vijaysales by ketan chauhan

8/8/2019 vijaysales by ketan chauhan

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Retail - A BoomingIndustry


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Members

Aashish Gupta

Nirav Gada

Praveen Kushwaha Ketan Chauhan

Rahul Shankar


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Glimpse: Retail industry

Indian retail industry is the fifth largest in the world.

Retail sector is contributing10-14% to GDP employing over 7-8% of

total work force.

Organized retailing- 4%, unorganized retailing-96%

the industry is expected to grow at a pace of 25-30% annually.

Indian retailing is expected to reach at US$637 billions by 2015.

India is fifthpreferred destination globally.


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Retail Formats

Hypermarkets/ Supermarkets

Mom- and- Pop Stores

Departmental Stores

Convenience Stores Shopping Malls

E-trailers

Discount Stores

Vending Category Killers

Specialty Stores


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Major Indian retailers


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Popular buisness model

High volume-low margin business model.

38% of the respondent companies operate in the high

volumelow margin business model.


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Key drivers

Economic Growth Urbanisation Consumerism

Brand Profusion Availability Of Real State Changing Consumer Needs

And Preferences

FDI Increased investment inRetail

A large unorganized sector

next


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Economic Growth

Source : http://www.indexmundi.com/india/gdp_real_growth_rate.html


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Economic Growth contd.

Contribution of Various Sectors in GDP

Contribution for 1990-1991

Agriculture 32 %

Industry 27%

Service 41%


Agriculture 20%

Industry 26%

Service sector 54%


Agriculture 17%

Industry 29%

Service sector 54%

Contribution for 2009

Agriculture 15.8%

Industry 25.8%

Service sector 58.4%

Source: www.indexmundi.com/india/gdp_composition_by_sector.html


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Urbanization

Demands of consumer durables

figures in 000


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Consumerism

The increasing influence of the western media has led

to a considerable change in the life style of the Indian

consumer.

The economic well being of Indian Middle class andtheir growing aspirations for material comforts has

also been responsible for consumerism slowly

gaining momentum in India.


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Brand Profusion

Consumerism and increased brand conscientiousness

has led to increased number of brands today.

There is presence of al most all kinds of global brands

in the present market situation.

The launches of more and more brands into the

market increased the demand of shelf space and

hence demand for retail outlets.


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Changing Customer need and preferences

Various reason for changing customer needs and

preferences:

1. Single family concepts

2. Dual Income Concepts

3. Limited to One children concepts

4. Willing to spend concepts

5. Brand Preference concepts

6. Personal and Health Care concepts


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FDI

Global players have shown greater interest in this

sector.

100% FDI in cash and carry through automatic route

and 51% in single brand outlets through approval ispermitted.

Franchise route is available for big operators.

The Ministry of Finance has recently announced newFDI norms for enhancing the investment in this

sector.


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Increased Investments in Retail

An investment of $35bn is expected in next five to seven

years.

Modern retailers in India are working on number formats from

supermarket to hypermarket to discount to convenience stores. The share of Investment slated forHypermarket,supermarket,

speciality stores and cash and carry is 40%,28%,18% and 14%

respectively.

According toAT Kearney, India is ranked at 5thpreferred

destination for investors among 30 most attractive retail

markets in world


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Large unorganized retail

India retail market is dominated by the unorganized

sector.

Traditionally the retail market in India was largely

unorganized; however with changing consumerpreferences, organized retail is gradually becoming

popular.

Unorganized retailing consists of small and medium

grocery store, medicine stores, subzi mandi, kirana stores,paan shops etc.

More than 90% of retailing in India fall into the

unorganized sector, the organized sector is largely

concentrated in big cities.


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Penetration of organized retail


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Consumer durables in India

LCD TVs sales grew 93% to 10 Lac Units

Washing Machines sales grew 14% to 24 Lac units

Refrigerators sales grew 16.5% to 50 Lac units.

(Jan to November 2009)

70% sales of consumer electronics came from largecities.

Leading players have shown handsome growth -

Samsung at 25% and LG at 30%.

Source:retailmantras.blogspot.com


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Consumer durable market

product Urban rural

TVs 76% 36%

refrigera

tors

32% 5%

Air

conditio

ners

About

25%

Less

than 1 %

Washing machine only 1 %

Rural penetration


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Target Market

Indias working population (in the 15-49 years

age group) constituted around 53% of the

population

The organized retailing is expected to receive

a boost because of the young population by

2020.


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Employment Generator

The retail segment has churned out employmentopportunities in India.

Modern retailing has the potential for generating

employment of 2.5millions. 10millions in indirect retail activities including

contract production and processing, supply chain

and logistics

Job prospects for the younger generation.

The retail sector employs a high number of

under-graduates.


