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MarketLine Industry Profile
Consumer Electronics in India February 2012 Reference Code: 0102-2033
Publication Date: February 2012
WWW.MARKETLINEINFO.COM MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED
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EXECUTIVE SUMMARY Market value The Indian consumer electronics market grew by 9.8% in 2011 to reach a value of $5,972.2 million.
Market value forecast In 2016, the Indian consumer electronics market is forecast to have a value of $8,778.5 million, an increase of 47% since 2011.
Category segmentation Audio and video is the largest segment of the consumer electronics market in India, ing for 99% of the market's total value.
Geography segmentation India s for 7.6% of the Asia-Pacific consumer electronics market value.
Market rivalry The consumer electronics retail market has large chains and independents in competition.
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TABLE OF CONTENTS EXECUTIVE SUMMARY ............................................................................................................................................... 2 MARKET OVERVIEW .................................................................................................................................................... 6 Market definition ......................................................................................................................................................... 6 Market analysis .......................................................................................................................................................... 6 MARKET DATA.............................................................................................................................................................. 7 Market value............................................................................................................................................................... 7 MARKET SEGMENTATION........................................................................................................................................... 8 Category segmentation .............................................................................................................................................. 8 Geography segmentation ........................................................................................................................................... 9 Market distribution .................................................................................................................................................... 10 MARKET OUTLOOK .................................................................................................................................................... 11 Market value forecast ............................................................................................................................................... 11 FIVE FORCES ANALYSIS ........................................................................................................................................... 12 Summary .................................................................................................................................................................. 12 Buyer power ............................................................................................................................................................. 13 Supplier power ......................................................................................................................................................... 14 New entrants ............................................................................................................................................................ 15 Threat of substitutes................................................................................................................................................. 16 Degree of rivalry ....................................................................................................................................................... 17 LEADING COMPANIES ............................................................................................................................................... 18 Croma Electronics .................................................................................................................................................... 18 Next Retail India ....................................................................................................................................................... 19 Pantaloon Retail ....................................................................................................................................................... 20 MACROECONOMIC INDICATORS ............................................................................................................................. 24 Country Data ............................................................................................................................................................ 24 APPENDIX ................................................................................................................................................................... 26 Methodology............................................................................................................................................................. 26 Industry associations ................................................................................................................................................ 27 Related Datamonitor research ................................................................................................................................. 27
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LIST OF TABLES Table 1: India consumer electronics market value: $ million, 2007–11(e) ...................................................................... 7 Table 2: India consumer electronics market category segmentation, by value, 2011(e) ............................................... 8 Table 3: India consumer electronics market geography segmentation, by value, 2011(e) ............................................ 9 Table 4: India consumer electronics market distribution: % share, by value, 2011(e) .................................................. 10 Table 5: India consumer electronics market value forecast: $ million, 2011–16 .......................................................... 11 Table 6: Croma Electronics: key facts .......................................................................................................................... 18 Table 7: Next Retail India: key facts ............................................................................................................................. 19 Table 8: Pantaloon Retail: key facts ............................................................................................................................. 20 Table 9: Pantaloon Retail: key financials ($) ................................................................................................................ 21 Table 10: Pantaloon Retail: key financials (Rs.) ........................................................................................................... 22 Table 11: Pantaloon Retail: key financial ratios ........................................................................................................... 22 Table 12: India size of population (million), 2007–11 ................................................................................................... 24 Table 13: India gdp (constant 2000 prices, $ billion), 2007–11 .................................................................................... 24 Table 14: India gdp (current prices, $ billion), 2007–11 ............................................................................................... 24 Table 15: India inflation, 2007–11 ................................................................................................................................ 25 Table 16: India consumer price index (absolute), 2007–11.......................................................................................... 25 Table 17: India exchange rate, 2007–11 ...................................................................................................................... 25
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LIST OF FIGURES Figure 1: India consumer electronics market value: $ million, 2007–11(e)..................................................................... 7 Figure 2: India consumer electronics market category segmentation : % share, by value, 2011(e) .............................. 8 Figure 3: India consumer electronics market geography segmentation : % share, by value, 2011(e).......................... 9 Figure 4: India consumer electronics market distribution: % share, by value, 2011(e)................................................. 10 Figure 5: India consumer electronics market value forecast: $ million, 2011–16 ......................................................... 11 Figure 6: Forces driving competition in the consumer electronics market in India, 2011 ............................................. 12 Figure 7: Drivers of buyer power in the consumer electronics market in India, 2011 ................................................... 13 Figure 8: Drivers of supplier power in the consumer electronics market in India, 2011 ................................................ 14 Figure 9: Factors influencing the likelihood of new entrants in the consumer electronics market in India, 2011 .......... 15 Figure 10: Factors influencing the threat of substitutes in the consumer electronics market in India, 2011 ................. 16 Figure 11: Drivers of degree of rivalry in the consumer electronics market in India, 2011 ........................................... 17 Figure 12: Pantaloon Retail: revenues & profitability.................................................................................................... 22 Figure 13: Pantaloon Retail: assets & liabilities............................................................................................................ 23
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MARKET OVERVIEW Market definition The consumer electronics market consists of the total revenues generated through the sale of audio visual equipment and games console products designed primarily for domestic use. The audio visual equipment includes CD Players, DVD Players / Recorders, hi-fi systems, home theatre, in-car entertainment systems, portable digital audio, radios, televisions and video recorders. Games consoles segment includes both home use and portable consoles. The market is valued at retail selling price (RSP) with any currency conversions calculated using constant 2010 annual average exchange rates. For the purposes of this report, Asia-Pacific comprises Australia, China, India, Indonesia, Japan, New Zealand, Singapore, South Korea, Taiwan, and Thailand.
Market analysis The Indian consumer electronics market experienced strong growth during 2011 after also having grown strongly in 2010. The market is predicted to continue growing at a strong though decelerating rate over the forecast period to 2016. The Indian consumer electronics market is expected to generate total revenue of $6 billion in 2011, representing a compound annual growth rate (CAGR) of 10.8% between 2007 and 2011. In comparison, the Chinese and Japanese markets will grow with CAGRs of 6.4% and 2.4% respectively, over the same period, to reach respective values of $31.5 billion and $26.4 billion in 2011. Sales generated through electricals and electronics retailers are expected to be the most lucrative for the Indian consumer electronics market in 2011, with total revenues of $5.3 billion, equivalent to 88.9% of the market's overall value. In comparison, sales through music, video, books and stationery retailers will generate revenues of $48.9 million in 2011, equating to 0.8% of the market's aggregate revenues. The performance of the market is forecast to decelerate, with an anticipated CAGR of 8% for the five-year period 2011 2016, which is expected to drive the market to a value of $8.8 billion by the end of 2016. Comparatively, the Chinese and Japanese markets will grow with CAGRs of 4.4% and 3.8% respectively, over the same period, to reach respective values of $39.1 billion and $31.8 billion in 2016.
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MARKET DATA Market value The Indian consumer electronics market grew by 9.8% in 2011 to reach a value of $5,972.2 million. The compound annual growth rate of the market in the period 2007–11 was 10.8%.
