You are on page 1of 5

Retail Industry in India Industry background The Indian retail industry has scaled impeccable growth over the

last decade with an amiable acceptance to organised retailing formats. The industry is maturing towards modern concept of retailing, cornering the conventional unorganised family-owned businesses. The retail scenario is one of the fastest growing industries in India over the last couple of years. India retail sector comprises of organized retail and unorganized retail sector. Traditionally the retail market in India was largely unorganized; however with changing consumer preferences, organized retail is gradually becoming popular. Quick facts on Indian Retail sector

Indian Retail sector is the fifth largest global retail destination. India retail market is dominated by the unorganized sector. The top five companies in retail hold a combined market share of less than 2%. The Indian retail market has been ranked by AT Kearney's eighth annual Global Retail Development Index (GRDI), in 2009 as the most attractive emerging market for investment in the retail sector. Currently the share of retail trade in India's GDP is around 12 per cent, and is estimated to reach 22 per cent by 2010. According to Government of India estimate the retail sector is likely to grow to a value of ` 2,00,000 crore (US$45 billion) and could yield 10 to 15 million retail jobs in the coming five years; currently this industry employs 8% of the working population. India continues to be among the most attractive countries for global retailers. According to the Department of Industrial Policy and Promotion, approximately US$ 47.43 million was the amount of Foreign Direct Investment (FDI) inflow as on September 2009, in singlebrand retail trading.

More than 80% of the retail sector in the country is concentrated in the large cities. A study reveals that among the more than 20 locations, for organized retail in India, Mumbai was found to be the most preferred location followed closely by Bengaluru in the second position. Key Players in Indian Retail Sector

AV Birla Group has a strong presence in apparel retail and owns renowned brands like Allen Solly, Louis Phillipe, Trouser Town, Van Heusen and Peter England. The company has investment plans to the tune of ` 8000 9000 crores till 2010. Trent is a subsidiary of the Tata group; it operates lifestyle retail chain, book and music retail chain, consumer electronic chain etc. Westside, the lifestyle retail chain registered a turnover of ` 3.58 mn in 2006. Landmark Group invested ` 300 crores to expand Max chain, and ` 100 crores on Citymax 3 star hotel chain. Lifestyle International is their international brand business. K Raheja Corp Group has a turnover of ` 6.75 billion which is expected to cross US$100 million mark by 2010. Segments include books, music and gifts, apparel, entertainment etc. Reliance has more than 300 Reliance Fresh stores; they have multiple formats and their sale is expected to be ` 90,000 crores ($20 billion) by 2009-10. Pantaloon Retail has 450 stores across the country and revenue of over ` 20 billion and is expected to touch 30 million by 2010. Segments include Food & grocery, e-tailing, home solutions, consumer electronics, entertainment, shoes, books, music & gifts, health & beauty care services.

Personality traits of a Retail manager

Motivates, Manages Time Well, Communicates Well, Is Honest and Has Integrity, Is Accessible, Mentors and Develops People, Is Energetic, Ambitious and Enthusiastic, Works Hard for Results, Ensures all Interactions are Productive, Praises and Rewards, People leadership (influence, inspire and motivate others) Project management (managing resources, including staff, prioritising tasks and managing risk) Self-motivated and achievement-striving Determination to attain defined results and reach targets Working collaboratively with others Taking charge (directing and guiding customers) Influencing skills Sociable (friendly and highly engaging) Social astuteness (capable of interpreting social cues and using them to attain the desired outcome) Approaching tasks in a planned and well-organised manner Sensitive to others needs Abstract reasoning or lateral thinking skills are essential to achieve successful performance in the role of a manager in retail. Therefore, employers are likely to expect you to demonstrate strong abstract reasoning skills. This means that you will typically be given a series of shapes based on logical rules that are of high difficulty and complexity levels.

As an applicant for a manager role in retail, you will be expected to demonstrate a strong capacity to quickly gather a variety of new work-related information to assist you in making informed decisions. You will also be expected to show a strong capacity to quickly integrate new information from competitors, clients and suppliers or assess problems that are outside the scope of your usual knowledge and experience. You will also be expected to demonstrate a strong capacity to identify new trends in retail based on company and industry data. You can practise abstract reasoning test questions matching your roles level of difficulty in our online practice abstract reasoning tests. You will be given a personalised and detailed report with your test results, correct test answers, answer explanations, and feedback on your relevant strengths and weaknesses. To get better results, you should also take our short online abstract reasoning course. The course will guide you through the necessary steps you need to take to prepare for the abstract reasoning test. Conscientious, outgoing, with a high level of emotional stability these are the three major personality traits which can help retail managers beat workplace stress. Actively listen. Listen to your customers, your employees, your suppliers, and anyone else who comes in contact with your business. Honestly evaluate what they have to say, without letting your ego get in the way, and you will probably learn something that benefits your business. Challenges faced Managers in retail stores are responsible for building sales and profits. These professionals must constantly strive to offer quality products that customers need at reasonable prices. Additionally, retail managers must constantly be improving customer service satisfaction in their units. While specific sales and customer service goals are common with all retailers, certain retail management challenges can hinder a store's chance of achieving these objectives. 1. Significance
o