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Mumbai emerges as the preferred

location for retailing

amongst 24 popular locations for organized retail in India,

Mumbai was found to be the most preferred location.

7% of the respondent companies reported to have retail stores/

outlets in Mumbai


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challenges

Automatic approval is not allowed for foreign investment in

retail.

Regulations restricting real estate purchases, and

cumbersome local laws.

Taxation, which favours small retail businesses.

Absence of developed supply chain and integrated IT

management.


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Cont.

Lack of trained work force.

Low skill level for retailing management.

Lack of Retailing Courses and study options

Intrinsic complexity of retailing rapid price changes,

constant threat of product obsolescence and low margins.


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Growth & Future

The retail industry in India is currently growing at

a great pace.

Expected to go up to US$ 833 billion by the year

2013.

Expanding middle & Upper class consumer base.

In the last four year, the consumer spending has

increased by 75%

India has been ranked as the most attractive

nation for retail investment.


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" WINNING DOESEN'T ALWAYS MEAN BEING FIRST,

WINNING MEANS YOU'RE DOING BETTER THAN YOU'VE DONE BEFORE

From Salesman to king of sales


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Emergence of Vijay sales

Came to mumbai in 1966.

Started working as a salesman in an electronics store.

Opened first electronics shop in mahim in 1967.

Initial capital invested 10,000.

Named the first shop after his younger brotherVijay.

It sold sewing machines, fans and black-and-white TV sets.


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Four best things

Best products- thrill customers with technology

Best price- Price drives customers and sales

Best service- service is what makes the customer come again

& again.

Honesty

Risk is everything- biggest showroom in Goregoan in 1996


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Vijay sales-2010

one of Mumbai's leading chain of electronic superstores

9000 products across eleven categories.

four decades of successful operation.

25 branches in Mumbai, 5 branches in Gujarat, 5 branches in Pune

and 2 branches in Delhi.

Employed staff- more than 1500.

technology-based solutions to improve management efficiencies


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Software

Wings software

The company chose Wings Retail Solutionconsisting of

Wings Retail Appliances

Wings Accounting

Wings Asset and

Wings Payroll The implementation was completed by April 1,

2008 and all systems are live on Wings.


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Purchase


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Deliveries


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Cheques Management


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Payroll


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Inter branch transaction


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Competitors


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Branch Discription

Branch Manager Chandan Kharat

Branches 35

No of employee 60(Goregaon hub branch) Employee entry & exit timings:

11:15 am & 9:45 pm

Turnover 7 cr or above(Goregaon HubBranch)


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3PS


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Products

TV

Washing Machine

Laptops

Mobiles

Kitchen electronic items

Freeze

Dvd players

Music Systems etc


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Ordering Process

Branch manager pass the order to the head office

Order according to the availability of the products

Bring products directly from warehouse

Twice in a weak

Bring products through contractor


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Supply Chain

Company Ware houseBranches- Vijay

sales


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Warehouse

Location:

Shivnari

VandukBhiwandi

Reason for choosing these location:

Because of octroiBecause of low cost of land


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Warehouse Location


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Merchandising

Arrange the products segment wise

Same category products on the same self

Arrange according to the size also

Keeps new products at the front

Design keeps on changing


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HOME APPLIANCE SECTION

CONSUMER DURABLES- ELECTRONICS

ENTR

ANCE

ENT

RA

NCE

next


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TV

Self

Baggage

counterEntr

anc

e

TV Self

Other Electronics

LED

Cash

Count

er

Freez

Mobile & Cameras


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Entr

ance

Baggage

Counter

Refrigerator

Oven Mixer Microwave

CookerWashing

MachineChimney Water Purifier

Counter

Cash

SmallAppliances

Dryers

Fan


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Customers

Volume of customers:

300 for window shopping

200 confirmed customer

Most customers belongs to age of 18-35

More sales of laptop, lcd & mobile


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HR Process

Most of them are:

Graduate &

Undergraduate

These are sales executive

Training

Work is being allotted according to the

knowledge of employee HR person select the best person according to

their skill


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Porters - 5 forces

Existing

competitors:(Croma, next, ezone)

Potentialentrants

(FDI)

Buyers

bargaining

power

(various

options)

Substitutes

(Local retailers)

Suppliers

power

(brands: Nike,

Nikon)


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3 Generic Strategies

differentiation Overall cost

leadership

focus

UNIQUENESS PERCEIVED LOW COST

BY CUSTOMERS LEADERSHIP

Existing

market

Newmarket


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Future Plans

Planning to open more outlets

Planning to open more braches outside Mumbai

Also planning to increase the capacity of

warehouse

These all shows their sales is increasing


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Thank You

Documents

vijaysales by ketan chauhan