EXECUTIVE SUMMARY

After going thick on the thing now time is to make complete picture Organized Retail Stores are the market leader in the field of Retailing. These stores have been very successful in its strategy of upgrading the consumer in the mobile business segment. Organized stores have made sure that it makes its consumers move up the product chain by introducing same products to the new customers. Mostly respondents prefer randed !roduct. Many

respondents are buying products by brand name. "ewer respondents are purchase once in a month# Mostly respondents are usually visit these stores# some respondents purchase this brand by "riends and some respondents are preference of brand by brand name

$ustomer satisfaction# a business term# is a measure of how products and services supplied by these stores meet or surpass customer e%pectation. &t is seen as a key performance indicator within business and is part of the four of a alanced Scorecard. &n a competitive marketplace where businesses compete for customers# customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy.

Contents

1. Introduction 2. Company Pro i!e ". Importance # Scope $. Researc% &'(ecti)es *. +ypot%esis ,. Researc% Met%odo!o-y .. /ata Ana!ysis 0. 1indin-s 2. Su--estions 13. 4imitations 11. 5i'!io-rap%y 12. Anne6ure

What IS RETAIL

Introduction

Retai! consists of the sale of goods or merchandise from a fi%ed location# such as a department store# bouti'ue or kiosk# or by mail# in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services# such as delivery. !urchasers may be individuals or businesses. &n commerce# a (retailer( buys goods or products in large 'uantities from manufacturers or importers# either directly or through a wholesaler# and then sells smaller 'uantities to the end)user. Retail establishments are often called shops or stores. Retailers are at the end of the supply chain. Manufacturing marketers see the process of retailing as a necessary part of their overall distribution strategy. The term (retailer( is also applied where a service provider services the needs of a large number of individuals# such as a public utility# like electric power. Shops may be on residential streets# shopping streets with few or no houses or in a shopping mall. Shopping streets may be for pedestrians only. Sometimes a shopping street has a partial or full roof to protect customers from precipitation. Online retailing# a type of electronic commerce used for business)to)consumer * +$, transactions and mail order# are forms of non)shop retailing. Shopping generally refers to the act of buying products. Sometimes this is done to obtain necessities such as food and clothing- sometimes it is done as a recreational activity. Recreational shopping often involves window shopping *.ust looking# not buying, and browsing and does not always result in a purchase.

4ist o Various Retai! Companies

Pro)o-ue Re!iance 5i- 5a7ar S%oppers Stop Panta!oons Ra%e(a

Company8s Pro i!e

Pro)o-ue
I9TR&/UCTI&9 T%e Industry The apparel sector is structurally a labour intensive# low wage industry with some differences across its market segments. /owever in the high)'uality fashion market# the industry is characterized by modern technology# relatively well)paid workers and designers and a high degree of fle%ibility. The total clothing market in &ndia is estimated at around Rs 01#222 $rores comprising of all forms of clothing including school uniforms- and is still largely traditional wear with made)up garments produced by local tailors from cloth bought by the consumer. The RT3 market is still undergoing development in &ndia and this growth has accelerated over the past ten years in line with the economic development and change in lifestyles of the population and the boost given by the 4overnment in the form of various initiatives. usiness we are in the business of designing# manufacturing and selling of branded ready made garments and other accessories under the brand 5!rovogue6 which has been positioned as a fashion label in the &ndian market. A ma.or portion of apparel garments is manufactured at an in)house plant at 7aman *8T,# &ndia# with the remaining garments and accessories being outsourced. Our distribution channel comprises of a mi% of own branded stores *!rovogue Studio, and a network of national chain stores and Multi rand Outlets *M O,.

5randin- and Mar:etin3e have grown the apparel business from a strong branding and marketing foundation. &n the seven years since the launch of !rovogue# we have come to be acknowledged as a leading brand in our segment and are known for innovative and powerful marketing and advertising

campaigns. 3hile our marketing e%penditures are in keeping with the norms for the apparel business# the consumer recall for the !rovogue label is high because of the creative nature of our campaigns and its relevance to the &ndian consumer. !rovogue is a brand designed for &ndians by the &ndians and reflects contemporary orientation and styles. The brand attributes that we have driven are9 : old and &conic : Style and $ontemporary "ashion : &nnovative and $hange : "irst mover and ;ewsworthy

Mana-ement The company is currently managed by oard of 7irectors comprising of << directors. Mr. S. =ambunathan is the ;on ) >%ecutive $hairman. The day)to)day affairs of the company are being managed by Mr. ;ikhil $haturvedi# Managing 7irector# assisted by five 3hole time directors. ?

Panta!oons

!antaloon Retail *&ndia, @imited# is &ndiaAs leading retailer that operates multiple retail formats in both the value and lifestyle segment of the &ndian consumer market. /ead'uartered in Mumbai * ombay,# the company operates over <B million s'uare feet of retail space# has over <222 stores across 0C cities in &ndia and employs over C2#222 people. The companyAs leading formats include !antaloons# a chain of fashion outlets# ig

azaar# a uni'uely &ndian hypermarket chain# "ood azaar# a supermarket chain# blends the look# touch and feel of &ndian bazaars with aspects of modern retail like choice# convenience and 'uality and $entral# a chain of seamless destination malls. Some of its other formats include rand "actory# lue Sky# a@@# Top <2 and Star and Sitara. The company also operates an online portal# futurebazaar.com. 1uture Va!ue Retai! 4imited is a wholly owned subsidiary of Panta!oon Retai! ;India< 4imited. This entity has been created keeping in mind the growth and the current size of the companyAs value retail business# led by its format divisions# 5i- 5a7aar and 1ood 5a7aar.

The company operates 1$0 5i- 5a7aar stores= 1,2 1ood 5a7aar stores# among other formats# in over .3 cities across the country# covering an operational retail space of over , mi!!ion s>uare eet. As a focussed entity driving the growth of the groupDs value retail business# "uture Ealue Retail @imited will continue to deliver more value to its customers# supply partners# stakeholders and communities across the country and shape the growth of modern retail in &ndia.

A subsidiary company# /ome Solutions Retail *&ndia, @imited# operates /ome Town# a large)format home solutions store# $ollection i# selling home furniture products and eFone focussed on catering to the consumer electronics segment.

!antaloon Retail is the flagship company of "uture 4roup# a business group catering to the entire &ndian consumption space.

Re!iance retai!

&tAs time for the Reliance Retail .uggernaut to unleash three more specialty formats on unsuspecting masses. TheyAll all be under the /ome umbrella)and the venture could even be called Reliance /ome)with separate for)mats for furniture# furnishing and kitchen e'uipment. That will be yet another launch of yet another specialty format from RR@# in yet another category. $onsider the rollout)which Ronak would rather term a 5cloudburst#6)so far9 /ypermarkets# Reliance Town Centers= supermar:ets= con)enience stores# specialty stores *digital# health and wellness# apparel= etc.,# rural business hubs- in categories like food G grocery# consumer durables G electronics# auto care and lifestyle. The big bang of course has been in foods G grocery# where RR@ has H0+ Reliance "resh stores across HI cities. And thereAs the biggest store in &ndia# the hyper mart thatAs branded Reliance Mart *there are three of them so far,# in Ahmedabad# spread over <BH#222 s'. ft. That it still has ample empty spaces is another matter# but the 'uest for size scale is typical of the Ambani strategy of creating capacities not based on todayAs demand conditions but what will play out in future. Ronak hasnAt had much time to breathe easy)the C2 minutes he spent with this writer at the ombay 4ymkhana may have been the only moments of respite in a longtime# sandwiched as he is between meetings of the various teams *of the "ootprint Stores# the 7igital Stores# 3ellness Stores<. Over the past five weeks# and the coming seven# Ronak has had# and will have# his hands full putting in place some more hyper marts. y the =uly the hyper marts ?i!! 'e spread o)er 1 mi!!ion s>. t. Current!y= RR4 is spread o)er ".* mi!!ion s>. t ;13*

mi!!ion s>. t 'ein- %o--ed 'y t%e *.2 Re!iance 1res% Stores se!!in- ruits # )e-eta'!es<@ a!! done o)er t%e past 1. mont%s# which has company officials boasting that this is the fastest rollout n such a scale in the world. 5&n categories like garments and lifestyle# and to a certain e%tent consumer durables# *organized retail, has made significant progress. ut in

foods and grocery# the biggest market# the action has yet to play out#6 says Ronak# who is also on the board of RR@. At the Reliance group# the various heads of the retail ventures function as stand)alone entrepreneurs# whoAve crafted their own business plans# got the ventures financed by the group# and who now have to deliver results. The common thread running through these various forays is a burning desire to provide 'uality products and services at the best prices# and in the most convenient setting. "or this purpose# Reliance is also attempting to create an efficient global supply chain in an effort to add more value. 53e have seen significant progress at the shop)keeping end of organized retail. ut the competitive edge will lie with

those who are successful in creating an efficient supply chain. The big lacuna today is in logistics and distribution# which also makes it a significant opportunity#6

S+&PPERS ST&P

S%oppers Stop is an &ndian department store chain promoted by the J Rahe.a $orp 4roup *$handru @ Rahe.a 4roup,# started in the year <II< with its first store in Andheri# Mumbai Shoppers Stop @td has been awarded (the /all of "ame( and won (the >merging Market Retailer of the Kear Award(# by 3orld Retail $ongress at arcelona# on April <2# +221. Shoppers Stop is listed on the S>. 3ith the launch of the ;avi Mumbai departmental store# Shoppers Stop has CL stores in <H cities in &ndia.

