The Evolution of Modern Grocery Market in Pakistan
“The Evolution of Modern Grocery Market in Pakistan.”
A research project to study changing consumer buying patterns and opportunities for new entrants in the modern grocery sector.
By
Adavanced Research Methods MBA-Evening Program Section ‘E’
Submitted on November 19, 2012
Table of Contents
Titles Page No.
Prefatory Information Abstract Acknowledgements Executive Summary Introduction Methodology Research Findings Conclusion Recommendations Appendices References
02 03 04 05 06 08 09 13 14 15 22
Page | 1
Prefatory Information
Research Topic “The Evolution of Modern Grocery Market in Pakistan.” Research Background The traditional food retail sector (small neighborhood stores, street vendors, “general trade” stores, etc.) comprise about 95% of all food retail stores in Pakistan while the modern retail sector (hypermarkets, supermarkets, discount stores, etc.) make up the remaining 5%. Over the past few years international retailers have taken advantage of the growing opportunities in this market. Well-known European retail giants Makro, Metro, and Carrefour (Hyperstar) have opened stores in all major Pakistani metropolitan cities. The port city of Karachi alone has at least five large retail stores that serve more than 19 million people. With a growing middle-income class (estimated at about 25% of the total population), increasing urbanization, increasing popularity of international food products, and a growing number of international restaurants and fast food chains, Pakistan is emerging as an expanding market for U.S. high-value agricultural products. The overall food retail and wholesale business accounts for 17% of Pakistan‟s GDP. These large retail stores have been able to tap into the changes in consumer lifestyles and higher disposable income. Emerging technologies have also contributed to the emergence of the large food retail superstores, which offer a wide range of value added products and services to price conscious middle
A research project to study changing consumer buying patterns and opportunities for new entrants in the modern grocery sector.
By
Adavanced Research Methods MBA-Evening Program Section ‘E’
Submitted on November 19, 2012
Table of Contents
Titles Page No.
Prefatory Information Abstract Acknowledgements Executive Summary Introduction Methodology Research Findings Conclusion Recommendations Appendices References
02 03 04 05 06 08 09 13 14 15 22
Page | 1
Prefatory Information
Research Topic “The Evolution of Modern Grocery Market in Pakistan.” Research Background The traditional food retail sector (small neighborhood stores, street vendors, “general trade” stores, etc.) comprise about 95% of all food retail stores in Pakistan while the modern retail sector (hypermarkets, supermarkets, discount stores, etc.) make up the remaining 5%. Over the past few years international retailers have taken advantage of the growing opportunities in this market. Well-known European retail giants Makro, Metro, and Carrefour (Hyperstar) have opened stores in all major Pakistani metropolitan cities. The port city of Karachi alone has at least five large retail stores that serve more than 19 million people. With a growing middle-income class (estimated at about 25% of the total population), increasing urbanization, increasing popularity of international food products, and a growing number of international restaurants and fast food chains, Pakistan is emerging as an expanding market for U.S. high-value agricultural products. The overall food retail and wholesale business accounts for 17% of Pakistan‟s GDP. These large retail stores have been able to tap into the changes in consumer lifestyles and higher disposable income. Emerging technologies have also contributed to the emergence of the large food retail superstores, which offer a wide range of value added products and services to price conscious middle
References: Retail Sector Dynamics in Ireland-www.forfas.ie. European Journal of Scientific Research Euro Journals Publishing, Inc. 2009 http://www.eurojournals.com/ejsr.htm http://www.riazhaq.com/2011/10/fmcg-companies-profit-from-rural.html Retail markets planning guide-FAO Bulletin http://www.fao.org/docrep/v8390e/V8390E00.HTM New generation of retail markets By Ashfak Bokhari | From InpaperMagzine | 23rd July, 2012 http://dawn.com/2012/07/23/new-generation-of-retail-markets/ Retail’s Hottest Emerging Markets, 2012 http://www.cnbc.com/id/47782726/Retail_s_Hottest_Emerging_Markets_2012 Economic Impact of Retailing in Pakistan Proceedings of 2nd International Conference on Business Management Page | 22