Table 1: India consumer electronics market value: $ million, 2007–11(e) Year
$ million
Rs. million
€ million
2007
3,961.7
181,985.5
2,984.8
2008
4,417.8
202,935.9
3,328.4
11.5
2009
4,932.6
226,585.6
3,716.3
11.7
2010
5,439.9
249,886.7
4,098.5
10.3
2011(e)
5,972.2
274,339.6
4,499.5
9.8
CAGR: 2007–11 SOURCE: MARKETLINE
% Growth
10.8% MARKETLINE
Figure 1: India consumer electronics market value: $ million, 2007–11(e)
SOURCE: MARKETLINE
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MARKET SEGMENTATION Category segmentation Audio and video is the largest segment of the consumer electronics market in India, ing for 99% of the market's total value. The games consoles segment s for the remaining 1% of the market.
Table 2: India consumer electronics market category segmentation, by value, 2011(e) Category
%
Audio and video
99.0%
Games consoles
1.0%
Total
100%
SOURCE: MARKETLINE
MARKETLINE
Figure 2: India consumer electronics market category segmentation : % share, by value, 2011(e)
SOURCE: MARKETLINE
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Geography segmentation India s for 7.6% of the Asia-Pacific consumer electronics market value. China s for a further 40% of the Asia-Pacific market.
Table 3: India consumer electronics market geography segmentation, by value, 2011(e) Geography
%
China
40.0
Japan
33.5
India
7.6
South Korea
6.8
Rest of Asia-Pacific
12.0
Total SOURCE: MARKETLINE
100% MARKETLINE
Figure 3: India consumer electronics market geography segmentation : % share, by value, 2011(e)
SOURCE: MARKETLINE
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Market distribution Electricals and electronics retailers form the leading distribution channel in the Indian consumer electronics market, ing for an 88.9% share of the total market's value. Music, video, books and stationery retailers s for a further 0.8% of the market.
Table 4: India consumer electronics market distribution: % share, by value, 2011(e) Channel Electricals and electronics retailers
% Share 88.9%
Music, video, books and stationery retailers
0.8%
Department stores
0.4%
Hypermarket, supermarket, discounters
0.0%
Other
9.8%
Total
100%
SOURCE: MARKETLINE
MARKETLINE
Figure 4: India consumer electronics market distribution: % share, by value, 2011(e)
SOURCE: MARKETLINE
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MARKET OUTLOOK Market value forecast In 2016, the Indian consumer electronics market is forecast to have a value of $8,778.5 million, an increase of 47% since 2011. The compound annual growth rate of the market in the period 2011–16 is predicted to be 8%.
Table 5: India consumer electronics market value forecast: $ million, 2011–16 Year
$ million
Rs. million
€ million
% Growth
2011
5,972.2
274,339.6
4,499.5
9.8%
2012
6,478.2
297,582.5
4,880.7
8.5%
2013
7,032.9
323,064.0
5,298.7
8.6%
2014
7,601.8
349,195.8
5,727.3
8.1%
2015
8,183.9
375,936.6
6,165.8
7.7%
2016
8,778.5
403,251.3
6,613.8
7.3%
CAGR: 2 11–16 SOURCE: MARKETLINE
8.0% MARKETLINE
Figure 5: India consumer electronics market value forecast: $ million, 2011–16
SOURCE: MARKETLINE
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FIVE FORCES ANALYSIS The consumer electronics market will be analyzed taking retailers as players. The key buyers will be taken as consumers, and manufacturers as the key suppliers.
Summary Figure 6: Forces driving competition in the consumer electronics market in India, 2011
SOURCE: MARKETLINE
MARKETLINE
The consumer electronics retail market has large chains and independents in competition. Buyer switching costs are low, and it is generally quite difficult for the players to differentiate themselves, as they mostly sell products from the same manufacturers. Furthermore, traditional retailers face competition both from suppliers like Apple opening retail outlets, and generalist online retailers. Barriers to entry and exit are relatively low.
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Buyer power Figure 7: Drivers of buyer power in the consumer electronics market in India, 2011
SOURCE: MARKETLINE
MARKETLINE
The consumer electronics retail market has a large number of small buyers. As the impact on a retailer of losing any particular customer is negligible, buyer power is correspondingly weakened. It is difficult for retailers in this market to differentiate themselves. Except perhaps for high-end 'boutique' hi-fi specialists, or the retail outlets operated by manufacturers like Sony and Apply, most retailers sell similar products made by the major electronics manufacturers. Add to this the price sensitivity of consumers, especially for 'big ticket' items like televisions, and the lack of significant switching costs, and buyer power starts to look stronger. However, one way a retailer can defend itself against this is by focus on customer service. For example, the recent bankruptcy of Circuit City in the US is sometimes attributed in part to a decision to fire the higher-paid store workers, who were usually older and more experienced; conversely, the strong performance of the UK's John Lewis Partnership may be linked to its low employee turnover rates. More experienced employees are likely to have greater knowledge of the products on sale and therefore can advise customers better. Overall, buyer power is moderate.
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Supplier power Figure 8: Drivers of supplier power in the consumer electronics market in India, 2011
SOURCE: MARKETLINE
MARKETLINE
Major retailers often buy stock direct from manufacturers such as Toshiba and Samsung. These are large multinationals, with considerable bargaining strength. Consumer electronics manufacturing benefits from scale economies, and so it is likely that there will always be a preponderance of large manufacturers upstream of the retailers. Retailers rarely integrate backwards into manufacturing, but some manufacturers run high street retail chains to sell their own products exclusively. However, it is unlikely that manufacturers would ever extend themselves so far into direct-to-consumer business that the pure retailers became unimportant for their sales. Consumer electronics is a fairly commoditized market. Even an innovative product such as the original Apple iPod soon stimulates manufacturers into producing similar items. Also, where a manufacturer has valuable intellectual property, it can choose to generate revenue through licensing agreements rather than defending exclusivity in order to charge high prices. For example, DVD player manufacturers must pay a royalty (of the order of a few US$) to the DVD format patent holders for each player they make. From the perspective of retailers, this will tend to weaken buyer power, as it means that no one supplier monopolizes a particular product category. Overall, supplier power is moderate.
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New entrants Figure 9: Factors influencing the likelihood of new entrants in the consumer electronics market in India, 2011
SOURCE: MARKETLINE
MARKETLINE
Barriers to market entry are low. Even in developed economies, where the high street tends to be dominated by a few large retail chains, it is still possible for independent retailers of consumer electronics to survive. Entry at this scale is possible without the need for vast amounts of capital, complex regulatory compliance, or the acquisition of intellectual property. Consumers have few switching costs to tie them to existing retailers. Retail markets tend to be labor-intensive, but the skill sets required for many customer-facing staff are not hard to find. On the other hand, competing directly with leading incumbents such as Best Buy in the US would require more resources, in order to lease stores, build supply chains, and the newcomer. Large incumbents may have certain economies of scale. For example, central istrative costs may not rise as quickly as revenue as the number or size of stores increases, and the cost of implementing an e-retail website may be easier for a large company to absorb. All in all, there is a strong risk of new entrants, but this will be more significant in rapidly-expanding markets than the more sluggish performers.
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Threat of substitutes Figure 10: Factors influencing the threat of substitutes in the consumer electronics market in India, 2011
SOURCE: MARKETLINE
MARKETLINE
Substitutes for consumer electronics, defined restrictively here as audio and video devices, include the broader range of ITC categories. For example, convergent devices offering audio and video functions alongside computing and communication functions, such as tablet computers and smart phones, are a substitute for dedicated devices. Retailers that specialize in the more traditional audio-visual lines may find their revenues threatened, but it is common for the larger market players to offer a wide range of entertainment, computing, and telecommunication devices. This diversification minimizes the threat of substitutes. A second form of substitute is alternative distribution channels, notably online retail as an alternative to bricks-and-mortar outlets. Virtually all the leading high street retailers of consumer electronics have e-retail sites, but it may be difficult for small independents to set up such sites; they will therefore experience a greater threat. The specialist retailers considered here are also facing competition with non-specialists such as department stores and supermarkets. The latter often compete intensively on price, perhaps through the use of private-label products. Overall, there is a strong threat from alternatives.