Shoppers Stop is one of the leading retail stores in &ndia. Shoppers Stop began by operating a chain of department stores under the name 5ShoppersA Stop6 in &ndia. Shoppers Stop has CH stores across the country and three stores under the name /omeStop. Shoppers Stop retails a range of branded apparel and private label under the following categories of apparel# footwear# fashion .ewellery# leather products# accessories and home products. These are complemented by cafe# food# entertainment# personal care and various beauty related services. Shoppers Stop launched its e)store with delivery across ma.or cities in &ndia in +221. The website retails all the products available at Shoppers Stop stores# including apparel# cosmetics and accessories. Shoppers Stop opened stores in Amritsar# hopal and Aurangabad. Products Shoppers Stop retails products of domestic and international brands such as @ouis !hilippe# !epe# Arrow# & A# 4ini G =ony# $arbon# $orelle# Magppie # ;ike# Reebok# @>4O# and Mattel. Shoppers Stop retails merchandise under its own labels# such as STO!# Jashish# @&"> and Eettorio "ratini# >lliza 7onatein# Acropolis etc. The company also licensees for

Austin Reed *@ondon,# an international brand# whoAs menDs and womenDs outerwear are retailed in &ndia e%clusively through the chain. &n October +22I# Shoppers Stop has bought the license for merchandising Foozoo the brand mascot for Eodafone &ndia. Mar:etin&n April +221# Shoppers Stop changed its logo and adopted the mantra (Start Something ;ew mantra.And introduced international brands like $J =eans# Tommy /ilfiger# "$8J# Mustang# 7ior across the stores. The focus of the reposition was on the service# ambience up gradation and customer connect. Shoppers Stop connects with the youth audience through adopting the communication routes relevant to youth# up the fashion 'uotient through merchandising# and create ambience that connects with the mindset. The brand campaign addresses environment)related issues in a youthful# tongue)in)cheek manner. Shoppers Stop as a brand active on social media marketing platforms with "ace book and Twitter to connect with this audience. Merc%andisinMerchandising opportunities like the launched Foozoo merchandise and film merchandise. 4oya!ty pro-ram Shoppers StopAs has a loyalty program called "irst $itizen. They also offer a co)branded credit card with $itibank for their members. Cross?ord 5oo:stores $rossword ookstores is the largest chain of bookstores in &ndia with H+ branches. Shoppers Stop ac'uired <22 per cent stake in bookstore chain $rossword. $rossword is positioned as a lifestyle bookstore with their spacious# well laid out stores which encourage customers ease in browsing through the merchandise of books# music# stationary and toys.

5IA5ABAR

5i- 5a7aar was launched in September# +22< with the opening of three stores in $alcutta# angalore and /yderabad in ++ days. 3ithin a span of ten years# there are now <L1 ig azaar stores in 12 cities and towns across &ndia. ig azaar is designed as an agglomeration of bazaars or &ndian markets with clusters offering a wide range of merchandise including fashion and apparels# food products# general merchandise# furniture# electronics# books# fast food and leisure and entertainment sections. "ood azaar# a supermarket format was incorporated within ig azaar in +22+ and is now present within every ig azaar as well as in independent locations.

There are now <BI "ood azaar outlets# including those located within ig azaar.

A typical ig azaar is spread across around H2#222 s'uare feet of retail space. 3hile the larger metropolises have ig azaar "amily centers measuring between 0H#222 s'uare feet and <#B2#222 s'uare feet# ig azaar >%press stores in smaller towns measure around C2#222 s'uare feet.

Most of the ig azaar stores are multi)level and are located in stand)alone buildings in city centers as well as within shopping malls. These stores offer over +22#222 SJ8s in a wide range of categories led primarily by fashion and food products. ig azaar is part of "uture 4roup and is owned through a wholly owned subsidiary of !antaloon Retail &ndia @imited that is listed on &ndian stock e%changes.

RA+ECA8S

Rahe.a $orp is a success story spanned across decades and continues to achieve higher targets relentlessly for 'uality performance and service in diverse fields of real realty business# hospitality sector and retailing outfits.

The group has made an impact on the supply side of the modern day living. A style that has been the dream of new class of consumers# a style encompassing the whole range of consumption pattern of the young and the upcoming consumers that has become synonym with the brand J Rahe.a $orp. The group has pioneered the trend of setting world class hotels and convention centers across the country with enhanced facilities to meet the business and leisure needs of the international and domestic traveler. The higher standards set by the group in its pursuit to position &ndia on par with the developed economies of the world and with a vision to be and remain at the commanding height of Real >state usiness.

Retailing in &ndia is up for transition. &t has broken the safe and claustrophobic space of an eggshell and rearing to grow into a giant that will match the retailing practices of the west. $rossword# &norbit Mall G /yper $ity have set new bench marks on the basis of information and adaptation of worldwide changes# innovations and new techni'ues in

1221 ShopperAs Stopretailing practices. 2333 $rossword M ook Store 233$ &norbit Mall 233, /ypercity 2330 &norbit Eashi

&mportance and scope of retailing

3hile there is a lot of debate going on the impact of organized retailing on unorganized sector# there is little we know of how it will impact our economy in general. $ommon sense says that perhaps it will help the economy *every better looking thing is good for the

economy. Swanky $all centers that brought outsourcing to us helped in fueling the feel good factor.. Same is for &TN T companies. So similar should be the case with these retailers, Surprisingly there are not enough reasons to contest this belief. ;o matter what communists say or Mayawati does in 8!# or what short term glitches we witness on Sense% or in 8S economy# organized retailing is here to stay and grow at a breathtaking place. So when it is so# & tried to look at it form a holistic point of view and no matter how much & desist to say this but yeah# & ultimately ended up with a !>ST analysis. /ere are the main points from that *& might post the complete version sometime later but before that & myself want to refine this and include the reaction that & get. if any.

Po!itica! >ven though the government is yet to give the sector an &ndustry status and we see aggressive political protests# some aspects of the 4overnmentAs policy have been favorable on other fronts. "or e%ample) letAs take 7elhi# ;$R and Mumbai. &n Mumbai# the 4overnment is releasing unused te%tile mill land for retail development. &n 7elhi G ;$R# the 4overnment has released large tracts of land for retail development. Overall in politics# those in opposition will always oppose so is there any point in talking about thisO

Anyway main points to look out for are 9 1. /ecision on 1/I 2. Ao)ernment8s stand or orei-n p!ayers

Economica! Although the organized retail sector constitutes only L)HP of the 8S7 CH2 billion &ndian retail market# it is e%pected to grow L22P) from 8S7 <+)<H billion currently# to over 8S7 C2.2 billion by +2<2. There is hectic activity in the sector in terms of e%pansion# entry of international brands and retailers as well as focus on technology# operations and processes. All these present a tremendous opportunity in this new high growth industry. A large portion related to economic impact has already been covered in the previous sections The important thing is that the growth of this sector will create a totally new demand in our economy. /ouseholds across &ndia are now e%posed to products and services they had never seen before# the tempting value proposition and an inviting atmosphere is making them purchase these items. 3ithout the new stores the same money would have been sitting idle in some bank lockers. ut now the money is out in market# helping the manufacturers to come out with new and innovative products. A great aggregation is also taking place now.. you can go and buy as much low 'uantities that you want# and the systems assist you in this because no one is bothered. &magine what happened in the Shampoo sachet market in &ndia# prior to the entry of Eelvet which later transformed the industry landscape. ;o one was catering to the huge demand of affordable hair care solution. And today sachets hold 0BP of the total shampoo market in

&ndia. That means at least B2P more demand generation.

Socia! There has been a demographic shift in &ndia# emergence of a larger middle and upper middle classes and the substantial increase in disposable income has changed the nature of shopping in &ndia from need based to lifestyle dictated. &n addition to this# facilities like credit friendliness# availability of cheap finance and a drop in interest rates have changed consumer markets. Organized retail increases the efficiencies in the agriculture sector by removing intermediaries in the food chain- as a result# farmers are getting better prices for their produce. The private retail players can actually introduce new technology# seeds# and thus encourage farmers to improve their productivity. 8norganized retail is feeling the heat of the emergence of the organized retail due to the changing trends of the &ndian consumers. Antagonist lobby claims# 5&n the last four years# an estimated two crore traders have been rendered .obless due to the opening of big shopping malls in the country6. /owever there is no evidence of a decline in overall employment in the unorganized sector as a result of the entry of organized retailers. According to the &$R&>R survey# the unorganized sector witnessed a closure rate of L.+P of which only <.0P closures were attributed to competition from modern retail. @arge retailers like 3al)Mart can never impact small kirana stores in &ndia. This is largely due to &ndiaAs socio)cultural heterogeneity and consumer choice. The consumer wants small retail. The QkiranaA store and the paan shop are seen as part of community life. Anyway itAs a long discussion and deserves a separate post in itself

Tec%no!o-ica!

3ith increasing competition# slimmer profit margins and diminished returns)cost cutting at every point of value chain has become important. TodayAs global retail business strategies utilize technology. >commerce# $ustomer Relationship Management *$RM, software# >nterprise Resource !lanning *>R!, and !oint of Sale *!OS, systems are all vital to retail businesses. 8sing these technologies retailers can actually gain key insights to further gain market share and increase revenue &ndian retailer would feel the need for technology only when he wants to grow beyond a certain point. This is one of the reasons why the traditional grocery is here to stay# with I2P of sales in &ndia done through them

&'(ecti)es o t%e Study

&'(ecti)e o t%e StudyD

R To know the preference of owners towards the organized G unorganized retail stores. R !erformance of organized G unorganized stores in Retail industry. R Market performance. R To find out the awareness level. R To find the strategies of both the sectors of retail industry.

Etymo!o-y

The Apple Store retail location on the Magnificent Mile in $hicago.

The worldDs only 4armin retail location is located on the Magnificent Mile in $hicago. Retail comes from the "rench word retailer# which refers to (cutting off my hands# clip and divide( in terms of tailoring *<CBH,. &t first was recorded as a noun with the meaning of a (sale in small 'uantities( in <LCC *"rench,. &ts literal meaning for retail was to (cut off# shred# off my toes paring(. @ike the "rench# the word retail in both 7utch and 4erman *detail handel and >inzel handel respectively,# also refers to the sale of small 'uantities of items.

Types o retai! out!ets

San =uan de 7ios Market in 4uadala.ara# =alisco

A marketplace is a location where goods and services are e%changed. The traditional market s'uare is a city s'uare where traders set up stalls and buyers browse the merchandise. This kind of market is very old# and countless such markets are still in operation around the whole world. &n some parts of the world# the retail business is still dominated by small family)run stores# but this market is increasingly being taken over by large retail chains. Retail is usually classified by type of products as follows9

"ood products /ard goods *(hardline retailers(, ) appliances# electronics# furniture# sporting goods# etc.

Soft goods ) clothing# apparel# and other fabrics.

There are the following types of retailers by marketing strategy9

7epartment stores ) 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.

7iscount stores ) tend to offer a wide array of products and services# but they compete mainly on price offers e%tensive assortment of merchandise at affordable and cut)rate prices. ;ormally retailers sell less fashion)oriented brands. /owever the service is inade'uate.-

4eneral merchandise store ) a hybrid between a department store and discount storeSupermarkets ) sell mostly food products-

3arehouse stores ) warehouses that offer low)cost# often high)'uantity goods piled on pallets or steel shelves- warehouse clubs charge a membership fee-

Eariety stores or (dollar stores( ) these offer e%tremely low)cost goods# with limited selection-

7emographic ) retailers that aim at one particular segment *e.g.# high)end retailers focusing on wealthy individuals,.

