Globus Project

7/31/2019 Globus Project

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` PREFACE

Preparing a project of this nature is an arduous

task and I was fortunate enough to get support from alarge number o persons. I wish to express my deep

sense of gratitude to all those who generously helped

in successful completion of this report by sharing their

invaluable time and knowledge.

It is my proud and previledge to express my deep

regards to Respected HOD Dr.Pramesh

Gautam,Head of Department of Business

Management , SWAMI VIVEKANAND INSTITUTE OF

TECHNOLOGY, SAGAR for allowing me to undertake

this project.

I feel extremely exhilarated to have completed

this project under the able and inspiring guidance of

Mr. Ankur Gautam she rendered me all possible help

me guidance while reviewing the manuscript in

finalising the report.

I also extend my deep regards to my teachers ,

family members , friends and all those whose

encouragement has infused courage in me to

complete to work successfully.


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Ashish Kumar Singh

B.B.A. III SEM.

ACKNOWLEDGEMENT

Preparing a project of this nature is an arduous task

and I was fortunate enough to get support from a large

number o persons. I wish to express my deep sense of

gratitude to all those who generously helped in successful

completion of this report by sharing their invaluable time

and knowledge.

It is my proud and previledge to express my deep

regards to Respected , Head of DepartmentDr.Pramesh

Gautam, Department of Business Management , SWAMI

VIVEKANAND INSTITUTE OF TECHNOLOGY SAGAR for

allowing me to undertake this project.

I feel extremely exhilarated to have completed this

project under the able and inspiring guidance of He rendered

me all possible help me guidance while reviewing the

manuscript in finalising the report.

I also extend my deep regards to my teachers , family

members , friends and all those whose encouragement has

infused courage in me to complete to work successfully.


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CERTIFICATE

The project report titled " A STUDY ONMARKET SHARE OF GLOBUS " been prepared byASHISH

KUMAR SNGH BBA III Semester , under the guidance

and supervision of Miss ANKUR GAUTAM for the partial

fulfillment of the Degree of B.B.A.

Signature of the Signature of the Signature of the

Supervisor Head of the

Department

Examiner


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CONTENTS

S.No. Particulars Page No.

Part one : Introduction

Part two : Company Profile

Part three : Group Companies

Part four : Sector Synopsis

Part five : Major Industry

Contributors

Part six : Retail Format

Part seven : Company Outlets

Part eight : Product Offerings

Part nine : Channel of Distribution

Part ten : Company Strategies


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Part ten : Future Plan

INTRODUCTION

HISTORY

Launched in January 1998, is part of the Rajan Raheja group. The company

opened its first store at Indore in 1999, followed by the launch of its second

store in Chennai (T-Nagar). Soon to follow was another store in Chennai

located in Adyar. The flagship store was opened on 1st November 2001 in

Mumbai, followed by a vibrant store in New Delhi. Subsequently, its stores

were launched in Bangalore, Ghaziabad, Kanpur, Ahmedabad, Noida,

Lucknow, Varanasi and Hyderabad.

The sixth & seventh stores opened in Bangalore in Koramangala &

Richmond Road respectively. The eighth store opened in Ghaziabad at

Shipra Mall and was followed by the ninth at Kalaghoda in Mumbai; tenth in

Thane and eleventh in Ghaziabad. The twelfth, thirteenth, fourteenth stores

opened in Kanpur, Ahmedabad and Lucknow respectively.

As of May 2008, has opened its 24th Store in Nagpur. Stores Pvt. Ltd. was

formed to contribute in the revolution sweeping the retail industry. promises

to bring about a perceptible change in the way apparel and lifestyle retailinghas been carried so far. Recently has opened its Store in Indore, Aurangabad

and the journey continues...

Stores Pvt Limited

"Rahejas", Corner of Main Avenue and V.P. Road,


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Santacruz (West), Mumbai - 400 054

Tel: 26058731 / 32 / 33

E-mail: [email protected]

Web URL: www..in

The organization has an innovative and adaptive environment. has achieved

customer delight by presenting value products and services through

continuous improvement. It has a team of dedicated and passionate

employees maintained by constant training.

has developed long lasting relationships with its business partners. It

employs the best practices of the industry through cost analysis. It has

brought about a veritable revolution in the retail industry through its constant

efforts and innovation in apparels. It has been a benchmark for many

upcoming retailers. It has brought about an important change in the industry

and has distinguished itself from others. has acquired the best processes and

procedures in various fields, such as Marketing & Brand Development,

Research & Design, Human Resources, Services, Administering Policies &

Procedures and Production & Merchandising. It has blended its resources of

technology and people in such a way as to get a competitive advantage over

others.
mailto:[email protected]:[email protected]


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Mission

Achieve customer delight by offering quality products and services

through a process of continuous innovation and adaptation.

