Retail OS - Delivering the Omnichannel Experience.pptx
Pantaloons Retail Chain Analysis
1. PRESENTED BY : DEEPAK VARGHESE M-14-02
DIXON DOMINIC PALETT M-14-04
ISHAN PARASHAR M-14-06
SOHAM DAS M-14-16
2. ABOUT PANTALOONS
Pantaloons Fashion & Retail Limited - Indian premium clothing retail chain.
First store - Gariahat - Kolkata -1997.
Previously controlled by the Future Group, now Aditya Birla Nuvo Limited (ABNL).
104 stores across 49 cities.
Retail space - 2.3 million square feet - amongst the largest in India.
200 brands including 14 exclusive brands.
53000+ employees.
‘India’s Most Trusted Apparel Retail Brand’ - Brand Equity Survey 2014.
listed in both BSE and NSE.
4. STRATEGY
Increasing reach and penetration across the country by opening new
stores.
Rejuvenate the brand ‘Pantaloons’ , and enhancing customers’
shopping experience.
Augment its merchandise width by adding new product categories and
new brands; and depth by refreshed merchandise and design with
variety of options; and thereby enriching the brand portfolio and
delivering value to the customers.
Continuous endeavor to enhance the base of loyal customers through
loyalty programs
Focus on leveraging the operating efficiency and human capital -
critical in any consumer facing and service driven industry.
Well-defined process for an on-going management reporting and
periodic review of operations ; ensure effective decision-making.
To ensure employee development and growth, training and
development of the front end store staff, identifying leadership and
key talent across the organization and executing individual
development plans.
CUSTOMER REACH
6. RETAINING CUSTOMERS
The Pantaloons Payback Greencard - unique loyalty program - To enhance customer experience.
Over 4 million members - discounts, points and special privileges at all Pantaloons stores.
4 tiers depending on the year's shopping : Card upgrades with increasing privileges and discounts.
Benefits
Discounts
Payback points
Complimentary parking
Complimentary home drop of altered garments
Relaxed exchange policy
Complimentary shipping across India
Exclusive sale preview
Exclusive billing counters
Assisted shopping among others.
8. DRIVING FACTORS
However, growth prospects of the organised Apparel and Fashion retail
market remain bright, driven by the following factors:
growing middle class population (15% in 2008 expected to reach 46%
in 2030);
large young population with median age at 27 years;
rising disposable income;
increasing urbanization;
growing number of working women and
changing consumer preferences towards branded products and a
better shopping experience.
9. INDIAN RETAIL MARKET
The size of the Indian retail market at USD 0.5 trillion in 2012 is
expected to grow at a CAGR of 12.7% to reach USD 1.3 trillion by
2020. Rising income levels and preference towards quality products
are likely to drive consumption expenditure in India. One of the
biggest beneficiaries of this growth will be the organizing retailing
sector which is projected to grow at a robust CAGR of 30% from USD
27 billion in 2012 to USD 220 billion by 2020 and substantially
increase its share from 8% in 2012 to 20% by 2020. At about 60%,
food and grocery segment is the highest contributor to the Indian
retail market followed by the clothing and fashion segment which
contributes 8%. While unorganized retailing accounts for the most
of the food and grocery segment, penetration of the organized
sector is highest in the clothing and fashion segment at 33%.
11. ACCQUISITION BY ADITYA BIRLA GROUP
Pantaloons, previously controlled by the Future Group, has been
taken over by Aditya Birla Nuvo Limited in 2013, a US $4 billion
premium diversified conglomerate and India's largest manufacturer
of linen fabric.
Its present stock prices are: Rs 223.30 in BSE and Rs 223.80 in NSE.
Pantaloon stock had risen 45.22% after the govt. allowed FDI in
multi-brand retail.
Its stock price picked a 52-week high to Rs 234.05 on November
2011.
15. FINANCIAL HIGHLIGHTS
ABNL is a US$ 4 billion conglomerate by revenue size. It is part of the Aditya Birla Group,
a US$ 41 billion Indian multinational.
It has a market cap of US $ 3.5 billion as on 30th September 2014.
In fiscal 2013-14, Pantaloons attained revenue of Rs. 1,661 Crore.
EBIDTA at Rs. 39 Crore was affected by low sales growth, as well as increase in people
costs to rebuild the organization.
17. RISK AND THREATS
Changing consumer preferences.
Attracting and retaining talent.
High fixed cost structure.
Slowdown in Indian economy.
Dependence on real-estate.
Intensifying competition.