The India Retail Sector

8/12/2019 The India Retail Sector

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DECLARATION

I hereby declare that the project entitled THE INDIAN RETAIL SECTOR

submitted for the Degree of Master of Business Administration is my original

work and the project has not formed the basis for the award of any degree,

diploma, associate ship, fellowship or similar other titles It has not been

submitted to any other uni!ersity or Institution for the award of any degree or

diploma.

wwwstudygala"ycom

#age $o %


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A&'$()*+D+M+$-

-he success of my project report was not only with efforts but also withinterest, guidance . help offered to me by others

It is my duty to acknowledge with gratitude the help rendered to me by

each . e!ery indi!idual with whom I interacted during the completion of the

project

/ist . foremost I wish to e"press my deep debth of gratitude to Mr.

Rajat Mendirattafor helping me to carry out my project work

I e"press my gratitude . sincere indeptness to all faculty members of

MBA for their !aluable guidance persistent encouragement . inspiration .

guidance they ha!e to me

Also, not forgetting the college library facilities . computer lab facilities

without whose help gathering the rele!ant information would not ha!e been

possible

*ast but not the least I also pay my sincere thanks for guidance to those

persons mentioned abo!e or not who ha!e directly or indirectly helped me into

preparation of this reports

-hank you all

#age $o 0


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#1+/A&+

-he distribution of consumer products begins with the producer and ends

at the ultimate consumer Between the producer and the consumer there is a

middleman222the retailer, who links the producers and the ultimate consumers

1etailing is defined as a conclusi!e set of acti!ities or steps used to sell a

product or a ser!ice to consumers for their personal or family use It is

responsible for matching indi!idual demands of the consumer with supplies of

all the manufacturers -he word 3retail4 is deri!ed from the /rench work

retailer, meaning 3to cut a piece off4 or 3to break bulk4

A retailer is a person, agent, agency, company, or organi5ation which is

instrumental in reaching the goods, merchandise, or ser!ices to the ultimate

consumer 1etailers perform specific acti!ities such as anticipating customer4s

wants, de!eloping assortments of products, ac6uiring market information, and

financing A common assumption is that retailing in!ol!es only the sale of

products in stores 7owe!er, it also includes the sale of ser!ices like thoseoffered at a restaurant, parlor, or by car rental agencies -he selling need not

necessarily take place through a store 1etailing encompasses selling through

the mail, the Internet, door2to2door !isits222any channel that could be used to

approach the consumer )hen manufacturers like Dell computers sell directly

to the consumer, they also perform the retailing function

1etailing has become such an intrinsic part of our e!eryday li!es that itis often taken for granted -he nations that ha!e enjoyed the greatest economic

and social progress ha!e been those with a strong retail sector )hy has

retailing become such a popular method of conducting business8 -he answer

lies in the benefits a !ibrant retailing sector has to offer9an easier access to a

!ariety of products, freedom of choice and higher le!els of customer ser!ice

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As we all know, the ease of entry into retail business results in fierce

competition and better !alue for customer -o enter retailing is easy and to fail

is e!en easier -herefore, in order to sur!i!e in retailing, a firm must do a

satisfactory job in its primary role ie, catering to customers 1etailers4 cost

and profit !ary depending on their type of operation and major product line

-heir profit is usually a small fraction of sales and is generally about ;2%


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+?+&@-I+ @MMA1C

-his is a project report on the topic -7+ I$DIA$ 1+-AI* +&-(1

In order to sur!i!e in retailing, a firm must do a satisfactory job in itsprimary role ie, catering to customers 1etailers4 cost and profit !arydepending on their type of operation and major product line -heir profit isusually a small fraction of sales and is generally about ;2%


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CERTIFICATE

&ertified that the project is a work done by Mr. NARENDRA SIN"Hduring

the period of his study under my guidance, and that the project has not

pre!iously formed the basis for the award of any degree, diploma, associates

hip, fellowship or similar other titles and that it is an independent work done by

his.

#laceF $ameF Mrs MA7IMA 1AI

DateF

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INDE#

CHA$TER $ARTICULAR $A"E NO.