Mom)And)!op or Jirana Stores9 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 s'uare feet area of the store depends on the store holder.

Specialty Stores9 A typical specialty store gives attention to a particular category and provides high level of service to the customers. A pet store that specializes in selling dog food would be regarded as a specialty store. /owever# branded stores also come under this format. "or e%ample if a customer visits a Reebok or 4ap store then they find .ust Reebok and 4ap products in the respective stores.

$onvenience Stores9 is essentially found in residential areas. They provide limited amount of merchandise at more than average prices with a speedy checkout. This store is ideal for emergency and immediate purchases.

/ypermarkets9 provides variety and huge volumes of e%clusive merchandise at low margins. The operating cost is comparatively less than other retail formats. A classic e%ample is the MetroS in angalore.

Supermarkets9 is a self service store consisting mainly of grocery and limited products on non food items. They may adopt a /i)@o or an >7@! strategy for pricing. The supermarkets can be anywhere between +2#222)L2#222 s'uare feet. >%ample9 S!ARS supermarket.

Malls9 has a range of retail shops at a single outlet. They endow with products# food and entertainment under a roof. >%ample9 Sigma mall and 4aruda mall in angalore# >%press Avenue in $hennai.

$ategory Jillers or $ategory Specialist9 y supplying wide assortment in a single category for lower prices a retailer can (kill( that category for other retailers. "or few categories# such as electronics# the products are displayed at the centre of the store and sales person will be available to address customer 'ueries and give suggestions when re'uired. Other retail format stores are forced to reduce the prices if a category specialist retail store is present in the vicinity. "or e%ample9 !ai >lectronicsS store in angalore# Tata $roma.

>)tailers9 The customer can shop and order through internet and the merchandise are dropped at the customerDs doorstep. /ere the retailers use drop shipping techni'ue. 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. /owever it is important for the customer to be wary about defective products and non secure credit card transaction. >%ample9 Amazon and >bay.

Eending Machines9 This is an automated piece of e'uipment wherein customers can drop in the money in machine and ac'uire the products. "or e%ample9 Soft drinks vending at angalore Airport.

Some stores take a no frills approach# while others are (mid)range( or (high end(# depending on what income level they target. Other types of retail store include9

Automated Retail stores are self service# robotic kiosks located in airports# malls and grocery stores. The stores accept credit cards and are usually open +LN0. >%amples include FoomShops and Redbo%.

ig)bo% stores encompass larger department# discount# general merchandise# and warehouse stores.

$onvenience store ) a small store often with e%tended hours# stocking everyday or roadside items-

4eneral store ) a store which sells most goods needed# typically in a rural area-

Retailers can opt for a format as each provides different retail mi% to its customers based on their customer demographics# lifestyle and purchase behaviour. A good format will lend a hand to display products well and entice the target customers to spawn sales.

A food vendor in &ndia

Adidas store in Tel Aviv# &srael

Retai! pricinThe pricing techni'ue used by most retailers is cost)plus pricing. This involves adding a markup amount *or percentage, to the retailerDs cost. Another common techni'ue is suggested retail pricing. This simply involves charging the amount suggested by the manufacturer and usually printed on the product by the manufacturer.

&n 3estern countries# retail prices are often called psychological prices or odd prices. Often prices are fi%ed and displayed on signs or labels. Alternatively# when prices are not clearly displayed# there can be price discrimination# where the sale price is dependent upon who the customer is. "or e%ample# a customer may have to pay more if the seller determines that he or she is willing andNor able to. Another e%ample would be the practice of discounting for youths# students# or senior citizen Trans er mec%anism There are several ways in which consumers can receive goods from a retailer9

$ounter service# where goods are out of reach of buyers and must be obtained from the seller. This type of retail is common for small e%pensive items *e.g. .ewelry, and controlled items like medicine and li'uor. &t was common before the <I22s in the 8nited States and is more common in certain countries.Twhich?U

7elivery *commerce,# where goods are shipped directly to consumerDs homes or workplaces. Mail order from a printed catalog was invented in <0LL and was common in the late <Ith and early +2th centuries. Ordering by telephone is now common# either from a catalog# newspaper# television advertisement or a local restaurant menu# for immediate service *especially for pizza delivery,. 7irect marketing# including telemarketing and television shopping channels# are also used to generate telephone orders. Online shopping started gaining significant market share in developed countries in the +222s.

7oor)to)door sales# where the salesperson sometimes travels with the goods for sale. Self)service# where goods may be handled and e%amined prior to purchase# has become more common since the <I+2s.

Second %and retai!

Some shops sell second)hand goods. &n the case of a nonprofit shop# the public donates goods to the shop to be sold. &n give)away shops goods can be taken for free. Another form is the pawnshop# in which goods are sold that were used as collateral for loans. There are also (consignment( shops# which are where a person can place an item in a store and if it sells# the person gives the shop owner a percentage of the sale price. The advantage of selling an item this way is that the established shop gives the item e%posure to more potential buyers.

Sa!es tec%ni>ues
ehind the scenes at retail# there is another factor at work. $orporations and independent store owners alike are always trying to get the edge on their competitors. One way to do this is to hire a merchandising solutions company to design custom store displays that will attract more customers in a certain demographic. The nationDs largest retailers spend millions every year on in)store marketing programs that correspond to seasonal and promotional changes. As products change# so will a retail landscape. Retailers can also use facing techni'ues to create the look of a perfectly stocked store# even when it is not. A destination store is one that customers will initiate a trip specifically to visit# sometimes over a large area. These stores are often used to (anchor( a shopping mall or plaza# generating foot traffic# which is capitalized upon by smaller retailers.

Customer ser)ice

According to the book 7iscovery) ased Retail# customer service is the (sum of acts and elements that allow consumers to receive what they need or desire from your retail establishment.( &t is important for a sales associate to greet the customer and make himself available to help the customer find whatever he needs. 3hen a customer enters the store# it is important that the sales associate does everything in his power to make the customer feel welcomed# important# and make sure he leave the store satisfied. 4iving the customer full# undivided attention and helping him find what he is looking for will contribute to the customerDs satisfaction.

Retai! Sa!es

8S Retail Sales <II+)+2<2 The Retail Sales report is published every month. &t is a measure of consumer spending# an important indicator of the 8S 47!. Retail firms provide data on the dollar value of their retail sales and inventories. A sample of <+#222 firms is included in the final survey and H#222 in the advanced one. The advanced estimated data is based on a subsample from the 8S $ complete retail G food services sample. &t has been published by the 8S $ensus ureau since <IH<.

&r-ani7ed Retai!in- in India

Organized sector refers to the sectors undertaken by licensed retailers# that is# those who are registered for sales ta%# income ta%# etc. These include the corporate retail formats of the e%clusive brand outlets# hypermarkets# supermarkets# departmental stores and shopping malls. According to >uro Monitor &nternational# a leading provider of global consumer market intelligence# sales from large format stores *supermarkets and hypermarkets, is e%pected to increase by C2P in +22H. &n the year +22+# food)related items accounted for nearly 0<P of retail sales in &ndia. /owever# it was interesting to note that there had been a decline in the purchase of food)related items. These had earlier registered a 0CP sale in <III. &n recent years# there has been higher spending on non)food items. The main factors for this change are9 : etter infrastructure. : Rise in consumer awareness. : $onsumer keenness to buy branded products. : $onsumer desire to purchase 'uality products and services...

Organized Retail in &ndia refers to the modern retail formats like supermarkets and hypermarkets prevalent in most developed countries. This form of retail accounts for a painfully low + per cent of the retail industry# but is growing at a healthy CH per cent and is e%pected to cross the &;R <222 billion mark by +2<2. Organized retail remained a dormant sector largely due to the lack of infrastructure for large)scale retail# absence of product variety and a conservative &ndian consumer. Today the flood of products in the market coupled with a wealthier# more informed &ndian consumer have created the atmosphere for the entry of organized retail to tap into the VC+2 billion &ndian retail industry.

$urrent and "uture !layers Organized retail in &ndia is currently dominated by players that have been in the market for at most two decades. !antaloon Retail is the market leader with its 3al)Mart)segue multipurpose low cost stores as well as specialized clothing retail outlets. ShopperAs Stop operates multi)storey malls in the ma.or metros and is the e'uivalent of a MacyAs in the 8.S. A number of other individual brand retailers like /aldiram# Raymond and Titan also represent organized retail in &ndia. Today# a number of ma.or business houses in &ndia are launching massive organized retail ventures like Reliance# harti *in a =oint) Eenture with 3al)Mart, and The Aditya irla 4roup. They are leveraging their enormous cash reserves and decades of e%perience of doing business in the &ndian economy and reaching out to the &ndian consumer to launch a number of multi)store retail chains. @earning from 8.S.A. and $hina As the counter)stores and street vendors of unorganized retail are converted to the supermarkets and malls of organized retail# comparisons with countries that have already undergone this evolution draws some important revelations about the future of organized retail in &ndia. 8.S.A and 8.J. are the pioneers of organized retail. eginning in the <IH2As it took four decades of e%perimentation with a variety of retail formats before the 8.S. completed the evolution of its organized retail sector into a giant multi)billion dollar industry .+2 As a result# the 8.S. pretty much wrote the book on organized retail. $ountries like $hina that had access to the 8.S. e%ample# could accelerate their e%perimentation and developmental phase to bring their organized retail sector to maturity in only about two decades. Today# the organized retailers in &ndia with their supermarkets# hypermarkets# malls# departmental stores and bouti'ues are simultaneously >%perimenting with all the possible formats of retail that were developed se'uentially in the 8.S. 3ith the 8.S. and $hinese e%perience to draw from# organized retail will likely mature at a rate even faster than that witnessed in $hina.

The $hinese e%ample in particular offers some important parallels to organized retail in &ndia. A ma.or factor that accelerated the development of organized retail in $hina was the large disparities between urban and rural organized retail penetration. 3hile ma.or cities in $hina witnessed the saturation and maturity of organized retail# the rural areas were still seeing organized retail in the infancy or early development phase. This forced large)retail chains to e'uip themselves with the skills necessary to handle all stages of development. &ndia# with a similar rural)urban divide is witnessing the same multi)stage development of organized retail across the country. As a result# &ndia is likely to witness the same compacted evolution in organized retail that accelerated the development of this sector in $hina. SSJ&# an &ndian research driven investment bank puts a figure of a decade within which the &ndian retail industry will witness the same development and market penetration that took four decades in the 8.S. and two decades in $hina. The Success of Organization in other 7omestic &ndustries Aside from international e%amples# &ndia can also draw from domestic instances to support the bright future of the organized retail sector in the country. The telecom industry in &ndia saw a stagnant <P market penetration. 3ith the introduction of multiple technologies# removal of market regulations and influ% of capital# the telecom industry saw a compressed evolution cycle where penetration reached <2P in a matter of 1 years. Today# the &ndian cell)phone industry is one of the fastest growing in the world. Organization of the telecom sector was integral to tap into the unrealized potential of the giant but unrecognized &ndian consumer market. Organization in the retail sector is likely to have the same effect. The industry has enough room for foreign competition as well. 3ith diverse brands like ;ike# Tropicana# 4uess having already entered the market and chains like 3al)Mart planning their entry# domestic organized retail in &ndia should be e%cited rather than afraid. The &ndian automobile industry has already shown how foreign competition accelerated development of the industry and increased productivity across the board of automobile manufacturers.