The retail industry has traditionally been one of high turnover. Many young people take jobs as cashiers or clerks in retail while in school, then quit when they find another career. Retail jobs also pay less than other industries. This combination of low pay and high turnover can make it difficult for managers to constantly maintain high-quality customer service. Identification The competition in retail is extremely fierce. Because larger retailers have more capital, these companies can increase their number of units more readily, making it difficult for most smaller retail managers to compete. People tend to purchase groceries or small items near their home. Larger retailers with multiple locations can benefit more from local customers than smaller retailers, which may be more spread out. The small retail manager may really need to differentiate his products and service level to compete. Function Because much retail work is monotonous or task-related, it is often hard to motivate retail workers to achieve a desired customer service level. This is particularly true with young workers who have no work ethic, meaning they perform their job just well enough to keep it and earn a

paycheck. Not all young workers are lacking in motivation, but they often tend to focus on the latest gossip more than servicing the customers properly. Considerations
o

During slow economic times, consumers tend to be more price sensitive. Consequently, they often choose to shop at places with the lowest price. This can be particularly challenging for smaller retailer managers, which do not have the latitude to lower prices like larger retailers. Larger retailers enjoy economies of scale, meaning they enjoy lower unit costs on products because they purchase larger volumes. Consequently, they earn a larger profit margin than smaller retailers. Prevention/Solution With ever-increasing populations, crime prevention is also a challenge for retailers. Most retailers educate their employees on how to watch out for potential shoplifters. Managers must also learn how to detect theft among employees. Employees can avoid ringing up a sale, then pocket the extra cash from a transaction. They can also pilfer cash in small, undetected amounts each day. Retail management challenges will always include the possibility of theft.
Key Challenges for Retail Managers A retail manager's goal is to maximize productivity. This is tough. Store staffs likely include inexperienced, part-time or seasonal employees. Retail hours are long. Sales targets may seem unreachable. Yet, in this setting, good retail managers thrive. They are skilled in four primary areas.

Managing time.

Recruiting and supervising staff.

Building skilled and motivated sales and service teams.

Managing change. No manager can be effective in just one of these areas. They are interrelated and interdependent.
Time -- a Fixed Resource Tight budgets. Lean staff. Information overload. It's never been harder for retail managers. Those who manage time well can do these things:

Know when to solve a problem immediately, when to put something off and when to delegate.

Eliminate time wasters.

Handle interruptions.

Say "no" to unreasonable demands. How to Lead, Not Just Manage, Staff
Effective retail managers encourage and facilitate self-management among their personnel. They do this by:

Communicating and evaluating performance standards by focusing on specific behaviors and outcomes.

Using appropriate reinforcement techniques.

Gaining commitment to performance goals.

Maintaining an atmosphere that values sharing information in downward, upward and peer-to-peer directions.

Coaching for results.

Setting realistic goals and follow-up dates. Teamwork Lightens the Load
For retail managers to have any personal life, they must be able to trust staff to work and solve problems on their own. Skilled managers continually work at:

Delegating responsibility.

Establishing group goals.

Aligning staff people and their roles so that cross-training and cooperation can thrive.

Identifying and securing resources so people can do their jobs well.

Motivating the team to work together and support each other even in stressful times.

Leveraging individual differences and valuing diversity. In Retail, Change Is a Given


Change in retailing is what drives success. Styles change. Customer needs and wants evolve. Competitors jockey for market leadership. Retail management means managing change by:

Anticipating change.

Leading group problem solving.

Managing transition.

Championing innovation.

Reducing resistance to change. Retailers Value Training


According to a study released at the National Retail Federation's 90th Annual Convention, management skills are the most frequently addressed training subject of US retail companies. "As retailers expand, acquire properties, reposition or rebrand, managers become the critical players in communicating and instilling change throughout the organization," stressed Michael Patrick, CEO of MOHR Learning, the company that conducted the study. "Clearly retailers want to make sure their managers have the skills needed to do this job." Leadership Is Not Just for Top Management The good retail manager learns to move from a focus on day-to-day activities to focus on implementing strategies as a leader who's responsible for moving the organization into the future. If this is your dream, learn and practice the skills to move your team or department forward decisively and productively.

You might also like