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Degree of rivalry Figure 11: Drivers of degree of rivalry in the consumer electronics market in India, 2011
SOURCE: MARKETLINE
MARKETLINE
The consumer electronics retail market has several large chain players in most countries, although these coexist with small independents. It is relatively easy for a company to step up its sales volume in response to market conditions, for example it is usually not difficult to take on additional staff where necessary. It is difficult for a retailer to differentiate itself from the competition, and switching costs are minimal; as a result it is easy for customers to move from one retailer to another, and this boosts the intensity of rivalry. Where the market is growing rapidly, rivalry will be eased. Also, this market is fairly easy to exit, which also eases competitive pressures. Overall, the degree of rivalry is moderate.
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LEADING COMPANIES Croma Electronics Table 6: Croma Electronics: key facts
Telephone:
Infiniti Retail Ltd, 202 Akruti Centre Point, next to Marol Telephone Exchange, MIDC, Andheri (East), Mumbai 400093, India 91 22 6761 3600
Website:
www.cromaretail.com
Head office:
SOURCE: COMPANY WEBSITE
MARKETLINE
Croma Electronics is a subsidiary of Tata Sons. Its first store was opened in 2006, and the company now has stores located in Mumbai, Navi Mumbai, Pune, Aurangabad, Ahmedabad, Rajkot, Surat, Vadodara, Delhi, Bengalooru, Chennai, and Hyderabad. Croma claims to be India’s first large-format consumer electronics and electrical specialist chain. Its outlets have around 20,000 square feet of retail space, offering 6,000 product lines in eight categories. The company sells own-brand products, PCs, laptops, TVs, mobile phones, games consoles, small appliances such as microwaves, vacuum cleaners, irons, power tools, and kitchen appliances, and large household products such as refrigerators, washing machines, tumble dryers and air conditioners.
Key Metrics As a subsidiary, the company does not release financial information.
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Next Retail India Table 7: Next Retail India: key facts
Telephone:
Next Retail India Limited, Techweb Centre, Ground Floor, Next to Raigad Military School, New link Road, Beharam Bagh, Oshiwara, Jogeshwari, (West) Mumbai 400 102, IND. 0091 022 4255 3000
Website:
www.next.co.in
Head office:
SOURCE: COMPANY WEBSITE
MARKETLINE
NEXT Retail India describes itself as India's largest electronic retail chain. It was established in 2003, and based in Mumbai, India. NEXT Retail is a subsidiary of the electronics manufacturer Videocon. The company offers consumers large and small household appliances, together with flat- TVs, home theater systems, cameras, DVD players, mobile phones, games consoles, and computers. It has around 600 stores in 300 cities across 25 states in India. It also has an e-retail website.
Key Metrics Full financial details are unavailable for this company, but its annual revenues are estimated to be around $3 bn.
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Pantaloon Retail Table 8: Pantaloon Retail: key facts
Telephone:
Knowledge House, Shyam Nagar, Off Jogeshwari Vikhroli Link Road, Jogeshwari East, Mumbai 400 060 , IND 91 22 3084 1300
Fax:
91 22 6644 2222
Website:
www.pantaloonretail.in
Financial year-end:
June
Ticker:
523574
Stock exchange:
Bombay
Head office:
SOURCE: COMPANY WEBSITE
MARKETLINE
Pantaloon Retail (Pantaloon or "the company") operates multiple retail formats in both the value and lifestyle segments in India. It operates more than 1,000 stores across 73 cities in India, and occupies retail space of more than 16 million square feet. The company offers its products in various lines of businesses such as food, fashion, home and electronics, telecom and information technology (IT), general merchandise, leisure and entertainment, wellness and beauty, books and music. The company also offers products through its Internet retailing store futurebazaar.com. Pantaloon has presence in the books and music category through Depot which offers books, music compact disks (CDs) and cassettes, home videos, multimedia (CD-ROMs) products and gift items. In the home and electronics retailing, the company offers furniture, furnishings, homeware, and electronic products through Collection I, Furniture Bazaar, Electronics Bazaar, eZone, Home Bazaar and HomeTown retail formats. eZone is a chain of around 40 stores with a typical retail area of 12,000 square feet. They sell different categories in themed Zones. PCs, laptops, cameras, and mobile phones are in the Liberation Zone; the Experience Zone is dedicated to TVs, DVD players and other entertainment devices; the Home Zone sells domestic appliances such as fridges. In the telecom and IT category the company offers products such as gadgets, mobile phones, accessories, kiosks, airtime recharges, landline instruments, blue tooth accessories, and mobile trinkets through its retail store brands such as Gen M, One Mobile, and M Port Pantaloon offers food products through retail formats such as Brew Bar, Cafe Bollywood, Food Bazaar, and Sports Bar. Brew Bar offers over 15 brands of domestic and imported beer besides snacks and set meals. Cafe Bollywood (Bollywood refers to the Indian film industry) is a fast food retail chain offering eateries in a Bollywood ambience. It offers Indian street food, burgers, pizzas, and juices. Food Bazaar is a chain of supermarkets which offers pre-packed commodities. Sports Bar is a concept bar that focuses on the world of sports. Sports Bar offers domestic and imported spirits, beers and wins. The company offers fashion products under banners such as aLL, Big Bazaar, Blue Sky, Brand Factory, Celio, Central, Ethnicity, Fashion@Big Bazaar, Lee Cooper, Navaras, Pantaloon and Planet Sports. aLL is a fashion store for plus size men and women. It offers ready-to-wear fashionable clothes and accessories in western wear, Indo-western or ethnic wear in both formal and casual categories. Big Bazaar is a fashion and general merchandise hypermarket. It offers fashion products, home furnishings, utensils, crockery, cutlery, and sports goods. Blue Sky stores offer branded and private label sunglasses and watches. Some of the private label watch brands which Blue Sky offers are Cube, Koenig, RIG, Lombard and UMM. Brand Factory operates a chain of discount stores that offer branded apparel for men, women, and infants along with accessories, cosmetics, footwear, sportswear, luggage, and home linen at discounted prices. These discount stores stock fashion brands such as Levis, Pepe Jeans, Dockers, Wrangler, ProVogue, Arrow, Nike, Adidas, Reebok, Louis Phillip, Allen Solly, Reid and Taylor, Gini and Jony, amongst others. Celio, a market leader in men's ready-to-wear clothing in , is sold through selected stores of Pantaloon and Central in India.