Tata motors# today one of the biggest and most successful automobile manufacturers in &ndia suffered tremendous losses after the liberalization of the &ndian economy in the early nineties that brought foreign competition to take advantage of the growing &ndian automobile market. /owever# it was this competition which made the company realizes the cost inefficiencies of its production process and low productivity compared to the global average that had gone unnoticed in the insulated &ndian economy of the past. &ngenious cost)cutting measures and a CB2 degree change in operations brought the company back on the profit track. Today it is one of the most successful automobile manufacturers in the one of the worldAs fastest growing automobile industries.

The infusion of capital# introduction of foreign competitors# implementation of best)practices and a more attractive &ndian consumer all led to the development and growth of the &ndian automobile industry. 3ith the same factors in place for organized retail# the &ndian retail industry has already been touted as one of the fastest growing in the world.

The government too has recognized the potential of the organized retail sector and is beginning to make changes the will remove the barriers to entry in this sector and open it up for e%pansion. Through the implementation of Ealue Added Ta% *EAT,# sanction of large plots of land for retail development# permission of "oreign 7irect &nvestment *"7&, in real) estate and partial "7& in retail# the government has initiated the changes needed in the organized retail sector. $ritical !olicy &mprovements Re'uired Ket# despite all the optimistic pro.ections of organized retail in &ndia# a number of improvements in a number of areas will be re'uired for organized retail in &ndia to truly live up to its enormous potential. 3ith the current status)'uo# organized retail is a large market in &ndia but with certain improvements# organized retail in &ndia can be one of the biggest sectors in the world.

1< $urrently# the government permits H<P "7& by a single)brand retailer.+0 The retail market needs to be opened up to <22P "7& to invite significant foreign competition that will introduce best practices# improve productivity in the industry and accelerate its development and penetration.

2< The government must also reduce the amount of bureaucracy that an organized retailer has to deal with. $urrently# a large organized retailerAs needs to obtain a variety of permits from different departments to open each outlet. This creates significant barriers to entry and increases administrative costs. The government must set up a one)stop department that caters to the re'uirements of organized retail given the potential of this sector in bringing gains to the economy.

"< The government must give the retail sector industry status to allow it to en.oy the benefits that come with this status. The government needs to introduce a number of policies to accelerate the growth of the &ndian retail industry. The dormancy of the government# challenges posed by inade'uate infrastructure together with a lack of e%posure to best) practices have been responsible for low productivities e%perienced by the few organized retailers that have been present in the sector. Organized retailers that entered the sector before the current boom were plagued with a number of problems that were responsible for their poor performance. &t is critical for new entrants to learn from their mistakes in order to succeed in the industry.

Producti)ity Per ormance o t%e &r-ani7ed Retai! Sector

This section tries to outline the challenges which need to be overcome by retailers thinking about entering the organized retail sector. The labor productivity of retail in &ndia stands at a low BP of 8S levels according to a McJinney 4lobal &nstituteAs report on &ndian Retail Sector. This BP per cent is distributed unevenly with H per cent for food retailing and 1 per cent for non)food retailing. &n comparison# the food retailing productivity in razil is <L per cent and non)food retailing in !oland is +H per cent. The rural retail employment accounts for about B2 per cent+1 of the total employment in the sector. Rural productivity in retail is about B2)BH per cent that of urban centers. There are certain clear cut reasons why this should be the case. The average sales# in terms of rupees per day# in a rural store are close to Rs. <222 compared to Rs. 0222 per day for a store in an urban area. Some of the reasons for this can be attributed to lower purchasing power in the rural areas# self)consumption of agri)produce and a tendency of villagers to purchase from cities. ecause of these reasons# people in the villages generally stock consumables such as tea# sugar# bulbs# wires# stationery# and a few items of clothing. @ow opportunity cost of the labor entails longer work hours in this rural setting.

Reasons or 4o? Producti)ity

Some of the reasons that have been outlined for the poor productivity performance are M a format mi% which skews towards transition formats# and poor operational efficiency of modern formats.

Vicious Circ!e At any place# big supermarkets and specialty stores leverage their volumes to drive costs down and possess superior skills *especially in managing inventory and marketing, to make themselves more productive than counter stores. A key factor behind the miniscule growth share of supermarkets in &ndia# especially in food retail is the under)developed nature of upstream industries. This results in a relatively higher pricing in the supermarkets when compared with counter stores# giving counter stores or the unorganized sector an edge over the organized sector in retail. A fragmented supply chain# a sub)scale processing sector and lack of proper cold storage facilities are some of the problems which plague the organized retail sector# especially in food. The current government policies are also favorable to counter stores in the form of rela%ed labor and ta% regulations.

Poor Producti)ity in modern ormats Supermarkets in &ndia have to operate in face of productivity hassles which can be attributed to some of the following operational aspects of this sector9 <. Scattered and inefficient supply chain which inflates procurement costs *lack of focus in having a few nation wide suppliers and instead having up to L22 per regionC2 needs a huge sourcing and 'uality control team raising costs of procurement,. +. The supply chain for food in &ndia has two or three additional intermediaries on an average compared with supply chains in the 8S. This can# in part# be attributed to the market regulations such as constraints in food grain movement

across states# inability to purchase directly from farmers# etc. This in turn slows down the growth of large processors.

9on@!e)e! p!ayin- ie!d in t%e retai! sector $ounter stores in &ndia take advantage of some of the following benefits accorded to them by the government9

1. Ta6 VacationD The government policy enforces higher ta% rates for organized retailers# with making them pay at corporate rates# while counter stores still pay at individual income ta% rates. Ta% evasion is rampant among small counter stores owners# in fact so few of the small mom and pop store owners pay ta%es# that most of them could be thought of being on a ta% vacation with the government conveniently looking the other way.

2. Une)en ta6 rates across statesD The present ta% structure necessitates the imposition of ta% on retail chains operating in a non)localized fashion. The sales ta% structure has differences in rates across states# in addition to the imposition of a central levy on inter)state sales. &t doesnAt end there# another ta% *octroi, is levied on the movement of goods from one district to another.C<

". 4a'or !a?sD 7eveloping countries in general have generous labor laws.C+ The labor laws in &ndia ask that work for a retail employer is limited to 1 hours# and also re'uire that the shop be shut for one day in a week. Though organized retailers adhere to these laws# the counter stores remain open throughout the year# making labor work for over <+ hours a day. $. 9on@payment o mar:et rates or inputsD @ower rent and nominal power cost *if any, characterizes the counter stores in &ndia# as opposed to e%tremely high land and property rent paid by the organized sector.

Organized retail represents a large untapped market in &ndia that is likely to see tremendous growth in the coming years. ;ew entrants are bound to see large returns. /owever# they must adapt themselves to the uni'ue state of retail in &ndia where infrastructure and regulations provide little support. They must also understand the tastes of the &ndian consumer who has only recently started treating retail as a form of leisure. Meanwhile organized retail will continue to displace many unorganized retailers who are no competition for the large)scale corporations. Those street)vendors of the bottom or unorganized retail will be forced to turn back to agriculture or some other form of livelihood. Ket# corner)stores and hawkers will continue to be a part of the &ndian retail e%perience. These retailers have always survived on small# diverse sales with small margins. &n that regard# they do not compete in the same market as organized retail. The &ndian consumer may have undergone a transformation# but the transformation is only partial. /is higher income# increased e%posure and greater willingness to spend will spur the organized retail sector. Meanwhile the conveniences of home)delivery# purchases on credit and pro%imity offered by the unorganized sector will drive him to the nearest corner)store or street vendor for his small# .ust)in)time purchases. Organized retailers have not are and are unlikely to worry about the threat of unorganized retail as both forms of the retail business cater to different preferences. Organized retail in &ndia is simultaneously a promising and challenging prospect. ;ew entrants can learn a lot from those currently operating in the &ndian organized retail sector. This comprehensive case)study of a domestic organized retailer provides an in)depth view of the levels of adaptation re'uired to succeed in the &ndian retail sector. &f there is one organized retailer in &ndia that has recognized the potential of &ndian retail early# understood the uni'ue characteristics of retail in &ndia and built up itself to counter any

competition# both domestic and foreign# it is without a doubt# !antaloon Retail. 3hat started as a small menAs wear retailer has become one of the largest organized retail chains in &ndia with a presence in every retail sector imaginable and moreW

Growth of Organized retail in India

&ndian organized retail market is growing at a fast pace due to the boom in the &ndia retail industry. &n +22H# the retail industry in &ndia amounted to Rs <2#222 billion accounting for about <2P to the countryDs 47!. The organized retail market in &ndia out of this total market accounted for Rs CH2 billion which is about C.HP of the total revenues.

Retail market in the &ndian organized sector is e%pected to cross Rs <222 billion by +2<2. Traditionally the retail industry in &ndia was largely unorganized# comprising of drug stores# medium# and small grocery stores. Most of the organized retailing in &ndia have started recently and is concentrating mainly in metropolitan cities.

The growth in the &ndian organized retail market is mainly due to the change in the consumerAs behavior. This change has come in the consumer due to increased income# changing lifestyles# and patterns of demography which are favorable. ;ow the consumer wants to shop at a place where he can get food# entertainment# and shopping all under one roof. This has given &ndian organized retail market a ma.or boost.

Retail market in the organized sector in &ndia is growing can be seen from the fact that <H22 supermarkets# C+H departmental stores# and C22 new malls are being built. Many &ndian

companies are entering the &ndian retail market which is giving &ndian organized retail market a boost. One such company is the Reliance &ndustries @imited. &t plans to invest 8SV B billion in the &ndian retail market by opening <222 hypermarkets and <H22 supermarkets.