Build a dynamic team of committed and passionate employees

through sustained learning and grooming.

Develop mutually beneficial relationships with our business partners.

Employ cost-effective processes and thereby create a strong

organization.

INFRASTRUCTURE

Stores Pvt. Ltd. was formed to contribute to the revolution sweeping the

Indian retail industry. 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 investing and acquiring the best, tried and tested

processes and procedures of operation.

FUTURE

combines state-of-the-art international information technology, the highest

quality of human resources and sustained financial commitment to realize its


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long term vision. We are rapidly expanding and our target is to have an

additional 100 fashion stores by the end of 2012.

ABOUT GLOBUS GROUP

is an Apparel Retailing arm of Rajan Raheja Group, a group which has a

market experience of about 3 decades, turnover of Rs. 86 billion and about

19000 employees.

There are more interesting fact which can add your interest in the Group as

you came to know that this is the same group which has its hand in few very

famous brand name in different sector like Exide batteries, Outlook

publishing House, Prism Cement, Asianet cable Channel and many more.

Beside this they also have stake in many famous upcoming big retailing

projects with Big Retailer like Dairy Farm Int. as their partner.

The Rajan Raheja Group is led by Mr. Rajan Raheja, a renowned

businessman involved in the Real Estate Development business for over 3

decades. The company diversified into manufacturing and financial services

over the last two decades.

The emphasis is on setting up focused companies, which aim to be profitable

leaders in their respective fields with a long term outlook. All Group

Companies are professionally managed by independent CEOs. Most of the

Group Companies has a leading position in Market share, Technology,

Brand, Distribution or Profitability. The Rajan Raheja Group is a


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Strategic/Financial partner in many of the businesses where it has

management control.

Highlights:

Total Turnover: Over Rs. 86 billion ($ 2.1 billion)

Total Capital Employed: Over Rs. 57 billion ($ 1.4 billion)

Total Employees: 19,000

PrivilegeClub

Welcome to Privilege Club, a place where the customer comes first and

customer delight is a priority. At , we believe that shopping should not just

be a pleasant experience but also a rewarding one, which is why we have the

Privilege Club. The club is a token of appreciation to valued customers like

you. The Privilege Club card is as much a reflection of your good taste, as it

is a gateway to exclusive privileges.

PRIVILEGE CARD

A one-time purchase of Rs. 500 gives you access to the Privilege Club

through the Temporary card. Accumulate purchases worth Rs. 2,000 in

three months and get the most sought-after Silver Card.

For those in a hurry, the Silver Card can also be obtained by paying a

nominal fee of Rs. 150

GOLD CARD


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Make a distinctive statement with The Gold Card. You can upgrade to Gold

Card by accumulating shopping worth Rs. 15,000 in a year and get truly

Exclusive Benefits and Privileges.

CARD REWARDS AND PRIVILEGES

With Privilege Club earning rewards is simple and easy. As you accumulate

purchases you will earn Gift Vouchers (GV)

RENEWAL OF PRIVILEGE CLUB MEMBERSHIP

Cumulative PurchasePurchase of goods worth

(Rs.)

5,000/- GV worth 100/-

10,000/- GV worth 100/-

15,000/- GV worth 150/-

25,000/- GV worth 300/-

50,000/- GV worth 650/-

1,00,000/- GV worth 2000/-


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CardsPurchase of goods

worth (Rs.)

Validity

(Months)Automatic renewal on

Temporary 500 3

Upgrade to Silver Card on

cumulative purchase of

`2,000 in 3 months

Silver 2,000 24Cumulative purchase of

`10,000 in 24 months

Silver 15,000 12Cumulative purchase of

`15,000 in 12 months

PRIVILEGES AT A GLANCE

Privileges Silver Card Gold Card

Validity at all Stores Yes Yes

New product launch privileges Yes Yes

Birthday Discount Yes YesExclusive shopping day for end of season sale Yes Yes

Regular Updates: Sale & In Store Promotion Yes Yes

Automatic membership renewal Yes Yes

Special tie-ups* Yes Yes

Free home delivery of altered merchandise Yes

Reserved car parking* Yes

Special counters* Yes

Complimentary soft drinks* Yes

Free card in case of loss/damage Yes


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REMEMBER: CARD USAGE NORMS

Validate your card by signing on the reverse as soon as it is received.