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Central, the mall concept of Pantaloon, offers more than 300 brands across categories such as apparel, footwear and accessories for women, men, children and infants, and the product ranges such as, music, books, coffee shops, food courts, super markets (food bazaar), fine dining restaurants, pubs and discotheques. Central also offers services such as travel, finance, investment, insurance, concert/cinema ticket booking and bill payments. Ethnicity is a concept store in India that offers everything Indian under one roof. Ethnicity stores sell merchandise for kids, fashion, costume and semiprecious jewelry, Indian ethnic home wares, and ethnic accessories. Fahion@Big Bazaar offers fashion apparel and accessories for men, ladies, kids and infants at reasonable prices. Lee Cooper is a reputed international brand which is distributed through exclusive brand stores and large format stores such as Central and Pantaloon. Navaras is a jewelry store that offers branded jewelry in a hypermarket set-up. Pantaloon stores offers fashion products such as casual, ethnic, formal, party and sportswear for men, women and kids. Planet Sports is a sports and lifestyle specialty retail chain with extensive offerings for sportswear and equipment across all categories including running, tennis, training, golf, fitness, basketball, motor sports as well as other lifestyle products. In the general merchandise category, Pantaloons operates retail formats such as Big Bazaar, Big Bazaar Wholesale Club, Blue Sky, Brand Factory, Central, Navaras, Pantaloons, KB Fairprice and Shoe Factory. Big Bazaar is a retail store chain in a hypermarket format that offer fashion products, home furnishings, utensils, crockery, cutlery, and sports goods. KB's FairPrice are modern, self-service ration shops that retail only 300 essential products, at the lowest prices. Shoe Factory, a footwear retail store chain offers branded footwear and accessories to men, women and kids. Pantaloon has presence in the leisure and entertainment space through an d company, Galaxy Entertainment. Pantaloon's F 123, a gaming and entertainment zone, offers a range of gaming options ranging from bowling, pool, interactive video games, bumper cars along with fun foods and services for junior and adult banqueting. The company also operates Bowling Co., a family entertainment center, in Mumbai. In a t venture with Blue Foods, Pantaloon operates food courts, fine dine specialty restaurants, thali restaurants, banquets and multiple kiosks with brands such as Copper Chimney, Bombay Blue, Noodle Bar, Spaghetti Kitchen and The Spoon. The company operates specialty stores in the wellness and health retailing. It operates Star and Sitara and Fit and Healthy. Star and Sitara provides skin and hair related beauty services for men and women. Fit and Healthy section housed within Big Bazaars and Food Bazaars provides health products and health related tips, information and advice.
Key Metrics The company recorded revenues of $2,658 million in the fiscal year ending June 2011, an increase of 24.8% compared to fiscal 2010. Its net income was $26 million in fiscal 2011, compared to a net income of $15 million in the preceding year.
Table 9: Pantaloon Retail: key financials ($) $ million
2007
2008
2009
2010
2011
Revenues
704.6
1,099.9
1,381.9
2,130.5
2,658.4
26.1
27.4
30.6
14.7
26.4
Total assets
532.8
893.9
1,140.5
2,113.3
3,116.8
Total liabilities
295.1
491.9
645.8
611.0
653.9
18,000
28,000
33,500
33,500
0
Net income (loss)
Employees SOURCE: COMPANY FILINGS
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Table 10: Pantaloon Retail: key financials (Rs.) Rs. million
2007
2008
2009
2010
2011
32,367.4
50,526.7
63,477.6
97,869.0
122,117.0
1,199.9
1,259.7
1,405.8
674.9
1,212.1
Total assets
24,476.0
41,062.4
52,389.0
97,076.0
143,172.0
Total liabilities
13,554.2
22,596.2
29,664.8
28,068.0
30,036.0
Revenues Net income (loss)
SOURCE: COMPANY FILINGS
MARKETLINE
Table 11: Pantaloon Retail: key financial ratios Ratio
2007
2008
2009
2010
2011
Profit margin
3.7%
2.5%
2.2%
0.7%
1.0%
Revenue growth
73.2%
56.1%
25.6%
54.2%
24.8%
Asset growth
111.7%
67.8%
27.6%
85.3%
47.5%
Liabilities growth
115.4%
66.7%
31.3%
(5.4%)
7.0%
Debt/asset ratio
55.4%
55.0%
56.6%
28.9%
21.0%
Return on assets
6.7%
3.8%
3.0%
0.9%
1.0%
SOURCE: COMPANY FILINGS
MARKETLINE
Figure 12: Pantaloon Retail: revenues & profitability
SOURCE: COMPANY FILINGS
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Figure 13: Pantaloon Retail: assets & liabilities
SOURCE: COMPANY FILINGS
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MACROECONOMIC INDICATORS Country Data Table 12: India size of population (million), 2007–11 Year
Population (million)
% Growth
2007
1,136.6
1.5%
2008
1,153.1
1.5%
2009
1,160.8
0.7%
2010
1,176.7
1.4%
2011(e)
1,192.5
1.3%
SOURCE: MARKETLINE
MARKETLINE
Table 13: India gdp (constant 2000 prices, $ billion), 2007–11 Year
Constant 2000 Prices, $ billion
% Growth
2007
727.5
10.0%
2008
772.5
6.2%
2009
824.9
6.8%
2010
908.6
10.2%
2011(e)
980.3
7.9%
SOURCE: MARKETLINE
MARKETLINE
Table 14: India gdp (current prices, $ billion), 2007–11 Year
Current Prices, $ billion
% Growth
2007
1,083.8
28.1%
2008
1,184.7
9.3%
2009
1,260.5
6.4%
2010
1,554.5
23.3%
2011(e)
1,854.1
19.3%
SOURCE: MARKETLINE
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Table 15: India inflation, 2007–11 Year
Inflation Rate (%)
2007
6.4%
2008
8.3%
2009
10.9%
2010
12.0%
2011(e)
10.6%
SOURCE: MARKETLINE
MARKETLINE
Table 16: India consumer price index (absolute), 2007–11 Year
Consumer Price Index (2000 = 100)
2007
137.1
2008
148.5
2009
164.7
2010
184.4
2011(e)
203.9
SOURCE: MARKETLINE
MARKETLINE
Table 17: India exchange rate, 2007–11 Year
Exchange rate ($/Rs.)
Exchange rate (€/Rs.)
2007
41.3570
56.5898
2008
43.8145
64.1115
2009
48.8500
67.9264
2010
4 .9361
60.9708
2011
45.9361
60.9708
SOURCE: MARKETLINE
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APPENDIX Methodology MarketLine Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, crosschecked and presented in a consistent and accessible style. Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys and ed by analysis from industry experts using highly complex modeling & forecasting tools, MarketLine’s in-house databases provide the foundation for all related industry profiles Preparatory research – We also maintain extensive in-house databases of news, analyst commentary, company profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market overview Definitions – Market definitions are standardized to allow comparison from country to country. The parameters of each definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the market and our clients Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and trends MarketLine aggregates and analyzes a number of secondary information sources, including: -
National/Governmental statistics
-
International data (official international sources)
-
National and International trade associations
-
Broker and analyst reports
-
Company Annual Reports
-
Business information libraries and databases
Modeling & forecasting tools – MarketLine has developed powerful tools that allow quantitative and qualitative data to be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can then be refined according to specific competitive, regulatory and demand-related factors Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date
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Industry associations International Electrotechnical Commission 3, rue de Varembé, P.O. Box 131, CH - 1211 Geneva 20, Switzerland Tel.: 0041 22 919 0211 Fax: 0041 22 919 0300 http://www.iec.ch
Consumer Electronics and TV Manufacturers Association J-13, Jangpura Extn., New Delhi - 110014, India Tel.: 0091 11 3090 8288 Fax: 0091 11 2432 1616 http://www.web.cetmaindia.org
Related Datamonitor research Industry Profile Global Consumer Electronics Consumer Electronics in Europe Consumer Electronics in Asia-Pacific
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MARKETLINE | 119 FARRINGDON ROAD | LONDON, UNITED KINGDOM, EC1R 3DA T: +44 161 238 4040 | F: +44 870 134 4371 [email protected] df
Consumer Electronics in India February 2012 Reference Code: 0102-2033
Publication Date: February 2012
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EXECUTIVE SUMMARY Market value The Indian consumer electronics market grew by 9.8% in 2011 to reach a value of $5,972.2 million.
