Vijay Store Private Limited

Types of Retail Formats

t is a space in the market where consumers and the sellers come in direct contact with each other to purchase goods and services. A traditional market square is a city square where traders set up stalls and buyers browse through the merchandise. Although this concept of market has become very old, it is still practiced all over the world. In some parts of the world, retail business is still dominated by small family run stores, but they are rapidly being taken over by large retail chains. Retail is classified by the type of products offered, which are as follows: 1. FMCG goods: Fast Moving Consumer goods. Example: Food products 2. Hard goods/ Durables: Example: appliances, electronics, furniture, sporting goods. These are basically the goods which do not ware out easily and provide utility for a prolonged period. 3. Soft Goods/ Consumables: clothing, apparel and other fabrics. These goods have a limited period and are consumed after one use also. The various types of Retail formats that exist in the market are: 1. Department stores: These stores resemble specialty stores and offer an assortment of of both hard and soft goods. Such stores have a broad assortment at an average price and offer considerable customer service 2. Discount stores: They sell less fashion oriented brands and a wide range of products and services. They mainly complete in terms of pricing and offer cut rate prices. 3. Warehouse stores: They offer low cost and high quantity goods piled on shelves. 4. Demographic: Such retailers focus on a particular segment of the market. 5. Mom-and-Pop: These are the stores owned and operated by individuals. They have a selective range of products and also less in quantity. The store size is also small and is seen in local communities in the form of family business. 6. Specialty stores: These are the stores that specialize in particular category and provide high level of service to the customers. 7. General store: A rural store that supplies the main needs for the local community 8. Convenience store: these stores are found in residential areas. The store basically ideal for emergency and immediate purchases. 9. Hypermarkets: These stores provide a variety and huge volumes of exclusive merchandise at low margins. Less operating cost than other retail formats. 10. Supermarkets: It is a self service store consisting of grocery products and few non food items. They may adopt EDLP or Hi-Lo. Area size: 20,000 and 40,000 square feet.

11. Malls: Various retail shops under one roof. Products, food and entertainment all are offered under roof. 12. Category killers: It is one store which offers products like electronics at a price lower than the market price due to which the other retailers dealing in such prices also have to cut down the cost. 13. E-tailers: This is the format in which customers can shop online for their required product and make the payment online or through Cash on Delivery, where the merchandise is delivered on the doorstep of the customer. 14. Vending machines: These are the automated piece of equipment where the customers can drop the money in the machine and acquire the products.

Entrepreneur
My interview was with Mr. Gaurav Kumar, son of Mr. Anil Kumar (one of the directors of the company). Mr. Gaurav joined this family business in the year 2002 along with his father, and takes care of the merchandise in the womens wear, Childrens wear, Eyewear, Cosmetic, Handbags, Toys, Furnishings. He entered into his fathers business immediately after school and did graduation through correspondence. It took him 2 years to adjust in the business and now he has a major role in handling this business. Therefore, it has been 10 long years that he has been actively involved into the business and has participated actively in taking the business to this level.

History and Evolution

Mr. Vijay Kumar started his career at the age of 20 in the year 1976 in a small area of 200 square feet in Model Town, Delhi. He was later joined by his brother, Mr. Anil Kumar who was 17 when the firm was established. The store was basically named as Vijay General Store and dealt with Daily Care Products which are basically the FMCG goods. It was in 1979 that the firm started dealing in Apparels and was an apparel store for children and women with all the Indian brands. The firm was doing very well and so in 1994, the proprietors decided to introduce Cosmetic Products. Now, it deals with various National and International Cosmetic brands. In 1996, it added Home Furnishings to its range of products. Handbags were introduced to its range in the year 1997 and the range was of imported Handbags but not branded. In 1997, it also introduced a wide range of Toys and other things like school bags, stationery etc for school children.

While the above expansion was taking place, the store size also increased and the store was renovated to meet the changing needs of the environment. It was in the year 2002 that the firm was converted into a Private Limited Company named as Vijay Store Pvt. Ltd. with Mr. Vijay Kumar and Mr. Anil Kumar as the Board of Directors In 2009, they introduced a wide range of Eyewear of various International brands like Tommy Hilfiger, Vogue, Ray Ban etc. Now it can be called as a Department Store and a Multi Brand Outlet operating as a medium scale enterprise with 75 employees and each product category has a team head and the salary of the employees range between Rs.8000 and Rs.10, 000 depending upon their positions in the company.