Usage of the card indicates acceptance of terms and conditions of the

Privilege Club Membership.

Flash your Privilege Club card for availing of benefits at or our

program partners.

Privilege Club Cards are not Credit Cards and remain the property ofat all times and must be produced/ returned on request.

All rights to ownership and usage of the Card rest with . Report loss

of Card at our Customer Service Desk. Duplicate Cards will be issued

at a nominal cost of 100

Inform of any change in your address/ telephone numbers/e-mail at

the Customer Service Desk.

CONDITIONS

Privilege Club membership is open to individuals above 18 years of

age.

In case the applicant fails to achieve the required purchases within the

validity period, the total purchases will not be carried forward to the

next period.

reserved the right to refuse Privilege Club membership to any

applicant without assigning any reason.


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Usage of the Privilege Club Cards indicates the acceptance of all the

terms and conditions, which are subject to revision from time to time

by .

Privilege Club Cards are non-transferable and can be used only by the

member whose signature appears on the signature panel on the reverse

of the card.

Any employee has the right to verify members signature and to

ascertain the identity of the member. Benefits may be refused and the

card be taken back if a non-member is found using the card.

reserves the right to revise the terms and conditions as well as therules and regulations of this programme without prior notice.

Benefits available through programme partners may change from time

to time or be withdrawn without prior intimation. will not be

responsible for any liabilities arising from such situations or from use

of such offers. It is advisable to check with our programme partners,

validity of the scheme prior to participating in the same.

reserves the right to use the Privilege Club membership data for the

purpose of marketing or communication for enhancement of the

programme.

Any disputes arising under this programme are subject to Mumbai

Jurisdiction.

Gift Vouchers

Make gifting simple with . Gift your near and dear ones a gift voucher,

available in many flexible denominations. When you give someone Gift

Vouchers you give them exactly what they want. When it comes to


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birthdays, anniversaries and special celebrations, this is one gift that's

guaranteed to please.

Gift Vouchers are redeemable against any purchase made in the store. There

is no charge/tax on purchase of gift vouchers. For instance; if you want to

buy gift vouchers for Rs.1001, you need to tender Rs.1001 only and you can

buy anything worth Rs.1001 from any store.

Gift Vouchers are available in denominations of Rs.101, Rs.251, Rs.501 &

Rs.1001. However, you can also decide on your own denomination. Just

contact the service desk at any Stores and give the most thoughtful gift of

all.

Each one of us at aspires and strives for only one result - Your Delight. So

we would like to know how we are doing.

BRANDS

Youth Fashion Brand

aspires to be the iconic youth fashion brand in the country. is a completefashion brand its the apparel brand and the destination brand. Three words

which capture the spirit of the youth vibrant, maverick and expressive. is

exactly thatour vibrant and maverick designs are not just setting fashion

trends but more importantly helping our customers express themselves.

The entire fashion range comprises of apparel for men, women, kids and

accessories at amazing prices. The range spans across usage occasions work wear, campus wear, club and lounge dressing and genres Western,

Indian and mix-n-match. A well researched sizing

ensures a good fit for the Indian silhouettes.

Eye candy fashion


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F21 is an accessible hi-fashion brand, offering high-quality apparel. F21

the edgy fashion brand - is designed to appeal to the more experimentative

and adventurous consumers who seek cutting edge fashion. Styling and

fabric innovations help F21 offer high end fashion at prices which are

affordable for the young consumers. From everyday casual occasions to

clubwear, F21 promises consumers attention unlimited.

The Design Hub

The heart of our business lies in this creative workplace of our organization

named Design Hub. It has been recently launched in July07 in Andheri-

Mumbai and is at its early stages to becoming the leading design talent floor.

It is the most well equipped design studio in India in current times.

is on a mission to revolutionize fashion and become an iconic youth fashion

brand in India. We aim at creating a deep connection with the Indian youth

with inspiring product designs, signature store experiences and compelling

marketing.

will undoubtedly bring unique fashion products; spawn haute trends and

provide powerful inspiration to its young customers to experiment further

and make individual style statements. Energized by this mission, a dynamic

team of passionate employees and business partners is constantly evolving

and innovating with a view to delight the consumer.

FASHION .BE !

is one of the leading companies in the Indian Fashion Retail industry, one of

the most flourishing sectors in the current Indian economic scenario. Today,

is present in 27 locations around the country. We are committed to a long

term vision of bringing an international shopping experience to all of urban


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India. aims to be a company that delivers consistent value to customers and

exceed expectations.

