[Sameer Ahuja]
Industry Overview
• Retail Sector is segmented into Grocery, Specialty , Pharma & Multi-Channel
Retailing, Apparel & Footwear, Food & Beverage, Home & Personal Care and
Wholesale Distribution industries.
Market Overview:
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a) Global
• Accenture Analysis : Software will attract the largest share of the
forecast spending by retail companies, growing from $4,581 million
in 2001 to $9,330 million in 2006.
• According to NRF Retail IT and Budgeting Study, the retail industry will
spend $7.4 billion on technology in 2006 — an 11.5 percent increase
over 2005, which was already up 10 percent from 2004
• RFID spending at U.S. retailers will grow from $91.5 million in 2003 to
nearly $1.3 billion in 2008
b) India
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• IT revenue from the Indian retail segment measured US$ 253 million in
2006 and is expected to grow to US$1.07 billion by 2010, with a
compound annual growth rate (CAGR) of 44%. This was announced by
Springboard Research, in the results of its research report detailing IT
spending and market trends in the Indian retail industry.
• As the current economic boom in India spreads to Tier II and Tier III
cities and towns, reaching out to prospective consumers in these cities
is high on the agenda of most retail companies. Retailers consider
market presence in these cities and towns key to their growth and
profitability. As such, many retail companies are investing in
technology that will help support their expansion into these new
markets.
c) Singapore
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what they did in 2006, according to the latest report by Access Markets
International (AMI) Partners
• Some of the key concerns that emerged from the retail mid-market
companies were issues relating to managing customer loyalty,
maintaining product prices and management of personnel.
d) UAE
• According to IIR Middle East, the organizer of Retail City, current GCC
retail space will treble to more than 15 million square meters by 2016,
as the burgeoning tourism industry and regional population growth
spurs the longer term prospects for the GCC’s retail industry.
• Paris Gallery, the UAE's largest beauty retailer and arbiter of taste in
the region, has announced the roll out of Avaya (NYSE: AV) IP
Telephony solutions across its showrooms in the UAE
• The POS software market remain slightly competitive with no one vendor
dominating the market. The likes of IBM, Datavantage, CRS,Fujitsu,
Triversity have active presence in this space
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• Business Objects has recently announced its XI release 2, which will
provide retailers options for performance management, planning,
reporting, query and analysis, and enterprise information management.
• Sun Microsystems has said it will pair its RFID software with tracking
software from partner Aldata Solutions to help companies track
inventories. Sun also said it will soon open an RFID test center, comprised
of a 17,000-square-foot warehouse, in Dallas. The company has a similar
facility in Scotland
• IBM has said it is assisting Metro with a similar project, the Future Store
Initiative. To get started, 100 Metro suppliers will use RFID tags to identify
pallets and transport crates delivered to 10 of Metro's central warehouses
and 250 of its stores
My Analysis:
Retail is currently the buzz word in countries like India and UAE .In India , as more
and more retail stores come in organized sector the scope of IT will be immense.
From contact center to Business Intelligence ,from Point of sales to ERP , scope of IT
is everywhere in this sector. The biggies (WalMart, Carrefour and Tesco) have
already invested huge amounts in RFID solutions. Many retailers are thinking about
their strategic IT plans and therefore there is and there will be tremendous
opportunities in this sector for technology companies
References:
• http://www.cxotoday.com/India/News/Indian_Retail_to_spend_US_107_billion_on_I
T/551-80358-908.html
• http://www.cxotoday.com/cxo/jsp/list.jsp?page=industry_news_cathome&cat_id=
1512
• http://www.cxotoday.com/India/News/Booming_Retail_Woos_Two_More_Players/55
1-78512-908.html
• http://news.com.com/2100-1008-5139297.html
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• http://www.infosys.com/industries/retail-distribution/default.asp
• http://www.wipro.com/retail/index.htm
• http://www.emea.avaya.com/gcm/emea/en-
us/corporate/pressroom/pressreleases/2006/pr-060614.htm
• http://www.iirme.com/news_details.aspx?newsID=183
• http://www.ameinfo.com/41075.html
• http://digital.asiaone.com/Digital/News/Story/A1Story20070609-13375.html