Market value forecast In 2016, the Indian consumer electronics market is forecast to have a value of $8,778.5 million, an increase of 47% since 2011.
Category segmentation Audio and video is the largest segment of the consumer electronics market in India, ing for 99% of the market's total value.
Geography segmentation India s for 7.6% of the Asia-Pacific consumer electronics market value.
Market rivalry The consumer electronics retail market has large chains and independents in competition.
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TABLE OF CONTENTS EXECUTIVE SUMMARY ............................................................................................................................................... 2 MARKET OVERVIEW .................................................................................................................................................... 6 Market definition ......................................................................................................................................................... 6 Market analysis .......................................................................................................................................................... 6 MARKET DATA.............................................................................................................................................................. 7 Market value............................................................................................................................................................... 7 MARKET SEGMENTATION........................................................................................................................................... 8 Category segmentation .............................................................................................................................................. 8 Geography segmentation ........................................................................................................................................... 9 Market distribution .................................................................................................................................................... 10 MARKET OUTLOOK .................................................................................................................................................... 11 Market value forecast ............................................................................................................................................... 11 FIVE FORCES ANALYSIS ........................................................................................................................................... 12 Summary .................................................................................................................................................................. 12 Buyer power ............................................................................................................................................................. 13 Supplier power ......................................................................................................................................................... 14 New entrants ............................................................................................................................................................ 15 Threat of substitutes................................................................................................................................................. 16 Degree of rivalry ....................................................................................................................................................... 17 LEADING COMPANIES ............................................................................................................................................... 18 Croma Electronics .................................................................................................................................................... 18 Next Retail India ....................................................................................................................................................... 19 Pantaloon Retail ....................................................................................................................................................... 20 MACROECONOMIC INDICATORS ............................................................................................................................. 24 Country Data ............................................................................................................................................................ 24 APPENDIX ................................................................................................................................................................... 26 Methodology............................................................................................................................................................. 26 Industry associations ................................................................................................................................................ 27 Related Datamonitor research ................................................................................................................................. 27
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LIST OF TABLES Table 1: India consumer electronics market value: $ million, 2007–11(e) ...................................................................... 7 Table 2: India consumer electronics market category segmentation, by value, 2011(e) ............................................... 8 Table 3: India consumer electronics market geography segmentation, by value, 2011(e) ............................................ 9 Table 4: India consumer electronics market distribution: % share, by value, 2011(e) .................................................. 10 Table 5: India consumer electronics market value forecast: $ million, 2011–16 .......................................................... 11 Table 6: Croma Electronics: key facts .......................................................................................................................... 18 Table 7: Next Retail India: key facts ............................................................................................................................. 19 Table 8: Pantaloon Retail: key facts ............................................................................................................................. 20 Table 9: Pantaloon Retail: key financials ($) ................................................................................................................ 21 Table 10: Pantaloon Retail: key financials (Rs.) ........................................................................................................... 22 Table 11: Pantaloon Retail: key financial ratios ........................................................................................................... 22 Table 12: India size of population (million), 2007–11 ................................................................................................... 24 Table 13: India gdp (constant 2000 prices, $ billion), 2007–11 .................................................................................... 24 Table 14: India gdp (current prices, $ billion), 2007–11 ............................................................................................... 24 Table 15: India inflation, 2007–11 ................................................................................................................................ 25 Table 16: India consumer price index (absolute), 2007–11.......................................................................................... 25 Table 17: India exchange rate, 2007–11 ...................................................................................................................... 25
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LIST OF FIGURES Figure 1: India consumer electronics market value: $ million, 2007–11(e)..................................................................... 7 Figure 2: India consumer electronics market category segmentation : % share, by value, 2011(e) .............................. 8 Figure 3: India consumer electronics market geography segmentation : % share, by value, 2011(e).......................... 9 Figure 4: India consumer electronics market distribution: % share, by value, 2011(e)................................................. 10 Figure 5: India consumer electronics market value forecast: $ million, 2011–16 ......................................................... 11 Figure 6: Forces driving competition in the consumer electronics market in India, 2011 ............................................. 12 Figure 7: Drivers of buyer power in the consumer electronics market in India, 2011 ................................................... 13 Figure 8: Drivers of supplier power in the consumer electronics market in India, 2011 ................................................ 14 Figure 9: Factors influencing the likelihood of new entrants in the consumer electronics market in India, 2011 .......... 15 Figure 10: Factors influencing the threat of substitutes in the consumer electronics market in India, 2011 ................. 16 Figure 11: Drivers of degree of rivalry in the consumer electronics market in India, 2011 ........................................... 17 Figure 12: Pantaloon Retail: revenues & profitability.................................................................................................... 22 Figure 13: Pantaloon Retail: assets & liabilities............................................................................................................ 23
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MARKET OVERVIEW Market definition The consumer electronics market consists of the total revenues generated through the sale of audio visual equipment and games console products designed primarily for domestic use. The audio visual equipment includes CD Players, DVD Players / Recorders, hi-fi systems, home theatre, in-car entertainment systems, portable digital audio, radios, televisions and video recorders. Games consoles segment includes both home use and portable consoles. The market is valued at retail selling price (RSP) with any currency conversions calculated using constant 2010 annual average exchange rates. For the purposes of this report, Asia-Pacific comprises Australia, China, India, Indonesia, Japan, New Zealand, Singapore, South Korea, Taiwan, and Thailand.
Market analysis The Indian consumer electronics market experienced strong growth during 2011 after also having grown strongly in 2010. The market is predicted to continue growing at a strong though decelerating rate over the forecast period to 2016. The Indian consumer electronics market is expected to generate total revenue of $6 billion in 2011, representing a compound annual growth rate (CAGR) of 10.8% between 2007 and 2011. In comparison, the Chinese and Japanese markets will grow with CAGRs of 6.4% and 2.4% respectively, over the same period, to reach respective values of $31.5 billion and $26.4 billion in 2011. Sales generated through electricals and electronics retailers are expected to be the most lucrative for the Indian consumer electronics market in 2011, with total revenues of $5.3 billion, equivalent to 88.9% of the market's overall value. In comparison, sales through music, video, books and stationery retailers will generate revenues of $48.9 million in 2011, equating to 0.8% of the market's aggregate revenues. The performance of the market is forecast to decelerate, with an anticipated CAGR of 8% for the five-year period 2011 2016, which is expected to drive the market to a value of $8.8 billion by the end of 2016. Comparatively, the Chinese and Japanese markets will grow with CAGRs of 4.4% and 3.8% respectively, over the same period, to reach respective values of $39.1 billion and $31.8 billion in 2016.
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MARKET DATA Market value The Indian consumer electronics market grew by 9.8% in 2011 to reach a value of $5,972.2 million. The compound annual growth rate of the market in the period 2007–11 was 10.8%.