Of course, we believe that this would not be possible without the hard work,

dedication and talent of our employees. We provide our employees with

Not just a job, but the chance to build and advance a lifelong career

At , we are looking for professionals with high intelligence, a quest for

knowledge and a burning desire to be amongst the best!

STORES CHALKS OUT RS 800-CR EXPANSION PLAN

Mumbai, Aug 27 :Fashion apparel retailing major Stores Pvt Ltd, a part of

the $1.5 billion Rajan Raheja Group, is on an expansion mode. The company

is planning to increase stores presence from 19 to 152 locations - spread

across 70 cities by 2012 - on a lease model. Vice-chairman Akshay Raheja

told FE, We are planning to invest Rs 800 crore, which will be sourced

from debt, equity and internal accruals. We hope to grow our real estate

space from 2 lakh sq ft to 1.6 million sq ft by 2012. Besides, we are planning

to start online sales for our apparels by launching a new e-commerce website

soon.

plans to set up its fashion apparel retail stores in Ludhiana, Faridabad, Vashi

(in Navi Mumbai), Nagpur, Vasant Kunj (in Delhi), Muradabad,

Jamshedpur, Kolkata, Pune and Jabalpur. According to Vinay Nadkarni,

CEO, , While the rental prices in Tier I cities is 65% of the total sales, it is

45% less in Tier II cities and even lesser at 35% in Tier III cities. As part of


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an emerging trend, the rental prices in these locations are expected to rise

further and hence it is the right time to focus on Tier II and Tier III cities for

expansion.

Besides, Stores is planning to foray into retailing of new product categories

such as footwear and sunglasses, which will be retailed under private label

brand through our stores. We are currently in talks with third party

manufacturers in order to enter into tie-ups for sourcing these products from

them, Nadkarni added.

The company has signed Bollywood actress Kareena Kapoor as a brand

ambassador on a two-year contract. Raheja said, We will invest 6-7% of

our overall sales turnover in launching new advertising campaigns. With our

new expansion plans on the anvil, we hope to grow our topline from Rs 145

crore as on March 2007 to Rs 1,700 crore by the 2012 end.

partners with Tata to open Wine Outlets

Wines has partnered with Tata's Star Bazaar to open its first store at

Dahisar, Mumbai. As per the arrangement, selects the wines and manages

the store too. has plans to open 75 more wine stores in the next two years.

They launched Miazma nine months ago and is distributing those wines

nationally.

Spread across 300 square feet, the Dahisar store will stock almost all major

wine and beer brands present in the country, including the company-owned

wine brand Miazma.


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WORKING HARD AT SOFT SELLING

Nothing these days sells without some sort of a promotional strategy backingit. From consumer durables to perishables to services to everything, there is

marketing promotion in some form happening all the time. With the fast

pace of life that everyone today shakes their head at, but is still loath to

change, the momentum of change has been steadily increasing. Every trick

in the book is being explored, tried and tested ones as well as daring and

innovative ones. Unlikely collaborations are experimented with, and what's

more, found to be coming up trumps, nevertheless.

PROMOTIONS IN THE RETAIL INDUSTRY

In the retail industry, with the advent of large players like Shoppers' Stop

and Pyramid earlier, and Lifestyle and more recently, the race has been to

retain customer base. Thus loyalty programmes for members were born. And

to keep up the enticement, new value additions are constantly sought and

implemented.

- adding on privileges

The Privilege Club card, based on the concept of instant gratification has

ensured 100% card to benefit ratio. Members are immediately rewarded for

purchases at any of the stores, in addition to a host of other privileges such

as exclusive tie ups, promotions and special shopping hours. offers two

different card categories, each with it own benefits. A shopper gets a

Privilege card on p urchase of merchandise worth over Rs. 2000/- and a


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Gold Card Membership on purchases worth Rs. 15000/-. But these

purchases can be spread across the first 3 months of the first purchase at .

Benefits include invites to specially arranged events, new product launch

privileges, like getting to check out and buy new products before anyone

else, exclusive shopping hours like special hours during festive seasons and

other occasions, exclusive offers on national and multinational brands and

services available at . Discount offers and privileges at other leading outlets

also can be availed of as part of the benefits of tie-ups.

Some promotional offers

A free holiday package of 2 nights and 3 days on purchase of goods

worth Rs 5000/-

A 4 night, 5-day free holiday package on purchase totalling Rs

10000/- and above.

