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Aspirations & Road Map of Independent Retailer

A Retailer's Journey

E-commerce

Market

Place

Regulatory

Irritants

People &

Skills

Cost ofSpace

Business

Continuity

Competition

Customer

Loyalty

Succession

Planning

The pulse of emerging, independent Retailers: A RAI – GoFrugal Survey

Initial Insights - Part III

Who We Are

Retailers Associa�on of India (RAI) is the unified voice of Indian retailers. RAI, a not for profit organiza�on (registered in

India under sec�on 25 of Companies Act, 1956), works with all the stakeholders for crea�ng the right environment for

the growth of the modern retail industry in India. We encourage, develop, facilitate and support retailers to modernize

and adopt best prac�ces that will delight customers.

What We Do

RAI is a strong advocate for retailing in India and works with all levels of government and stakeholders. Our charter is to

support employment growth and career opportuni�es in retail, to promote and sustain retail investments in

communi�es from coast-to-coast, and to enhance consumer choice and industry compe��veness. RAI also provides its

members with a full range of services and programs including educa�on and training, benchmarking and best prac�ces,

networking, Policy advocacy, and industry informa�on.

Thus, RAI is the lead trade associa�on represen�ng an en�re gamut of retailers, from chain store retailers and

department stores through to independent emerging retailers, selling a wide selec�on of products across ci�es, towns,

rural and virtual stores.

Our Ini�a�ves

RAI provides:

Advocacy support: We aggregate and represent the “Voice of Industry” to policy makers and the government.

Networking and Events: We provide regional and na�onal events for members to network with each other and with

the larger Retail Fraternity.

Learning & Development: We provide a range of workshops and seminars for members to skill up as they scale up.

Knowledge & Research: We work with a number of Knowledge Partners to deliver authorita�ve, insigh�ul industry

reports.

About Retailers Associa�on of India

About GoFrugal Technologies

GoFrugal Technologies specializes in retail, retail distribu�on and downstream supply chain management solu�ons.

GoFrugal solu�ons integrate compu�ng, Web 2.0, mobile and SMS technologies to provide comprehensive automa�on

and collabora�on among the en�re trade and supply chain ecosystem including suppliers, customers, partners, service

providers, franchise, franchisor among others. Solu�ons can be deployed in small single store to large corporate chains

and available as on-demand, on-premise and on-mobile solu�ons

Technology adop�on to Retail, Distribu�on and Supply chain businesses since 2004, in the form of complete business

automa�on solu�ons. Headquartered in Chennai, India, our technological footprint has grown to benefit 20,000+ retail

and distribu�on businesses.

GoFrugal business management solu�ons are built with deep understanding of customer needs and pain points using

the latest so�ware architecture models, proven and cost effec�ve technologies using the best in class engineering

processes. Our Assure Support service with its team of highly skilled service personnel & product consultants ensure

we implement industry's best prac�ces for business.

Vision & Mission- Empower all kinds of trade businesses with effec�ve and efficient solu�ons that help them- Measure,

Manage and increase Profits.

Assure - Assure on So�ware Quality, Assure on Implementa�on & Professional Services and Assure on 24x7 support

response

September 2014

001

PROLOGUE

Retail in India has historically been a market dominated by small 'kiraanas'- the so called “Mom & Pop store”.

Organized modern retail has been viewed as the '�p of the ice-burg', contribu�ng about 6% of total Retail

ac�vity.

Over the last decade, urbaniza�on has created a second, sub-segment – the 'independent modernizing

retailer'. These are either family owned or first genera�on entrepreneurs who have upgraded and

modernized their stores or have entered retail as first-�me entrepreneurs. They now form a third, segment,

somewhat 'under banked' in terms of visibility – but significant enough for FMCG majors like Hindustan

Unilever (HUL) to take no�ce.

Recent research shows that FMCGs have begun to recognize a segment called the “Large Kiraana” – stores

which will “will have to evolve look, feel and ameni�es to match Modern Retail experience while adding Value

Added Services like Home Delivery, Credit, Loyalty Programs etc. as they fight to retain the monthly Shopping

trips and capture a share of the 'top up' shopping trips”.

What FMCGs have no�ced in the grocery market is equally true of other segments of Retail.

From apparel to accessories to jewelry to fast fashion to fast food (QSR) to segments like book stores – the

market is seeing a wave of independent retailers – either entrepreneur owned and managed stores or family

run businesses.

This report captures the current 'state of play of this segment of independent retailers in Gujarat. It's the third

of a con�nuing dialogue with independent retailers to understand their ambi�ons, aspira�ons, challenges

and constraints. It was structured as a series of qualita�ve interviews among independent retailers who are

RAI members or customers of our Knowledge partner – GoFrugal Technologies. The first report in this series

was released in July 2014, which analyzed the Chennai region; the second was released in August 2014,

focused on the Delhi Region.

We intend to con�nue this dialogue in future through our networking meets in other ci�es such as Mumbai,

Pune, Bangalore, Cochin, Coimbatore, Kolkata etc.,

We hope you find this a thought provoking start to an interes�ng conversa�on.

Kumar RajagopalanCEO,

Retailers Associa�on of India

Kumar VembuFounder & CEO,

GoFrugal Technologies

India is a na�on of shopkeepers. With 11 shops

per 1000 people, shopping is India's “window to

the world”. Nowhere-else in the globe will you

find such a high density of shops over such a large

landmass. China, Brazil and Russia all score lower.

We are matched only by Mexico, Peru, Chile, and

Iran.

Retail in India, grows at 5% above GDP – it grew at

12% during 2002 to 2010. In the last 3 years, it has

grown at 10%. The sector is the second largest

employer in the country (a�er Agriculture) and

employs 4.3 crore people.

The structure of the Retail market in India reveals

three dis�nct segments – the large format,

na�onal player (including e-tailers), the 'mom &

pop' Kiraana store and the Independent retailer.

While 6% of the USD 440 billion (INR 265,000 cr)

Indian retail sector is organized (including

ecommerce players) and 40% of retailers are the

'mom and pop' variety, there is a residual, large,

'mid-segment' of Independent retailers. These

are single or mul�-store retailers, usually in one

city, who have adopted aspects of technology

(usually billing and inventory) and are increas-

ingly using e-marketplaces to create visibility and

reach. They are also toying with the fringes of

social media for customer engagement.

Customers are subject to differen�al experiences

depending on which segment of retailer they are

buying from, how nascent or entrenched the

retailer is in the community, and the extend of

personal / brand connect that the customer feels.

Aspira�ons and Roadmap for Independent Retailers

September 2014

002

Independent Retailers – These are

retailers who have begun to

modernize. They have evolved

their look, feel and amenities to

match Modern Retail experience

while adding Value Added Services

like Home Delivery, Credit, Loyalty

Programs, and Social Media

Presence etc. Footprint varies –

from single suburb or city, to state,

r e g i o n a l , n a t i o n a l a n d

international. E.g. Red Tape

footwear (which was part of the

Delhi Study) has an international

brand presence.

This joint paper by the Retailers Associa�on of

India and GoFrugal Technologies explores the

current 'state of play' among 30 Independent

retailers in Gujarat.

It is part of a con�nuing series of interviews

aimed at gauging the pulse of this emerging

segment. This is the third in the series of reports

on the same topic – Part 1 focused on Chennai

and surrounding ci�es, and Part 2 on Delhi and

surrounding ci�es. (Both those reports are

available on www.rai.net.in). Note: In these

studies – the term “Surat Region” applies to all

ci�es covered in the study (just as “Delhi Region”

was the nomenclature used to refer to all

retailers in the second module of the study).

The objec�ve of the study is to create a pla�orm

for ongoing interchange and dialogue with these

Independent retailers and to record and track

their percep�ons about the business environ-

ment, key concerns and challenges.

The study was carried out as a series of qualita-

�ve, structured interviews with retail CEO's and

Owners and focused on the following areas:

1. Compe��on

2. Customer experience

3. Space cost

4. People & Skilling

5.Succession Planning and Con�nuity within

business families

6. Technology

7. Regulatory factors

The annexure contains profiles of each retailer

surveyed including their view on the overall

environment, macro-economics, consumer

sen�ment, regulatory irritants, and internal

aspects such as people, space, merchandising

and technology.

Profile of retailers surveyed

30 retailers were interviewed for this module of

the study – i.e. from the Surat Region. For Delhi

Region 31 interviews were conducted and for

Chennai Region – 23 interviews were conducted. Retailers featured in the Surat Region module

included Food, grocery retailing including

Kiraanas and single store supermarkets, Quick

Service Restaurants (QSR), Fine Dining, , Apparel

& accessories, Occasion Wear, Fast Fashion,

Footwear and Leather, Jewelry & Cosme�cs.

Some of the more unique businesses focused on

Cooking classes and Pet care.

Retailers in the Surat Region use franchising to

expand. As a result, the survey covered 30

retailers, accoun�ng for 771 stores employing

3109 employees. These numbers do not factor in

the impact of the brands, which were created by

the retailers featured in this study – for example –

Jivraj tea is present in 40,000 outlets across

mul�ple states. Similarly, S.K. Masala is a brand

known to the interna�onal NRI community

The Surat Region module covered

30 retailers, 771 stores employing

3109 employees.

September 2014

003

Note: In this en�re study, “Delhi” refers to retailers

who were part of the Delhi Region study, similarly

“Chennai” retailers refers to retailers who were

part of Module 1, covering Chennai and surround-

ing ci�es; and “Surat” or “Surat Region” refers to

the retailers in Gujarat covered in this study. In

many cases, the businesses themselves are

regional, or na�onal and even interna�onal – e.g.

Red Tape footwear from the Delhi Study has an

interna�onal footprint. The label of “Regional” or

“Independent retailer”, “Delhi Retail” is meant to

provide a convenient label to classify and analyze

trends – it is not meant to suggest that these

retailers are small, or only regional in their foot-

print or aspira�ons.