CHA$TER % INRODUCTION & RETAIL INDUSTR' 8-26

CHA$TER ( MA)OR * MINOR CHALLEN"ES OF

INDUSTR'

27-33

CHA$TER + $AST* $RESENT , FUTURE OF

INDUSTR'

34-41

CHA$TER - IM$ACT OF RETAIL INDUSTR' IN

INDIA

42-48

CHA$TER LATEST TRENDS N RETAIL SECTOR 49-53

CHA$TER / A$$ENDI#

&onclusion

Bibliography

)ebliography

54-57

54-56

57

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RETAIL INDUSTR'

-he word 1etail originates from a /rench2Italian word 1etailer2

someone who cuts off or sheds a small piece from something 1etailing is the

set of acti!ities that markets products or ser!ices to final consumers for their

own personal or household use It does this by organi5ing their a!ailability on a

relati!ely large scale and supplying them to customers on a relati!ely small

scale 1etailer is a #erson or Agent or Agency or &ompany or (rgani5ation

who is instrumental in reaching the oods or Merchandise or er!ices to the

+nd @ser or @ltimate &onsumer.

1etail is IndiaJs largest industry It accounts for o!er %< per cent of the

IndiaJs D# and around eight per cent of the employment 1etail sector is one

of IndiaJs fastest growing sectors with a E per cent compounded annual growth

rate IndiaJs huge middle class base and its untapped retail industry are key

attractions for global retail giants planning to enter newer markets Dri!en by

changing lifestyles, strong income growth and fa!orable demographic patterns,

Indian retail is e"pected to grow 0E per cent annually It is e"pected that retail

in India could be worth @K %HE20


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retailers entered ;< new markets, but at the same time, %H retailers left markets

in 0


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malls are on the !erge of completion and may be operational by the end of

current financial year A forecasted number of nearly 0


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&ompanies like hoppers top, -rent, 1eliance, *ifestyle, #antaloons

-anish6, &rossroads, AkbarallysJ and -anish6 already ha!e planned to in!est

o!er 1s E,


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STRUCTURE OF RETAIL

INDUSTR'

-he retail industry continued in India in the form of 'iranas till %;L


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home Markets $ew geographies help them sustain top line growth in Addition

to enabling global sourcing and encasing on global ad!antages of getting the

best products at optimum prices

-here has been a boom in retail trade in India owing to a gradual

increase in the disposable incomes of the middle class households, as a result

of good performance of I-, er!ice and Infrastructure sectors More and more

players are entering the retail business in India to introduce new formats like

malls, supermarkets, discount stores, department stores and e!en changing the

traditional looks of bookstores, chemist shops, and furnishing stores

Or3ani4ed retai0 or2ats pre5a0ent 30o6a007

Super2ar1etsF elf2ser!ice >


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RETAILIN" FORMATS IN INDIA

Ma00s9

-he largest form of organi5ed retailing today *ocated mainly in metro

cities, in pro"imity to urban outskirts 1anges from G


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H7per 2arts*Super2ar1ets9

*arge self ser!ice outlets, catering to !aried shopper needs are termed as

upermarkets -hese are located in or near residential high streets -hese stores

today contribute to :


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RETAILIN" MA$ IN INDIA

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%. Retai0in3 Map


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E;OLUTION OF

RETAILIN"

1etailing, one of the largest sectors in the global economy, is going

through a transition phase in India /or a long time, the corner grocery store

was the only choice a!ailable to the consumer, especially in the urban areas

-his is slowly gi!ing way to international formats of retailing -he traditional

food and grocery segment has seen the emergence of supermarketsgrocery

chains, con!enience stores and fast2food chains

-he traditional grocers, by introducing self2ser!ice formats as well as

!alue2added ser!ices such as credit and home deli!ery, ha!e tried to redefine

themsel!es 7owe!er, the boom in retailing has been confined primarily to the

urban markets in the country +!en there, large chunks are yet to feel the

impact of organi5ed retailing -here are two primary reasons for this /irst, the

modern retailer is yet to feel the saturationJ effect in the urban market and has,

therefore, probably not looked at the other markets as seriously econd, the

modern retailing trend, despite its cost2effecti!eness, has come to be identified

with lifestyles

In order to appeal to all classes of the society, retail stores would ha!e to

identify with different lifestyles In a sense, this trend is already !isible with the

emergence of stores with an essentially P!alue for moneyJ image -he


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attracti!eness of the other stores actually appeals to the e"isting affluent class

as

)ell as those who aspire to be part of this class 7ence, one can assume that

the retailing re!olution is emerging along the lines of the economic e!olution

of society

It was only in the year 0


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INDIAN SCENARIO OF RETAIL

INDUSTR'