For the above offers, where free stay extends to a couple and a child below 2

years, 22 national and 4 international destinations are up for grabs.

Targeting youth in a big way, has specific promos like Fashion remix, Pizza

hut offer etc. The former, conducted recently at all retail stores in the

country was very successful. The promotion allowed participants to join the

grooming sessions by leading industry specialists. It also included free tips

and vouchers from Dr. Batra's, Gold Gym, Anjali Mukherji's Health Total to

name a few, etc. They were given expert advice on personality, hair styling,

skin care and clothes. Fashion consultants helped them on fashion wear and

sartorial etiquette.


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also organises Rampage, a fashion show to showcase the chain's latest

apparel range.

Advertising the promotion

Youth being the target focus, uses the Internet and website very effectively

for all the campaigns as it has always generated a good response. also

actively participates in promotional tie-ups with the colleges for various

events through out the year. The mega store is also exploring the idea of

using music channels in the near future. ' extensive use of all kinds of media

to communicate its message effectively has included print, hoardings, radio,

magazines and other promotional activities that are implemented from time

to time in all the stores.

COMPANY PROFILE


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Globus (India) Limited, is Indias 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 7

million square feet of retail space, has over 1000 stores across 51 cities in

India and employs over 25,000 people.

The companys leading formats include Globuss, a chain of fashion outlets,

Big Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a

supermarket chain, blends the look, touch and feel of Indian bazaars with

aspects of modern retail like choice, convenience and quality and Central, a

chain of seamless destination malls. Some of its other formats include, Depot,

Shoe Factory, Brand Factory, Blue Sky, Fashion Station, aLL, Top 10,

mbazaar and Star and Sitara. The company also operates an online portal,

futurebazaar.com.

A subsidiary company, Home Solutions Retail (India) Limited, operates

Home Town, a large-format home solutions store, Collection i, selling home

furniture products and E-Zone focused on catering to the consumer

electronics segment.

Globus was recently awarded the International Retailer of the Year 2007 by

the US-based National Retail Federation (NRF) and the Emerging Market

Retailer of the Year 2007 at the World Retail Congress held in Barcelona.

Globus is the flagship company of Future Group, a business group catering tothe entire Indian consumption space.

GROUP COMPANIES


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Future the word which signifies optimism, growth, achievement,

strength, beauty, rewards and perfection. Future encourages us to explore

areas yet unexplored, write rules yet unwritten; create new opportunities

and 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 is one of the countrys leading business groups present in

retail, asset management, consumer finance, insurance, retail media, retail

spaces and logistics. The groups flagship company, Globus (India)

Limited operates over 7 million square feet of retail space, has over 1000

stores across 53 cities in India and employs over 25,000 people. Some of

its leading retail formats include, Globuss, Big Bazaar, Central, Food

Bazaar, Home Town, eZone, Depot, Future Money and online retail

format, futurebazaar.com.

Future Group companies includes, Future Capital Holdings, Future

Generali India Indus League Clothing and Galaxy Entertainment that

manages Sports Bar, Brew Bar and Bowling Co. Future Capital Holdings,

the groups financial arm, focuses on asset management and consumer

credit. It manages assets worth over $1 billion that are being invested in

developing retail real estate and consumer-related brands and hotels.

The groups joint venture partners include Italian insurance major,

Generali, French retailer ETAM group, US-based stationary productsretailer, Staples Inc and UK-based Lee Cooper and India-based

Talwalkars, Blue Food and liberty shoes.

BOARD OF DIRECTOR


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Mr. Kishore Biyani Mr. S Doreswamy

Managing director Director

Mr. Gopikishan Biyani Mr. Darlie Koshy

Wholetime Director Director

Mr. Rakesh Biyani Mr. Anil Harish

Wholetime Director Director

Mr. Shailesh Haribhakti Ms. Anju Podda

Director Director

Ms. Bala Deshpande Mr. Ved Prakash Arya

Director Director

FOUNDER: Mr. Kishore Biyani

GROWTH OF ORGANISED IN INDIA


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The total retail sector in India is estimated at around USD 320 billion.

Estimated organized retail in India to reach 12% to 13% of the total retailmarket by 2010 with sales of Rs 1700-1800 billion.

According to this years Global Retail Development Index India is

positioned as the leading destination for retail investment. This followed

from the saturation in western retail markets and we find big westernretailers like Wal-mart and Tesco entering into Indian market. Indias

retail industry accounts for 10 percent of its GDP and 8 percent of the

employment to reach $17 billion by 2010. There are about 300 new

malls, 1,500 supermarkets and 325 departmental stores being built in the

cities very soon.

