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RETAILING : GENESIS
THE ACTUAL TERM RETAILING IS THOUGHT TO BE DERIVED FROM THE OLD FRENCH WORD RETAILLER WHICH MEANS : A PIECE OF OR TO CUP UP ( SOURCE : BROWN, 1992)
WHAT IS RETAILING?
ANY BUSINESS THAT DIRECTS ITS MARKETING EFFORTS TOWARDS SATISFYING THE FINAL CONSUMER BASED UPON THE ORGANISATION OF SELLING GOODS & SERVICES AS A MEANS OF DISTRIBUTION
THE GLOBAL RETAILING INDUSTRY , AS UNDERSTOOD UNDER THE GLOBAL INDUSTRY CLASSIFICATION STANDARD (GICS) GREW BY 5.5% IN 2004 TO TOUCH $ 9500 BILLION (APPROX) THE GLOBAL RETAIL INDUSTRYS COMPOUNDED ANNUAL GROWTH RATE (CAGR) WAS AROUND 4% DURING 2000-2004
IT IS ALSO INTERESTING TO KNOW THAT THE LARGEST CORPORATION IN THE WORLD IS A RETAILER
Wal-Mart
WHICH REACHED THIS POSITION IN THE YEAR 2002, AND, HAS HELD IT SINCE
RETAIL IN INDIA
RETAIL IS THE NEW BUZZWORD IN INDIA THE TRADITIONAL, AGE-OLD, HUMBLE, NEXT-DOOR DUKANDAR IS NOW THE FOCUS OF ATTENTION WHILE RETAILING HAS ALWAYS BEEN THERE IN INDIA, WHAT IS NEW IS THE EMERGENCE OF THE ORGANISED RETAIL, IN RECENT YEARS
RETAILIN INDIA
FORMAT BEING THE IN TERM THE THREE FORMATS ARE: TRADITIONAL FORMATS ESTABLISHED FORMATS EMERGING FORMATS
EXCLUSIVE RETAIL OUTLETS INTERNAL RETAIL HYPERMARKETS MALLS / SPECIALITY MALLS MULTIPLEXES RURAL-ORIENTED FORMATS (e-choupals) FAST FOOD OUTLETS SERVICE GALLERIES
1,650
3,787
18%
450 16,000
1,426 37,216
26% 18%
RS.1,80,000 2,00,000 CRORES IT MEANS THAT THE ORGANISED RETAIL PIE WILL MOVE FROM THE CURRENT 2% (RS.22,000 CR.) TO 10-12% BY 2010
(SOURCE : BUSINESS TODAY, OCT 24, 2004, VOL.13, NO.21,)
& GROCERY
OPPORTUNITY:
RS. 6,00,000 CRORES
BIG PLAYERS:
RPG, NILGIRIS FOOD BAZAAR SUBHIKSHA FOODWORLD/ SPENCERS
RETAILING
BIG
PLAYERS:
SHOPPERS STOP PIRAMYD WESTSIDE LIFESTYLE WILLS SPORT LEE / LEVIS WEEKENDER
DURABLES
RURAL RETAIL
OPPORTUNITY:
RS. 3,00,000 CRORES
DRIVEN RETAILING
AJAY PIRAMAL BHARTI GODREJ HERO GROUP HUL ITC RELIANCE RPG GROUP SINGHANIAS TATAS WADIAS
COMPETITION FROM THE UNORGANISED SECTOR POLITICAL / SOCIAL CLOUT OF THE UN-ORGANISED SECTOR
I.T. IN RETAIL
TODAY, THE BUSINESS ENVIRONMENT IS A COMPETITIVE BATTLE-FIELD AN ORGANISATION, HENCE, HAS TO BE COMPETITIVE AS REGARDS: TECHNOLOGY QUALITY COST PRICE
I.T. IN RETAIL
THERE ARE TWO METHODS AVAILABLE TO AN ORGANISATION TO BE COMPETITIVE: IMPACT ON MARKET PLACE
I.T. IN RETAIL
IN RETAIL, THERE EXISTS A SIGNIFICANT OPPORTUNITY TO USE / LEVERAGE TECHNOLOGY TO DELIVER REVOLUTIONARY NEW PROCESSES AND, IN EFFECT, RE-DEFINE THE INDUSTRY OR TO CHANGE THE APPROACH TOWARDS BUSINESS
I.T. IN RETAIL
RETAILERS LIKE WALMART, ZARA, AMAZON.COM, METRO CONTINUE LEVERAGE I.T. TO STAY CONTINUALLY RELEVANT TO THE EVER-CHANGING CONSUMER IN INDIA, ASIAN PAINTS, HUL, McDONALDS, GCMMF (AMUL) HAVE EFFECTIVELY HARNESSED THE POWER OF I.T. TO STAY COMPETITIVE