Sen�ment

The three markets – Chennai Region, Delhi Region

and Surat Region – differ in the level of perceived

confidence in the overall business environment.

Broadly speaking, the retailers in Chennai sounded

the most pessimis�c and the retailers in Surat

sounded the most op�mis�c. Note – this is a

comment on the qualita�ve 'state of mind' of the

retail fraternity surveyed.

Branding

The focus on brand building and marke�ng was the

highest in the Delhi region, followed by Surat

Region and Chennai Region. This dimension

considers the amount of �me spent by the owners

on the opera�onal aspects of branding and

marke�ng.

Compe��on from E-commerce

While the sen�ment towards e-commerce was

pessimis�c in Chennai and remarkably op�mis�c in

Delhi Region, where e-commerce was seen as a

'channel opportunity' – the retailers in the Surat

region are middle of the road, when it comes to e-

commerce. It is viewed as a channel opportunity,

as long as it does not dilute pricing power.

Between 2009 and 2013, some of the retailers

surveyed had stopped selling their products to e-

commerce providers such as Flipkart, because

discounted prices led to the brand dilu�on and

reduc�on in pricing power in the brick and mortar

channel.

Space

In contrast to the other two regions, the Surat

Region retailers had a high focus on the use of

franchising as a means to grow. This also meant that

space costs were not as much of a concern as in the

Chennai market. Where the retailers were growing

by se�ng up owned outlets – there was concern

expressed about rising rentals – both in High street

and Malls.

People

As with the Delhi region, retailers in Surat had

similar concerns – while a�ri�on was low (< 15%),

retailers found it difficult to find skilled resources.

The most common feedback was the lack of

understanding of retail skills (selling, stocking,

customer engagement).

Inclusivity

There were a larger number of women involved in

Point of view – Delhi, Chennai, Surat

Business sentiment in the Surat

Region was more positive than

both the Delhi and Chennai

Regions. Retailers in Surat Region

were more e‐commerce enabled

than their Chennai counterparts,

but less than the Delhi Region.

September 2014

004

running the family owned business. One reason for

this is that Food Retailing forms a large segment of

the market – which matches the so called tradi-

�onal 'palate' advantage that women have. Most of

the food retailers were husband and wife teams, in

addi�on there were two women entrepreneurs out

of the 30 retailers surveyed.

One of the features of the Surat

Retail Market was that women

were involved in family owned

business (especially in Food

retailing). Many of the food

retailers were husband and wife

teams, in addition there were two

women entrepreneurs out of the

30 retailers surveyed.

September 2014

005

September 2014

006

The independent retailer's view on compe��on is

both very local and very global. Their customers

increasingly compare them with organized retailers

in the same category.

Overall business growth for most of the retailers in

the Surat Region has been in the 10 to 25% per

store, per annum range.

From franchise to Brand

Retailers in the Surat region are focused on brand

and franchise building. Most of the independent

retailers are family owned businesses, and the

value of conver�ng a 'franchise' into a formal brand

is well understood. The owner's involvement in the

opera�onal side of brand management – is also

high. The contrast with the retailers surveyed in the

Delhi region is simply this – the la�er tend to have a

'marke�ng' focus to the art of brand building,

where-as the Surat Region retailers tend to have a

'customer' focus to the same.

From franchise to Franchising

Retailers in the Surat region use 'franchising' as an

expansion mechanism. Two-thirds of retailers

surveyed, have franchised their brand to expand.

Compe��on

September 2014

007

Most retailers are family owned

businesses, and know the value of

converting a franchise to a brand.

Retailers have created brands in

both the B2B and B2C segments –

as a means to differentiate

offering and create value.

Retailers have used innovation in

packaging, people practices, and

supply chain to create entry

barriers. Man Mohak, an ice

c r e a m c h a i n u s e s ' g l y c o '

refrigeration to maintain quality,

when power supply is unreliable.

S.K. Masala created its business by

repackaging masalas, in smaller

serving, tamper proof packages

for the NRI market.

There are retailers like Kutchi King, which has 1

owned unit and 149 franchised units – it sells Kutchi

fast food, and uses a central kitchen to supply 'semi-

finished' food to each of the franchisees, where the

food is 'completed' in the on-site live kitchen. The

move to franchising is irrespec�ve of size and

vintage – Swad classes, which is owned and

managed by Sneha Thakkar, uses her own 'stores'

and a franchised store to sell cooking classes.

Innova�on

Innova�ons in business model – as a source of

compe��ve advantage, abound. Man Mohak ice

cream uses 'glyco' refrigera�on, which keeps ice-

cream refrigerated for up-to 12 hours, even when

power supply is unreliable. S.K masala built its

business by repackaging 'masala' into smaller

serving, tamper proof packs, which was targeted at

the NRI market. Masalas lose their aroma when

opened – so the smaller service, tamper proof pack

ensured freshness for the customer. S.K. Masala's

ini�al business was based on re-packaging, and

later on, moved into produc�on of masala.

September 2014

008

E-commerce: Adopt, but with care

When it comes to e-commerce – the retailer's in

Surat not as enabled as the Delhi Region. As with

Delhi, the market views e-commerce as an opportu-

nity, but also something to be adopted with care.

Some of the retailers (Bha�a Mobile, A V Sons super

store) who had use e-commerce sites such as on

'inventory mode' – found that discounted prices

online discounted their pricing power and brand

value in their core markets. The trend is to move

towards e-commerce enabling the retailer's own

website; and use market place lis�ng (on non-

inventory mode) so that pricing can be controlled. Private labels

As with the Delhi Region, the retailers in the Surat

Region had also built private labels to create 'entry

barriers'. This phenomenon was observed across a

number of categories – apparel, men's wear, mobile

phones, consumer electronics etc. Apparel retailers

such as Jade Blue have created different private

labels for mass-market and occasion wear. Similarly

Navin Direct has created a private label “Morisha”

in consumer electronics, as has Bha�a telecom

(HSL) in mobile phone instruments. HSL claims a

8% market share in Gujarat, third in the market a�er

Samsung and Nokia.

B2B and B2C models

Some of the retailers have set up parallel B2B and

B2C models – with a view to crea�ng higher 'entry

barriers'. For example, K MaheshKumar Industries

Pvt Ltd which manufactures ethnic women's wear

(ready-to-wear, ready-to-s�tch, and readymade

salwar kameez dupa�a) sells separately to other

retailers and also retails through its own stores. In

each case, the company uses different brands

names (Hasejaa for B2B and Harra for B2C). Other

retailers who were observed with a similar business

model, are Honest Surgicals, India sports, and

Vasudev Dayaram (lingerie and hosiery).

Most Independent retailers believe that the 'local

relevance' factor is much higher than their orga-

nized retail counterparts. Irrespec�ve of the size of

the retailer – whether two stores or 200 – they are

constantly thinking about what they can do to

differen�ate the service experience and provide a

'personal touch' to the customer offering.

Loyalty Programs

Retails in the Surat region offer loyalty discounts to

repeat / regular customers. These are not always,

loyalty programs (i.e. a point based, administered

program), but closer to loyalty schemes or offers.

For example, iVenus (Apple Reseller) provides

repeat customer orders with discounts. Similarly

Umiya medical and Scoop Happiness (chemist and

ice cream chain, respec�vely) provide a cash

discount based on spend. Two retailers who have a

formal loyalty scheme are Planet Health (3P

Program) and Jade Blue (Premium men's wear and

bridal wear).

Service offering

In keeping with the brand differen�a�on, many of

the retailers offer services which support the brand

value. For example, Sugar and Spice has set up

Customer Experience

Retailer used several 'service

model' innovations. These range

f rom sending staf f to the

customer's house to display latest

stock (Chandrika Garments) to

online chat (Just Dogs) to e‐

catalogue for all franchised outlets

(Harra), to offering counselling

and health check‐up discounts

(Planet Health)

As compared to the Delhi &

Chennai Regions, more retailers in

Surat Region reported higher

shrinkage.

September 2014

009

themed restaurants – 'Diwan-e-khaas' which offers

vegetarian cuisine, Kebabs villa offers kebabs.

Premium men's wear retailer, Jade Blue offers a

personal shopper concept and uses its customer

database to try and ensure that the personal

shopper is the same every �me. Ambika watch Co

uses a call center to inform customers about new

offerings in its watches / gi�s range. Bha�a telecom

offers a a�er sales service model for its mobile

phone brand- HSL.

This service model applies for the smaller retailers

too. Chandrika garments – 2 stores, garments

retailer - sends its staff home to display new

inventory to regular customers. Planet Health offers

Counselling, Prescrip�on Reminders, Health check

discounts to its loyalty scheme customers.

Swad cooking ins�tute, offers cross �e-ups and

promo�ons with brands selling olive oil and sauces,

which in turn, offer discounts to its students. Swad

also has �e ups with catering colleges to source

Just Dogs (a pet products and

training chain) uses videos, online

chat, tele‐calling, home delivery to

provide a comprehensive service

model.

Space is s�ll “High street”

Most of the retailers (26/30) had stores in high

streets. Retailers in the Surat market use franchis-

ing as a mechanism of expanding. Thus, while the

coverage of this study is 30 retailers, they account

for ~770 stores. Of these, 760 are in the high street,

and 10 are in malls.

Retailers use a mix of franchising and rented stores

to sell. Thus, out of the ~770 stores in this study,

“company owned and operated” stores are 216

(28%). Rental premises are used sparingly – only 45

stores out of the ~770 are rented (6%).

Mall's – the final fron�er

Independent retailers who were looking to expand

into malls have found the compe��on for space to

be high. For

Space: The Final Fron�er

September 2014

010

professionals as well as develop content around

nutri�on – they send newsle�ers to students.

Similarly, S.K. Masala has �e ups with cookery

classes and die�cians – to showcase how its

product can be used in prac�ce.

Promo�ons

Retailers use various local media for promo�ons –

radio, print, flyers – examples include (iVenus,

Pramukh supermarket, Sterling Foods, Atul

machinery and services). One company which

stood out for its promo�onal efforts is S.K. Masala.