A pantaloon is another &ndian company which plans to increase its retail space to C2 Million s'uare feet with an investment of 8SV < billion. harti Telecoms an &ndian company is in talks with Tesco a global giant for a X 0H2 million .oint venture. A number of global retail giants such as 3almart# $arrefour# and Metro A4 are also planning to set up shop in &ndia. &ndian organized retail market will definitely grow as a result of all this investments.

&ndian organized retail market is increasing and for this growth to continue the &ndian retailers as well as government must make a combined effort.

Entry o 4ar-e 5usiness +ouses

Organized retailing in &ndia started picking up in South &ndia in cities like $hennai and /yderabad# where real estate at prime locations was available at cheaper rates than in cities like Mumbai and 7elhi. &n the early <II2s# leading &ndian business houses started taking a keen interest in the retailing sector... A !rofile of Ma.or &ndian Retailers

Panta!oon Retai! India 4imited ;PRI4<

/eaded by Jishore iyani * iyani,# !antaloon Retail &ndia @imited *!R&@, is one of the leading retail outlets in &ndia. The retail chains which are a part of !R&@ include !antaloons# ig azaar# "ood azaar# 4old azaar and the $entral Mall.

!R&@ was incorporated in October <I10 as Manz 3ear !rivate @imited. &t became a public limited company in September <II<. The company sold products under the are# !antaloons and =ohn Miller brand names. The first menswear !antaloons Shoppe outlet was set up in <IIC...

RPA Aroup

The Rama !rasad 4oenka or R!4 4roup registered a turnover of Rs. 1L billion in the fiscal +22L)2H. The group has more than +2 companies in seven different industries ) !ower# Tyres# Retail# Transmission# >ntertainment# Technology and the Specialties sectors *Refer >%hibit Y&&& for contribution of business sectors to 4roupAs turnover,...

Tata Aroup

The Tata group is one of &ndiaDs largest business houses. &n +22H# the group owned IC companies in seven business sectors# namely information systems and communicationsengineering- materials- services- energy- consumer products- and chemicals# and employs nearly ++2#222 people.

&n <II0# the TataDs sold their @akme business to /industan @ever @imited */@@, . The group started its retail business in <II1 with the purchase of the @ittlewoods retail stores# originally owned by a 8J)based firm# in angalore...

Ra%e(a Aroup

The J. Rahe.a group of companies is among &ndiaDs largest real estate players. They launched ShopperDs Stop way back in October <II<. This was the first mega apparel retail outlet to be established in &ndia. ShoppersD Stop is pro.ected as a "ashion G @ifestyle store for the family. "rom a single store in <II<# ShopperDs Stop has today grown into a <B store retail chain in ma.or metropolitan cities across &ndia...

Indian unor-ani7ed retai! sector

Retail in &ndia is essentially 5unorganized.6 I1P of the retail industry is made up of counter) stores# street markets# hole)in)the)wall shops and roadside peddlers *See >%hibit << for sector)wise break)up of 8norganized Retail. The term 5unorganized retail6 is better understood when comparing this form of retail to the organized retail that one is familiar with in developed countries.

Unor-ani7ed retai! is c%aracteri7ed 'yD

<, "amily)run stores +, @ack of best practices when it comes to inventory control and supply)chain management C, @ack of standardization L, >ssentially a sector populated by anyone who has something to sell

8norganized Retail is essentially the ne%t)step above agriculture for those seeking to climb the ladder of affluence in search of a higher income. $ombine this with very few barriers to entry in the retail sector and 53inning the &ndian $onsumer.6 McJinsey Zuarterly# +22H Special >dition. 53inning the &ndian $onsumer.6 one gets an industry run by people commonly referred to as 5 aniyas6*See e%hibit,# with a lack of education# e%perience and e%posure. This is the ma.or factor responsible for the manner in which the retail industry functions. &t is no surprise then that the productivity of this sector is appro%imately LP that of the 8.S. retail industry.

Causes o 4o? Producti)ity in Unor-ani7ed Retai!

1< 4a'or intensityD $ounter)stores in &ndia have a very low output to labor consumption ratio. @ow labor costs# failure to employ part)time labor and the absence of multitasking are the mainly responsible for the unusually high consumption of labor. This has driven down the productivity in the sector.

2< In)entory and Supp!y C%ain Mana-ementD 8norganized retailers in &ndia rarely track consumer behavior and sales data to improve their inventory management practices. >ven among the handful of retailers that employ e%perience)based improvements in their business# their efforts are largely met with no support from their suppliers. $ounter stores and street vendors do not have the infrastructure# e%posure or credibility to form lasting relationships with suppliers. As a result retailers usually use different suppliers every time they purchase inventory. This leaves them largely incapable of strategically managing their business.

"< 3ith 022 million agricultural labor<1 looking to move into retail# low barriers to entry and the absence of regulation in this sector have made it a largely over)supplied sector. The e%cess supply of counter)stores and street vendors represents a tremendous decrease in the productivity of this sector.

$< The absence of any real competition)almost all retailers find a way to make ends meet or change their merchandise till they make ends meet)is also responsible for a form of status 'uo in the sector where little to no improvements in efficiency# management and by e%tension productivity are seen. &n fact# this sector is so stagnant with respect to operational changes that no improvement in productivity is e%pected in the near future.

/owever# low productivity is only an indication of underutilization andNor over allocation of resources. &t does not reflect the market share or potential of the unorganized retail sector when it comes to catering to the &ndian consumer. The unorganized retail sector competes on the basis of a number of factors that give it a leg up on organized retail. Much of the reason why unorganized retail has dominated the retail market is the uni'ue ways in which it operates when it comes to serving the consumer. $orner)stores have catered to the traditional &ndian consumer psyche and are partially responsible for shaping it. "or unorganized retail in &ndia the market mantra is 5convenience69

1< +ome@/e!i)eryD $orner)stores and street vendors do their best to cater to the local population in the area in which they operate. As a result most of them provide home)delivery services# for any and all order sizes# at no e%tra charge. Shopping is as simple as making a phone call and narrating the shopping list to the store owner. 3ithin minutes# the entire list of groceries with an itemized# hand)written bill reaches your doorstep. The absence of product variety# brand diversity# marketing and e%posure had made shopping in stores almost unnecessary for the &ndian consumer. Retailers unconstrained by labor costs had no problem in understanding this dynamic and adapting to the needs of the &ndian consumer.

2< CreditD 8norganized retailers en.oy a loyal and limited clientele. The personal nature of transactions coupled with small transaction sizes allows unorganized retailers to sell goods on credit often settling bills with clients at the end of the month.

"< Pro6imityD 8norganized retailers like corner stores are almost always located at a few minutes walking distance from their clients. Street vendors will go door)to)door selling their goods. This has provided a number of advantages to the &ndian consumer. "inally# the pro%imity of unorganized retailers caters to the .ust)in)time mentality of &ndian consumers who prefer to buy goods when needed for immediate use rather than making bulk purchases in advance. $utting $osts in Any !ossible 3ay9 @egal and &llegal $onvenience is not the only aspect of unorganized retail that has allowed it to dominate the industry. The unorganized nature of this sector has also allowed it to survive price competition with large)scale organized retailers with efficient supply management# inventory control and bulk purchasing. 8norganized retail with their small inventory# high purchase costs and relatively small size have been able to save on a number of other fi%ed and variable input costs to offer goods at competitive prices9

1< Rea!@EstateD 8norganized retailers usually operate from their residences that double)up as counter stores or like street)vendors carry their merchandise with them. As a result# they incur little to no real)estate costs.

2< 4a'or CostsD 8norganized retailers usually staff their stored with family members who have no other source of employment than to work in the family store. As a labor costs are low. Additionally# the lack of regulation in the sector as well as high unemployment levels in &ndia Allow unorganized retailers to higher labor at very low rates.

"< Uti!itiesD $orner stores operating out of homes usually pay residential rates for utilities like electricity and water. 3ith the large disparity between commercial and residential utility rates# unorganized retailers do not have to worry about these inputs eating into their profits.

$< Ta6D 8norganized retailers rarely pay ta%es due to the absence of regulation and supervision in this sector. This also allows them to reduce price. 8norganized retail has dominated the &ndian market for decades. The small scale of each vendor was perfect to cater to the reluctant &ndian shopper while the large number of players kept several people employed. &n this situation there was little motivation to bring organization into the sector. &t took strong economic growth# liberalization of the economy and change in the &ndian mind)set to realize the advantages of bringing organization to &ndiaAs retail industry. Organized retail has a bright future in &ndia# but not one that will be easy to achieve. The countryAs lack of supporting infrastructure will pose a uni'ue challenge to organized retailers who must strike a delicate balance between adaptation and innovation in order to succeed in the industry. The ne%t section describes the &ndian organized retail sector in detail.

C%aracteristics o unor-ani7ed retai!

Small)store *kirana, retailing has been one of the easiest ways to generate self)employment# as it re'uires limited investment in land# capital and labour. &t is generally family run business# lack of standardization and the retailers who are running this store they are lacking of education# e%perience and e%posure. This is one of the reasons why productivity of this sector is appro%imately LP that of the 8.S. retail industry. 8norganized retail sector is still predominating over organized sector in &ndia# unorganized retail sector constituting I1P *twelve million, of total trade# while organized trade accounts only for +P.

The reasons might be) <. &n smaller towns and urban areas# there are many families who are traditionally using these kirana shops/ Dmom and popD stores offering a wide range of merchandise mi%. 4enerally these kirana shops are the family business of these small retailers which they are running for more than one generation.

+. These kiran shops are having their own efficient management system and with this they are efficiently fulfilling the needs of the customer. This is one of the good reasons why the customer doesnAt want to change their old loyal kirana shop.

C. A large number of working class in &ndia is working as daily wage basis# at the end of the day when they get their wage# they come to this small retail shop to purchase wheat flour# rice etc for their supper. "or them this the only place to have those food items because purchase 'uantity is so small that no big retail store would entertain this.

L. Similarly there is another consumer class who are the seasonal worker. 7uring their unemployment period they use to purchase from this kirana store in credit and when they get their salary they clear their dues. ;ow this type of credit facility is not available in corporate retail store# so this kirana stores are the only place for them to fulfill their needs.

H. Another reason might be the pro%imity of the store. &t is the convenience store for the customer. &n every corner the street an unorganized retail shop can be found that is hardly a walking distance from the customerAs house. Many times customers prefer to shop from the nearby kirana shop rather than to drive a long distance organized retail stores.

