Recently Frost & Sullivan published a major market study for Sensormatic that identified the need for loss prevention solutions in India. To gain further insight into the Indian retail markets, the study explored retailers' pain points along with their loss prevention and operational needs in various retail segments. Research revealed in 2007 total sales for the India retail market, comprised of organized and unorganized retailers, were $339.7 billion.

By 2012, the retail market is projected to grow to around $551.4 billion. In a country with over one billion inhabitants, consumer retail demand is growing rapidly as the region modernizes, paving the way for retail expansion. With swift industry development, the majority of retailers focus on improving loss prevention solutions that maximize growth and profitability.

Indian Retail Market Overview
2009 - 2011 are estimates. F&S sources: CSO, NSSO and Technopak Advisers Pvt. Ltd. (Click on chart for larger view)	Organized retail consists of 4% of the total Indian retail market and is expected to grow to 15% by 2011. (Click on chart for larger view)

Between 2003 and 2007 organized retail formats (characterized as chain stores and stores that are subject to central ownership or franchisees) experienced a Compounded Annual Growth Rate (CAGR) of 19.5%. By 2012, the organized retail market expects to increase at a more aggressive rate, projected at 44% CAGR -- prompting retailers to look for effective and innovative loss prevention methods.

According to the study, shoplifting in the Indian retail market accounted for over 50% of loss, which remains the number one source of inventory loss. EAS is designed to help retailers prevent losses due to external theft - India's most significant challenge impacting retailer profitability and inhibiting future growth. Employee theft represented the second largest source of inventory loss at 20%.

"To help combat their greatest sources of loss due to shoplifting and employee theft retailers are relying on EAS solutions to help improve their bottom line," states Frost & Sullivan senior research analyst Archana Amarnath. "Since organized retail accounts for 4% of the total Indian retail market and is expected to increase to 15% by 2011, there is a huge potential for growth and an exciting opportunity for Sensormatic to educate the market and support retailers' loss prevention goals."

Additionally the study revealed 45% of the retailers that currently use EAS rank it as the second most important technology, second only to POS, to deliver benefits like shrink reduction and increased profitability. The rising prevalence of hypermarkets and department stores, which stock large number of products, has made EAS a must-have technology to prevent pilferage. As more retailers become educated on the benefits of EAS technologies, we expect further investment in superior solutions with greater integration and data analytics capabilities.

Click on each chart for a larger view

"With the retail boom over the last three to four years there has been an influx of world-class malls and shopping centers," states Amarnath. "With a larger shopping area, multiple entrances, and an open counter format, it has become difficult to deter shoplifting activity - driving the need for EAS."

"More and more companies are looking for growth opportunities given the current challenges in the global retail environment," according to Frost & Sullivan chairman David Frigstad.

"The business intelligence and consulting expertise that Frost & Sullivan provides can help Sensormatic further understand current and emerging trends in the Indian retail and EAS markets. This knowledge will serve as a foundation for future product development and marketing efforts, targeted specifically for the Indian EAS market."

For more information on the Sensormatic retail solutions portfolio or to download a summary of the Frost & Sullivan study please visit www.sensormatic.com.