The company used a popular TV serial 'grand-

mother' character (“Baa” from “Kyunki saas bhi

kabhi bahu thi..”) as brand ambassador and had

adver�sements shot professionally – in the 1990's.

This created huge brand recall, and associated the

brand with the 'wisdom of elders'. Thus, while the

company ini�ally used packaging as a source of

innova�on (smaller serving, tamper proof

packaging, aimed at the NRI market), it created

local market adop�on by using an immensely

popular television 'character' as brand ambassador.

People & Skilling

Beyond Talent

The tradi�onal stereotype is that family owned

businesses see high loyalty among employees.

Independent retailers in Surat support this proposi-

�on.

All retailers had sales based incen�ve schemes, and

provided standard benefits (e.g. PF, ESIC), once

their businesses grew to employ the statutory

required number of people. Salary increments were

usually linked to the fes�val season.

Not a�ri�on but skilling

The main concern for Independent retailers was

skilling. Where the retailer was looking to differen�-

“Our main focus in next two years will be finding

good retail property/space and managing costs.”,

says Sanjay Modi, Director, S R Modi Retail Pvt Ltd.

Echoes Vijay Chaliawala, Owner, Bhagwandas & Co

(premium men's wear apparel retailer), “Space in

malls is expensive compared to the kind of foo�alls

it generates”. Bhagwandas has ini�ated a unique

model to 'buy back' some of its rented proper�es in

the high streets, to insulate against increases in

space cost, from a long term perspec�ve.

Some of the other retailers have adopted a similar

view – i.e. expansion plans are �ed to owning space.

“Planet Health has taken a conscious decision to

expand slowly due to increasing real estate cost &

viability”, says Ankur Patel, Execu�ve Director,

Planet Health, which is a chain of 25 owned stores

selling pharmacy and wellness services.

Sugar 'N Spice which runs themed restaurants and

bakeries looks for franchisees which own the

property – so that business con�nuity is not

impacted. Similarly, Jivraj tea, which owns “Tea

bou�ques” and is also present at more than 40,000

stores across Gujarat, lists “Finding long term leases

/ good retail space. “as one of its main concern

areas for the next 2 to 3 years.

Man Mohak Ice cream (chain of 34

stores selling ice cream) uses staff

from villages. They are provided

w i t h a c c o m m o d a t i o n

arrangements . This creates

employment, growth, and almost

zero attrition.

September 2014

011

ate customer experience based on service (as

against product), or where there was a high end

target customer, this need was felt to be the most

acute.

As the chart shows, 19 of the 30 retailers reported

low a�ri�on (usually less than 10 to 15%) but 16

retailers felt that skilled resources (especially at the

front end) were difficult to find. This combina�on of

rela�vely low a�ri�on, but lack of skills makes Surat

Region similar to the trend in the Delhi Region.

Crea�ng internal training resources

Retailers in the Surat region have responded by

crea�ng an internal focus on skilling. For example

Kutchi King, Just Dogs and Planet Health have

created internal “training centers” to staff and train

employees during induc�on as well as on-going

basis.

For Kutchi King – the business (Kutchi fast food) is

heavily driven by the need to standardise across its

149 franchised outlets. The owners have achieved

this through two mechanisms – firstly there is a

central kitchen which provides 'semi-finished'

products to all the franchised kitchens which 'finish'

the food in the live kitchen, onsite. Secondly, each

franchisee has to go through a detailed 8 hour

“Master Chef” class – where they are taught the

recipes. These recipes are proprietary to the

Franchisor, and the masala recipes which give the

food its taste are controlled by the owners.

Man Mohak Ice cream (chain of 34 stores selling ice

cream) uses staff from villages. They are provided

with accommoda�on arrangements. This creates

employment, growth, and almost zero a�ri�on.Just

Dogs is a Pet training and accessories retailer. Given

the specialised nature of the business, each

employee goes through 20 days of training on the

so�ware, pet handling and customer interac�on.

The company also uses training as part of its core

service proposi�on – it teaches pet handling and

grooming to owners.

Planet Health (25 stores, pharmacy and wellness

chain) has set up an in-house training center to

induct employees on the product as well as on

Standard Opera�ng Procedure (SOP) of the store.

A�ri�on management

People management models in Surat Region have

evolved to cater to the strong entrepreneurial

culture in the region. Retailers have created models

which cater to the ambi�ons of their staff (i.e. the

entrepreneur's thirst for ownership), but at the

same �me ensure that their own businesses are

protected from a�ri�on.

Retailers have created people

management models which cater

t o t h e r e g i o n ' s s t r o n g

entrepreneurial ambitions of their

staff (i.e. the entrepreneur's thirst

for ownership), but at the same

t ime ensure that their own

businesses are protected from

attrition.

P l a n e t H e a l t h ( 2 5 s t o r e s ,

pharmacy and wellness chain) has

set up an in‐house training center

to induct employees on the

product as well as on Standard

Operating Procedures (SOP) of the

store.

September 2014

012

Bha�a's – The Mobile one stop shop has started

buying space from its franchisees and crea�ng a

“sub-franchisee” model where exis�ng employees

can run the store like an 'owner'. Such stores pay

lower than market rental and the employees gets to

manage the business. This creates 'skin in the game'

for employees.

Man Mohak Ice cream (chain of 34 stores selling ice

cream) uses staff from the owner's ancestral village

in Rajasthan. They are provided with accommoda-

�on arrangements. This creates employment,

growth, and almost zero a�ri�on.

Some of the smaller retailers use the extended

family as a source of staff. For example, Chandrika

Garments (2 stores, apparel) most of the staff are

(extended) family members – therefore, a�ri�on is

low.

Kutchi King (men�oned previously) uses a

franchisee network – but some of the franchisees

are extended family members. Instead of paying

royalty, they 'buy' food from the central kitchen and

sell onsite. This avoids the social impact of asking

family members to pay for the brand, but creates a

win-win situa�on, from a commercial perspec�ve.

Independent retailers represent a spectrum – from

family owned and operated, to modernizing (where

they adopt technology and standardize process).

Growth and scale bring pressure to infuse skills, and

the independent retailers respond by hiring

professionals at a middle management level. It's

when the market pressure to expand runs into the

barrier of family par�cipa�on that each retailer

decides to either separate ownership from control

or limit growth.

Retailers such as Dhiraj Sons Group (which owns 9

super markets, a Toy store and a Mega store

(department store)) serve as good case study for

the process of balancing the forces of growth with

family par�cipa�on.

The First Genera�on owners headed by the elder

brother Mr. Rajnikant Modi along with Mr. Bipin

Modi & Mr. Praful Modi visited several super

markets not only in India but also in foreign

countries and setup a Dhiraj Sons Mega Store of

15,000 sq. �. in the year 2000. At that �me, there

were no other organized large format stores in

Surat. The second genera�on comprises the four

sons of the three promoters. The group has set up

11 stores and intends to use franchising to expand

to other states. This phase of growth used technol-

ogy – Dhiraj & Sons implemented an ERP so�ware

to automate Inventory & Merchandising manage-

ment, bar-coding system, and a central warehouse

management system. Technology created control

without physical presence of the owners. The

company also inducted professionals into middle

management posi�ons.

Similarly, Kutchi King used franchising to expand to

150 stores (1 owned, 149 franchised), but has

inducted a professional CEO to standardize

processes and customer experience across the

chain.

Con�nuity and Succession Planning

When the impetus to grow runs

i n t o t h e b a r r i e r o f f a m i l y

participation each retailer decides

to either separate ownership from

control or limit growth.

September 2014

013

Technology

Technology, is seen as an 'enabler' - most of the

retailers have automated POS systems, and have

integrated back end systems. E-commerce adop-

�on is more conserva�ve than retailers in the Delhi

Region, but the market views it as more of an

opportunity than Chennai. Retailers had experi-

enced the pricing power of e-commerce, for

example, previous experiments of lis�ng on an

inventory based market place had failed, as, pricing

power passes to the market place. This is one of the

lessons the market has learnt, and the new-age

market places, which retain pricing power with the

retailer are favoured.

Core process automa�on

The figure below shows the number of retailers

who had automated various core func�ons. (N =

30).

80% of retailers (24/30) had automated inventory

and almost 90% had automated billing and

accoun�ng. This is not surprising, since one of the

'symptoms' of a modernizing retailer is automa�on

of billing and inventory.

E-commerce

In the Surat Region, E-commerce is seen as a

channel opportunity. However, some of the early

experiments with lis�ng on an inventory led market

place model did not succeed. Says Sanjeev Bha�a,

Owner, Bha�a's The Mobile one stop shop,

“Sanjeev Bha�a, Owner, Bha�a's The Mobile one

stop shop; “Our Flipkart lis�ng did not work as

FlipKart discounted prices and diluted our pricing

power. We are now building our own website.”

Retailers have realized that e-commerce works only

pricing power is not diluted.

Of the retailers surveyed 10 had working e-

commerce sites. In addi�on another 4 retailers

We are family

At the other end of the spectrum are retailers who

have consciously limited or slowed down growth to

the level of family management capacity available

to manage the market. Examples such as Chandrika

garments, India sports fall into this category.

Family Values and Valua�on

There are also situa�ons, where entrepreneurs are

willing to sell the brand – where they believe that

family par�cipa�on will eventually dwindle down to

zero. At that point, the focus is on crea�ng valua�on

rather than 'family values', i.e. there is li�le a�empt

to force fit the business to a family member's

aspira�ons.

September 2014

014

were in the process of e-commerce enablement. As

a market therefore, the Surat Region is more e-

commerce enabled than Chennai, and less than

Delhi.

A common refrain was the lack of a good technical

partner who could provide help with the process of

e-commerce enabling the own website.

Partnerships needed

Most of the large, technology providers do not

target this segment of the market. This is a frag-

mented customer base – most retailers are single

city or single state operators and their spend on

technology in absolute terms could be low.