B. This unorganized stores are having n number of options to cut their costs. They incur little to no real)estate costs because they generally operate from their residences. Their labour cost is also low because the family members work in the store. Also they use cheap child labour at very low rates. As they are operating from their home so they can pay for their utilities at residential rates. >ven they cannot pay their ta% properly. $urrently the value of the retail market is estimated at around V +02 billion with a growth rate of H.0 per cent per annum according to the &ndian retail report which creates a big threat for the small unorganized retailers. The well established organized retail sector in &ndia are !antaloon Retail# ShoppersA Stop# Spencers# /yper$&TK# @ifestyle# Subhiksha G newly emerging Reliance etc. Over +2#222 new retail outlets are e%pected to open within this segment. Ma.or corporate retail like 3al)Mart and have started to try and take over the &ndian retail sector. ut in &ndia the unorganized retail is source foods and other necessities of millions of &ndians# ma.or link between rural and urban societies. ;ot only that it is also act like a convenience store for the customer offering right product at right time at right place. &n a

country with large numbers of people# and high levels of poverty# this model of retail democracy is the most appropriate So these unorganized retail sector need to be promoted so that they can organize G supply food to &ndian consumer. ;ow the 'uestion is how to promote this sector) The suggestions might be) *a, >stablishment of Retailer co)operatives among retailers which is highly re'uired for the sustenance of the unorganized retail sector *b, Merger and buy)out of weak retailers by a stronger one that would give a new horizon to the small retailer *c, Setting up of franchisee organization may also help in strengthening the position of the retailers. The franchiser can e%ert a tremendous control over the way retailing is done. *d, There must be good network connection between retail organizations# the suppliers and other channel members to use compatible technology so that they can build strong distribution set)up to satisfy the customers. *e, Setting up of more and more non)store retailing centers would also ensure a strong retailing organization. ;on)store retailing makes implementation of modern principles easier and less costly. *d, Moreover there must be a change in the mindset of the unorganized retailer. They have to understand the pulse of the trend. They have to understand# come forward G lead this change management then only this sector not only can e%ist but flourish.

Indian unor-ani7ed retai! sector # its c%a!!en-e

&ndia is the only one country having the highest shop density in the world# with << outlets per <222 people *<+ million retail shops for about +2I million households,. Rather we can see the democratic scenario in &ndian Retail *because of low level of centralization# low capital input and due to a good number of self organized retail,. &ndia started its Retail =ourney since ancient time. &n Ancient &ndia there was a concept of weekly /AAT# where all the buyers G sellers gather in a big market for bartering. &t takes a pretty long times to G step to shape the modern retail. &n between these two concepts *i.e. between ancient retail concept G the modern one there e%ist modern kiranaN mom and pop shops or aniya ki 7ukan. Still it is predominating in &ndia. So the &ndian retail industry is divided into two sectors) organized and unorganized. Organized retail sector refers to the sectors undertaken by licensed retailers# that is# those who are registered for sales ta%# income ta%# etc. These include the corporate retail formats of the e%clusive brand outlets# hypermarkets# supermarkets# departmental stores and shopping malls. 8norganized retailing# on the other hand# refers to the traditional formats of low)cost retailing# for e%ample# hand cart and pavement vendors# G mobile vendors# the local kirana shops# owner manned general stores# paanNbeedi shops# convenience stores# hardware shop at the corner of your street selling everything from bathroom fittings to paints and small construction tools- or the slightly more organized medical store and a host of other small retail businesses in apparel# electronics# food etc.

EFirana Stores Vs &r-ani7ed Retai!E

Small stores# also called kirana stores# will continue to grow alongside organized retail# but at a slower rate# and it might be a decade before such store owners lose business to the big retailers# providing an ample window for &ndia to help make the smaller players part of the transition in retailing# ut in the recent times it is said that kirana stores are .oining together to combat the organized retail stores# so this will be going on all the time like who is better# but right now the kirana stores are happy at the moment with crisis going on people are coming back to kirana stores. &ndia is currently the twelfth largest consumer market in the world. According to a study by McJinsey 4lobal &nstitute# &ndia is likely to .oin the premier league of the worldAs consumer markets by +2+H# improving its position to the fifth. ut this growth is not going to happen is smooth way. Any change always comes up with some friction# and &ndian retail sector is and will be witnessing the same friction.

&ndian retail sector is still in its nascent form if we consider its full potential. 3hile most of the developed market of 8S and >urope and also some S> Asian emerging market economies have reaped the benefits of modern retail# &ndia has not yet entered into advanced phase of modern retail forms.Tug of war9 organized vs. unorganized sector "uture of retail sector in &ndia is swerving) on one side organized retail is marching into life of urban consumers# while on the other our own neighborhood Qkirana storesA are resisting fiercely with their e%isting strong foothold. &ndia today is at the crossroads with regard to the retail sector. A shift between organized and unorganized retail sector is evident# which has led to a number of speculations on the fate of &ndian retail sector.

Unor-ani7ed sector cannot 'e i-nored &n any newspaper or television channel# we find hordes of news about happening in organized retail sectors# which is indeed fairly real situation. 3hile the role of organized retail sector in growth of economy cannot be denied# but one thing is also of e%treme importance that unorganized retail format is a support to a large chunk of population) providing direct employment to CI#H22#222 individuals. So there is no way that government or anyone can discount these foundation stone of &ndian economy. The face of &ndian consumerism is changing9 not &ndian consumerism is evolving from 5 a.a. Scooter family man6 to 5 a.a. !ulsar trendy youngster6. This changing consumerAs taste and lifestyle# somewhere automatically give some advantage to organized sector. This makes imperative for unorganized retail sector to restructure itself in order to withstand the increasing competition and to meet consumer e%pectations by moving with trends. 3hat they can do and what they are doing# some o these issues will be discussed in future parts of article.

RETAI4 1/I T& RE/UCE 1RUIT A9/ VEAETA54E GASTAAESD CRISI4

$urrent Affairs Trade9 A $R&S&@ Research study concludes that allowing foreign direct investments *"7&, in multi)brand retail has the potential to reduce the prices of perishable food produce such as fruits and vegetables in &ndia over the long term. This policy measure is likely to stimulate a flow of investments from organised retailers and logistics companies for establishing 'uality supply)chain infrastructure for fresh fruits and vegetables. An efficient supply chain will enable large retailers to source vegetable and fruit produce directly from agricultural cooperatives# lowering annual wastages# about Rs BC2 billion in +22I)<2# and reducing commissions of trade intermediaries. This# in turn# will improve realizations to farmers# reduce consumer prices of fruits and vegetables# and increase operating margins of large retailers. About C2 per cent of &ndiaAs total production of fruits and vegetables is wasted every year due to inade'uate cold storage and transport facilities. $R&S&@ Research estimates that almost H2 per cent of the annual wastages can be prevented if fruit and vegetable retailers have access to specialised coldstorage facilities and refrigerated trucks. "urther# large retailers will be able to save on commissions# amounting to <2)<H per cent of the retail selling price of fruits and vegetables# to trade intermediaries such as commission agents and wholesalers# if they are able to source the produce directly from agricultural cooperatives. 5The wastage in the supply chain and the commission to trade intermediaries inflate the final price paid by &ndian consumers for fruits and vegetables. &ndian consumers pay nearly +)+.H times the price paid to a farmer as compared to <)<.H times in developed markets where the penetration of organised retail is much higher#6 says Mr. ;agara.an ;arasimhan# 7irector# $R&S&@ Research. $R&S&@ Research estimates that Rs BH2 billion will need to be invested over the medium term to build the supply)chain infrastructure for fruits and vegetables. This

estimate takes into account the number of cold storage facilities and refrigerated trucks that would be re'uired for handling &ndiaAs production of fruits and vegetables. The fruit and vegetable segment has so far not attracted ade'uate investments since organised retailers account for less than < per cent of the total sales of fruits and vegetables in &ndia. 5@iberalisation of the retail)"7& policy will help increase organised retail penetration#6 says Mr. Sridhar $# /ead M $R&S&@ Research. 5A likely increase in the sales volumes of fruits and vegetables through modern store formats will encourage large retailers and logistics companies to invest in cold storage and transport facilities.6 $R&S&@ Research is &ndiaAs largest independent# integrated research house. &t is an integrated research platform and capabilities spanning the entire economy)industry company spectrum to deliver superior perspectives and insights to over B22 domestic and global clients# through a range of subscription products and customised solutions.

Retai! Mar:etin-@Strate-ies or sma!! unor-ani7ed retai!er in t%e era o &r-ani7ed retai!inCurrent Status o Retai!in- in India
The size of the retailing industry in &ndia is estimated to be in the order of Rs. 0+22 to 1<22 billion *8S V <B2)<12 billion,# with organized retailing estimated to be appro%imately + P *Rs <B2)<12 billion, Of the total retailing industry in the country. "ood and grocery retailing is estimated to contribute to around *Rs CH22)L222 billion, of the total sales from retailing. The number of total retail outlets in the $ountry is estimated to be around <+ million. The retail sector is the second largest employer of the country agriculture. According to the ;ational Readership Survey of <III# B.BP of the urban adults and +P of the rural adults are estimated to be shop owners.

&ndiaDs unorganized retail entrepreneurs may be uneducated.

ut they are not street)stupid#

but street)smart# who know and sense every pulse and breath of the &ndian consumer. 7ominance of the unorganized sector the unorganized sector has dominance over the organized sector in &ndia# especially because of the low investment needs. As we know Retailing is the principal link between the producer and the consumer and plays a ma.or role in price formation therefore unorganized retailers can play their role effectively only by establishing an efficient and cost)effective supply chain. They are the most important link in the supply chain. They should develop such a supply chain which will reduce the wastage and transaction cost thereby reducing the cost of inventories. A reduction in the cost of inventory management will lead to a reduction in the final price to the consumer. 3e feel if the small unorganized retailers abide the following retail marketing strategies# they will definitely "lourish in the >ra of organized Retailing.

1. Re Esta'!is%ment o Customer 'aseD &n their preparation to face fierce competitive pressure# &ndian retailers must come to recognize the value of building their own stores as brands to reinforce their marketing positioning# to communicate 'uality as well as value for money. Sustainable competitive advantage will be dependent on translating core values combining products# image and reputation into a coherent retail brand strategy. The organized new generation &ndian retailers *Shoppers Stop and 3estside, have recruited senior retail persons from abroad# who have the e%pertise in setting up systems and procedures# but they are going to take a long while to tune into the psyche of the &ndian consumers.

2. Ser)ice /e!i)ery Mec%anismD Small stores should focus on personalized service to customers. They should personally attend to the customer and should try their best to satisfy him. The customer feels important when he walks)in in such a store. ;obody will personally attend a customer in a Mall. And the customer sometimes finds it tiring to rummage through all those piles of clothes stacked on the racks. &n a small store# the sales person opens each garment and shows it to the customer. Again in some stores alterations and other miscellaneous repairs are done promptly. Some even give a life time free warranty of stitching and repair on their garments.