-he present !alue of the Indian retail market is estimated by the India

1etail 1eport to be around 1s %0,


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%. Rise in the purchasin3 po8er o Indians 2 the rise in the per capita income

in the last few years has been magnificent -his has led to the generation of

insatiable wants of the upper and middle class -he demand of new as well as

second hand durables has risen throughout the country thus pro!iding the

incenti!e for taking up retailing

(.Fa5ora60e to ar2ers&retailing has helped in remo!ing the middlemen and

has thus enhanced the remuneration to farmers -his is a new re!olution in the

agricultural sector in India and will go a long way in amending the condition of

agriculture, a major concern among policy makers

+ Use o credit&a typical Indian is most con!ersant with using credit cards

than carrying money -his is led to shift of the consumer base towards

supermarkets and make the payments in the form of credit

> Co2orta60e At2osphere& a !isit to a retail store appears to be more

soothing for the generation2C #eople and kids prefer to shop in an air

conditioned -he retail industry is the second largest employer in India It

currently employs about H percent of the total labor force in India Finance

Minister $. Chida26ara2:s recent state2ent ?sa0aries ou3ht not to 6e

0e3is0ated@ is a welcome mo!e as most of the organi5ed retail is in pri!ate

hands (nly >G= of the total retail trade is into organi5ed sector It generates

about 1sEE,


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as political instability and infrastructure namely power and roads are the major

roadblocks in the path of smooth functioning of the market


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$RESENT INDIAN SCENARIO

R @norgani5ed marketF 1s EL:,


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RETAIL 9 ORLDIDE SCENARIO

China&the total sales from retail market in &hina reached @KHEE billion in

0


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Spain2pain +nergy Industry pain energy consumption is estimated to ha!e

reached %GE Million -ons of (il +6ui!alent in 0


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include the categories of gasoline, automobiles, and food ser!iceO were up

about :L= in 0; trillion N#lunkett 1esearch estimateO -he 0


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O)ECTI;ES , ROLE OF RETAIL INDUSTR'

1etail is clearly the sector that is poised to show the highest growth in

the ne"t fi!e years -he sector is set for a re!olution, as both the present players

and new entrants are gearing up to e"plore the market -his sector contributes

%


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CHALLEN"ES OF RETAIL INDUSTR'

-he big challenge for the Indian retailing industry is the heterogeneity of

the market It is up to us retailers to e!ol!e with consumers, predict where and

what they will spend on, be there and take the highest share of their wallet and

use this last leg of the economic chain to build India At #anta2loon, through

our deli!ery formats, we touch E0= of the customer4s wallet My !ision is to

capture where this new, young and emergent India is going to spend and

capture as close to %


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li!es -ier2II and tier2III cities present an enormous growth potential o!er the ne"t

fi!e years and are the future of modern retail in India

MA)OR CHALLEN"ES

%. A2a03a2ation or Conusion&According to -A-A trategic Management

roup, India has a high density retail structure of % retail outlet per ;< people

and is the ;th largest retail market in the world But the structure of the retail

industry in India is in utter jumble -he parallel operation of con!enience

stores, supermarkets, hypermarkets and specialty stores in the economy is

bewildering According to the J)heel of 1etailing -heoryJ, certain loopholes in

one of the forms of marketing can get communicated to other forms also

(. hat to se002 Another bemusement is the category of items to be offered

According to researches, >% percent of total consumption e"penditure goes to

the segment of food and groceries and it accounts for HH percent of total retail

sales o it is ob!ious that this is the most preferred section of retailers But

unfortunately the foible taste bias for Jwet marketJ Nie fresh food a!ailable

through hawkersO has marred this prospect also -herefore supply chain

management, storage of fresh perishable foods and persuading the customers

that the food is ine"pensi!e despite being fresh are genuine challenges to the

newcomers Di!ersifying the product base to consumer products such as

readymade garments, furniture4s, mobiles and computers can mitigate the

losses, if any from food marketing and also broaden the reach to consumers


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+. Nosta03ia& Indian shopping habits are no different #eople tend to attach