Current Scenario
With the changing Indian scenario where more and more people have started shifting towards branded products and now are inclining towards International Brands, the store has also been flexible enough to bring in the International brands to cater to the changing needs of the customer. Currently Vijay Store has a total area of 12000 square feet in Model Town-1, Delhi. The total area is divided into 2 separate stores in the same locality. One store deals in Menswear and accessories and footwear for men and the second store had Womens western wear, Womens Indo-western wear, Childrens wear, Toys, Furnishings, Cosmetics, Crockery, Handbags and Showpieces. The menswear section also has a wedding studio which has both Indian as well as Indo-western apparel. The store offers a complete lifestyle assortment for the entire family, including concepts for ladies, men, teenagers and children. They also sell clothing line of international brands like Tommy Hilfiger, United Colors of Benetton, Sisley, Gant, FCUK, US Polo assn, Ed hardy kids, Planet Hollywood kids. Furnishing lines by Tommy Hilfiger, United colors of Benetton, Portico and Disney. Eyewear by Tommy Hilfiger, Calvin Klein, FCUK, Guess and many more. Ladies hand bags by Guess, Rocky S, Esbeda, Sisley and Paris Hilton. Cosmetics by LOreal, Chambor, Revlon, Lakme, Maybelline, Neutrogena, Be:Yu etc. They also sell writing instruments, key chains and mens accessories of Tommy Hilfiger. Mens footwear by Tommy Hilfiger, United Colors of Benetton, Virgillio andU.S. Polo assn. The sales of the store have grown by 20% in the financial year 2011-12 as compared to the financial year 2010-2011.

Companys Management
The firm has been running for three generations now with the following people handling it: 1. 2. 3. 4. 5. Mr. Vijay Kumar Mr. Anil Kumar Mr. Sumit Kumar Mr. Gaurav Kumar Ms. Khushboo Kumar

Where formally Mr. Vijay Kumar and Mr. Anil Kumar are the directors and their sons are also involved in the same business where they have played a major role in expanding the business into various segments over a period of 36 years. Mr. Sumit and Mr. Gaurav handle the merchandising at the store Ms Khushboo handles the marketing Ms. Khushoo and Mr. Gaurav handle the Visual Merchandising together

Store Policy
The stores timings are 10a.m. to 9p.m., which can be extended during the festive seasons and other promotional activities. The store remains open all 7 days in the week. It remains open even on various public holidays as various actual customers hit the store on such days. It provides various services to its customers like in house alteration for the apparels purchased from the store. Also, the store uses paper bag which is an environmental friendly activity.

Merchandise Arrangement
Although the company has just one branch, the arrangement of the merchandise inside the store is not in a haphazard situation. The merchandise placement has been well planned. When the menswear store is entered into, it has the footwear and other accessories placed first and then the garment section. Where on the ground floor, all the medium ranged brands are placed., the first floor has the high street brands apparel and then there is a section of mens formal and ethnic wear. Coming to the other store, the ground floor has the furnishings, crockery, Show pieces, Toys, Handbags, Cosmetics and womens accessories. The mezzanine floor has Childrens wear and footwear for both kids and women. First floor has womens Indo western wear and the second floor has womens western wear apparel. This merchandise arrangement is helpful for the store because if a person comes to purchase garments he/ she would definitely scroll through the ground floor because the arrangement of other products would attract him/her and therefore they may even decide to make an extra purchase.

Visual Merchandise
Visual merchandise is done keeping in mind the best color, quality and price highlight to aesthetically appeal the customer with complete clarity in a way that all the information is well informed to the customers in a helpful way.

Sourcing
Besides international brands, they also source textiles from Mumbai, knits from Ludhiana, Mens wear from Bangalore and Chennai. Everything is exclusively merchandised and the products ranges from stylized clothes, footwear, cosmetics, fragrances, toys, accessories for men, women and children to well coordinated table linens, artifacts, home accessories and furnishings. Through their collection they try to provide their customers with affordable luxury and provide them something new every time they visit the store which corresponds to their tastes and preferences.

