Retail Market Sizing - Wazir Advisors

Strategy > Consumer Products and Retail > Retail Market Sizing

Sizing the Indian Retail Industry & Technology Disruptions in the Market

About the Client

The client, a technology company that developed an application to simplify and support the retail value chain, wanted to understand the overall retail market in India with major focus on unorganized retail and a strategic perspective around the potential of this market segment.

Project Objectives:

Core objective was to map the Indian retail industry & technology disruptions happening globally and in India. Also, what is the opportunity for client’s applications and how it can be used to simplify the retail value chain?

Deliverables:

Market mapping and in-depth perspective of the highly unorganized retail industry in India-

Provided detailed analysis of Indian retail industry- market size, share of unorganized market, share of different categories, etc.
In-depth analysis of major categories like Food & grocery, Fashion & Lifestyle, etc. in terms of- market size, share of organized vs unorganized, branded vs unbranded, opportunities and challenges in the supply chain, unique strengths of unorganized market/ retailers, etc.
Provided detailed analysis of typical retail value chain in India and how unorganized/ traditional retailers overcoming these challenges by upgrading themselves to a level of modern retail.

Further, key insights about disruptive digital trends and possibilities globally & in India as well-

Key insights about most disruptive technology trends influencing each entity in Indian retail value chain were provided. How these technology advancements are helping value chain entities was also discussed.
Analysis of usage of “Big Data” by some of the global leaders in retail industry to derive key learnings.

Provided Wazir’s views based on market analysis on client’s current standing, future opportunities, and key challenges in the segment where it operates.

Market Sizing of the Pearl Market in India

About the Client

A leading Japanese jewellery trading wanted to study the pearl market in India to help them identify market opportunities and the strategy to tap them effectively.

Project Objectives:

Core objective was to conduct a feasibility study of the pearl market in India, answering the following key questions:

What should be the unique theme/USP for the retail development, which maximizes customer engagement, encourages repeat footfalls, and successfully positions it as a differentiated proposition?
What is the current jewellery and pearl market structure including size, forecast and opportunities?
What are the existing demand-supply gaps?
Is the market ready for high end, superior quality, graded pearls from a foreign brand?

Deliverables:

Detailed analysis of the overall jewellery & pearl market in India:

Market structure and segmentation
Demand & supply drivers
Major markets for buying pearls in India? Who are the major players – organized and unorganized?
Customer: brand presence, willingness for proposed location, etc.
How has the consumption behavior of Indian population changed over years

Customer Analysis & Market Sizing

Demand for pearls in the retailers’ city and in their own business. Growth drivers and potential for future growth. Impact of recession on sale of pearls
Awareness amongst retailers about the type of pearls, qualities & prices available. Level of availability of pearls w.r.t. various types; price range; size; quality; etc.
Role played by vendors, on the consumer decision making process. Importance of authenticity /Quality certification
Willingness to do business with foreign company

Consumer Analysis & Market Sizing

Jewellery purchase occasions; average annual spend on jewellery; share of pearls in current jewelry collection; and likelihood of increase /decrease
Level of awareness, knowledge & understanding of type of pearls, qualities & prices. Current satisfaction levels and unmet needs and wants
Purpose of buying pearls. Influencers and apprehension. Role of jeweler
Sources of information

Triangulated the findings across customers and consumers to determine pearl market size in India and its growth potential

Sizing the Decorative Lighting Industry in India

About the Client

A leading investment firm was looking to invest into a prominent chain of lighting stores. In this context, they wanted to understand the decorative lighting market inIndia and a strategic perspective around the potential of this market segment.

Project Objectives:

Core objective was to map the decorative lighting industry in the top 15 cities of India, answering the following key questions:

What is current market size and growth rate of Indian decorative lighting market? What is the future outlook? What are the growth drivers and challenges?
What should be the retail mix for different locations?

Deliverables:

Market mapping and in-depth perspective of the highly unorganized decorative lighting industry. Further, the market size of the decorative lighting market in the top 15 Indian cities and their future growth potential were also calculated using multiple approaches-

Supply side: using a bottoms up approach, size of retailers in terms of avg. sale in particular city was calculated which was used to estimate the size of the market in that city. Similar approach was used for all 15 cities, and data was used to estimate PAN India market size.
Demand/ consumer side: consumer survey was done to identify avg. spend of consumers on decorative lighting and replacement cycle. It was used to estimate total spend by such consumers and by combining it with no. of such consumers in India, market size for lighting industry was estimated.

A thorough perspective on the target retail chain’s operations using industry benchmarking methods, clearly indicating the business’s potential in India.