In organized retailing will grow faster than unorganized sector and thegrowth speed will be responsible for its high market share, which is

expected to be $ 17 billion by 2010-11.The organized sector is expected

to grow faster than GDP growth in next few years driven by favorable

demographic patterns, changing lifestyles, and strong income growth.


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This organized retail sector mix includes supermarkets, hypermarkets

discounted stores and specialty stores, departmental stores. For example,

Spencer network has 69 stores, which includes seven Spencer

hypermarkets, three Spencer super markets and 49 Spencer .

Break up of consumers expenditure in organized retail

Percentage of Organized Retail


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USA - 85%

Taiwan - 81%

Malaysia - 55%

Thailand - 40%

Brazil - 36%

Indonesia - 30%

Poland - 20%

China - 20%

MAJOR INDUSTRY CONTRIBUTORS

Name US $ Million

Future Group (Globus) 444

Shoppers Stop 133

Landmark (Lifestyle) 80

Trent 53

Subhiksha 44

Vishal Mega Mart 25

India is witnessing an unprecedented consumption boom. The economy is

growing between 7 and 9 percent and the resulting improvements in

income dynamics along with factors like favorable demographics and

spending patterns are driving the consumption demand.

Indian Retail Industry is ranked among the ten largest retail markets in

the world. The attitudinal shift of the Indian consumer in terms of

"Choice Preference", "Value for Money" and the emergence of organized


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retail formats have transformed the face of Retailing in India. The Indian

retail industry is currently estimated to be a US$ 200 billion industry and

organized Retailing comprises of 3 per cent (or) US$6.4 Billion of the

retail industry. With a growth over 20 percent per annum over the last 5

years, organized retailing is projected to reach US$ 23 Billion by 2010.

The Indian retail industry though predominantly fragmented through the

owner -run " Mom and Pop outlets" has been witnessing the emergence

of a few medium sized Indian Retail chains, namely Globus, RPG Retail,

Shoppers Stop, Westside (Tata Group) and Lifestyle International.

Given the attractiveness of the Indian retail sector, foreign retailers like

Wal-Mart, Carrefour SA( Europe's largest retailer) and Tesco Plc( the

UK's largest retailer) were keen to enter this growing market, despite the

Indian retail sector being closed to foreign direct investment (FDI). In

February 2006, the Indian Government had announced its decision to

allow FDI of upto 51% in single brand retailing. Wal-Mart had said that

India is high on its priority and that it is closely monitoring the

Government's policy on FDI in the retail sector.

In the last few years, Indians have gone through a dramatic

transformation in lifestyle by moving from traditional spending on food,

groceries and clothing to lifestyle categories that deliver better quality

and taste. Modern retailing satisfies rising demand for such goods and

services with many players entering the bandwagon in an attempt to tap

greater opportunities. According to the 'Global Retail Development Index

(GRDI) 2006' by the management consulting firm 'A.T. Kearney', India


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has retained it's topmost position in the annual study of retail investment

attractiveness among 30 emerging markets.

.The Domestic competitors of Globus in 2005:

RETAILER REVENUES

(Rs.bn)

TOTAL FLOORSPACE (lakh sq ft)

TOTAL NO. OFOUTLETS

2003-04

2004-05

2003-04

2004-05

(estimated)

2003-04

2004-05

(estimated)

Globus

RPG

Shoppersstop

Lifestyle

Westside

Ebony

Piramyd

6.50 13.00 11.0 30.0 31 74

5.45 8.00 5.2 7.5 110 130-134

4.04 5.45 6.3 8.5 13 40

2.30 3.10 3.2 3.2 7 0

1.20 N.A. 2.3 3.3 14 18/19

0.85 1.00 1.7 2.4 8 12

0.72 1.40 1.3 5.0 3 7/8

N.A. N.A. 1.5 6.0

(next3years)

7 14/15

(next3years)