6ualities like honesty, fair price, good beha!ior etc to shopkeepers with whom

they ha!e been dealing right from childhood -hey find no reason to go to a

distant megaspore without any genuine reason -his problem is difficult to deal

with as it demands a change in long2formed mindset (rgani5ed retail outlets

can o!ercome this problem by employing eligible local peoples who can

interact in !ernacular language and win the confidence of people

-. Inor2ation Techno0o372 -his is a major problem and India must act fast if

it wishes to create a smooth field for organi5ed retailing Digiti5ation of

ser!ices will make transfer of goods easy and an impro!ement in supply chain

management will definitely play a significant role in attracting more consumers

and less consumer grie!ances Besides, it will generate easier payments option

for customer and easier money mo!ement for the &+(s of these highly

di!ersified malls

MINOR CHALLEN"ES

%. Hu2an resource crunch2 the concern for insufficient manpower in the

industry has been in news for the last few months -his fear is somehow

unfounded -he retail industry according to recent reports is growing at a rate


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of %


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come up as home grown in!estment is always sweeter than foreign in!estment


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OTHER CHALLEN"ESF

N%O *(&A-I($F

1ight #lace, 1ight choice

*ocation is the most important ingredient for any business that relies on

customers, and is typically the prime consideration in a customers store choice

*ocations decisions are harder to change because retailers ha!e to either make

sustainable in!estments to buy and de!elop real estate or commit to long term

lease with de!elopers )hen formulating decision about where to locate, the

retailer must refer to the strategic planF

R In!estigate alternati!e trading areas

R Determine the type of desirable store location

R +!aluate alternati!e specific store sites

0O M+1&7A$DI+F

-he primary goal of the

most retailers is to sell the

right kind of merchandise

and nothing is more

central to the strategic thrust of the retailing firm Merchandising consists of

acti!ities in!ol!ed in ac6uiring particular goods and ser!ices and making them

a!ailable at a place, time and 6uantity that enable the retailer to reach its goals

%.%% Retai0 Cha00en3e


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Merchandising is perhaps, the most important function for any retail

organi5ation, as it decides what finally goes on shelf of the store

:O #1I&I$F

#ricing is a crucial strategic !ariable due to its direct relationship with a firmJs

goal and its interaction with other retailing elements -he importance of pricing

decisions is growing because todayJs customers are looking for good !alue

when they buy merchandise and ser!ices #rice is the easiest and 6uickest

!ariable to change

>O -A1+- A@DI+$&+F

&onsumer the prime mo!er

&onsumer #ull, howe!er, seems to be the most important dri!ing factor

behind the sustenance of the industry -he purchasing power of the customers

has increased to a great e"tent, with the influencing the retail industry to a great

e"tent, a !ariety of other factors also seem to fuel the retailing boom

EO &A*+ (/ (#+1A-I($F

cale of operations includes all the supply chain acti!ities, which are carried

out in the business It is one of the challenges that the Indian retailers are

facing -he cost of business operations is !ery high in India


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SOME $ULISHED ISSUE OF RETAIL INDUSTR'

-he retail industry is e"pected to grow into a @D >0H billion industry by

0


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$AST* $RESENT* FUTUREOF RETAIL INDUSTR'

Before the decade of eighties, India with hundreds of towns and cities

was a nation stri!ing for de!elopment -he e!olution was being witnessed at

!arious le!els and the people of India were learning to play different roles as

businessmen and consumers

1etail2which literally means to put on the market, is a !ery important

aspect of e!ery city )ithout a well organi5ed retail industry we would not

ha!e our necessities and lu"uries fulfilled Be it our daily groceries or fashion

accessories and e!erything in between, retail industry brings us the blissful

e"perience of shopping -hough organi5ed retailing industry began much

earlier in the de!eloped nations, India had not acti!ely participated 7owe!er

with its !ast e"panse and young population, India in the 0%st century emerges

as a highly potential retail market -he journey of retailing in India has been

ri!eting and the future promises further growth 7ere is a complete picture

deciphering the past, present and future trends of Indian 1etail Market

It is widely accepted that the retail industry has undergone a drastic

change in last fi!e years and there is yet more to come *et us compare the

Cha ter&+


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image of Indian retailing in 0