Table 1: India consumer electronics market value: $ million, 2007–11(e) Year
$ million
Rs. million
€ million
2007
3,961.7
181,985.5
2,984.8
2008
4,417.8
202,935.9
3,328.4
11.5
2009
4,932.6
226,585.6
3,716.3
11.7
2010
5,439.9
249,886.7
4,098.5
10.3
2011(e)
5,972.2
274,339.6
4,499.5
9.8
CAGR: 2007–11 SOURCE: MARKETLINE
% Growth
10.8% MARKETLINE
Figure 1: India consumer electronics market value: $ million, 2007–11(e)
SOURCE: MARKETLINE
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MARKET SEGMENTATION Category segmentation Audio and video is the largest segment of the consumer electronics market in India, ing for 99% of the market's total value. The games consoles segment s for the remaining 1% of the market.
Table 2: India consumer electronics market category segmentation, by value, 2011(e) Category
%
Audio and video
99.0%
Games consoles
1.0%
Total
100%
SOURCE: MARKETLINE
MARKETLINE
Figure 2: India consumer electronics market category segmentation : % share, by value, 2011(e)
SOURCE: MARKETLINE
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Geography segmentation India s for 7.6% of the Asia-Pacific consumer electronics market value. China s for a further 40% of the Asia-Pacific market.
Table 3: India consumer electronics market geography segmentation, by value, 2011(e) Geography
%
China
40.0
Japan
33.5
India
7.6
South Korea
6.8
Rest of Asia-Pacific
12.0
Total SOURCE: MARKETLINE
100% MARKETLINE
Figure 3: India consumer electronics market geography segmentation : % share, by value, 2011(e)
SOURCE: MARKETLINE
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Market distribution Electricals and electronics retailers form the leading distribution channel in the Indian consumer electronics market, ing for an 88.9% share of the total market's value. Music, video, books and stationery retailers s for a further 0.8% of the market.
Table 4: India consumer electronics market distribution: % share, by value, 2011(e) Channel Electricals and electronics retailers
% Share 88.9%
Music, video, books and stationery retailers
0.8%
Department stores
0.4%
Hypermarket, supermarket, discounters
0.0%
Other
9.8%
Total
100%
SOURCE: MARKETLINE
MARKETLINE
Figure 4: India consumer electronics market distribution: % share, by value, 2011(e)
SOURCE: MARKETLINE
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MARKET OUTLOOK Market value forecast In 2016, the Indian consumer electronics market is forecast to have a value of $8,778.5 million, an increase of 47% since 2011. The compound annual growth rate of the market in the period 2011–16 is predicted to be 8%.
Table 5: India consumer electronics market value forecast: $ million, 2011–16 Year
$ million
Rs. million
€ million
% Growth
2011
5,972.2
274,339.6
4,499.5
9.8%
2012
6,478.2
297,582.5
4,880.7
8.5%
2013
7,032.9
323,064.0
5,298.7
8.6%
2014
7,601.8
349,195.8
5,727.3
8.1%
2015
8,183.9
375,936.6
6,165.8
7.7%
2016
8,778.5
403,251.3
6,613.8
7.3%
CAGR: 2 11–16 SOURCE: MARKETLINE
8.0% MARKETLINE
Figure 5: India consumer electronics market value forecast: $ million, 2011–16
SOURCE: MARKETLINE
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FIVE FORCES ANALYSIS The consumer electronics market will be analyzed taking retailers as players. The key buyers will be taken as consumers, and manufacturers as the key suppliers.
Summary Figure 6: Forces driving competition in the consumer electronics market in India, 2011
SOURCE: MARKETLINE
MARKETLINE
The consumer electronics retail market has large chains and independents in competition. Buyer switching costs are low, and it is generally quite difficult for the players to differentiate themselves, as they mostly sell products from the same manufacturers. Furthermore, traditional retailers face competition both from suppliers like Apple opening retail outlets, and generalist online retailers. Barriers to entry and exit are relatively low.
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Buyer power Figure 7: Drivers of buyer power in the consumer electronics market in India, 2011
SOURCE: MARKETLINE
MARKETLINE
The consumer electronics retail market has a large number of small buyers. As the impact on a retailer of losing any particular customer is negligible, buyer power is correspondingly weakened. It is difficult for retailers in this market to differentiate themselves. Except perhaps for high-end 'boutique' hi-fi specialists, or the retail outlets operated by manufacturers like Sony and Apply, most retailers sell similar products made by the major electronics manufacturers. Add to this the price sensitivity of consumers, especially for 'big ticket' items like televisions, and the lack of significant switching costs, and buyer power starts to look stronger. However, one way a retailer can defend itself against this is by focus on customer service. For example, the recent bankruptcy of Circuit City in the US is sometimes attributed in part to a decision to fire the higher-paid store workers, who were usually older and more experienced; conversely, the strong performance of the UK's John Lewis Partnership may be linked to its low employee turnover rates. More experienced employees are likely to have greater knowledge of the products on sale and therefore can advise customers better. Overall, buyer power is moderate.
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Supplier power Figure 8: Drivers of supplier power in the consumer electronics market in India, 2011
SOURCE: MARKETLINE
MARKETLINE
Major retailers often buy stock direct from manufacturers such as Toshiba and Samsung. These are large multinationals, with considerable bargaining strength. Consumer electronics manufacturing benefits from scale economies, and so it is likely that there will always be a preponderance of large manufacturers upstream of the retailers. Retailers rarely integrate backwards into manufacturing, but some manufacturers run high street retail chains to sell their own products exclusively. However, it is unlikely that manufacturers would ever extend themselves so far into direct-to-consumer business that the pure retailers became unimportant for their sales. Consumer electronics is a fairly commoditized market. Even an innovative product such as the original Apple iPod soon stimulates manufacturers into producing similar items. Also, where a manufacturer has valuable intellectual property, it can choose to generate revenue through licensing agreements rather than defending exclusivity in order to charge high prices. For example, DVD player manufacturers must pay a royalty (of the order of a few US$) to the DVD format patent holders for each player they make. From the perspective of retailers, this will tend to weaken buyer power, as it means that no one supplier monopolizes a particular product category. Overall, supplier power is moderate.
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New entrants Figure 9: Factors influencing the likelihood of new entrants in the consumer electronics market in India, 2011
SOURCE: MARKETLINE
MARKETLINE
Barriers to market entry are low. Even in developed economies, where the high street tends to be dominated by a few large retail chains, it is still possible for independent retailers of consumer electronics to survive. Entry at this scale is possible without the need for vast amounts of capital, complex regulatory compliance, or the acquisition of intellectual property. Consumers have few switching costs to tie them to existing retailers. Retail markets tend to be labor-intensive, but the skill sets required for many customer-facing staff are not hard to find. On the other hand, competing directly with leading incumbents such as Best Buy in the US would require more resources, in order to lease stores, build supply chains, and the newcomer. Large incumbents may have certain economies of scale. For example, central istrative costs may not rise as quickly as revenue as the number or size of stores increases, and the cost of implementing an e-retail website may be easier for a large company to absorb. All in all, there is a strong risk of new entrants, but this will be more significant in rapidly-expanding markets than the more sluggish performers.
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Threat of substitutes Figure 10: Factors influencing the threat of substitutes in the consumer electronics market in India, 2011
SOURCE: MARKETLINE
MARKETLINE
Substitutes for consumer electronics, defined restrictively here as audio and video devices, include the broader range of ITC categories. For example, convergent devices offering audio and video functions alongside computing and communication functions, such as tablet computers and smart phones, are a substitute for dedicated devices. Retailers that specialize in the more traditional audio-visual lines may find their revenues threatened, but it is common for the larger market players to offer a wide range of entertainment, computing, and telecommunication devices. This diversification minimizes the threat of substitutes. A second form of substitute is alternative distribution channels, notably online retail as an alternative to bricks-and-mortar outlets. Virtually all the leading high street retailers of consumer electronics have e-retail sites, but it may be difficult for small independents to set up such sites; they will therefore experience a greater threat. The specialist retailers considered here are also facing competition with non-specialists such as department stores and supermarkets. The latter often compete intensively on price, perhaps through the use of private-label products. Overall, there is a strong threat from alternatives.