Globuss Retail India Limited, which operates Globuss superstores, has

around 14 Globus Family Stores and 10 Globus `Shoppes' across the

country. In addition, they also run 4 hypermarkets under the `Big Bazaar'

brand. Since the opening of their first store in 1997, in terms of financial

size, Globus has already raced to the front to become the country's largest

public limited retail giant with a turnover of US$ 87 million. They have

managed to do so, among other strategies, by keeping costs down. Their


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policy of buying directly from manufacturers (to eliminate the middleman),

cash purchases (to get a cash discount) and optimum stock management has

helped them to pass on the benefits to the customers that work well in this

price sensitive market. Their future plans, to become a US$ 217 million

super retailer by 2005, include setting up eight new Big Bazaars

(hypermarkets), four new Globus stores, three independent food stores and a

mall in Bangalore

RPG Group: According to the above-mentioned survey, the most

enthusiastic player in organized retail in India is the Goenka group's RPG

Enterprises. RPGs retail empire is one of the largest in India, having more

than a 100 stores that includes Food World - an alliance with Dairy Farm

International of the Jardine Matheson Group; Music World - a 50:50 joint

venture with Dairy Farm International, Health & Glow (cosmetics, health

products and medicines) and Giant (hypermarkets). Primarily based in south

India, the turnover of RPGs retail empire is around US$ 98 million and

accounts for nine percent of the group's turnover.

Landmark Group: Owned by the $600 million Landmark Group, which

operates 170 stores worldwide, Lifestyle forayed into the Indian retail

market in 1998. Lifestyle India achieved a turnover of US$ 29 million in

2002-03 with five stores in operation. One of the primary reasons for their

success in India has been their experience in running retail chains overseas.

Their strategic decision to set up everything under one roof versus setting upseparate stores in different segments has stood them in good stead. Another

advantage they have is that Lifestyle has developed its own in-house label,

which comprises 11 percent of total merchandise. In addition, its parent

company does bulk purchases of commodities that are sold at these stores so


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that the products can be sold at a cheaper rate. Lifestyle plans to open six

more stores aiming to offer around 500,000 square feet of shopping space by

next year and to achieve a turnover of US$ 50 million in 2003-04. Globus

and Lifestyle are considered to be the powerhouses of retail in India.

According to industry sources, in the next 12 to 18 months, both these

superstores will offer two million square feet of retail space between them.

K. Raheja Group: The K Raheja promoted Shoppers' Stop, credited with

starting the retail revolution in India, is said to be the leader in department

store format. At present, Shoppers' Stop has 10 stores across India. Shoppers'

Stop also runs the 13 stores of the bookstore chain `Crossword' which it

acquired two years ago. The future plans of this chain, having a turnover of

US$ 66 million, are to open 24 more Shoppers' Stop Stores in the next two

years and 12 more Crossword stores by the end of this year. A unique

feature of Shoppers' Stop operations is that their private labels such as Stop,

Kasish, Life and Carrot contribute 20 percent to its turnover.

Tata Group: The US$ 9.7 billion Tata Group's retail arm Trent runs the

Westside chain of stores. Trent has already established 11 Westside

departmental stores measuring 20,000 square feet each, in Mumbai,

Bangalore, Hyderabad, Chennai, Pune, New Delhi, Kolkata, Nagpur and

Ahmedabad. The company hopes to expand rapidly with similar format

stores that offer a balance between style and price retailing. Future plans

include establishing the Westside brand in all large towns with a populationof over 100,000. Trent is also planning to venture into food and grocery

retailing through a chain of hypermarkets. Group company Tata Coffee,

which holds over 32 percent in Barista Coffee Company, has targeted 160

espresso bars in India and abroad in the recent future. Some of the other


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well-known names in the Indian retail arena are ITC Lifestyle, , Nilgiris,

Caf Coffee Day, Quickys, Amorettos, Bata, Super Sabka Bazaar, and

Subhiksha etc.

GLOBUS OUTLETS


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As on 30th june , 2006,the total number of Globus stores stood at 21 ,

with 9 stores opening during the year under review .

These are as follows-

City mall-Ahmedabad 20000sq. ft

Sigma hall-Bangalore 20000sq. ft

Borivali-Mumbai 30000sq. ft

Sahara mall-Luck now 20000sq. ft

Kalani mall-Indore 20000sq. ft

Runwal mulund-Mumbai 19500sq. ft

Cross river mall-Shahdara 25000sq. ft

Cinepux mall-Mangalore 23550sq. ft

Rajkot 18000sq. ft

PRODUCT OFFERINGS

Globus is positioned as an entire family store and it deals in mens wear,

ladies wear and kids wear. It mainly focuses on its Private label program


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me because the share of private label has increased over the previous year

and stands at nearly 75%. Below are some of the companys private labels:

MENS WEAR

John Miller

JM Sports

Bare Denim

Rig

Ajile

Lombard

T-2000

Bare Leisure

LADIES WEAR

Honey

Akkriti

Annabelle

Mix & Match

Ajile

Rig

KIDS WEAR

Chalk

Bare 7214


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ACCESSORIES


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PROMOTIONAL STRATEGIES

1. Green Card is passport to a whole new world of exclusive benefits and

privileges.