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actually brought in the organi5ed format for 1etailing in India which was

absent earlier-o your surprise there was not a single mall in India a decade

before and just a few years ago only a handful of them were stri!ing, today

there are more than E< malls across different cities and 0 years from now

around E


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As the spending power is no longer limited to metros, e!ery tier 0 city in the

country has good market for almost e!ery product or ser!ice Due to this, tier 0

cities like &handigarh, &oimbatore, #une, 'olkatta, Ahmedabad, Baroda,

7yderabad, &ochin, $agpur, Indore, -ri!andrum etc pro!ide a good platform

for a brand to enter Indian market

7owe!er there are a few precautions for e!ery brand that e"plores Indian

market As Indian consumers are !ery curious and ha!e a broad perspecti!e,

they respond well to a new product or concept and there are !ery fair chances

of a brand sur!i!ing well, but e!ery Indian consumer be it an urbanite or a

small town dweller needs a feeling of !alue for money Although labeled as

tight fisted, Indian consumers are great spenders once they reali5e that they are

getting !alue for their money Also new product ser!ice concepts from the

western world are better adopted first by the urban Indians, the smaller markets

respond well to the need based retailing rather than lu"ury concepts

As the Indian retailing is getting more and more organi5ed !arious retail

formats are emerging to capture the potential of the market

R Mega Malls

R Multiple"es

R *arge and small supermarkets

R 7ypermarkets

R Departmental stores are a few formats which flourishing in the both big and

small regional markets


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As the major cities ha!e made the present retail scenario pleasant, the future of

the Indian 1etailing industry lies in the rural regions &atering to these

consumers will bring tremendous business to brands from e!ery sector

7owe!er as the market e"pands companies entering India will ha!e to be more

cautious with their strategic plans

Future G Retai0 Industr7 in India

According to a study the si5e of the Indian 1etail market is currently

estimated at 1s H crores which accounts for a meager : = of the total retail

market As the market becomes more and more organi5ed the Indian retail

industry will gain greater worth -he 1etail sector in the small towns and cities

will increase by E< to G< = pertaining to easy and ine"pensi!e a!ailability of

land and demand among consumers

rowth in India 1eal estate sector is also complementing the 1etail

sector and thus it becomes a strong feature for the future trend (!er a period

of ne"t > years there will be a retail space demand of >< million s6 ft

7owe!er with growing real estate sector space constraint will not be there to

meet this demand -he growth in the retail sector is also caused by the

de!elopment of retail specific properties like malls and multiple"es

According to a report, from the year 0


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currently has only := of the total market share will ac6uire %E20< = of the

market share by the year 0


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/oreign direct in!estment is not allowed in retail sector, which can be a

concern for many brands But /ranchise agreements circum!ent this problem

Along with this regulations and local laws and real estate purchase restrictions

bring up challenges And with ood #lanning, -imely Implementation and a

media campaign that touches Indian consumers any brand can go far ahead in

the Indian 1etail 1e!olution


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IM#A&- (/ 1+-AI* I$D@-1C I$ I$DIA

(rgani5ed retailing is spreading and making its presence felt in different

parts of the &ountry -he trend in grocery retailing howe!er, has been slightly

different with a rowth concentration in the outh -hough there was

traditional family owned retail &hains in outh India such as $ilgiri4s as early

as %;


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supermarket stocks up to E


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As of now, while &hennai has about fi!e organi5ed food and grocery retail

chains, other big cities such as Delhi, Bangalore, and Mumbai a!erage only

two2three such chains Almost all food retail players ha!e been region2

specific as far as geographical presence is concerned in the country -o

illustrate with e"amples, the 1# roupJs /ood )orld, $ilgiri4s, Margin /ree,

iant, arkeyJs and ubhiksha, all of which are more or less spread in the

outhern regionV abka Ba5aar has a presence only in and around DelhiV names

such as 7aiko and 1adhakrishna /ood2land are Mumbai2centricV while Adani

is Ahmedabad2centric Industry topography in India is such that spreading

presence across cities is a tough call As pointed out by many e"perts,

organi5ed food and grocery retailing chains going national re6uires significant

in!estments 1etailing within this sector is not just about the front2end, but

in!ol!es comple" supply chain and logistics issues as well

-he trend and mindset of the present retailer chains in India can be best

understood by studying /ood2)orld as an e"ample, which came in first in the

food and grocery retailing sector -he chain has no plans to !enture beyond the

outhern region just yet &urrent plans are to focus on the outhern markets

and achie!e saturation -he intention is that by 0


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within E


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-here are many problems face by 1etail industry in Indian Market -hey are