“The challenge is if these retail SME's have had

li�le to no exposure to technology, emailing them a

compelling offer to sign up for a new online tool is

not an op�on. We have approached this problem by

partnering with thousands of independent

freelancers (e.g. web designers, applica�on

developers) who have an (offline) rela�onship with

the SME's. When these retailers approach our

partners asking for their advice on which technol-

ogy is best for their business, it is the freelancer

with the detailed product knowledge and technical

ability who is able to recommend Shopify to the

merchant.” says Brennan Loh, Head of Business

Development at Shopify, an online marketplace.

Shopify's model has created a low cost aggregated

force of 'sales' people who are aligned with the

business interests of the customer (i.e. the SME

retailer). This helps in two ways – word of mouth is

s�ll the best adop�on tool for any new concept for

the mid-market Retail SME owner, and secondly,

the cost of adop�on is low.

For example, “Shopify's most basic offering starts as

low as `.818/month and comes with free 24/7

support via email, phone or live chat. Our partner

network expands our training and support by

offering professional exper�se at an addi�onal

charge. These partners may be located in the SME's

city or halfway around the world; whichever is most

convenient for the merchant”, says Loh. For the

partners, Shopify provides addi�onal recurring

revenue in the form of support contracts - which

creates a 'double' alignment within the value chain-

with the retailer (customer) and the aggregator on

the other end.

Market place lis�ng

Four of the retailers were implemen�ng a market

place lis�ng. Thus, in total, 14 of the retailers had, or

were in the process of e-commerce enabling their

business, and in addi�on, market places lis�ng were

also being undertaken.

Most retailers did not view the e-commerce play as

an “either –or” choice – in other words, they did not

see the e-commerce website as an alterna�ve to

the market place play. There is a market knowledge

gap, which needs to be addressed.

Technology innova�ons

Vijay Dairy has used Wi-Fi towers to create a

network spanning its stores and factory. Similarly,

apparel brand Harra is crea�ng an “un-manned

store” – where customers enter the store, select

the ethnic wear of choice and pay using a stored-

value card. The company has also developed an e-

Except for grocery / small format

supermarkets, all retailers felt that

an ecommerce listing would help –

but were not always sure how to

go about it.

September 2014

015

The current central government's approach to

fixing administra�ve bo�lenecks as a means to

enabling growth resonates with Independent

Retailers.

The table below consolidates feedback received on

a variety of topics from Retailers. Note that this

table is based on summarizing qualita�ve discus-

sions – it aggregates common statements /

sen�ments expressed by retailers. The objec�ve of

Regulatory 'irritants'

“Retail needs GST. Single tax

regime based on turnover which

will simplify the cumbersome

system of Sales tax / VAT”. – Sanjay

Modi, S R Modi Retail Pvt Ltd

catalogue which allows it to share designs with all

its franchisees – crea�ng an 'endless' aisle concept.

This is to be rolled out a subscrip�on basis –

crea�ng a new source of revenue for the brand.

Non-tradi�onal channels

A number of alterna�ve channels were used – with

the underlying pa�ern being technology used to

create visibility and / or reach.

Just dogs, uses online chat, videos, tele-calling to

create visibility or service exis�ng customers.

Similarly Sugar 'N Spice and Kutchi King use videos

to train (staff and franchisees respec�vely.

Social Media

13 of the retailers surveyed had a social media

presence. Social media usage is lower than both the

other regions – i.e. Delhi & Chennai

Engage using content.

Retailers such as Swad Cooking Ins�tute and Just

Dogs use content to engage with customers.

As retailers get e-commerce enabled, they have

also had to either hire or create content wri�ng

skills – since the product descrip�ons on the

ecommerce website for every SKU has to include

both skills.

Harra, an ethnic wear apparel

b r a n d , h a s c r e a t e d a n ' e ‐

catalogue' which makes its entire

range available to all franchisees –

thus creating an 'endless range'

concept. The catalogue would be

provided on a subscription basis,

creating new revenue streams.

Most retailers did not view the e‐

commerce play as an “either –or”

choice – in other words, they did

not see the e‐commerce website

as an alternative to the market

place play.

September 2014

016

the dialogue with Independent Retailers is not to be

prescrip�ve, therefore, the interviewers would

discuss a range of topics under each module in this

report. In the regulatory module, this also meant

repea�ng statements made by other retailers to see

if there was a sense of common agreement.

Because of the process of obtaining input, the

number of “No comments” will always be high.

365 day store opening permission

This was an overwhelming feedback received

during the interviews. Almost all retailers had

struggled to get the permission to keep stores open

through all day so� the year. For retailers who had

expanded beyond the state of Gujarat, the fact that

each state has its own norms for 365 day permission

was a pain point. These retailers were the ones who

made the connec�on that Retail needed Central

Government oversight – in terms of having “a

Minister of its own”. Not all the retailers expressed

this as “needing industry status”, but the intent was

to ensure that Retail has a mechanism which

ensures a “Level field” across all states when it

comes to administra�ve aspects such as new store

opening and 365 day store opening permission. Need GST rollout

15 of the 30 retailers stated that they were “very

favorable” for a quick GST rollout, The view was that GST will reduce indirect tax

burden and be administra�vely simpler.

Says Nayan Soni – Managing Director & Vice

President, Ambika Watch Co, Surat, “GST is needed

– to standardize and streamline. We also need

be�er funding norms (Loan to collateral ra�os)

from banks”

Bha�a's The Mobile one stop shop also linked GST

implementa�on with VAT ra�onaliza�on. The

company has a private label mobile phone (HSL)

which is imported from China. “We need GST

implementa�on to ra�onalize VAT rates – between

Daman and Gujarat. Same product is priced

differently in Daman impac�ng sales”, says Sanjeev

Bha�a, Owner, Bha�a's The Mobile one stop shop

Sanjay Modi, Director, S R Modi RetailPvt Ltd (a Unit

of Dhiraj Sons) also had a number of sugges�ons;

“Retail needs GST. Single tax regime based on

turnover which will simplify the cumbersome

system of Sales tax / VAT. Also, a Single-window

clearance for new store opening as well as 365 day

permission should be automa�c. Another

sugges�on was that “Government needs to move

to a “Minimum Retail Price” regime instead of the

current “Maximum Retail Price”, for all goods

except essen�al commodi�es, which would give

the retailer pricing power, while protec�ng the

consumer”.

Neutral about FDI

Reac�ons to FDI were mixed. Half of the retailers (15/30) were 'neutral' – i.e. they

did not have a clear view. Those who spoke in favor,

looked at it from the perspec�ve of ge�ng access to

'best prac�ce' - but deeper probing did not elicit

exactly what this meant for them in prac�ce. Some

of the retailers also had a markedly nega�ve

reac�on to the concept.

Industry status for retail

Retailers who had expanded, and had moved

outside the state of Gujarat, men�oned the need

for 'industry status' in the context of funding the

Retail needs GST. Single tax

regime based on turnover which

will simplify the cumbersome

system of Sales tax / VAT.

– Sanjay Modi, S R Modi Retail Pvt

Ltd

September 2014

017

business. For example Jitendra Chouhan, Owner,

Jade Blue Lifestyle India Ltd, said “Interest rates are

rising, retail needs be�er funding op�ons”

One reason for seeking “Industry status” was also

that retail is currently a “State Subject” – that

means that the licensing and opera�ng norms are

different in each state. Given the amount of �me

spent in ge�ng clearances, this discourages

retailers from expanding out of state.

Licenses for store opening

Unlike Chennai and Delhi regions, retailers in the

Surat region commented that they did not have an

issue with ge�ng licenses to open a store, but what

they wanted was a “single window clearance”

which would streamline the process further.

Put it online

Perhaps in reac�on to the government's 'Digital

India' movement, a common reac�on was also that

retailers should be able to file and get permissions

online.

Tax ra�onaliza�on

Some retailers provided feedback about the need

to ra�onalize VAT rates. For example, Tanu Mongia,

Proprietor, Honest Surgical said “VAT ra�onaliza-

�on is needed across various categories of medical/

surgical equipment”.

Similarly, Rajeev Thakker, Proprietor, India Sports

said, “VAT on sports goods @ 15% - needs ra�onal-

iza�on. GST will enable retail, but Govt needs to

make sports good 'tax free' to encourage healthy

spor�ng culture in the country.”

FSSAI norms

All the food retailers and pharmacy retailers

discussed the need to simplify and create uniform

implementa�on of the FSSAI (Food Safety and

Standards Authority of India) norms.

In the case of food retailers, the main issue was in

terms of the use of 'coloring' agents in food. “When

it comes to food, Indian consumers want bright

foods, so restric�ng the use of colors in food,

directly impacts sales. We need FSSAI norms to be

simplified, while ensuring consumer safety”, - was

common feedback from the food retailers including

S.K. Masala, Kutchi King, Sugar 'N Spice, and Vijay

Dairy & Sweets.

Independent retai lers want

simplification of the 365 days

operating permission, and GST

rollout, as they believe that it will

streamline administration and

reduce indirect tax burden.

Retailers who had expanded

outside the state felt Retail should

be given 'industry status' – to

enable retailers to access better

sources of funding.

Reactions to FDI were mixed,

mostly neutral – as retailers did

not see it as impacting their day to

day business one way or another.