Instant discounts* for every time you shop at Globuss.

Exclusive shopping days to get hold of latest merchandise.

Regular updates on collections and promos via catalogues, sms and

email.

2. Globus continued to be the title sponsor for femina miss India 07 peagent

3. The companys flagship format, Globuss went in for an exiting makeover

during the year under review, the highlight being the signing up of style

icons BIPASHA BASU & ZAYED KHAN as its brand ambassadors.

PRICING STRATEGY

-The largest player in the organized retail Globus came-up with 1500 -2000

sq ft no-frills KB fair Price shops in this year. They propose to provide

branded products at 10% less than the Mrp and 20% off on the local brands,

which is similar to what has been carried out in Big bazaar.

Keeping costs down is clearly the cornerstone of policy at both chains.

Globus chief Biyani ensures cheaper prices by keeping watch at every step.

Says Biyani: "We do three things -- buy directly from the manufacturers so

that the middle man is eliminated. We buy in cash and get a cash discount,

and manage our stocks turns so that we don't have money stuck up. The

benefits are passed on to the customers.
http://www.pantaloon.com/http://www.indiaretailbiz.com/blog/2007/08/10/biyani-announces-entry-into-small-format-last-mile-neighbourhood-retail-space-plans-to-se-up-1500-fair-price-shops-in-two-years/http://www.pantaloon.com/http://www.indiaretailbiz.com/blog/2007/08/10/biyani-announces-entry-into-small-format-last-mile-neighbourhood-retail-space-plans-to-se-up-1500-fair-price-shops-in-two-years/


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Cash discounts (for buying goods upfront in cash) on the other hand could

range from 2 per cent to 10 per cent. And the company pushes for a stock

turn of 40-50 times a year for its food items, and once a month for ready to

wear.

Backward integration is the name of the game in Globus stores -- and they

help to keep costs down dramatically. Almost 70 per cent of the ready-to-

wear products in the store are manufactured by the group's own garment

units. As a result it is able to offer prices in ready-to-wear that are virtually

30 per cent cheaper than competitors. They increase there margins by

pushing their own in-house labels.

POSITIONING STRATEGY

The first Globuss was opened in Gariahat in 1997. Over the years, it has

undergone several transitions. When it was first launched, this store mostly

sold external brands. Gradually, it started retailing a mix of external brands

while at the same time introduced its own private brands. Initially

positioned as a family store, it finally veered towards becoming a fashion

store with and emphasis on youths and clear focus on FRESH

FASHION. .

Globus is in revamp mode. Changing its positioning from a family-

oriented store to a fashion store, Globus stores are being re launched on the

`youth' platform. Sporting a new baseline, Globus will now carry the

`Fresh Fashion' statement across its 12 stores. India is a young country

compared to the others and we wanted our brand to get associated with this

emerging target audience. This is the first time that we are re launching our


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stores targeting youth and even women, since they are the ones defining

most purchasing decisions.

FUTURE PLANS


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1 The country's largest retailer, Globus, is cooking up plans to significantly

increase its presence in the rapidly growing domestic food industry. The

retailer is also working towards getting closer to the Indian homemaker by

offerings in store which will take away the negative labour back home with a

range of products in a` live kitchens' format, including home style gravies,

dals, cooked rice.

2 GLOBUS is increasing number of FOOD BAZAAR outlet from 40 to150

3 Globus to raise funds; plans IPO of Future Capital finance unit

Leading Indian retailer Globus India Ltd has announced that it would sell

shares and warrants to investors and founders of the company to raise over

$300 million and also sell 10% of Future Capital Holdings.

4. Diversifying its retailing initiatives, the Rs 650-crore Globus (India) is

planning to start its own company parlors at its Big Bazaar outlets.

5 GLOBUS announced its plans to form a joint venture with ITALY based

GENERALI group to tap insurance sector


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BIBLIOGRAPHY

BOOKS AND MAGAZINES

Essentials of Marketing Reddy and Appaniah

Marketing Management Phillip Kotler

India Today

Business World and Money Regulator.

News Papers

The Times of India

The Economic Times

The Business Standards

INTERNET

www.google .com

www.icicilombard.c.com

For any query please contact [email protected]

Documents

Globus Project