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Degree of rivalry Figure 11: Drivers of degree of rivalry in the consumer electronics market in India, 2011
SOURCE: MARKETLINE
MARKETLINE
The consumer electronics retail market has several large chain players in most countries, although these coexist with small independents. It is relatively easy for a company to step up its sales volume in response to market conditions, for example it is usually not difficult to take on additional staff where necessary. It is difficult for a retailer to differentiate itself from the competition, and switching costs are minimal; as a result it is easy for customers to move from one retailer to another, and this boosts the intensity of rivalry. Where the market is growing rapidly, rivalry will be eased. Also, this market is fairly easy to exit, which also eases competitive pressures. Overall, the degree of rivalry is moderate.
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LEADING COMPANIES Croma Electronics Table 6: Croma Electronics: key facts
Telephone:
Infiniti Retail Ltd, 202 Akruti Centre Point, next to Marol Telephone Exchange, MIDC, Andheri (East), Mumbai 400093, India 91 22 6761 3600
Website:
www.cromaretail.com
Head office:
SOURCE: COMPANY WEBSITE
MARKETLINE
Croma Electronics is a subsidiary of Tata Sons. Its first store was opened in 2006, and the company now has stores located in Mumbai, Navi Mumbai, Pune, Aurangabad, Ahmedabad, Rajkot, Surat, Vadodara, Delhi, Bengalooru, Chennai, and Hyderabad. Croma claims to be India’s first large-format consumer electronics and electrical specialist chain. Its outlets have around 20,000 square feet of retail space, offering 6,000 product lines in eight categories. The company sells own-brand products, PCs, laptops, TVs, mobile phones, games consoles, small appliances such as microwaves, vacuum cleaners, irons, power tools, and kitchen appliances, and large household products such as refrigerators, washing machines, tumble dryers and air conditioners.
Key Metrics As a subsidiary, the company does not release financial information.
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Next Retail India Table 7: Next Retail India: key facts
Telephone:
Next Retail India Limited, Techweb Centre, Ground Floor, Next to Raigad Military School, New link Road, Beharam Bagh, Oshiwara, Jogeshwari, (West) Mumbai 400 102, IND. 0091 022 4255 3000
Website:
www.next.co.in
Head office:
SOURCE: COMPANY WEBSITE
MARKETLINE
NEXT Retail India describes itself as India's largest electronic retail chain. It was established in 2003, and based in Mumbai, India. NEXT Retail is a subsidiary of the electronics manufacturer Videocon. The company offers consumers large and small household appliances, together with flat- TVs, home theater systems, cameras, DVD players, mobile phones, games consoles, and computers. It has around 600 stores in 300 cities across 25 states in India. It also has an e-retail website.
Key Metrics Full financial details are unavailable for this company, but its annual revenues are estimated to be around $3 bn.
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Pantaloon Retail Table 8: Pantaloon Retail: key facts
Telephone:
Knowledge House, Shyam Nagar, Off Jogeshwari Vikhroli Link Road, Jogeshwari East, Mumbai 400 060 , IND 91 22 3084 1300
Fax:
91 22 6644 2222
Website:
www.pantaloonretail.in
Financial year-end:
June
Ticker:
523574
Stock exchange:
Bombay
Head office:
SOURCE: COMPANY WEBSITE
MARKETLINE
Pantaloon Retail (Pantaloon or "the company") operates multiple retail formats in both the value and lifestyle segments in India. It operates more than 1,000 stores across 73 cities in India, and occupies retail space of more than 16 million square feet. The company offers its products in various lines of businesses such as food, fashion, home and electronics, telecom and information technology (IT), general merchandise, leisure and entertainment, wellness and beauty, books and music. The company also offers products through its Internet retailing store futurebazaar.com. Pantaloon has presence in the books and music category through Depot which offers books, music compact disks (CDs) and cassettes, home videos, multimedia (CD-ROMs) products and gift items. In the home and electronics retailing, the company offers furniture, furnishings, homeware, and electronic products through Collection I, Furniture Bazaar, Electronics Bazaar, eZone, Home Bazaar and HomeTown retail formats. eZone is a chain of around 40 stores with a typical retail area of 12,000 square feet. They sell different categories in themed Zones. PCs, laptops, cameras, and mobile phones are in the Liberation Zone; the Experience Zone is dedicated to TVs, DVD players and other entertainment devices; the Home Zone sells domestic appliances such as fridges. In the telecom and IT category the company offers products such as gadgets, mobile phones, accessories, kiosks, airtime recharges, landline instruments, blue tooth accessories, and mobile trinkets through its retail store brands such as Gen M, One Mobile, and M Port Pantaloon offers food products through retail formats such as Brew Bar, Cafe Bollywood, Food Bazaar, and Sports Bar. Brew Bar offers over 15 brands of domestic and imported beer besides snacks and set meals. Cafe Bollywood (Bollywood refers to the Indian film industry) is a fast food retail chain offering eateries in a Bollywood ambience. It offers Indian street food, burgers, pizzas, and juices. Food Bazaar is a chain of supermarkets which offers pre-packed commodities. Sports Bar is a concept bar that focuses on the world of sports. Sports Bar offers domestic and imported spirits, beers and wins. The company offers fashion products under banners such as aLL, Big Bazaar, Blue Sky, Brand Factory, Celio, Central, Ethnicity, Fashion@Big Bazaar, Lee Cooper, Navaras, Pantaloon and Planet Sports. aLL is a fashion store for plus size men and women. It offers ready-to-wear fashionable clothes and accessories in western wear, Indo-western or ethnic wear in both formal and casual categories. Big Bazaar is a fashion and general merchandise hypermarket. It offers fashion products, home furnishings, utensils, crockery, cutlery, and sports goods. Blue Sky stores offer branded and private label sunglasses and watches. Some of the private label watch brands which Blue Sky offers are Cube, Koenig, RIG, Lombard and UMM. Brand Factory operates a chain of discount stores that offer branded apparel for men, women, and infants along with accessories, cosmetics, footwear, sportswear, luggage, and home linen at discounted prices. These discount stores stock fashion brands such as Levis, Pepe Jeans, Dockers, Wrangler, ProVogue, Arrow, Nike, Adidas, Reebok, Louis Phillip, Allen Solly, Reid and Taylor, Gini and Jony, amongst others. Celio, a market leader in men's ready-to-wear clothing in , is sold through selected stores of Pantaloon and Central in India.
