500,000 people. Reliance Retai Retaill will will form form a join jointt ventu venture re with with lead leading ing Europ Europea ean n supply chain specialist Wincanton for its food and grocery and hypermarket businesses. The company will open 5060 'i-stores' in the next 18 months and plans to open 150 Reliance Digital stores by 2011-12.
Globus
Launched in January 1998, Globus is part of the Rajan Rahe Raheja ja grou group. p. The The comp compan any y open opened ed its its firs firstt stor store e at Indore in 1999, followed by the launch of its second second store in Chennai (T-Nagar). Soon to follow was another store in Chennai located in Adyar. The flagship store in Mumbai opened on 1st November 2001 followed by a swanky new outlet in New Delhi in South Extension Part-2. The The sixt sixth h & seve eventh nth stor stores es open opened ed in Bang angalor alore e in Koramangala & Richmond Road respectively. The eighth store opened in Ghaz haziabad at Ship hipra Mall all and was was followed by the ninth at Kalaghoda in Mumbai; tenth in Thane and eleventh in Ghaziabad. The twelfth, thirteenth, fourt fourtee eenth nth store stores s open opened ed in Kanp Kanpur, ur, Ah Ahme meda daba bad d and and Luckno Lucknow w respec respective tively. ly. Recentl Recently y Globus Globus has opened opened its Store in Indore, Aurangabad and the journey jour ney continues... Globus Stores Pvt. Ltd. was formed to contribute to the revo revolu luti tion on swee sweepi ping ng the India Indian n retai retaill indu indust stry. ry. Glob Globus us 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 inve nvesting ting and acquirin ring the best, trie ried and tes tested processes and procedures of operation.
Globus combines state-of-the-art international information technology, the highest quality of human resources and sustained financial commitment to realize its long term vision. We are rapidly expanding and our target is to have an additional 100 fashion stores by the end of 2012.
Central
Launched in May'04 at Bangalore, Central is a showcase, seam seamle less ss mall all and and the firs firstt of its its kind in Indi India. a. The The thou thoug ght behi behind nd this this pion pionee eeri ring ng conc concep eptt was was to give give customers an unobstructed and a pure shopping experience and to ensure the best brands in the Indian mark market et are are made made avai availa labl ble e to the the disc discer erni ning ng Indi Indian an customer. Cent Centra rall offe offers rs ever everyt ythi hing ng for for the the urba urban n aspi aspira rati tion onal al shopper to shop, eat and celebrate. Located in the heart of the city, Central believes its customers should not have to travel long distances to reach us; instead we must be present where customers frequently visit. Central houses over 300 brands across categories, such as apparel, footwear and accessories for women, men, children and infants, apart from a whole range of Music, Books, Coffee Shops, Food Courts, Super Markets (Food Bazaar), Fine Dining Restaurants, Pubs and Discotheques. The mall also has a separate section for services such as Travel, Travel, Finance, Finance, Investment, Investment, Insurance, Insurance, Concert/Cine Concert/Cinema ma Ticke Tickett Bookin Booking, g, Bill Bill Paymen Payments ts and other other miscel miscellan laneous eous servic services. es. In additi addition, on, Central Central houses houses Centra Centrall Square Square,, a dedicated space for product launches, impromptu events, dari daring ng disp displa lays ys,, exci exciti ting ng show shows, s, and and art art exhi exhibi biti tion ons. s. Central is an integral part of the city and in the long run a City should become part of CENTRAL!
In a short span of its existence existence Central has revolutioniz revolutionized ed and and rede redefi fine ned d the the shopp hoppiing expe xperie rience nce in Indi India. a. At Central, customers no longer only shop, they get SHOPATAINED! We invi invite te you you to expe xperien rience ce this his irre rresist sistiible ble reta retail il destination at Bangalore, Hyderabad and Pune cities.
Comparison with Pantaloons
Store profile and information on Sales Promotion Activities Store Name
Format Type
Pantalo ons
Multibrand Multibrand
Positionin g
Family Store
Floor Size
18000 sq ft
Location
MG. Ro Road, Indore pose locality Apparel & accessorie s for men, women & children
Categorie s
Central
Family Store
150000 sq ft
YN Road, Indore Apparel & accessories for men, women & children, apparels &
Reliance Tr.