When it comes to food, Indian

consumers want bright foods, so

restricting the use of colors in food,

directly impacts sales. We need

FSSAI norms to be simplified,

while ensuring consumer safety

September 2014

018

Appendix

1. A V Sons Super Store Pvt. Ltd.

2. Ambika Watch Co

3. Atul Machinery & Services

4. Bhagwandas & Co

5. Bha�a's The Mobile one stop shop

6. Chandrika Garments

7. Dhanraj Electronics

8. Gopal Locho Khaman house

9. Heritage Chocolates

10. Honest Surgical

11. India Sports

12. J B Digitronics Pvt. Ltd. (Navin Direct)

13. Jade Blue Lifestyle India Ltd

14. Jivraj Tea Ltd

15. Just Dogs

16. K MaheshKumar Industries Pvt Ltd

17. Kutchi King

18. Man Mohak Icecream

19. Planet Health

20. Pramukh Supermarket Pvt. Ltd.

21. S R Modi Retail Pvt Ltd | Unit of Dhiraj Sons

22. S.K. Masala

23. Scoop Happiness

24. Sterling Foods

25. Sugar 'N Spice Foods Pvt. Ltd.

26. Swad Cooking Ins�tute

27. Umiya Medical And Pro Store

28. Vasudev Dayaram

29. Venus Data products (Apple pre-mium reseller)

30. Vijay Dairy & Sweets

The following retailers took part in this initiative

Summary profiles are enclosed overleaf.

September 2014

019

1 Store, Kitchen / Grocery

Modern Trade Supermarket

E-commerce enabled, selling

online

Low attrition, High Loyalty

CRISIL rating �High Performance,

moderate �n. strength�

365 day store opening

permission

KEY FINDINGS

Profile: Family owned, Single store, Kitchen & Grocery retailer. Modern trade format.

Neighborhood store, turnover `12 to 15 cr, SSS* at 12 to 15% y-0-y. CRISIL NSIC (Small

scale industry) ra�ng of “High Performance, moderate financial strength”.

Space: Not seen as a challenge, owned space.

People: Low a�ri�on. 48 staff, given full benefits (ESIC, PF, mediclaim), monthly refresher

training.

Succession Planning: Will con�nue as a family run business.

Technology: Core systems are automated – Inventory, accoun�ng, MIS. E-commerce

enabled – selling online.

Regulatory: 365 days store opening permission has been a challenge.

High ImpactLow ImpactFuture ImpactNeutral Impact

Challenges/Areas of Focus

CompetitionCustomer experienceSpace CostPeople Succession PlanningTechnologyRegulatory Factors

Interviewee: Rajul Modi, Owner, A V Sons Super Store Pvt Ltd

18 Stores, Retail Conglomerate

Call Center to Update Customers

SMS Marketing, Loyalty Scheme

Space Not Seen as a Concern

Increasing Attrition

GST Will Enable

KEY FINDINGS

Profile: Family owned, 3rd genera�on, retail conglomerate. 18 high street stores, selling

Watches, Garments, Corporate gi�s and Salon services. Average store size is 1000 sq feet.

Stores are spread across Gujarat, Karnataka and Maharashtra.

Customer experience: “Breezy shopping experience”. Call center with 10 seats to update

customers about new products / services.

Space: Not seen as a concern area. 12 stores are rented.

People: 180 employees, increasing a�ri�on, 40%. Training and benefits provided.

Succession Planning: Con�nue to be family owned, expand through franchising.

Technology: Core processes automated. Crea�ng an e-commerce site; perceive high risk of

predatory pricing of e-tailing sites.

Regulatory: GST is needed – to standardize and streamline. Need be�er funding norms

(Loan to collateral ra�os) from banks.




Interviewee: Nayan Soni, Managing Director & Vice President, Ambika Watch Co, Surat

*SSS = Same Store Sales

September 2014

020

3 Stores, 1 Workshop

Agricultural / Industrial

Equipment

High Street, Market Monopoly

in Ahmedabad

Use Field Force, Print, Radio, and Directory Listings

E-commerce Underway.

GST Will Enable

KEY FINDINGS

Profile: Agricultural distributor, wholesaler and retailer of motor pumps in Ahmedabad. 3

stores and 1 workshop. Do not intend to expand – currently high backlog of orders.

Customer experience: Use a field force (50 people), print and radio adver�sing. Also use

directory lis�ngs (Just dial etc).

Space: Not seen as a concern area.

People: Technical selling skills in short supply, a�ri�on has been increasing @ 30%.

Succession Planning: Next-gen succession plan in place. Will not expand beyond current

stores.

Technology: Billing, inventory, accoun�ng are automated. CRM and E-commerce under

implementa�on. Website opera�onal. Social Media not relevant.

Regulatory: GST will enable – smoother administra�on and lower indirect taxes.




Interviewee: Atul, Co-owner, Atul Machinery & Services

9 Stores, Premium Men�s Wear

High Space Cost Especially

in Malls

Rising Attrition Among People, Selling Skills not Easily Available

Shrinkage is a Problem in

Branded Apparels

Loyalty Program

365 Store Opening

Permission Di�cult to Get

KEY FINDINGS

Profile: 4 MBO*, 5 EBO*. 9 stores selling premium men’s wear. Private label for bridal

wear. High street stores, average store size 4000 to 15000 sq. �. SSS* growth at 20 to 25%

y-o-y

Space: Rising space cost – especially in malls.

People: Fast fashion and selling branded clothing need skills. Rising a�ri�on (20%).

Opera�ons: Shrinkage is a problem, inspite of RFID tagging of stock.

Technology: TALLY ERP used for accoun�ng and inventory. E-commerce under implemen-

ta�on. Listed on marketplaces. Loyalty program based on cumula�ve, yearly spend

(` 10,000 of spend, earns the customer ̀ 650 discount).

Regulatory: 365 days store opening permissions have been a struggle.




Interviewee: Vijay Chaliawala, Owner, Bhagwandas & Co

*SSS = Same Store SalesMBO = Multi Brand Outlet.

EBO = Exclusive brand outlet

September 2014

021

2 Stores, Apparel

Family Owned, no Expansion

WOM Advertising only. No Print,

Radio

Core Process Automated. No e-commerce, Social Media

Personalized Service @ Home.

GST Will Enable

KEY FINDINGS

Profile: 2 stores, Family owned, managed and run. Sells tex�les, daily wear, suits,

sherwanis, formals, fashion wear. Service local community, long standing rela�onships

with customers. Avg. store size 2000 sq. �. Turnover < 3 crore, SSS* growth 10% to 15%.

Customer: Sales staff o�en go to customer’s home to display latest stock.

Space: Owned space. Cost not seen as a concern.

People: Most of the staff are (extended) family members. Low a�ri�on. Negligible

shrinkage.

Succession Planning: Family will control, not comfortable recrui�ng outsiders for

management posts.

Technology: Core processes (Inventory, billing, accoun�ng) are automated. No e-

commerce or social media, not seen as relevant to TG*.

Regulatory: GST will enable, should be implemented soon.




Interviewee: Prakash Bhai, Owner, Chandrika Garments

85 Stores, Mobile Phone

Franchised and Owned Stores

Private Label Brand, High

Functionality, Budget Price

Mobile Services � After Sales

Skilled Sales Sta� not Available

GST for VAT Rationalization

KEY FINDINGS

Profile: Specialty mobile phone, accessories and services chain. 85 stores (30 Co-owned, 5

Co-rented, 50 franchised). Turnover ` 120 to ` 160 cr, SSS* growth @ 30%. Profits have

dropped last 2 years. Store size 300 to 2000 sq. �. Private label (HSL) manufactured in

China, high-end func�onality at budget price. 8% mkt share in Gujarat, 3rd a�er Samsung

and Nokia. Sells about 30,000 phones a month. Has also started a service (warrant)

business for the private label brand. Plans to open 5 more stores.

Space: Rentals have been increasing. Has started buying space and crea�ng a sub-

franchisee model for employees – where they pay lower than market rental and manage

the business. Creates ‘skin in the game’ for employees.

People: Low a�ri�on, but finding skilled sales people not easy.

Technology: Flipkart lis�ng did not work as FlipKart discounted prices and diluted brand

appeal. Building own website. Has created in-house ERP for inventory for HSL brand.

Regulatory: Need GST implementa�on to ra�onalize VAT rates – between Daman and

Gujarat. Same product is priced differently in Daman impac�ng sales.




Interviewee: Sanjeev Bhatia, Owner, Bhatia's The Mobile one stop shop


*SSS = Same Store SalesTG = Target Group

WOM = Word of Mouth

September 2014

022

KEY FINDINGS

Profile: Single store, consumer electronics, SONY showroom. Set up in 1980 as a MBO,

now moved to SONY, due to falling margins. High compe��on from organized players

(Reliance Digital etc). Store size 1200 sq. �.

Space: Owned store – so rental not a constraint. Cost of electricity is high. Store mainte-

nance cost @ 4% of sales is very high.

People: 5 people, low a�ri�on.

Succession Planning: Next genera�on of family will take over in �me.

Technology: Core processes of billing / inventory are automated. No e-commerce. Some

social media ac�vity.

Regulatory: Do not see any constraints, but finds VAT rate of 15% to be high.




Interviewee: Shailesh Patel, Proprietor, Dhanraj Electronics

1 Store, Electronics

Initially, MBO Now only SONY

Free Home Delivery

to Customers

Space Cost not a Constraint;

High Electricity

People � Low Attrition

Core Processes are Automated

6 Stores, Specialty Food

Surat Cuisine

Scaled up � Managing

Growth Transition

Not Easy to Find People,

High Attrition

International Expansion

- Dubai

Highly Competitive

KEY FINDINGS

Profile: 6 stores, specialty Surat cuisine, 70 varie�es of fast food and snacks (Locho,

Khaman) which are local special�es. Produce and sell through stores. Have started using

mechanized produc�on for scale. Have also customized the menu to changing community

tastes. Transi�on pangs (people, skills, quality) being felt. Interna�onal expansion planned

to Dubai. High compe��ve intensity – from street food and other brands. Also taste for

cuisine is very local, and the taste of the final product impacted by factors such as the

quality of water. Turnover 3.5 cr, SSS growth of 40%. Increase in RM costs last 2 years,

impac�ng margins.

Space: Owned space – not seen as a constraint.

People: 90 staff, high a�ri�on. The produc�on site condi�ons are difficult (heat, noise)

leading to a�ri�on.

Succession Planning: Currently managed by H-W combina�on. Will be family managed.

Technology: ERP Under implementa�on. Website for visibility not sales. Marginal social

media presence.

