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ICT in Retail Sector – India ICT in Retail Sector India
July 2011

Executive Summary
 Retail sector is estimated to reach INR x tr in 20‐‐ and is expected to witness a growth CAGR of a% to reach INR y tr in 20‐‐  IT / ICT adoption in India is fast gaining popularity, wherein growing retail and trade activity is p p p y g expected to push the adoption rate by a large extent
 Cuurrently, retail sector in India spend about b% ‐ c % of the overall yearly sales on IT services

Market

 Availability of better and faster IT / ICT solutions with maximum accuracy is pushing the industry forward significantly

Technology Adoption in Retail

 Currently, adoption of IT / ICT in retail sector is estimated at INR z bn of the overall IT / ICT Currently, adoption of IT / ICT in retail sector is estimated at INR z bn of the overall IT / ICT industry in India  Growing trade and retail activities is resulting in the need for line of business specific applications aimed at catering to the specific needs of the sector p y pp y  Cost component, flexibility and customization of applications are the key selection criteria amongst retailers for the selection of IT / ICT tools and services  Cloud computing plays a major role in the enhancement of operational procedures of retailing wherein data and information are transmitted on a real time basis thereby facilitating faster decision making  It is predominantly implemented in the fields of supply chain management, inventory management and sales analysis  Lesser cost component involved stimulates the acceptance of cloud computing amongst retailers Major Foreign Players ajo o e g aye s
Player 1 Player 2 Player 3

Role of Cloud in Retail i R t il

Competition ii

Major Domestic Players ajo o est c aye s
Player 4

ICT IN RETAIL INDUSTRY ‐ INDIA 2011.PPT

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• Retail Sector ‐ Overview
 Drivers & Challenges  SMBs in Retail

• ICT Adoption in Retail
 Factors Influencing ICT Adoption Factors Influencing ICT Adoption  ICT Solutions and Selection Criteria Vendor Opportunity  Vendor Opportunity

• Role of Cloud in Retail j • Major ICT Vendors
 Some Recently Launched Solutions

• Case Studies • Appendix – Retail Players Profiles
ICT IN RETAIL INDUSTRY ‐ INDIA 2011.PPT

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Indian retail sector provides a significant boost to the economic growth of the nation
Retail Sector ‐ Overview
• Retail sector in India plays a crucial role in the economic development and provides a tremendous boost to the country s GDP boost to the country’s GDP
 It accounts for a% of the country’s GDP and around b% of employment in India

Growth and Size – Retail sector
INR tr INR tr
30 20 10 0

f a b c d

e

• Market for retail sector in India was estimated at INR w tr in 20‐‐ and is expected to grow at a CAGR of b% to reach INR y tr by 20‐‐ to reach INR y tr by 20‐‐ • Unorganized segment accounts for c%, while the organized segment accounts for only d% of the overall sector • Factors such as increasing disposable income and easy availability of credit is fueling the growth of the l bl f d f l h h f h sector • Retail sector is witnessing a stiff competition and players are innovating and coming up with better and enhanced services and offerings at par with international standards • Growing competition and globalization of retailing has led to the adoption of IT in the sector
 Players have incorporated IT in the areas of supply chain management, vendor development, merchandising and inventory management
Source: x

2010

2011e

2012e

2013e

2014e

Market Segmentation(20‐‐) abc K% L% I% H% M% J% N% O% G% def efg hij klm nop qrs tuv wxyz

ICT IN RETAIL INDUSTRY ‐ INDIA 2011.PPT

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Currently, a growing tendency of IT implementation is prevailing in the retail sector…
IT in Retail – Overview (x/x)
• Rapid growth in retail activities and increasing consumer base is resulting in an increased amount of daily transactions, thereby forcing retail players to implement IT services
 Automation of various operations such as: inventory management, supply chain management and billing systems with the aide of IT Automation of various operations such as: inventory management, supply chain management and billing systems with the aide of IT services enhances the efficiency and accuracy of retailing thereby raising productivity and revenue generation by a large extent

• Currently, IT implementation of retailers is and following an upward curve. IT spent amongst retailers is estimated at a% ‐b% of their total annual sales in 20‐‐
 IT adoption in retail sector is estimated to be valued at INR a bn in 20‐‐

• Ongoing competition and the emergence of better and superior quality services amongst retailers is expected to boost the share of IT spending further, in India h h f di f h i di
 Annual IT spending of Indian retailers is expected to increase to reach e‐f% as compared to the global average spend of g%

IT Spending Pattern ‐ Retail Sector
Retailer Type Type 1 Type 2 Type 3 x y z Description Format Retail Players Player 1, Player 2, Player 3 Player 4 Player 5 Solutions

Share of Retail Sector ‐ IT industry (20‐‐) xxx zzz O%

Solution 1 Solution 2 Solution 3 P%

Source: x ICT IN RETAIL INDUSTRY ‐ INDIA 2011.PPT

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…which is resulting in the emergence of various retail specific IT / ICT solutions
IT in Retail – Overview (x/x)
• Growing consumer base and rapid expansion of retail outlets is resulting in an increased demand for IT services wherein retailers require IT setup to facilitate a smooth and efficient operation • Some of the IT / ICT solutions used by retailers which are intended to facilitate faster and accurate retail operations in the current competitive market scenario can be illustrated as below:

SAMPLE
Solution 2 Solution 6

Widely Used IT / ICT Solutions ‐ Retailers

Solution 1

Solution 3

Solution 4

Solution 5

Solution 7

Solution 8

Solution 9

Solution 10

Source: x ICT IN RETAIL INDUSTRY ‐ INDIA 2011.PPT

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Key Drivers & Challenges – Summary

Drivers
Increased Operational Efficiency Favorable Demographics Government Initiatives Availability of Skilled Manpower

Challenges
High Cost

ICT IN RETAIL INDUSTRY ‐ INDIA 2011.PPT

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G and H stand out as the most valuable solutions for retail sector based on their popularity & availability
High Popul larity of Solution ns amongst Retai il Players

H G E D F B A C I J

Low

Availability of Solutions

High

• • •

Demand & supply of A is the highest B & C, despite of having demand, are lowest in availability •Demand for ERP has fallen recently but the supply •Demand & supply of POS is the highest D installation requires extensive investment and has longer installation time with low immediate ROI which reduces remains moderate. •BI & PMS, despite of having more demand, is p the attractiveness, thereby resulting in lower popularity amongst retailers , y g p y g •Newer technologies such as RFID are in moderate •Newer technologies such as RFID are in moderate lowest in availability lowest in availability • Newer technologies such as E are in moderate demand & supply demand & supply
Source: X ICT IN RETAIL INDUSTRY ‐ INDIA 2011.PPT

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Key IT / ICT Vendors – Retail Solutions (x/x)
Key Solution Providers Player 1 Player 2 Player 2 Player 3 Player 4 Player 5 Player 6 Player 7 Player 8 Player 9 Player 9 Player 10 Player 11 Player 12 Player 13 Player 14 Player 15 Player 16 Player 16
Source: x

Solutions a b c ‐ ‐ ‐ ‐ ‐ d e ‐ ‐ ‐ f ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ g h ‐ i ‐ ‐ ‐ ‐ ‐


‐ ‐ ‐ ‐ ‐


‐ ‐ ‐ ‐


‐ ‐ ‐ ‐


‐ ‐ ‐ ‐

 



‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐


‐ ‐ ‐ ‐ ‐




 
‐ ‐ ‐ ‐ ‐ ‐ ‐

 
‐ ‐

  


  



‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐


‐ ‐ ‐




 


 
‐ ‐


‐ ‐ ‐


‐ ‐ ‐ ‐ ‐


‐ ‐


‐ ‐ ‐





‐ ‐




SAMPLE S
 
ICT IN RETAIL INDUSTRY ‐ INDIA 2011.PPT

 

 




 


9

Domestic Players in the Market (y/y)
Company Snapshot: Player A
Corporate Information
Headquarters Industry Classification Founded Key People State, Country State Country
INR bn

Financial Performance
Total Revenue Net Profit
6.7 5.6 3.0 7.5

INR bn
1.0 0.5 05 0.0

Product X 19‐‐ x – x

8 6 4 2 0

Business Highlights g g

2008

2009

2010

2011

• Player A, Enterprise IT infrastructure management services provider, has launched cloud computing management and security services for large enterprises • It will help large enterprises and hosting service providers to easily deploy and manage business critical applications on the cloud with new levels of automation, control, portability and security • Built over the existing Enterprise Virtualization Management platform, it will help enterprises tap the power of cloud computing for scalable, cost effective IT infrastructure on demand, while maintaining complete control and flexibility

Source: x

Note: All figures for respective financial year ending 31st March ICT IN RETAIL INDUSTRY ‐ INDIA 2011.PPT

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Some recently launched retail solutions by IT / ICT vendors (1/2)
Vendor xyz Solution Name Solution Name abc123 Category A xxx

SAMPLE
Description

Vendor abc Solution Name XYZ321 Category B,C
Source: x

Description

yyy

ICT IN RETAIL INDUSTRY ‐ INDIA 2011.PPT

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Case Study x
Retailer abcd Project Cost INR a mn ICT Vendor ZXYW

Case: Implementation of ERP from SAP
Requirements Solution Benefit

• x •y

•1 •2 •3

•S

Technology Used
A, A1,B12
Source: x ICT IN RETAIL INDUSTRY ‐ INDIA 2011.PPT

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Retail Player Insights (x/x)

SAMPLE
Player X
•Solution c • Solution f

Key Applications used Key Applications used
•Solution a •Solution d •Solution b • Solution e

Key Contacts
Mr. XX
Designation:XX Ph: XX Professional History XX

Mr. XX
Designation:XX Ph: XX Professional History XX

Mr. XX.
Designation:XX Ph: XX Professional History XX

Other XX

Other XX

Other XX

ICT IN RETAIL INDUSTRY ‐ INDIA 2011.PPT

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