EMERGING TRENDS IN RETAIL INDUSTRY Authors B.Geetha, V.

Gopi Chandra I MBA SRK Institute of Technology, Vijayawada

Abstract
The retail industry is a sector of the economy that is comprised of individuals and companies engaged in the selling of finished products to end user consumers. Multi-store retail chains in the U.S. are both publicly traded on the stock exchange and privately owned. Consumers are challenging the industry to adapt to the ways they live and shop today. Supported by emerging technologies, consumers will be more focused than ever on price and convenience Changes in consumer shopping habits and emerging technologies are driving change across the retail industry. Verizon Business, which delivers integrated, secure IT solutions to many of the worlds largest retailers, predicts the following five trends will shape the retail industry in the coming year. The penetration of organized retail will happen much faster in the coming decade, even in tier 2 and tier 3 cities, because of the changing demographics of our population and a healthy rate of economic growth. With good underlying economic growth, increase in disposable income, increased awareness due to penetration of broadband and mobile devices with internet accessibility, the demand for consumer goods will rise.

Introduction Retail
Retail consists of the sale of physical goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser.

What is the Retail Industry?

The retail industry is a sector of the economy that is comprised of individuals and companies engaged in the selling of finished products to end user consumers. Multi-store retail chains in the U.S. are both publicly traded on the stock exchange and privately owned.

Retailer
A retailer is a person who sells goods in small quantities.

Classification of Retail Industry

The classification of retail industry is of two types 1. Organised sector. 2. Un-Organised sector.

Organised Sector
The Indian retail industry is divided into unorganized sector and the organized sector. Organized sector consists of the retail shops which are registered, licensed (where applicable) and pay sales and income taxes. It also consists of big malls which provide a jubilant shopping experience with all the glitz and glamour. Various types of organized sectors are as follows:

1. Hypermarkets/supermarkets: Large self-servicing outlets offering products from a

variety of categories.

2. Departmental stores: Stores are general retail merchandisers offering quality products
and services.

3. Convenience stores: Stores are located in residential areas with slightly higher prices
goods due to the convenience offered.

4. Shopping malls: The biggest form of retail in India, malls offers customers a mix of all
types of products and services including entertainment and food under a single roof.

5. E-trailers: These are the retailers providing online buying and selling of products and
services.

6. Discount stores: These are factory outlets that give discount on the MRP. 7. Vending: It is a relatively new entry, in the retail sector. Here beverages, snacks and
other small items can be bought via vending machine.

8. Category killers: small specialty stores that offer a variety of categories. They are
known as category killers as they focus on specific categories, such as electronics and sporting goods. This is also known as Multi Brand Outlets or MBO's.

9. Specialty stores: Retail chains dealing in specific categories and provide deep
assortment. Mumbai's Crossword Book Store and RPG's Music World are couple of examples.

Unorganized sector
1. Mom-and-pop stores: They are family owned business catering to small sections; they

are individually handled retail outlets and have a personal touch.

Retail industry trends in retail marketing to watch in 2011

Consumers are challenging the industry to adapt to the ways they live and shop today. Supported by emerging technologies, consumers will be more focused than ever on price and convenience

Changes in consumer shopping habits and emerging technologies are driving change across the retail industry. Verizon Business, which delivers integrated, secure IT solutions to many of the worlds largest retailers, predicts the following five trends will shape the retail industry in the coming year:
1. Mobile commerce demand will spike. Consumers have high expectations for mobile

commerce, or m-commerce, which enables them to make purchases, view coupons and scan for competitors products all on a mobile device. Customer demand for mcommerce, however, will outpace retailers ability to deliver it. Retailers must adapt their IT systems and processes to support m-commerce, or risk alienating customers. Consumers are challenging the industry to adapt to the ways they live and shop today. Supported by emerging technologies, consumers will be more focused than ever on price and convenience Ravi Bagal, Verizon Business
2. The cloud goes main stream: Cloud is no longer a buzz word. Retailers will turn to the

cloud (Web-based computing delivered as a service) more and more as they look to control cost and reduce complexity while boosting agility. Retailers will look for secure, flexible options that enable them to shift critical IT applications to the cloud. Cloud is a natural fit for retail, given the fast pace of change and seasonal demand spikes of the business.
3. Ownership of brand shifts from retailer to consumer: Consumers are relying more on

discussions and customer evaluations that take place over social media to drive product selection, as opposed to supplier or retailer advertising. Consumers will increasingly ignore store associates and instead conduct research on their own or via their mobile device while in the store.
4. Security and compliance continue to be concerns: New technologies will require

increased protection of consumer personally identifiable information such as social security (or national identification) and credit card numbers. Also, with the October release of the updated PCI DSS, retailers must quickly get up to speed on changes to the

standard and incorporate them into their IT processes. Updates to the standard will force retailers to take a much closer look at securing virtualisation technology and improving risk management capabilities.
5. Shopping in silos will disappear: Previously, retailers operated their various customer

touch points as separate business units, using distinct staffs and business processes for their Web sites, bricks-and-mortar stores, and mobile commerce engines. Customers, however, now expect one seamless, consistent store experience, whether they are visiting the store or its Web site, or shopping from a smart phone. Importance: The penetration of organized retail will happen much faster in the coming decade, even in tier 2 and tier 3 cities, because of the changing demographics of our population and a healthy rate of economic growth. With good underlying economic growth, increase in disposable income, increased awareness due to penetration of broadband and mobile devices with internet accessibility, the demand for consumer goods will rise. With better systems and processes in place, all this is bound to assist in increasing the penetration of the organized retail sector in India. According to report by McKinsey & Co., the organized retail market in India is expected to grow to 25-30% by 2015 of the total retail market in India from 8% in 2008. Its value is estimated to be around US$450 billion by 2015. Sector wise GDP growth rate in India for 2010- 2011

Sector Manufacturing Farming Construction Mining Service

GDP Growth Rate 9.8 percent 4.4 percent 8.8 percent 8 percent 9.8 percent

Sector wise GDP growth rate in India for 2010- 2011

Sector Manufacturing Farming Construction Mining Service

GDP Growth Rate 9.8 percent 4.4 percent 8.8 percent 8 percent 9.8 percent

Conclusion: Changes in consumer shopping habits and emerging technologies are driving change across the retail industry. With the five predictions made by Verizon Business, which delivers integrated, secure IT solutions to many of the worlds largest retailers may bring some changes in the recent market trends.