followingF2

The or2at does not suit rura0 IndiaF )hile the format suits the urban areas,

it does not suit the rural areas in a country like India -oday, in Indian,

organi5ed retailing is confined to class A cities, the 0: largest cities About L0

per cent of organi5ed retailing comes form the top si" cities and another %0

percent from the ne"t four -hus, the top %< cities account for ;> per cent of all

organi5ed retailing in India -he scattered location of consumers has been the

main deterrent to the rapid spread of the idea in the rural areas

$urchasin3 patterns not 5er7 conduci5eF +!en in urban centers, the

purchasing patterns of the Indian consumers differ form those of westerners

)hereas in the west, the purchases are spread better o!er the month, in India

#urchases are by and large made in the first week of the month -heirs perhaps

has a correlation to patterns of payment of wagesV #urchasing patterns differ

also because of the difference in the eating habits of people

Inadeuate 3ro8th o 6randsF Inade6uate growth of brands is another factor,

In India, branding was almost not2e"istent in con!enience products until

recentlyV this has naturally inhibited retailing through sophisticated chains

upply chain problemsF As suppliers are not properly organi5ed in the country,

replenishment of stock poses problems for large chains ource de!elopment

also poses special problems


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ein3 a2i07 6usinesses retai0in3 enterprises ha5e 0i2itation in e!pansionJ

Cet another reason for the slow pick up of mega retailing idea in India is that

all along retail enterprises ha!e been family concerns And, family businesses

usually ha!e a limitation in e"pansion,

E!a2p0e o ;i5e1KsV -he i!ek4s N/ormerly i!ek4s . &o O of &hennai, is

an e"ample /or the past se!eral years, it remained rather small because of its

family character During the three decades from %;GE to %;;E, it had just three

showrooms It was a family concern and remained for a long time, a single

store outfit, managed by the father and assisted by his three sons (nce the

father grew old, the sons started managing the business, and because there were

three sons engaged in the business, the enterprise went in for three showrooms

In recent years, howe!er, it has emerged as a major chain, as it has shed its

family business character, now it is actually the largest consumer durable chain

in the country It has big sales !olumes and multiple locations

Rea0 estate pro60e2sV 1eal estate is an integral re6uirement of large scale

chain store operation (ne needs a large number of stores in each city to

achie!e optimum scale Also, big chains ha!e to operate in se!eral cities 1eal

estate thus becomes crucial -hat is why groups that ha!e been in real estate

and hotel businesses are more comfortable in branching off into retailing /ro

other firms, real estate de!elopment are a problemV they don not command

property in prime locations


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(ther *imitation of 1etail Industry

-he organi5ed retail industry in India is faced with

stiff competition from the unorgani5ed sector

-here is a shortage of 6uality real estate and

infrastructure re6uirements in our country

(pposition to /oreign Direct In!estment from small

traders affects retail industry

A !ery high stamp duty on transfer of property

affects the industry

hortage of retail space in central and downtown

locations also hinders the growth of retail industry

#resence of strong #ro2tenancy laws makes it

difficult to e!ict tenants and this is posing problems

*and2use con!ersion is time consuming and

becoming comple"

/or settling property disputes, it consumes lot of

time

$on residents are not allowed to own property e"cept

they are of Indian origin

Inade6uacies in infrastructure such as lack of high

6uality road networks, power shortages and insufficient storage spaces


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employment for more than 0E million people by the year 0