Regulatory: No significant constraints.




Interviewee: Gopal Patel, Owner, Gopal Locho Khaman house


*SSS = Same Store SalesRM = Raw material

September 2014

023

1 Store, Chocolates

Cottage Industry Scale

Moving from �at Home� Business

to 1 Store

250 sq ft, Single Sta�

Website to Inform

E-commerce Under

Implementation

KEY FINDINGS

Profile: Single entrepreneur run, co�age industry (at home) specialty chocolates business.

Started in 1998. Has now transi�oned to single retail outlet. 250 sq. �. space. Turnover

es�mated under 1 cr. Focus on selling to local neighborhood.

Brand: Proposi�on is about a ‘home made’ taste. Also local community would encourage

small, home based, businesses.

Space: Not currently a constraint.

People: 1 sales staff.

Technology: Business is small enough to be run off single computer. Website and e-

commerce enablement under way.




Interviewee: Harsha Shro�, Owner, Heritage Chocolates

2 Stores, Specialty Surgical

Consumables / Equipment

B2B and B2CChannels

Use Loyalty Scheme for Wholesale

(Hospital) biz

Website with Detailed Technical Content,

Expanding Range to

�Healthcare�

GST Will Enable, FDI Will Help

KEY FINDINGS

Profile: 2 stores. Distributor of surgical equipment & Medical devices to hospitals and retail

sales through stores. B2B and B2C. High street stores, average size ~ 1000 sq. �.

Compe��ve intensity has increased.

Space: Not seen as a constraint – space is owned.

People: Small team, low a�ri�on.

Succession Planning: Will con�nue as a family business.

Technology: Inventory and billing are automated. E-commerce enabled and uses social

media.

Regulatory: Believes GST will help, VAT ra�onaliza�on needed across various categories of

medical/ surgical equipment.




Interviewee: Tanu Mongia, Proprietor, Honest Surgical


September 2014

024

2 Stores, Electronics

Private Label � �Morisha�

WOM marketing / Online Market

Place Listing.

Space not a Constraint. Low People Attrition.

Inventory Automated. No Social Media

365 Days Open, Permission

KEY FINDINGS

Profile: 2 stores, consumer electronics. Private label, imported from China – “Morisha”.

Family owned business, second genera�on, started as a distributor of consumer electron-

ics. Own label focus on DVD players and air coolers – has stayed away from items such as

mobiles. SSS* growth @ 20%; average store size 2000 sq. �.

Customer experience: Word of mouth (WOM) based marke�ng and customer referrals to

generate sales.

Space: Not a constraint.

People: 35 people, low a�ri�on, but hard to find skilled people (who understand retail).

Succession Planning: Con�nue as a family-owned business.

Technology: Inventory is automated. E-commerce lis�ng on marketplaces. No social

media.

Regulatory: 365 day store opening permission not easy to obtain.




Interviewee: Anil Jetwani, Director, J B Digitronics Pvt Ltd (Navin Direct)


4 stores, Sports Specialty

Initially B2B and B2C

Provides Consumer

Feedback to Manufacturer

Directory Listing &

SMS Marketing

Core Processes Automated

Believes Sports Should be �Tax Free�

KEY FINDINGS

Profile: 4 stores, family owned business. Sell sports goods and accessories. Ini�ally

wholesale (corporate) and retail businesses, now sell only to retail customers. Turnover < 5

cr, SSS* down to 10% in the last 2 years. Had �e up with Big Bazaar for 7 years, but pulled

out since margins were under pressure. Use directory lis�ng (e.g. Just Dial) & SMS

marke�ng. Avg store size 2200 sq. �.

Space: Owned space. Not seen as a constraint.

People: Low a�ri�on, @ 10%.

Succession Planning: Will not expand beyond 4 owned stores, as family members not

available to manage. Use franchisee model for scale.

Technology: Inventory, billing are automated. Seek help in finding a good technical solu�on

for E-commerce. Also need guidance on how to leverage social media.

Regulatory: VAT on sports goods @ 15% - needs ra�onaliza�on. GST will enable retail, but

Govt needs to make sports good ‘tax free’ to encourage healthy spor�ng culture in the

country.




Interviewee: Rajeev Thakker, Proprietor, India Sports


September 2014

025

50 Stores, Specialty,

Men�s Wear

Private Label and Bespoke

Tailoring

Finding Skilled Sales People. Low Attrition

Implementing a �Personal Shopper�

Concept

365 Days Store Opening -

Maharashtra

Expand � 100 Stores; 5 yrs.

KEY FINDINGS

Profile: 50 stores, mul�ple formats (Malls, Bou�que, Value format stores), selling Mul�

brand Men’s wear. Private labels for mass market and wedding wear. Franchised outlets

across other ci�es (Mumbai, Hyderabad, Surat, Nagpur, Udaipur, etc). Average store size

5000 to 10000 sq. �. SSS* is 20 to 25%.

Customer service: Personal shopper concept – used to build repeat sales. But shrinkage is

a challenge. Use a loyalty scheme – points based, 3 to 7% of spend is credited.

Space: Franchisee owned, so not a constraint.

People: Lack of skilled people, 900 employees, low a�ri�on but need help in skilling.

Succession Planning: Have inducted outsiders to mid- level roles. Next genera�on being

groomed. Franchise model creates scale.

Technology: ERP implemented. E- Commerce enabled, use social media.

Regulatory: Ge�ng 365 days permission should be automa�c. Also interest rates are

rising, retail needs be�er funding op�ons.




Interviewee: Jitendra Chouhan, Owner, Jade Blue Lifestyle India Ltd

35 stores, Specialty Tea

High competition, lack of retail

pricing power

Finding good retail space

is a challenge

People Cost is

Increasing

ERP Implemented, E-commerce

Enabled

GST Will Enable

KEY FINDINGS

Profile: 35 EBO*s selling branded tea. Also sold in 40,000 stores all over Gujarat. Turnover

> ̀ 100 cr. Highly compe��ve segment, pricing power is low.

Space: Finding good quality space for EBO’s is a challenge.

People: A�ri�on is manageable, but finding skilled people is a challenge.

Succession Planning: Second genera�on has transi�oned. Expand through increasing

presence in retail outlets and EBO’s

Technology: ERP implementa�on underway. Focus on Inventory management. E-

commerce enabled, Social media is for visibility.

Regulatory: GST is required, will significantly enable industry.




Interviewee: Viren S Shah, CMD, Jivraj Tea Ltd


*EBO = Exclusive brand outlet

September 2014

026

5 Stores, Specialty,

Pet Products

High Online Focus

Social Media, Home Delivery. and tele

calling to Connect with Customers

Services include training, web

chat, catalogue based sales.

Technology: Automated but not Integrated.

GST Needed

KEY FINDINGS

Profile: 5 stores, 4 in Ahmedabad, 1 in Delhi. Specialty pet store, selling pets, products and

services. Expand through franchise, planned for 40 loca�ons. Average store size 1200 sq. �.

Customer experience: Service op�ons include home delivery, web chat, pet-training,

grooming, boarding (during owners vaca�ons), gi� cards, and training for pet handlers /

professionals. Also regular events to create connect.

Space: Rented stores, but not a big concern currently

People: 20 people –highly trained. 20 days of training. Low a�ri�on.

Technology: Automated, but pla�orms not integrated across product, service and E-

commerce channels.

Regulatory: GST needed to ra�onalize taxes. VAT rates in India too high. FDI will not help

Indian retail.




Interviewee: Ashish Antony, Proprietor, Just Dogs

200 MBO, 50 EBO Stores

B2B and B2C Models

Ethnic Women�s Wear, Readymade

and Unstitched Salwar Suits

E-commerce Enabled. Also Social Media

High Attrition / Lack of Skilled

People

Transitioning to Professionalizing

KEY FINDINGS

Profile: 250 stores selling ethnic wear, SKDs, readymade, ready to s�tch and uns�tched

variants. Separate brands for produc�on and retail - Hasejaa and Harra respec�vely.

Supply chain includes rural ar�sans who embroider, weave tex�les. Turnover ̀ 275 cr. 20 to

25% SSS growth. Store size 500 to 3000 sq. �. Expand through COCO (Company owned,

Company operated) stores.

Innova�on: “Manless” stores. Also a cloud based, e-catalogue for all stores to create an

‘endless aisle’. To be spun into a separate, subscrip�on based LOB*.

Space: Mostly franchised, so not seen as an issue.

People: Finding skilled people is a challenge. High a�ri�on.

Succession Planning: Professionalizing the business by induc�ng non-family members into

key posi�ons.

Technology: 2004 centralized ERP implemented for inventory and accoun�ng. Looking to

create a store value card, which customers can use at a “unmanned” store – to be piloted

in Ahmedabad.




Interviewee: Mahendra Bajaj, Director, K Mahesh Kumar Industries Pvt Ltd


*MBO�Multi Brand OutletEBO -Exclusive Brand Outlet

SKD�Salwar Kameez DupattaSSS-Same Store Sales

LOB�Line of Business

September 2014

027

150 Stores, Fast Food

Central Kitchen

Modi�ed Franchise

Arrangement

Transitioning Professionals

into the Company

In-House Training Center, Standardization.

FSSAI � Process / Law

KEY FINDINGS

Profile: 150 stores, 1owned, 149 franchised outlets selling Kutchi Fast food (Dabeli, Pav

Bhaji, Chaat). Avg store size 200 sq �. Central kitchen which sends semi-prepared food,

finished onsite in live kitchen. Franchisors control recipes and mix of spices to be used.

Some franchisees are family members, in place of royalty, they ‘buy’ from the central

kitchen. Hired professionals to standardize processes, training and branding.

Customer experience: Good taste, same taste and hygiene across the chain.

Space: Not seen as a issue.

People: Managed by the franchisees.

Succession Planning: Professional CEO to run the business and focus on standardiza�on

for scale.

Technology: Do not have a single view across franchises – area of focus for the owners.