Globus
Westsid e
Multibrand
Exclusive Brand
Family store
Style & Affordabili ty 20000 sq ft
Exclusive Tata Brand Style & Affordabili ty 40000 sq ft
60000 sq ft
AB Road, Indore
AB Road, Indore
Apparel & accessories for men, women & children,
Stylish Cloths for men & women & accessorie s
Race Course Road, Indore Stylized clothes, footwear & accessorie s
Accessories
apparels & Accessories
# of skus
45000
100000
60000
NA
NA
# of Suppliers
20-25
50-60
35-45
8-15
NA
Avg. billing per Customer Average Footfalls
1800
2000-2500
1500
800-1000
199-1500
8001000on weekday & 15002500 on weekends
400-800 on weekday & 1000-1200 on weekends
650-800 on weekdays & 1000-1200 on weekends
200-400 on weekdays & 500-700 on weekends
100-150 on weekdays & 200-400 on weekends
Sales Promotions End of Season
Yes
Yes
Yes
Yes
Yes
Festive Promotio ns e.g. Diwali, Christma s
Yes
Yes
Yes
No
Yes
Loyalty
Yes
No
Yes
Yes
Yes
Card Program me Special Promotio n (events)
Yes
Yes
Yes
No
Yes
Joint Promotio n
No
No
No
No
No
Media Used
Hording, Print, Electronic, In store(SMS, Email) Price off, Exchange offer, Free Gifts, Discounts
Hording, Print, Electronic, In store(SMS, Email) Price off, contests, combo offer, discounts
Hording, In store, electronic
In store, Hording
Print, Hording, In store
Price off, contests, combo offer, discounts
Discounts, Combo offers
Sales, Quarterly Profit
Sales, Quarterly Profit
Sales, Quarterly Profit
Sales, Average Bill Size, Conversion
Cause Related, gift vouchers, discounts, combo offers Sales, Quarterly Profit
Promotio n Type
Evolutio n of Promotio n
From the above table which gives comparative picture of various sales promotion activities and manner of announcement, evaluation etc., it is clear that all five stores engage in end of season sale. Thus stock clearance seems to be very important objective for apparel retailer in using end of season sale twice in a year where in discount given is upto 50% of the MRP(Maximum retail price).
Two stores, both mulitbrand and exclusive use loyalty cards to reward loyal users and encourage them to visit the store often and buy more by offering wide range for men, women and and chil childr dren en.. Some Some stor store e also also offe offerr home home furn furnis ishi hing ngs, s, accessories and footwear, thereby providing convenience conv enience for one stop stop shopp hoppiing. ng. Exam Examin inin ing g the the vari variou ous s term terms s and and cond onditi itions ons of loya loyalt lty y prog rogram ramme reve reveal ale ed that hat som some rewards were quite complex and confusing. The conditions to be fulfilled are not very clear to a card member. For examp xample le,, if any othe ther prom promot otio ion ns are are pre preval valent ent the then purchase made during those promotions would entitle for the card reward points or not was not very clear. All the stores used in store media to announce promotions. However use of mass media and electronic media varied across the sample under study. Use of only in store media would restrict the announcement to those who walk into the store store.. It can can be assu assume me that that only only loya loyal/ l/ freque frequent nt visi visitor tor would know about the offers. Whereas variety of media used woul would d enhan enhance ce footf footfall alls s to the the store store and trig trigge gerr word word of mouth. No other store has yet explored avenue of joint sales promotion. promotion. Such joint promotions have advantages in terms of sharing costs of promotions, cross selling opportunities to each other’s customers, higher visibility etc. In term terms s of type type of cons consum umer er sale sales s prom promot otio ions ns,, almo almost st everyone used discount, coupon programmes and few used lucky draws, contests, gift, and buy one get one free type of promotions. Only Pantaloons had a unique scheme of an exchange offer which is normally prevalent in durable goods industry. Relating it to a cause- donating donating old pairs collected collected in exchange scheme to charity would enhance the brand value among the customers.
Conclusion
Conclusion – Pantaloons Retail (India) Ltd is a company where it strives for lifestyle and value through its products and services. Through the study, it is observed that Pantaloons can be said an organization where the P’s of marketing is taken seri serious ously ly for for the maxi maximu mum m prof profit itab abil ilit ity y throu through gh large large range of products, promotional activities for the company through newspapers , magazines , internet ,banners and posters and a solid sales organization monitoring that the P’s P’s are are work worked ed effe effect ctiively vely.. The stor store e has has been een well well maintained in accordance with the latest demands of the consumers and through all these strategies. Pantaloons ensures repeated customer patronage.
BibliographyMarketing Management – Philip Kotler www.pantaloonretail.in http://en.wikipedia.org/wiki/Pantaloon www.pantaloon.com www.future-group.com www.riedelresearch.com/.../34_Pantaloon%20Retail%20India %20Ltd%2004Sep2008 WWW.INDIANREALTYNEWS.COM
QuestionnaireName Contact No. – Age Ag e Grou Groupp- a) 15-2 15-25y 5yrs rs above 45yrs
Gender- Male/Female b) 26-3 26-35y 5yrs rs
c)36 c)36-4 -45y 5yrs rs
d)
. Q1. Q1. Wh Whiich Retai etaill store tore is more ore comf comfor orta tabl ble e for for your your shopping(a)Pantaloons (b) Central (c) Reliance Trend (d) Globus (e) Westside Q2. Which store products/merchandise collection available is more trendy or latest? (a)Pantaloons (b) Central (c) Reliance Trend (d) Globus (e) Westside Q3. Which retail store’s coordination of staff members at more comfortable for you? (a)Pantaloons (b) Central (c) Reliance Trend (d) Globus (e) Westside Q4. From where you heard about the sale available at pantaloons store? (a)TV (b)Radio (b)Radio (c) Newspapers Newspapers (d) Hording Hording (5) others.
Q.5 Are you happy with the available offers at the store – (a)Satisfied (b) Highly Satisfied (c) Dissatisfy Q.6 you prefer to shopping with us due to(a) Attracti Attractive ve offers offers (b) High High Quality Quality (c) Variet Variety y (d) Better Assistant Q.7 on which time you prefer for shopping apparels? (a) During During offers offers (b) fresh fresh stock stock (c) on festiv festivals als (d) anytime Q.8 which store is having the best ambience in Indore? (a)Pantaloons (b) Central (c) Reliance trend (d) Globus (e) Westside
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