Competition
The store from the very beginning has been facing competition with Stanmax, which is another retail store of the same format. Initially even Stanmax was at par with Vijay Store, but now it has expanded and opened 6 stores overall with some of the stores being located outside Delhi. But Vijay Store being located only in Model Town, Delhi and the nearest competitor is Stanmax, located in the same market and dealing with the similar product categories. In the North Delhi, there are no malls or high end brand outlets and so Vijay Store does not face any heavy competition. Also, since it is located in North Delhi, so its target customer would also be the ones located in North Delhi. It does not cater to people located in other parts of Delhi. Its merchandise is planned as per the area where it is located and as per the customer profile of this area whose psychological behavior and lifestyle pattern would be different from that of people living in other parts of Delhi.

Promotional Activities
In this firm the marketing an visual merchandising team work together for sales promotion activities like during End of Season Sale, shopping fiesta during festivals. During various occasions they come up with new innovative ideas to provide the products at best possible prices.

Customer feedback
Customer feedback forms are there in the store to take feedback from the customers to make further improvements and bring in more merchandise as per their requirement and demand. Apart from these forms, the directors are themselves present in the store to take a feedback on from their customers and build a direct relationship with them which further makes a customer

come back to the store and have a better shopping experience because of the personal touch with the customers.

Reasons for customers to be satisfied

Its customers are satisfied because: 1. The variety and quality available under 1 roof. The various product categories attract its customers and dont leave them surfing just one counter and rather they look around every kind of product and sometimes even make a purchase decision even if it was not intended. 2. The various offers and schemes that are introduced attract the customers which improves their shopping experience and due to which they want to come back to the store 3. In house alteration facilities for the customers who purchase apparel from the store 4. Direct contact with the directors as they are in the store and even interact with their regular customers who have been coming to the store since its inception. 5. Gift wrapping facility which is free for the products bought from the store. Also, the quality of packing is good to please the customer. 6. The customers complaints are always looked into.

Corporate Social Responsibility

The firm has recently started taking up CSR in its own small way where donations are being made in orphanages and food and clothing is distributed to the poor and needy, also, employment is being provided to the disabled and physically challenged.

USP
The Unique Selling Proposition as identified by the proprietor is its collection which is a mixture of various international and national brands along with the ability to provide custom-made products to suit the tastes and preferences of the customers that the store caters to. The best selling product category of this store is Apparels.

Future Plans
1. The firm plans to add more international brands in it and increase the floor space to expand its portfolio further. 2. Also, their planning to enhance Ladies footwear and Furnishing department further is in process. 3. An ongoing process to launch their own label. 4. Calvin Klein handbags to be launched soon in the year 2012 itself 5. In spring summer 2013, the brand Forever New would also be added to the store. 6. It also plans to be recognized as one of the leading Fashion & Lifestyle brand of India.

Success
For over 36 years that the business has existed, it is clearly visible that it has progressed a great deal. The proprietor has expanded its product range in such a period when such retail formats had just started coming into existence and it followed such formats in his business type in a relatively small area and less efficient people although. But now it is visible that it is moving itself towards being more organized in its business by using specialized talent for better business practices. Like, Mr. Vijay and Mr. Anil decided to the help of Mr. Gaurav and Mr. Sumit for Merchandising, Mr. Gaurav and Ms. Khushboo for Visual Merchandising and Ms. Khushboo for Marketing.

Weaknesses of the store

1. As per the format of the store, and per my observation inside the store, although the products have been well placed on the shelves, but still there is a haphazard situation where the products are clustered together in a way that the amount of space to move scroll inside the store becomes less. Although the directors have decided to increase the space they have but it seems that they have tried to bulge in more stock than what should actually be there and look pleasant to the eyes. 2. They have not yet expanded their operations in terms of more branches, although its competitor Stanmax has grown far much more than them although they had started their business operations at the same time with almost the same amount of area. And stood adjacent to each other at that time. 3. It does not have any website where it can tell about its company and create awareness about its existence. Its only medium of online advertising is Facebook which is not sufficient.

Threats
Its major threat is its competitor Stanmax located in the same market which is operating in the same retail format but with a larger store area. Also, Stanmax has gained more popularity and Vijay Store is not as popular, due to which there can be lack of awareness amongst the people who visit the market for the first time and may not be able to locate it easily. It also has competition from another MBO Mall TVR, which is not a mall but a multi brand outlet for garments, footwear and other accessories. It is not located in the same market but nearby in Ashok Vihar and can well be regarded as its competitor when it comes to apparels.

Opportunities
1. Since the company has expanded so much in terms of range of products, it should expand its operations by opening up stores in the markets where its need is felt.

2. It can have an online portal where it can sell its products online and therefore reach the people located in the remote areas of the country.