Shopper's Stop Limited - Securities and Exchange Board of India

Exposure to international trends
• Domestic outbound tourists – raised aspirations: Around 4 million Indians traveled abroad in
2003. In addition, over 200,000 Indians are currently engaged overseas in “white collar” employment
positions in various sectors such as IT, Banking & Financial Services, and Management & Project
Consulting (source: KSA Technopak). This international exposure is facilitating creation of
awareness of modern shopping formats and also leading to change in consumer expectations from
the providers of shopping options in India.
• Inbound tourists, shopping: There is a large Indian 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 looking for shopping here seek similar products at lower costs in a similar environment.
• Impact of globalisation – Globalisation has removed trade barriers and promoted consumerism.
Over the last decade, there has been an increase in branded goods – both domestic and
international – in the Indian market across product categories. Both width and depth of product
offering to the Indian consumers is increasing.
Growth in consumption
The changes in demographics are driving changes in consumption pattern in the country. Central
Statistical Organisation (CSO) estimates private final consumption of consumers in India at about
Rs.15,000 bn in FY02.
Private final consumption in India
Transport &
communication
13%
Medical care &
health services
8%
Furniture,
appliances &
services
3%
Recreation,
education &
cultural
4%
Gross rent, fuel &
power
11%
Others
9% Slice 9
0%
34
Clothing &
footwear
4%
Source: The Marketing Whitebook 2003-04, brought out by Businessworld
Urban consumer’s shopping basket is changing
Food, beverages &
tobacco
48%
Within the overall private final consumption expenditure there are category shifts happening in urban
consumption pattern. A study by KSA Technopak shows that urban consumers have increased their
expenditure on eating out, movies and theatre, books and music, clothing and personal care items even
as they have reduced savings and investments. Consumption has been given a further boost by a
significant increase in offtake of personal credit from an estimated Rs 500 bn in 2000 to about Rs 1,600
bn in 2003 (source: KSA Technopak).