I.T. IN RETAIL
NO WONDER THEN THAT RETAIL HAS BEEN ONE OF THE EARLY ADAPTER OF INFORMATION TECHNOLOGY
DATABASE MANAGEMENT: HELPS TO COLLECT, COLLATE, PROCESS, RETRIEVE & DISSEMINATE HUGE DATA TO MAKE THE ORGANISATION DATA RICH AS WELL AS INFORMATION RICH THE DATA CAN BE PERTAINING TO PRODUCTS, CUSTOMERS, VENDORS OR A COMBINATION OF THE VARIOUS FACTORS
DATA WAREHOUSING ENABLES THE RETAILER TO GATHER, MANAGE & UTILISE THE INFORMATION NEEDED TO REMAIN COMPETITIVE DATA MINING CAN HELP EXTRACT INFORMATION FROM A DATABASE THAT THE USER DID NOT KNOW EXISTED & HELP FIND PATTERN BETWEEN CONSUMER BEHAVIOUR & CERTAIN VARIABLES
COMMUNICATION BETWEEN OBJECTS & READERS, HELPS TRACKING MOVEMENT OF INVENTORY ITEMS
RFID ALSO HELPS IN TRACKING
CUSTOMER PROFILES & TASKS PERFORMED BY THE EMPLOYEES & ENABLES THEM TO BE MORE PRODUCTIVE
E-COMMERCE OR E-TAILING , USING INTERNET / WEB-BASED TECHNOLOGIES TO FACILITATE ONLINE-OFFLINE TRADING OF GOODS & SERVICES THROUGH VIRTUAL ESTABLISHMENTS
THE EPILOGUE
THE ORGANISED RETAIL SECTOR & THE FORMATS ARE NOT FOR OR AGAINST ANYBODY, CERTAINLY NOT AGAINST THE AGRICULTURISTS, THE RURAL PEOPLE, OR THE EXISTING UN-ORGANISED PLAYERS
THE EPILOGUE
TO ME, IT IS ALL ABOUT MODERNISING RETAIL INSTEAD OF SEGREGATING THE INDUSTRY INTO ORGANISED OR UN-ORGANISED LABELS IF IT IS NOT MODERNISED, CHANCES ARE THAT THE SECOND GENERATION OF THE UNORGANISED SECTOR MAY NOT REALLY BE INTERESTED IN TAKING THE BUSINESS FORWARD, WHICH COULD BE REALLY DANGEROUS FOR THE RETAIL INDUSTRY
THE EPILOGUE
THE PRESENT INITIATIVES TOWARDS ORGANISED RETAIL WOULD ONLY LEAD TO CORPORATISATION & PROFESSIONALISATION OF THE SECTOR ENSURING EFFICIENT & EFFECTIVE OPTIMUMSOURCING, ALLOCATION & UTILISATION OF THE RESOURCES
THE EPILOGUE
NOTWITHSTANDING THE OPPOSITION & VANDALISATION FACED BY CORPORATE RETAILERS IN SOME PARTS OF THE COUNTRY, LET US NOW REALISE THAT MODERN RETAIL IS NOT ABOUT DISPLACING ANYONE FROM THEIR BUSINESS / INCOME
THE EPILOGUE
ON THE CONTRARY, IT IS A SUN-RISE SECTOR THAT CAN & WILL BOOST THE INDIAN ECONOMY, IN THE PROCESS CREATING HUGE EMPLOYMENT OPPORTUNITIES FOR PRACTICALLY EVERYONE, INCLUDING MBAs ( IN AREAS LIKE )
THE EPILOGUE
MOST CRUCIALLY, THE ORGANISED RETAIL MAY FINALLY DO WHAT THE SUCCESSIVE GOVERNMENTS OF THIS COUNTRY HAVE FAILED TO DO : DISPERSE ECONOMIC PROSPERITY TO THE MILLIONS OF INDIANS WHO DESERVE IT MOST
THE EPILOGUE
THIS, OF COURSE, CAN HAPPEN PROVIDED WE LOOK AT IT PROFESSIONALY, LEAVING POLITICS OUT OF IT
REMEMBER:
PROFESSIONALS ARE THOSE WHO PROMISE TO DELIVER AND DELIVER WHAT THEY PROMISE!
THANK YOU
JAYANT K. OKE