". P%enomenon o /iscountin- and 1ree +ome /e!i)eryD &n a middle class)dominated# price)sensitive market like &ndia# price manipulation is a strong weapon in the arsenal of the small independent retailer. Small retailers should promote discounting phenomenon in order to retain customers for their stores. "ree /ome delivery mechanism will build a rapport with the customers and will also make the small retailers abreast about specific needs and necessities and simultaneously enhances the comfort zone of the customer. And ultimately that customer moves a step forward in the ladder of loyalty.

$. Customer In ormation SystemD Small retailers should think about their customers as individuals# analyze their shares of customers and calculate their lifetime values. Traditional Mom and !op stores need to build data bases using in)store data collection and launch fre'uent shopper rewards# carry on an interactive communication with them# make special offers# and add value outside the in)store relationship.

@oyalty of the customers can be attained by developing personal relationships with consumers rather than only through product and pricing. "or instance# rewards should be given as loyalty bonus for customers i.e. priority service# free gift wrapping# enhanced guarantees and sales pre)notifications. enefits include privileged rewards and e%tra value

offers as well as straight discounts. Analysis of customer behavior can guide store merchandising to match the profile of their customers and even the needs of the shoppers at different times of the day.

*. Prominent 1eed 5ac: SystemD 8norganized Retailers have to understand the concept of individual customer communication outside the stores as a necessity. &t is necessary that they seek to add a new form of dialogue with their customers. "or e%ample they can prepare a broadsheet for its customers providing details of the promotional offers available and price comparisons across brands. That helps its customers to take more informed decisions.

,. ConsortiumD 8norganized retailing in order to meet the challenges of organized retailing such as large $ineple%As# and malls# which are backed by the corporate house can form consortium. Recently +H stores in 7elhi under the banner of !rovision mart are .oining hands to combine monthly buying. ombay azaar and >foodmart are aggregations of Jirana Stores. The

e%isting small and medium independent retailers should closely e%amine what changes are taking place in their immediate vicinity# and analyze whether their current market offers a potential redevelopment of the area into a more modern multi)option destination. &f it does# and most commercial areas in &ndia do have this potential# it would be very useful to form a

consortium of other such small retailers in that vicinity and take a pro)active approach to pool in resources and improve the overall infrastructure. The ne%t effortshould be to encourage retailers to make some investments in improving the interiors of their respective establishments to make shopping an en.oyable e%perience for the customer.

T%e /i erence 5et?een &r-ani7ed And Unor-ani7ed Retai!in-

Organized retailing is based on the principle of unity and unorganized retailing is based on the principle of singularity. oth organized and unorganized retailing is found in most countries throughout the world. India and $hina are strong e%amples of countries in which unorganized retailing dominated their markets. Today these countries have a growing economy because of the influ% of organized retailers into their markets. The demand for giant malls with large department stores# cinemaple%es# supermarkets# and pharmacy chains is the result of higher incomes and urban customers looking for convenience in shopping. @arge chains such as 3alMart# Mc7onaldDs# Microsoft and other organized retailers have reached across the world sharing their retailing e%pertise. The unorganized mom and pop retailers and independent retailers continue to fulfil a need. The organized retailing giants are trading organizational e%pertise for a share of the markets across the world.

+YP&T+ESIS

A hypothesis consists either of a suggested e%planation for an observable phenomenon or of a reasoned proposal predicting a possible causal correlation among multiple phenomena. The term derives from the 4reek# hypotithenai meaning (to put under( or (to suppose.( The scientific method re'uires that one can test a scientific hypothesis. Scientists generally base such hypotheses on previous observations or on e%tensions of scientific theories. >ven though the words (hypothesis( and (theory( are often used synonymously in common and informal usage# a scientific hypothesis is not the same as a scientific theory. /ypothesis may be defined as a proposition or a set of proposition set forth as an e%planation for the occurrence of some specified group of phenomenon either asserted merely as a provisional con.ecture to guide some investigation or accepted as highly probable in the light of established facts. Zuite often a research hypothesis is a predictive statement# capable of being tested by scientific methods# that relates an independent variable to some dependent variable.

9U44 +YP&T+ESIS A nu!! %ypot%esis is a hypothesis *within the conte%t of statistical hypothesis testing, that might be falsified on the basis of observed data. The null hypothesis typically proposes a general or default position# such as that there is no relationship between two 'uantities# or that there is no difference between a treatment and the control. The term was originally coined by >nglish geneticist and statistician Ronald "isher.

The null hypothesis *often denoted by H2, formally describes some aspect of the statistical (behaviour( of a set of data.

A4TER9ATE +YP&T+ESIS Alternative hypothesis is the (hypothesis that the restriction or set of restrictions to be tested does ;OT hold.( often denoted /<. Synonym for Dmaintained hypothesis.D The Alternate /ypothesis of this pro.ect report is that customers are not satisfied

<. 8norganized retail sector is far more rooted in &ndian consumer market in comparison to organized retail. +. Organized retail sector adopt more aggressive G specific marketing strategies in comparison to unorganized retail sector.

Researc% Met%odo!o-y

The purpose of methodology is to describe the process involved in research work. This includes the overall research design# data collection method# the field survey and the analysis of data. Research is a common parlance refresh to a search for knowledge. One can also define research as a scientific G systematic search for pertinent information on a specific topic. &n fact# research is an art of scientific investigation. The advance learnerAs dictionary of current >nglish lay down the meaning research as a careful investigation G in'uiry specially search for new facts in any branch knowledge. Researc% /esi-n Research 7esign is the arrangement for conditioned for data collection G analysis of data in a manner that aims to combined relevance to research purpose with economy in procedure. A research design is a master plan or model for the conduct of formal investigation. &t is blue print that is followed in completing study. The research conducted by me is a descriptive research. This is descriptive in nature because study is focused on fact investigation in a well structured from and is based on primary data.

Researc% P!an Type o studyD "or completing my study & have gone for sample study because looking at the size of population G the time limitation it was not convenient for me to cover entire population. /ence# & have gone for sample study rather than census study G probability sampling is used.

Samp!in- P!an A sample design is a definite plan for obtaining a sample from a given population. &t refers to the techni'ue or the procedure that researcher would adopt in selecting items to be inched in the sample i.e. the size of sample. Sampling plan is determined before data are collected.

Steps in Samp!in-D <. +. C. L. 8nderstanding the Marketing strategies of retail sector. Study the organized G unorganized retail sector. To collect the information from self constructed 'uestionnaire. Meeting with different managers G owners of different stores to incorporate their views. H. B. 0. 1. Obtaining the opinion and suggestions of owners at different levels. !repare 'uestionnaire on the basis of above information. 4ather information from different source like books &nternet magazines etc. On the basis of the answers from the managers G owners and the information gathered from other sources prepare the report# mentioning the necessary changes re'uire in the e%isting environment.

Samp!in- 1rameD The list of sampling units from which sample is taken is called sampling frame.

Samp!in- si7eD Appro%imately <22

Samp!in- ProcedureD The selection of respondents were accordingly to be in a right place at a right time and so the sampling were 'uite easy to measure# evaluate and co)operative. &t was a randomly area sampling method that attempts to obtain the sample of convenient.

Current 4andscape o Retai! in India

The &ndian government does not recognize retail as an industry. &n &ndia I1P of the retail sector consists of counter)stores and street)vendors. 3ith no large players# inade'uate infrastructure and a small affording population that believed in saving rather than spending# &ndian retail never attracted the interest of large corporations. That was till they realized that retail in &ndia is a 8S7 C+2 billion dollar industry#growing at $A4R HP and contributing to CIP of the 47!+ *See e%hibit < for pro.ected market size of retail in &ndia.,.&t might seem almost nonsensical that this important sector of the countryAs economy has been overlooked by corporate giants. One cannot blame them though. &ndian retail has been a traditionally unorganized sector# dominated by counter)stores and street vendors *See >%hibits + and C for pictures,.3hile retail employs a large sector of the population# most of these people are uneducated# unskilled individuals that regard retail as the preferred career alternative to agriculture. They never had the means nor will to develop the sector or e%pand their business. Retail never en.oyed the support of the &ndian consumer. A miserly population that barely had the means to make end meet never treated shopping as a form of leisure. 3hile

individual retailers saw small gains# lack of infrastructure# an unattractive &ndian consumer and absence of regulation never provided the scale that retail giants could capitalize on

Meanwhile# the government preferred to look the other way while this unorganized retail sector provided a meager standard of living to millions in a country where poverty plagued the ma.ority of the population.The unorganized retailers survived on thin margins and low volumes# while the corporate giants preferred to spend their resources in areas like power# industrials and telecom where the large)scale opportunitieswere abundant. Today the retail industry has witnessed a remarkable transformation.The countryAs staggering economic growth of around 1PC over the last + years has resulted in ma.or shiftsin the &ndian class structure with higher incomes leading to the growth of the &ndian middle)class. This is amiddle)class that is aware of the standards of living in other countries thanks to e%posure through the mediaand internet. 8nlike their forefathers they have decided to adopt a 5Spending6 approach to improve theirstandard of living rather than a 5Saving6 approach. 3ith an estimated L22 million shoppers and growing#

Organized &ndian retailAs target population is larger than that of the entire 8nited States.L Eoted the most attractive retail destination in the world for two years in a row# &ndia is e%pected to witness 0)1P growth in its retail sector over the ne%t few years.H Recognizing the short)term and long)term growth of retail in &ndia# a number of domestic business giant shave entered the retail industry or are planning to do so in the near future. Some like !antaloon Retail# ShopperAs Stop and !yramid Retail have been in the industry for a decade. Others like Reliance Retail @td.*RR@, have .ust entered and opened up a number of stores across the country still other domestic players like irla0 and harti1 are planning their foray into this sector. &n fact retail in &ndia has also attracted global giants like 3al)Mart who have also indicated their interest in the sector by forming a =oint Eenture with harti.

