1. THE SUPER SIZING OF
MODERN RETAIL
CONSUMER
BEHAVIOR
ARTICLE
PRESENTATIO
N

2. The Way We Shopped
•Tiny shops with shop
runners and cramped
counters
•4 or 5 brands to choose
from
•No discount deals
•Not all essentials available
on one shop

3. Lets flash forward..
•Massive, sterile boxy
looking place with infinite
rows
•One destination to buy
everything
•Giant trolleys to drop
everything in
•Entire shopping trip ends
in half an hour
•Special deals and exciting
bargains
•50 brands to choose from!

4. EVOLUTION OF PAKISTANI RETAIL
MVI in “retail evolution:
position for modern trade
growth”:
Country’s retail trade
modernizes with:
•Entry of foreign owned
players in the market
•Global chains entering
•Acceleration of modern trade
the market with local
growth by local players
supermarkets growing
•Hybrid approach
•The growing number of
flourishing Karyana
stores

5. The Value Of Retail in
Pakistan
•Unorganized and
undocumented retail sector
•Nosharwan Ali (Director Sales
Uniliver Pakistan) approximated
it at 17% of GDP
•700,000 karyana stores across
Pakistan
•Karyana stores 70% of all
purchases
•Modern retail contributes 20%
in terms of sales

6. Consumer Trends Dictating Growth Of
Modern Retail
Reasons of growth of scope and influence of modern
retail:
•The fragmented and
disorganized retail sector
Expansion attracts foreign chains
•Macro economics factors
•population  180 million
•Per capita consumption  $836.3
•Per capita consumer spending 37%
•Urbanization
•Per capita grocery spending 30%
•Increasing
•Per capita non grocer items 46%
Shortage of
•An average Pakistani spends 42% of income
time
on food
•Spending on beauty, electronics & durables

7. Super markets provide: •Appeal to the salaried class
•Better value for money who do grocery shopping on
•Improved shopping monthly basis
experience
and cash in on the trend
Trajectory Of Modern Trade Growth
Stages in evolution of modern trade:
•Land grab stage: sharp growth of modern trade outlets;
Pakistan is at the tail-end but if economic indicators
improve another wave can come
•Consolidation stage: retailers look for bottom line
expansion (Metro and Makro). leads to expansion
•Positioning: specialization and saturation( Wal-Mart, whole
foods market)
•Specialized foreign players (Watsons and dairy farm)
Nosharwan

8. Traditional Retail Comes
Under Pressure When consumers go
shopping they call it a
•Consumers demand “shopping mission”. If the
quicker and better mission is to buy their
shopping experience monthly groceries, then
super market is the ideal
•Modern retail and rural destination. However, for
areas daily or weekly
•Karyana stores hold trips, which generally
prime importance consists of “meal for
•Urbanization today”, corner shops and
karyana stores are still
the most convenient
destinations.
Nosharwan

9. •Greater sales volume by
modern trade, as more
players will enter the
market, will force smaller
retailers to understand their
strengths
But today's small store
holders disagree
“The great advantage of small store is that we give
our customers personalized service and I am very
aware of what people want. these hyper markets
are run by big fellows who do not interact directly
with people and don’t know how retail business
works in this country.”
Yazdi Setna , runs a store
in Empress Market

10. Brands Are Under
Pressure
•Self service environment of
modern retail
•Five to 20 brands of same
product
•FMCGs have no bargaining
power
•Modern retail is category
focused, while small retails
are brand focused
•Crucial shop space in large
retail chains

11. What Happens Next?
Consumers demand more value
Challenges for brands:
Integration of ATL
advertisement and in-
store promotion gaining
importance
Consumers interact
directly with the
product bring all P’s
into play

12. What Happens Next?
Consumers demand convenience and better
shopping experience in terms of
Product selection
Customer service
•Quality control
•Storage Trained staff
•Attention to shelving
Better Pricing Passing on the advantage of
large scale to consumers