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Central, the mall concept of Pantaloon, offers more than 300 brands across categories such as apparel, footwear and accessories for women, men, children and infants, and the product ranges such as, music, books, coffee shops, food courts, super markets (food bazaar), fine dining restaurants, pubs and discotheques. Central also offers services such as travel, finance, investment, insurance, concert/cinema ticket booking and bill payments. Ethnicity is a concept store in India that offers everything Indian under one roof. Ethnicity stores sell merchandise for kids, fashion, costume and semiprecious jewelry, Indian ethnic home wares, and ethnic accessories. Fahion@Big Bazaar offers fashion apparel and accessories for men, ladies, kids and infants at reasonable prices. Lee Cooper is a reputed international brand which is distributed through exclusive brand stores and large format stores such as Central and Pantaloon. Navaras is a jewelry store that offers branded jewelry in a hypermarket set-up. Pantaloon stores offers fashion products such as casual, ethnic, formal, party and sportswear for men, women and kids. Planet Sports is a sports and lifestyle specialty retail chain with extensive offerings for sportswear and equipment across all categories including running, tennis, training, golf, fitness, basketball, motor sports as well as other lifestyle products. In the general merchandise category, Pantaloons operates retail formats such as Big Bazaar, Big Bazaar Wholesale Club, Blue Sky, Brand Factory, Central, Navaras, Pantaloons, KB Fairprice and Shoe Factory. Big Bazaar is a retail store chain in a hypermarket format that offer fashion products, home furnishings, utensils, crockery, cutlery, and sports goods. KB's FairPrice are modern, self-service ration shops that retail only 300 essential products, at the lowest prices. Shoe Factory, a footwear retail store chain offers branded footwear and accessories to men, women and kids. Pantaloon has presence in the leisure and entertainment space through an d company, Galaxy Entertainment. Pantaloon's F 123, a gaming and entertainment zone, offers a range of gaming options ranging from bowling, pool, interactive video games, bumper cars along with fun foods and services for junior and adult banqueting. The company also operates Bowling Co., a family entertainment center, in Mumbai. In a t venture with Blue Foods, Pantaloon operates food courts, fine dine specialty restaurants, thali restaurants, banquets and multiple kiosks with brands such as Copper Chimney, Bombay Blue, Noodle Bar, Spaghetti Kitchen and The Spoon. The company operates specialty stores in the wellness and health retailing. It operates Star and Sitara and Fit and Healthy. Star and Sitara provides skin and hair related beauty services for men and women. Fit and Healthy section housed within Big Bazaars and Food Bazaars provides health products and health related tips, information and advice.
Key Metrics The company recorded revenues of $2,658 million in the fiscal year ending June 2011, an increase of 24.8% compared to fiscal 2010. Its net income was $26 million in fiscal 2011, compared to a net income of $15 million in the preceding year.
Table 9: Pantaloon Retail: key financials ($) $ million
2007
2008
2009
2010
2011
Revenues
704.6
1,099.9
1,381.9
2,130.5
2,658.4
26.1
27.4
30.6
14.7
26.4
Total assets
532.8
893.9
1,140.5
2,113.3
3,116.8
Total liabilities
295.1
491.9
645.8
611.0
653.9
18,000
28,000
33,500
33,500
0
Net income (loss)
Employees SOURCE: COMPANY FILINGS
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Table 10: Pantaloon Retail: key financials (Rs.) Rs. million
2007
2008
2009
2010
2011
32,367.4
50,526.7
63,477.6
97,869.0
122,117.0
1,199.9
1,259.7
1,405.8
674.9
1,212.1
Total assets
24,476.0
41,062.4
52,389.0
97,076.0
143,172.0
Total liabilities
13,554.2
22,596.2
29,664.8
28,068.0
30,036.0
Revenues Net income (loss)
SOURCE: COMPANY FILINGS
MARKETLINE
Table 11: Pantaloon Retail: key financial ratios Ratio
2007
2008
2009
2010
2011
Profit margin
3.7%
2.5%
2.2%
0.7%
1.0%
Revenue growth
73.2%
56.1%
25.6%
54.2%
24.8%
Asset growth
111.7%
67.8%
27.6%
85.3%
47.5%
Liabilities growth
115.4%
66.7%
31.3%
(5.4%)
7.0%
Debt/asset ratio
55.4%
55.0%
56.6%
28.9%
21.0%
Return on assets
6.7%
3.8%
3.0%
0.9%
1.0%
SOURCE: COMPANY FILINGS
MARKETLINE
Figure 12: Pantaloon Retail: revenues & profitability
SOURCE: COMPANY FILINGS
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Figure 13: Pantaloon Retail: assets & liabilities
SOURCE: COMPANY FILINGS
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MACROECONOMIC INDICATORS Country Data Table 12: India size of population (million), 2007–11 Year
Population (million)
% Growth
2007
1,136.6
1.5%
2008
1,153.1
1.5%
2009
1,160.8
0.7%
2010
1,176.7
1.4%
2011(e)
1,192.5
1.3%
SOURCE: MARKETLINE
MARKETLINE
Table 13: India gdp (constant 2000 prices, $ billion), 2007–11 Year
Constant 2000 Prices, $ billion
% Growth
2007
727.5
10.0%
2008
772.5
6.2%
2009
824.9
6.8%
2010
908.6
10.2%
2011(e)
980.3
7.9%
SOURCE: MARKETLINE
MARKETLINE
Table 14: India gdp (current prices, $ billion), 2007–11 Year
Current Prices, $ billion
% Growth
2007
1,083.8
28.1%
2008
1,184.7
9.3%
2009
1,260.5
6.4%
2010
1,554.5
23.3%
2011(e)
1,854.1
19.3%
SOURCE: MARKETLINE
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Table 15: India inflation, 2007–11 Year
Inflation Rate (%)
2007
6.4%
2008
8.3%
2009
10.9%
2010
12.0%
2011(e)
10.6%
SOURCE: MARKETLINE
MARKETLINE
Table 16: India consumer price index (absolute), 2007–11 Year
Consumer Price Index (2000 = 100)
2007
137.1
2008
148.5
2009
164.7
2010
184.4
2011(e)
203.9
SOURCE: MARKETLINE
MARKETLINE
Table 17: India exchange rate, 2007–11 Year
Exchange rate ($/Rs.)
Exchange rate (€/Rs.)
2007
41.3570
56.5898
2008
43.8145
64.1115
2009
48.8500
67.9264
2010
4 .9361
60.9708
2011
45.9361
60.9708
SOURCE: MARKETLINE
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APPENDIX Methodology MarketLine Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, crosschecked and presented in a consistent and accessible style. Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys and ed by analysis from industry experts using highly complex modeling & forecasting tools, MarketLine’s in-house databases provide the foundation for all related industry profiles Preparatory research – We also maintain extensive in-house databases of news, analyst commentary, company profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market overview Definitions – Market definitions are standardized to allow comparison from country to country. The parameters of each definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the market and our clients Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and trends MarketLine aggregates and analyzes a number of secondary information sources, including: -
National/Governmental statistics
-
International data (official international sources)
-
National and International trade associations
-
Broker and analyst reports
-
Company Annual Reports
-
Business information libraries and databases
Modeling & forecasting tools – MarketLine has developed powerful tools that allow quantitative and qualitative data to be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can then be refined according to specific competitive, regulatory and demand-related factors Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date
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Industry associations International Electrotechnical Commission 3, rue de Varembé, P.O. Box 131, CH - 1211 Geneva 20, Switzerland Tel.: 0041 22 919 0211 Fax: 0041 22 919 0300 http://www.iec.ch
Consumer Electronics and TV Manufacturers Association J-13, Jangpura Extn., New Delhi - 110014, India Tel.: 0091 11 3090 8288 Fax: 0091 11 2432 1616 http://www.web.cetmaindia.org
Related Datamonitor research Industry Profile Global Consumer Electronics Consumer Electronics in Europe Consumer Electronics in Asia-Pacific
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