Regulatory: Understanding of laws and changes – e.g FSSAI.




Interviewee: Vipul Patel, Owner, Kutchi King

34 Outlets, Ice Cream

Owned and Franchised; Ice Cream Supplied

by Franchisor

Power Shortage Solved by Using �glyco�

�Fridges Which Keep Stock cool for 12 hours

People Model: Provides Employment and

Accommodation for Sta� from Rajasthan

Compete Against Brands (Amul)

and Unorganized Sector

365 Days Store Opening

Permission

KEY FINDINGS

Profile: 34 stores, ice cream chain. 7 owned stores, rest are franchised. High street stores.

SSS* growth @ 30%. Avg store size 200 to 300 sq. �. Product produced centrally and

distributed to all franchisees. Have used ‘glyco’ refrigera�on to deliver product to interior

areas where power supply is not uniform.

Brand: Competes against other brands such as Amul and Havmor as well as unorganized

sector. Low pricing power. Infla�on impac�ng cost of raw materials.

Space: Not seen as a constraint.

People: 60 staff. Almost zero a�ri�on. Staff have migrated from ancestral village and are

provided with work and living arrangements.

Technology: Factory produc�on process is automated. No E-commerce or social media or

loyalty program.

Regulatory: 365 days store opening permission not easy to obtain.




Interviewee: Mukesh Kothari, Owner, Man Mohak Ice Cream



September 2014

028

4 Stores, Supermarket

Loyalty Program

Use Print, Newspaper and

Flyers to Publicize

Rented Space, Cost Trending

Upwards

People: Attrition and Finding Skilled Sta�

GST Needed. Simpli�cation

of Laws

KEY FINDINGS

Profile: 4 supermarkets, high street stores. First genera�on entrepreneur. Typical store size

2500 sq. �. Will use franchising to expand. Uses print, newspaper and flyers to publicize.

Customer: Maintains customer informa�on through a loyalty program. Aims to capture

‘top up’ shopping trips during the week through offers.

Space: Trending upwards last 3 years.

People: 40 employees, a�ri�on rising and finding skilled people difficult.

Technology: Accoun�ng, billing and inventory are automated. No E- commerce or social

media –believes it is not relevant.

Regulatory: GST needs to be rolled out. VAT rates for food too high. Govt should restrict

number of grocers in a geographical area to ensure that the industry grows. Store opening

licensing process very cumbersome.




Interviewee: Swapnil Naila, Proprietor, Pramukh Supermarket

25 stores, Pharmacy /

Wellness

Owned, Organic

Expansion

3 P � Loyalty Program �

Discounts 1 to 3% of Spend

Good Space for Retail not

Easily Available

No E-commerce, Marginal

Social Media

Store opening license,

FSSAI needs simpli�cation

KEY FINDINGS

Profile: 25 owned stores, pharmacy & wellness chain. Family owned, ini�ally started as a

chemicals / dyes business. Average store size is around 1000 sq. �. Turnover ~ ̀ 80 to 150

cr. No E-commerce presence, marginal use of social media.

Brand: Genuine products, storage and dispensing. Aims to strengthen the doctor-pa�ent

link.

Customer experience: Standardized décor, targets families who are keen to manage

health. Addi�onal services include home delivery, prescrip�on reminder, health-check up

& counseling.

Space: Trending upwards, space for retail not available.

People: 20% a�ri�on (12% sales staff). Lack of skilled staff.

Succession Planning: Family managed, with mid-level func�ons handled by professionals.

Succession plan in place for next genera�on.

Technology: ERP – supply chain, inventory, accoun�ng and billing. No E-commerce, social

media.

Regulatory: Simplify store opening licences. FSSAI has affected the ability to provide range

to consumer. Need a pragma�c solu�on.




Interviewee: Ankur Patel, Executive Director, Planet Health

September 2014

029

12 Stores, Supermarket,

Specialty

Target mass Market

Customer

Not Enough Good Retail Space for

Expansion

Core Processes are Automated.

No E-commerce, but use Social Media

Next-Gen has Already Transitioned

into Managing the Business

Need Simplicity in Regulation

incl. GST

KEY FINDINGS

Profile: 12 stores - 9 supermarkets, 1 Toy store, 1 specialty store, and 1 department store (clothes,

footwear). Stores are in High street and suburb areas. Typical size is 5000 sq. �. Turnover ̀ 120 cr. First

store set up in 2000 – 15,000 sq. �., “mega” store was the largest organized retail store in Gujarat at

the �me – created brand value which is leveraged �ll date.

Customer: Target the mass-market customer; use loyalty schemes.

Space: Owned space, not seen as a constraint. However, not enough good quality space available for

expansion.

People: Low a�ri�on, focus on skilling.

Succession Planning: Next-gen has transi�oned into managing business. Used technology to create

scale and control, without the need for physical presence of the owner in store.

Technology: All core processes (inventory, billing and accoun�ng) are automated using an ERP. Use a

central warehouse for the supermarkets. No e-commerce presence, use Social Media (3000 FB). Do

not believe cloud solu�ons work for retail, since the “opex” model of charging for cloud solu�ons

erodes margins.

Regulatory: Retail needs GST. Single tax regime based on turnover which will simplify the cumber-

some system of Sales tax / VAT / GST. Single-window clearance for new store opening as well as 365

day permission should be automa�c. Govt needs to move to a “Min. Retail Price” regime instead of the

current “Maximum Retail Price”




Interviewee: Sanjay Modi, Director, S R Modi Retail Pvt Ltd | Unit of Dhiraj Sons

*FB = Facebook

September 2014

030

6 Stores, Specialty Spices

Innovations �Packaging, Promotions

Loyalty Program � tie ups with

Cooking Classes, Celebrity Chefs

ERP, E-Commerce and Social

Media Enabled

Focus onNRI Market

GST / Industry Status / Single

Window

KEY FINDINGS

Profile: 6 stores, 3 owned, ‘branded spices’ – 250 different SKUs. Family owned business. Started in

1970 by using packaging to create brand value. Repacking exis�ng masala mixes into smaller, tamper

proof packets helped to target the NRI market, who needed small serving packages which would last

years. Over �me, ‘reverse engineered’ and created own recipes for masalas. Used a popular TV serial

‘grand-mother’ character (“Baa” from “Kyunki saas bhi kabhi bahu thi..”) as brand ambassador and

had adver�sements shot professionally – in the 1990’s. This created huge brand recall, and associated

brand values with the ‘wisdom of elders’. Currently distribute through modern retail super market

chains. Also cross promo�ons with cooking classes and die�cians where loyalty program customers

get free / discounted access. Average store size 150 sq . Ft. Currently use a centralized produc�on

facility to manufacture.

Space: Partly owned, partly franchised - not seen as a concern.

People: Not much a�ri�on, monthly training as product understanding is the key.

Technology: ERP implemented. E-commerce to cater to NRI market. Also social media for visibility .

Regulatory: GST will reduce indirect taxes and streamline administra�on. Retail needs ‘industry’

status with its own minister so that issues in expanding across states are solved. Licensing norms need

to be simpler – Single Window and online clearances need to be available. FSSAI norms not

consistently understood / implemented.




Interviewee: Barkat Panjwani, Owner, S.K. Masala

20 stores, Specialty, Bakery

Target Local Catchment

Uses a Discount Based Loyalty

Scheme

Inventory, Billing Automated. No E-commerce.

No Social Media

365 Days Store Opening

Permission

KEY FINDINGS

Profile: 20 stores (6 owned), first genera�on family owned, high street stores. Sells

specialty Bakery products such as Cake, Cookies, Bread etc. Average store size ~ 250 sq. �.

SSS* growth @ 20%.

Customer experience: Personalized, local. Use loyalty discounts.


People: 140 people- Lack of skilled staff.

Technology: Billing and inventory automa�on underway. Website underway. No social

media.

Regulatory: 365 days opening permission not easy to get.




Interviewee: Chandresh Kansagra, Owner, Scoop Happiness Pvt Ltd

8 Stores, Bakery,

Restaurant

Home Delivery, Online

Ordering

Uses social Media / Radio to

Publicize

Automated, but not

yet Integrated

Low Attrition, But Skilling

Needed

FDI Will Negatively

Impact

KEY FINDINGS

Profile: 8 stores, family owned, second gen, high street business, bakery and restaurant.

Average store size ~ 1000 sq. �. SSS* growth @ 15%.

Customer experience: Offer home delivery, order online (outsourced) and theme based

promo�onal offers. Also adver�se on radio.

Space: 2 owned stores, 6 franchised stores. Space cost not seen as a constraint.

People: 100 people – low a�ri�on, but need skilling assistance.

Technology: Billing and inventory are automated but not integrated with the third party

ordering service. Will move to a central online portal. Social media to create visibility.

Regulatory: FDI will nega�vely impact.




Interviewee: Shirish, IT Manager, Sterling Foods



September 2014

031

23 outlets, bakery and themed restaurants

Malls and High street stores

Customer experience

driven by themed restaurants

In-House Training School esp. for Chefs

Inducting Professionals, Automation is a focus Area.

FSSAI Needs Simpli�cation

KEY FINDINGS

Profile: 23 stores, of which 13 franchised, bakery and themed restaurant chain. Sell

‘chaats’, South Indian Cuisine, Chinese food, Fast Food, Bakery and Confec�onary (Cakes,

Bread, Cookies), Indian Tandoori etc., Average store size ~2500 sq. �. Turnover ` 20 to 25

cr. Franchisees are trained, including cooking videos on how to prepare.

Customer experience: Themed restaurants, good food and ambiance. e.g. “Devan-e-

khaas” server veg. food; Kebabs' villa servers kebabs.

Space: Mall rentals high given the margins.

People: In house training center especially for chefs. High a�ri�on and finding skilled

employees difficult.

Succession Planning: Focus on transi�oning professionals into the business.

Technology: Back end is not automated. Moving to a professionally managed team –

automa�on will be an area of focus.