>ach of these domestic and international retail giants have or will introduce a number of modern retail formats like malls# hypermarkets and supermarkets. &nitial consumer response to these novelties in the retail sector has been very promising and as the middle)class continues to grow# organized retail in &ndia is sure to see large returns. &n fact# organized retail is growing at a staggering CHP per year.As organized retailers enter the &ndian market# however# they must be mindful of the uni'ue status of retail in the country. Retail in the country has been dominated by millions of unorganized retailers who have used consumer pro%imity and home)delivery as their operating ideals to cater to the &ndian consumer that has become accustomed to this convenience. 8norganized retail has both shaped the mentality of the &ndian consumer and been shaped by it. As of +22H retail contributed CIP of &ndiaAs 47!# but even with this# the percentage of retail in the organized sector is only a measly BP<2 *See e%hibit L for retail sectorAs contribution to &ndiaAs 47! and penetration of Organized Retail,. These counter)stores and street vendors might seem small fish in a retail industry that is soon to be dominated by giants like !antaloon and Reliance. Ket# they cater to a different set of preferences of the &ndian consumer and have traditionally survived on low turnover and thin margins. &ndividually they are a minor factor in the retail plans of any giant organized retailer but collectively they represent the historic state of retail in &ndia that is so deeply intertwined in the economy of the country and the psyche of the &ndian consumer that co)e%istence with them is a better policy rather than competition. Another factor that ma.or retailers must be wary of is the lack of infrastructure to support supply chains and efficient retail operations in &ndia $ompanies like 3al)Mart that grew from the ground)up leveraged the infrastructure of 8.S.A to build a large supply)chain which has been the backbone of its success. The story in &ndia is very different. &nade'uate highways# the absence of cold storage facilities# an underdeveloped supply chain# limitless ureaucracy and the lack of regulations created a situation where the local corner)stores and hawkers thrived. 3hat was the street)vendors gain will be a ma.or hurdle for large)scale

organized retailers. They will have to demonstrate unprecedented innovation# adaptation and e%perimentation to succeed in the &ndian retail industry. /aving presented the immense potential and current status of the retail industry# this paper continues to flesh out the &ndian retail story with the ob.ective of highlighting some of the ma.or concerns that organized retailers will have to consider as they venture into the &ndian market. The paper outlines the transformation of the &ndian consumer and highlights the characteristics of the unorganized and organized retail sectors in the country. &t then presents some of the ground realities of the support infrastructure that will pose ma.or challenges to the large retail chains in &ndia. "or e%ample# &ndia is the second highest producers of fruits and vegetables in the world# but only have cold)storage capacity for <2 per cent of the total production. The paper goes on to provide the e%ample of !antaloon Retail# a large organized retailer that has en.oyed tremendous success in &ndia. The &ndian consumer has undergone a remarkable transformation. =ust a decade or two ago# the &ndian consumer saved most of his income# purchased the bare necessities and rarely indulged himself. Today# armed with a higher income# credit cards# e%posure to the shopping culture of the west and a desire to improve his standard of living# the &ndian consumer is spending like never before. Organized retail with its variety of products and multitude of malls and supermarkets is fueling his addiction. /is new mentality# in turn# is fueling the growth of organized retail in &ndia. &ndiaAs population is young# very young. Most consumers have grown up with television# the &nternet# and have been e%posed to the standards of living and consumer culture abroad. This generation is also making money at a younger age and lots of it# thanks to call centers and other avenues of employment opening up that cater to students in college and schools. As a result they are ready to spend most# if not all of their income on apparel# accessories# and electronics. /igher &ncomes @iberalization of the countryAs economy has brought a number

of employments opportunities. 3ith the entry of a number of multinationals and the e%pansion of domestic corporations# .ob prospects in the country are looking up. As a result# incomes and consumption are pro.ected to increase rapidly over the ne%t couple of years. This sets the stage for a very e%citing and promising retail market in the future. ;o Money# ;o !roblem The finance sector has already seen a huge e%pansion. 8nlike a decade ago# credit cards and short)term loans have become easily accessible and have contributed to the emergence of a consumer culture in &ndia. $redit card rewards schemes# fle%ible financing options and all the other common lures are tempting the &ndian consumer to shop. 3ith loans for everything from a home to an automobile freely available# the &ndian consumer can start spending on big)ticket items that were traditionally within his reach only after years of savings.

Ur'ani7ation 4rowing urbanization is also responsible for the changing consumer psyche<+. As urbanization spreads beyond the ma.or cities# it converts the local population from net savers to net spenders. This is consistent with what has been observed in developing countries like Thailand# Malaysia and developed countries like 8.S.A and the 8.J. The @ure of Organized Retail Another important factor to consider is the effect of e%isting organized retail in &ndia in fueling consumerism. ;ew malls and supermarkets with their modern decors and multiple products are enticing &ndian consumers. This is one of the most direct factors responsible for the mentality change of the &ndian consumer. As people see their relatives# friends# neighbors shopping at these new establishments# they are bound to .ump on the bandwagon as well.

/i erent Strata o Indian Consumers

The consumer of today# at least what the multinationals are targeting# is popularly known as the aspiring &ndia M the middle income segment which is growing faster than ever while <2) <H years ago# people in this segment would ask MHMera num'er :a' aaye-aI *3hen will & be able to afford the simple lu%uries of life,# today this same segment says M HMera num'er a' aaye-aI# *& am now in a position to afford the simple lu%uries of life,. The numbers on the &ndian economy and retail sector in specific say a lot about the growth potential in &ndia. /owever# the engine pulling this locomotive of the consumer goods market in &ndia at breakneck speed is the L2 million &ndian middle income households. 4rowing at around <2 percent a year# this section of the economy makes between VL222 to V<2#222 per annum *V+2#222 to VLH#222# ad.usted !!!,# and its emergence and importance is signaled# for e%ample# by the <22 per cent growth in passenger car sales *VHbillion in +22L, in the period between +222)+22H.

Some o t%e eatures c%aracteristic o t%ese consumers is@

Their tendency to borrow money in order to buy the upscale items M contrary to the traditional line of thought that &ndian consumers are indisposed to credit. ut these consumers not only have price and 'uality on their minds but also the fact that their brands effectively reflect their local environment and are consonant with their life style. And this is where the foreign multinationals coming into the &ndian consumer market has to pay attention. Selling global brands in &ndia at global prices is a road to perdition. $ompanies who have tailored their products to the &ndian environment and customer have reaped high rewards. "or e%ample# ;okia in &ndia customized its <<22 model mobile phone by adding

features such as a dust)resistant keypad# an anti)slip grip# and a built)in flashlight *useful during the fre'uent and unannounced power outages in the country,. Samsung washing Machines have been e'uipped with memory backup to compensate for &ndiaAs fre'uent power outages and a special rinse cycle for saris<H to prevent them from becoming twisted and knotted. The &ndian consumerAs change in attitude is going to manifest itself into rewards for the organized retail industry. At the same time# &ndians will find it hard to give up their old habits of shopping at the local corner)store or buying goods from the street)vendor. The ne%t section describes the unorganized and organized retail sectors in detail. &t is critical to understand these sectors individually to speculate about possible the nature of interaction between them. 3hile the traditional form of retail in &ndia is sure to suffer a setback from the entry of large organized retailers# it is possible for both forms to co)e%ist serving the new personality and old)habits of the &ndian consumer simultaneously.

/ata Ana!ysis
J. 3hat type of store you own or manageO
a. Organized b. 8norganized

J. 3hat type pricing strategies you adoptO

a. !sychological b. 4eographical c. 7iscriminating

J. &n what type of product you dealO

a. "M$4 b. 7urable goods

FMCG Durable

35%

65%

J. On which group of consumers you concentrate moreO

a. /igh &ncome b. Middle &ncome c. @ow &ncome

33% 41%
Low High Middle

26%

J. 3hat are your promotional activitiesO

a. Advertising b. !ersonal selling c. Sales promotion

J. &f advertisingO 3hat kind of advertising channel you preferO

a. !rint media b. roadcasting media

J. 3hat you concentrate more onO

a. $ustomer satisfaction b. !rofit making

J. 3hich area you prefer more for locating your storesO

a. Rural area b. 8rban area

J. 3hat are the main factors that affect your pricing policyO
a. $ompetitors b. 7emand c. Technology

1indin-s

&n this study we had find out that in todayAs world more then H2P of the total population is interested in shopping from organized retail stores.

"rom the study we have concluded that organized sector is adopting better G planned marketing strategies to attract its customers. Earious marketing strategies are also adopted by the unorganized retail group but it is not up to the mark or we can it is less attractive as compared to organized marketing strategies.

Sources o /ata Co!!ection

Primary /ataD
"or my survey primary data have been used as a 'uestionnaire to collect the data.

Secondary /ataD
The secondary data has been collected from the following modes9 R 7ata through internet sources.

Su--estions

8norganized retail sector should adopt better marketing strategies so that more G more customers can attract towards it.

As organized retailers are using the marketing strategies unorganized sector should also concentrate on their marketing strategies so that customers could attract towards them.

$ustomers generally prefer Multi brands counter because lots of products can be seen at on one place# so unorganized could also adopt this techni'ue.

8norganized retailers should also concentrate towards the needs G satisfaction of the customers.

More intense research works should be initiated# studying the specific needs and attributes sorted by the customer for different kinds of product categories.

4imitations o t%e Study

R & will have to rely upon the information get from secondary sources and given by respondents# which may not be fully true.

R This study will be limited to only some areas of Moradabad in 8ttar !radesh.

R &t is only for short period of time.

R @ack of professional approach since researcher is a student

R The sample size is only <22 so the sample may not be truly representative of MoradabadAs population.

Ge'!io-rap%y

www.wikipideia.com www.google.com www.relianceindustry.com www.bigbazar.com www.rahe.a.com

Anne6ure
J. 3hat type of store you own or manageO
a. Organized

b. 8norganized

J. 3hat type pricing strategies you adoptO

a. !sychological b. 4eographical c. 7iscriminating

J. &n what type of product you dealO

a. $onsumer goods b. 7urable goods

J. On which group of consumers you concentrate moreO

a. /igh &ncome b. Middle &ncome c. @ow &ncome

J. 3hat are your promotional activitiesO

a. Advertising b. !ersonal selling c. Sales promotion

J. &f advertisingO 3hat kind of advertising channel you preferO

a. !rint media b. roadcasting media

J. 3hat you concentrate more onO

a. $ustomer satisfaction b. !rofit making

J. 3hich area you prefer more for locating your storesO

a. Rural area b. 8rban area

J. 3hat are the main factors that affect your pricing policyO
a. b. c. $ompetitors 7emand Technology

C&9C4USI&9D

"inally# it is important to note that these strategies are not strictly independent of each othervalue is function of not .ust price# 'uality and service but can also be enhanced by !ersonalization and offering a memorable e%perience. &n fact# building relationships with customers can by itself increase the 'uality of overall customer e%perience and thus the perceived value. ut most importantly for winning in this intensely competitive marketplace# it is critical to understand the target customerDs definition of value and make an offer# which not only delights the customers but also is also difficult for competitors to replicate.