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

Urban consumers spend (%)
Categories 1999 2002
Home appliances 3.0 1.1
Home textile 1.0 1.4
Saving & Investment 14.0 5.2
Clothing 5.0 6.6
Consumer durables 6.0 3.9
Vacation 4.0 3.4
Eating out 8.0 12.2
Footwear 1.0 2.5
Movies & Theatre 1.0 3.8
Entertainment 3.0 3.0
Books & Music 5.0 6.7
Grocery 43.0 41.4
Personal care items 6.0 8.8
Source: KSA Technopak
Overview of Retailing in India
Of the total private consumption that is estimated at Rs 15,000 bn, the retail sector accounts for about
60% at Rs 8,570 bn (source: Images Retail). Of this, food and beverages, apparel and consumer
durables are the top three categories of consumer spend and form 87% of the total retail sales in India.
Category-wise retail sales in FY 2002
(Rs. bn) Total Branded Organised retail
Food, Grocery and Tobacco 6,500 250 20
Clothing & textiles 600 120 50
Home Décor & Furnishing 250 10 5
Consumer Durables 350 180 15
Footwear 85 35 18
Jewelry and watches 350 50 25
Beauty Care 180 35 2
Books, Music & Gifts 75 35 5
Pharmacies 180 170 3
Total
Source: Images Retail
8,570 885 143
Food retailing
Food, grocery and tobacco, the largest category of personal consumption, is also the biggest retailing
segment in the Indian economy, and accounted for 73% of total retail sales in the country in FY02. Food
products are dispensed through formats ranging from Kirana (small corner shops) to supermarkets.
Clothing & Textiles retailing
This category accounts for about 7% of total private consumption of Indian consumers, of which branded
is around 20%. This presents one of the largest opportunities for organised retailers. The current retail
market is highly fragmented with several thousands of independent textile and clothing stores operating
across the country.
Consumer durable retailing
The consumer durables market is 4% of total retail sales in size. Product standardisation led to the
consumer durables category being tapped early by organised retailers. KSA Technopak estimates that
this market is likely to expand at a faster pace than many other categories at 12% - 15% per year for the
next 4-5 years, with increasing convergence of consumer durables, consumer electronics, and IT &
communication products driving growth.
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