Regulatory: Changes in FSSAI norms impacts business. Norms regarding use of food color

need to be ra�onalized.




Interviewee: Sandeep Dawer, Director, Sugar 'N Spice Foods Pvt Ltd

3 Stores, Cooking Classes

Cuisines and �Table Manners�

Courses

TV Shows with celebrity chef �

owner is co-presenter

Online, Directory Listing to Promote

Social Media - 958 FB.

Marketing Using Content

KEY FINDINGS

Profile: 3 stores, of which 1 franchised, cooking classes, spices and gi�ing boxes

(chocolates) sold. USP is training on cuisines, low calorie cooking as well as ‘Table

Manners”, nutri�on �ps and crea�ng entertaining par�es. Average size 1800 sq. �.

Turnover around ̀ 80 lakhs to ̀ 1 cr. Business set up in 1997, brand has been franchised in

2008 and expansion expected through this channel. Tie ups with catering colleges to

source professionals as well as develop content around nutri�on. Owner is a co-presenter

on TV with celebrity chef – Harpal Singh. Cross promos with brands for olive oils, sauces

etc.

Customer engagement: Content – including TV, online, newsle�ers, online chat.

Space: Not a concern.

People: Low a�ri�on, high training investment

Technology: Not much automa�on.




Interviewee: Sneha Thakkar, Owner, Swad Cooking Institute

September 2014

032

3 Stores, Medical / Chemist

Discount to Repeat Customers, no

Loyalty Program.

Space not a Constraint.

Attrition is Low.

Billing and Inventory are Automated

No E-Commerce or Social Media.

GST Will Enable

KEY FINDINGS

Profile: 3 stores, Medical and Chemist. Of these, 1 is a distribu�on center. Second gen,

family owned. Avg store size 250 sq. �. Turnover ̀ 2 cr.

Customer: Experience is transac�onal. Loyal Customers are given a discount.

Space: Stores are owned proper�es. No concerns on space.

People: 9 employees, of which 3 are well trained and have been loyal. A�ri�on is low.

Paternal style – trips with family of employees to create ‘personal’ connect.

Technology: Billing so�ware implemented and inventory automated. No E-commerce or

social media currently.

Regulatory: GST will enable significantly. VAT on medicines too high @ 15%.




Interviewee: Roshan Patel, Properietor, Umiya Medical And Pro Store

1 Store, Hosiery

B2B and B2C

Core Processes

Automated

SMS / What�s app Used for

Marketing

Market Place Listing

GST Needed. Lack of Funding Options for Retail.

KEY FINDINGS

Profile: 1 store, selling lingerie and hosiery. Supplies to retailers (60 customers) as well as

walk in customers. High street store, 500 sq. �., turnover < ̀ 1 cr. 60% market share in the

unbranded market. Use SMS / What’s app marke�ng for both customer segments.

Space / People: Not a concern.

Technology: Billing/ inventory have been automated. Market place lis�ng underway. No

loyalty program or social media.

Regulatory: Unable to grow outside Baroda since credit not available (trade credit period is

120 days). Hard to establish credit due to lack funding op�ons. Also, GST needed,

standardiza�on and streamlining of tax administra�on.




Interviewee: Dilip Dayaram, Co-owner - Mukhesh, Vasudev Dayaram


September 2014

033

4 Stores, Computer

Accessories

High Street Stores, Loyalty

Program

Skilled Sta� Employed.

Low Attrition.

Home Delivery, Social Media to

Engage with Customers

E-commerce Enabled using Market Places.

GST Needed/ Simpli�cation

KEY FINDINGS

Profile: 4 stores (2 in Surat, 2 in Baroda, 1 in Ahmedabad), High street, Apple premium

resellers. 15 year old business, family owned. Sell and Service Apple’s en�re range.

Customer experience: Home delivery, loyalty discounts for repeat customers, use radio

and print and flyers for adver�sing.

Space: 2/4 stores are owned. Cost not a concern.

People: 65 employees, high level of skilling due to nature of APPLE products.

Succession Planning: Likely to con�nue as a family run business.

Technology: Internal ERP created – accoun�ng, billing, inventory. E-commerce through

marketplace, social media FB 12000

Regulatory: GST needed, tax ra�onaliza�on needed.




Interviewee: Kalpesh Thakor, MD, Venus Data products (Apple premium reseller)

4 Stores, Milk / Milk Products

Cooperative Model, Work

with 80 Farmers

Low Attrition, Space not a Constraint

Product Range Expansion being driven by

Speci�cations under FSSAI�e.g.

Manufacturing of Paneer

Wi-Fi Tower Connecting

Plant and Stores.

GST Needed. FSSAI Needs

Simpli�cation

KEY FINDINGS

Profile: 4 stores (1 franchised, 3 owned) selling Milk and milk products (Dairy products,

sweets, Namkeen and dry fruits). High street, family owned business. Avg store size 400 sq.

�. Milk sourced from a coopera�ve network of 80 farmers. Central produc�on facility.

Planned expansion into other dairy products (e.g. Paneer) to cope with FSSAI norms.


People: 180 employees, low a�ri�on.

Succession Planning: Will con�nue to be family owned.

Technology: Wi-Fi tower connec�ng all stores and produc�on facility. Automa�on of core

processes in progress. No loyalty, social media. Website exists but do not sell online.

Regulatory: GST needed. Also FSSAI simplifca�on (e.g. food colorants) needed, as it is not

suitable to Indian dishes such as Shrikhand where consumers want food to be brightly

colored.




Interviewee: Yashpal Patel, Owner, Vijay Dairy & Sweets

September 2014

034

The last decade has seen tradi�onal independent retailers with figh�ng

spirit, expanding in the markets they operate by upgrading their physical

and technology infrastructure and by adop�ng modern retail prac�ces.

Retail industry is at yet another inflec�on point in India. The retailers sense

exploding opportuni�es in an increasingly challenging market. Most

thriving and growing retailers see technology as their best tool to overcome

the challenges and emerge as great winners. We are proud to engage with

the independent retailers in this RAI-GoFrugal joint ini�a�ve to learn the

achievements, aspira�ons, challenges and the expecta�ons. I am confident

this exercise will help RAI create a more enabling environment and

GoFrugal become much more relevant to the independent retailers Kumar VembuFounder & CEO,

GoFrugal Technologies

Gujarat has always been the market with high consump�on poten�al and

equally high entrepreneurial community. High risk taking abili�es, family

involvement in business, gender equality are all key aspects of businesses in

Gujarat. Our 3rd report about aspira�ons and road map of independent

retailers covers key independent retailers in Surat region and is a great

reflec�on of the clarity of business that these businessmen have. This

report is useful for everybody involved with retail businesses including

retailers, service providers to retail and individuals working with the

governments who want to create an environment friendly for business and

economic progress.

Kumar RajagoalanCEO,

Retailers Associa�on of India

September 2014

035

Acknowledgments

RAI would like to thank Mr. Barkat Panjwani, Chairman - Retail trade of South Gujarat Chamber of

Commerce and Industry, and Mr. Rajul Modi, Co-chairman- Retail Trade of South Gujarat Chamber of

Commerce and Industry. Their support and guidance were invaluable in crea�on of this report.

Interview team

From Retailers Associa�on of India

Suranajan Basu, [email protected]

Palak Taneja, [email protected]

Sophia Godinho, [email protected]

Deris Michael , [email protected]

Arshad Khan, [email protected]

From GoFrugal Technologies

Aparna Raja, [email protected]

Prakash Babu Devara, [email protected]

Siva Subramanian. M, [email protected]

Viveka Sasidhar S, [email protected]

Content compiled and analyzed by Vidya Hariharan – [email protected] for RAI and

GoFrugal.

Marke�ng and analysis support by Anupama Kadambi- [email protected] for RAI and

GoFrugal.

Mr Barkat Panjwani

Chairman, Retail trade, South

Gujarat Chamber of Commerce &

Industry

Mr. Rajul Modi,

Co-chairman – Retail Trade of

South Gujarat Chamber of

Commerce and Industry

September 2014

036

our visionour vision

To develop, facilitate and propagate practices and processes

that will grow the Indian retail industry, leading to increased

consumption and growth of the economy.

This�publication�is�for�the�purpose�of�information�only�.�The�views�expressed�in�this�publication�do�not�necessarily�reflect�the�views�of�the�Retailers�

Association�of�India�and�the�opinions�expressed�in�this� �publication�do�not�necessarily�reflect�those�of�the�editor,�publishers�or�their�agents�and�it�

should�not�be�used�in�substitution�for�exercise�of�independent�judgment.�This�report�is�based�on�the�information�obtained�from�various��sources�and�

sources�believed�to�be�reliable,�however,�no�warranty,�express�or�implied,�are�given�for�the�accuracy�or�correctness�of�the�same�and�it�should�not�be�

construed�as�such.�The�report�contained�in�the�publication�is�also�not�intended�as�an�offer�or�solicitation�for�the�purchase�and�sale�of�any�items.�No�

matter�contained�in�this�publication�may�be�reproduced�or�copied�or�forwarded�without�the�prior�written�consent�of�the�Retailers�Association�of�India.�

111/112,�Ascot�Centre,�Near�Hotel�ITC�Maratha,�Sahar�Road,�Sahar,�Andheri�(E),�Mumbai�-�400099,�Tel:�+91�22�28269527�-�29,�Fax;�+91�22�28269536,�

Email:�[email protected]��©�All�rights�reserved.

For�further�details�or�to�take�part�in�future�phases�of�this�study�-�contact�the�RAI�Marketing�Team�:�Bhavesh�Pitroda��-�Director,�Marketing�-�9867355551,�

[email protected]�/�Sophia�Godinho,�Manager�-�9820098944,�[email protected]

111/112, Ascot Centre, Near Hotel ITC Maratha, Sahar Road, Sahar, Andheri (E), Mumbai - 400099.Tel: +91 22 28269527 - 29 | Fax: +91 22 28269536 | Email: [email protected] | Website: www.rai.net.in

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