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Recent Trends , Chan3es

1etailing in India is witnessing a huge re!amping e"ercise as can be seen in

the graph

India is rated the fifth most attracti!e emerging retail marketF a potential

goldmine

Multiple dri!ers leading to a consumption boomF

/a!orable demographics

rowth in income

Increasing population of women

1aising aspirations F alue added goods sales

+.% Retai0 Ana07sis

(rgani5ed retailing in India has been largely an urban phenomenon with

affluent classes and growing number of double2income households


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1ural markets emerging as a huge opportunity for retailers reflected in the

share of the rural market across most categories of consumption

&ompanies using their own web portal or tie2sups with hori5ontal players

like 1ediffcom and Indiatimescom to offer products on the web

Spencer:sis also planning to set up E


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formats being tested out +" Wuasi2mall, sub2urban discount stores, &ash

and carry etc

Unor3ani4ed retai0in3 is 3ettin3 or3ani4ed9 -o meet the challenges of

organi5ed retailing such as large cineple"es, and malls, which are backed by

the corporate house such as JAnsa0sJ and J#13 the unorgani5ed sector is

getting organi5ed 0E stores in Delhi under the banner of #ro!ision mart are

joining hands to combine monthly buying Bombay Ba5aar and +2food mart

formed which are aggregations of 'iranas

E2er3ence o discount stores9 -hey are e"pected to spearhead the

organi5ed retailing re!olution tores trying to emulate the model of )al2

Mart +" Big Ba5aar, Bombay Ba5aar, 1#s

+.+ Retai0 Se32ents


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Latest Ne8s o Retai0 Mar1et in India

Israeli iants +nter Indian 1etail ector

Israeli mall giants, owners of retail2linked realty assets across the world,

are buying into India4s money minting retail sector -el A!i!2based mall giant

a5it lobe has tied up with one of the 7D/& funds to pump in K%E< million

into de!eloping assets, including supermarket anchored retail play Big

hopping roup, of Israel4s biggies has teamed up with *ehman Brothers 1eal

+state #ri!ate e6uity to set up 3open malls4 in tier I and tier II cities

Israeli tycoons and families, which raked in money from core real estate

de!elopments in the @, ha!e turned their attention to retail assets from ao

#aulo to Macedonia, as mall ownership and management pro!ides attracti!e

0


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ones Interestingly, America $o : general retailer behind )al2Mart and -he

7ome Depot runs all its nearly 0,E


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CONCLUSION

/or a start, these retailers need to in!est much more in capturing more

specific market Intelligence as well as almost real2time customer purchase

beha!ior information -he retailers also need to make substantial in!estment in

understandingac6uiring some ad!anced e"pertise in de!eloping more accurate

and scientific demand forecasting models 1e2engineering of product sourcing

philosophies2aligned more towards collaborati!e planning and replenishment

should then be ne"t on their agenda -he message, therefore for the e"isting

small and medium independent retailers is to closely e"amine what changes are

taking place in their immediate !icinity, and analy5e )hether their current

market offers a potential rede!elopment of the area into a more modern multi2

option destination If it does, and most commercial areas in India do ha!e this

potential, it would be !ery useful to form a consortium of other such small

retailers in that !icinity and take a pro2acti!e approach to pool in resources and

impro!e the o!erall infrastructure -he ne"t effort should be to encourage

retailers to make some in!estments in impro!ing the interiors of their

respecti!e establishments to make shopping an enjoyable e"perience for the

customer

As the retail marketplace changes shape and competition increases, the

potential for impro!ing retail producti!ity and cutting costs is likely to

Cha ter&/


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decrease -herefore, it will become important for retailers to secure a

distincti!e position in the marketplace based on !alue, relationships or

e"perience

/inally, it is important to note that these strategies are not strictly independent

of each otherV !alue is function of not just price, 6uality and ser!ice but can

also be enhanced by #ersonali5ation and offering a memorable e"perience In

fact, building relationships with customers can by itself increase the 6uality of

o!erall customer e"perience and thus the percei!ed !alue But most

importantly for winning in this intensely competiti!e marketplace, it is critical

to understand the target customerJs definition of !alue and make an offer,

which not only delights the customers but also is also difficult for competitors

to replicate

+. Retai0 Touches Econo27


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httpFwwwindianretallingcom

httpFwwwpantalooncom

httpFwwwfinanciale"presscom

httpFwwwchanneltimescom

httpFwwwc"otodaycom

httpFwwwindiainbusinessnicin

httpFwwwdeloittecouk

Specia0 Than1s to9&

)ikipedia, the free encyclopediahtm

httpFwwwgooglecom

httpFwwweconomywatchcombusiness2and2economyretail2industry
http://www.deloitte.co.uk/http://www.deloitte.co.uk/

Documents

The India Retail Sector