Presentation on Retail Industry

The word retail is, in fact, derived from the French word retailer, which means to cut off a piece or to break bulk.A retailer may be defined as a dealer or trader who repeatedly sells goods in small quantities. The growth of retail revenues in India is impressive a steady 25 percent per annum for the past decade with no signs of slowing down. "Retailing is one of the oldest business activities in India. But until the liberalization and deregulation of the Indian economy in the 1990s, it was dominated by small one-man retail units. However since the past five years, it has become more structured and formalized and is moving towards international standards. Today, the organized retail sector is an industry.

The share of retail trade in the country's gross domestic product (GDP) was between 810 per cent in 2007. It is currently around 12 per cent, and is likely to reach 22 per cent by 2012. Retail industry growing by 9% per annum Retail market accounted for 3% in value terms and is expected to grow up to 20% by next 3 years. The govt. estimating flow of 12 billion US$ in next 2-3 years and more than 35% surge in exports. The boom in economy has resulted in creation of jobs in Service Sector

y Retail formats are types of retailers. y They are different from each other. y Every format has its own image.

y Retail stores owned and operated by individual

on behalf of a large supporting organisation adopt the franchise format.

y When a retail store is owned by a single person or

a partnership, it comes under independent store format.

y Department stores A very large stores offering a huge

assortment of "soft" and "hard goods; often bear a resemblance to a collection of specialty stores. A retailer of such store carries variety of categories and has broad assortment at average price. They offer considerable customer service. y Discount stores - It tend to offer a wide array of products and services, but they compete mainly on price offers extensive assortment of merchandise at affordable and cut-rate prices. Normally retailers sell less fashion-oriented brands. y General merchandise store A hybrid between a department store and discount store. y Supermarkets - Sell mostly food products

y Warehouse stores - It offer low-cost, often high-quantity goods

piled on pallets or steel shelves; warehouse clubs charge a membership fee. y Variety stores or "dollar stores" - They offer extremely lowcost goods, with limited selection. y Demographic The retailers that aim at one particular segment (e.g., high-end retailers focusing on wealthy individuals). y Mom-And-Pop or Kirana Stores: It is a retail outlet that is owned and operated by individuals. The range of products are very selective and few in numbers. These stores are seen in local community often are family-run businesses. The square feet area of the store depends on the store holder.

y Hypermarkets: It provides variety and huge volumes of exclusive merchandise at low margins. The operating cost is comparatively less than other retail formats. A classic example is the Metro in Bangalore. y Supermarkets: It is a self service store consisting mainly of grocery and limited products on non food items. The supermarkets can be anywhere between 20,000-40,000 square feet. Example: SPAR supermarket. y Malls: It has a range of retail shops at a single outlet. They endow with products, food and entertainment under a roof. Example: Sigma mall and Garuda mall in Bangalore, Express Avenue in Chennai. y Category Killers or Category Specialist: It supplies wide assortment in a single category for lower prices a retailer can "kill" that category for other retailers. For few categories, such as electronics, the products are displayed at the centre of the store and sales person will be available to address customer queries and give suggestions when required.For example: Pai Electronics store in Bangalore, Tata Croma.

E-tailers: Here the customer can shop and order through internet
and the merchandise are dropped at the customer's doorstep. Here the retailers use drop shipping technique. They accept the payment for the product but the customer receives the product directly from the manufacturer or a wholesaler. This format is ideal for customers who do not want to travel to retail stores and are interested in home shopping.Example: Amazon and Ebay.

y Vending Machines: This is an automated piece of equipment wherein customers can drop in the money in machine and acquire the products. For example: Soft drinks vending at Bangalore Airport.

Other types of retail store include:

y Automated Retail: Those stores are self service, robotic kiosks located in airports, malls and grocery stores. The stores accept credit cards and are usually open 24/7. Examples include ZoomShops andRedbox. y Big-box stores: It encompass larger department, discount, general merchandise, and warehouse stores. y Convenience store - A small store often with extended hours, stocking everyday or roadside items. y General store - A store which sells most goods needed, typically in a rural area.

y Achieving the highest long term profitability. y Ensuring an efficient rollout y Providing shoppers the greatest shopping

opportunity and the highest customer satisfaction. y Establishing a core differentiated value preposition for customers.

pantaloon- a chain of fashion. destination Big bazaar- a supermarket chain. Central- a chain of seamless destination malls. Futurebazaar.com online shopping portal. Home town a large format home solutions store. Collection I selling home furniture products. E zone electronics segment. Food bazaar - daily usable edibles like grains ,vegetables , fruits etc.

Environment for retail in India

The Indian Retail Sector, currently the Fifth largest in the world, is poised for phenomenal growth in the coming years

ORGANISED RETAIL EXPECTED TO GROW 35-40% CAGR

The contribution of retail industry to Indias GDP is more than 13%. Indian retail industry (organized as well as unorganized) spreads over more than 6 million outlets (2.4 million urban and 3.6 million in rural). It was only in the year 2000 that the global management consultancy AT Kearney put a figure to Indian retail Industry Rs. 400,000. Retailing in India is still thoroughly unorganized. chain management perspective. There is no supply

As much as 96 per cent of the 6 million-plus outlets are smaller than 500 square feet in area. This means that India per capita retailing space is about 2 square feet (compared to 16 square feet in the United States). Just over 8 per cent of Indias population is engaged in retail In India still, more than 60% sales in retail comes from food items only.

1) Shoppers stop 2) West side 3) PANTALOONS (BIG BAZAR) 4) LIFESTYLE 5) RPG RETAIL 6) CROSSWORLD 7) WILLS LIFESTYLE 8) GLOBUS 9) PIRAMALS 10) EBONY RETAIL HOLDINGS LTD.

1) Salespersons time spent selling 2) Training hours per employee 3) Customers re-visit 4) Cross selling potential 5) Point-of-sale service 6) Customer Complaints 7) IT cost

Backward integration plays a important role in Indian retail because: 1) Indian customers are more price sensitive 2) It helps to cut the cost drastically

Reason of rating the big players of retail Pantaloon retail i) It is integrated backwards in apparel business, it helps in cost & quality ii) It helps in product offerings less than 20-25% lower than branded items Reliance Fresh i) Replenishment are done twice a day ii) It is also investing in IT for better inventory management

i) 300 beauty and wellness centers across India ii) Is in talk with Burger king of USA to open fast food restaurant iii) Pan India Food Solutions & Pantaloon Retail is planning to launch a chain restaurant under the brand name YATRA

Reliance retail manufactures economy range of mens cloth wear under the Brand name SPIRIT

Sells garments, home furnishings, Food and household items.

Its product range I) Food items II) Personal care and baby care III)Home care products IV)Office and home stationary V) Apparel and fashion accessories VI)Electrical and electronics VII) music ,toys etc

Presented by Group 2: Manoj, Amit, Archit