RESEARCH ON

RETAIL SECTOR
SUBMITTED TO:- SUBMITTED BY:-
MISS. SHALLU BATRA RUBAL SIKKA
RETAIL SECTOR
 CONTENTS
INTRODUCTION
REVIEW OF LITERATURE OF RETAIL
MARKETING
OBJECTIVE OF THE STUDY
RESEARCH METHODOLOGY
SWOT ANALYSIS OF RETAIL MARKETING
MEANING OF RETAIL MARKETING
FUNCTION OF RETAIL MARKETING
CLASSIFICATION OF RETAIL SECTOR
GROWTH OF RETIL SECTOR
TYPES OF RETAIL SECTOR
 INTRODUCTION OF RETAIL
MARKETING
The word 'Retail' is derived from a French word with the prefix
re and the verb tailor meaning "to cut again". Evidently, retail
trade is one that cuts off smaller portions from large lumps of
goods. It is a process through which goods are transported to
final consumers. In other words, retailing consists of the
activities involved in selling directly to the ultimate consumer
for personal, non-business use. He performs many marketing
activities such as buying, selling, grading, risk-trading, and
developing information about customer's wants.
 LITERATURE REVIEW OF RETAIL
MARKETING
PINAKIRANJAN BHATTACHARYYA & SOURAV
LAHA (2010): Indian retail industry is the largest industry in
India, with the employment of around 8% and contributing to
over 10% of the countrys GDP.
NITYANAND SINGH (2010): The Indian sector is highly
fragmented with 97% of its business being run by the
unorganized retailers like the traditional family run stores. The
sector is the largest source of employment after agriculture and
has deep penetration into rural India.
 CONTINUED
KAMALADEVI B. (2010): Based on the result of these studies, it is
also possible to access the economic benefits of the governmental
incentives to attract multinational enterprises MNES.

(MATHEW JOSEPH, NIRUPAMA

SOUNDARARAJAN, IMPACT OF ORGANIZED
RETAILING ON UNORGANIZED SECTOR (2008):
India should not be afraid to encourage modernization in the retail
sector. It is surprising why there are doubts about resilience of
traditional Indian retailer.
OBJECTIVE OF THE STUDY
1.TO STUDY THE RETAIL SECTOR ON
VARIOUS PARAMETERS.
2. TO JUDGE THE SATISFACTION LEVEL
OF CONSUMERS.
 RESEARCH METHODOLOGY
1. SAMPLING METHODOLOGY:-
Sample size 100 students
Sample area jalandhar city.
Sampling technique chi square, factor analysis.
2. RESEARCH DESIGN:- visited the various
respondents and gathered information
required as per the questionnaire.
3.
 Continued
3. DATA COLLECTION
A) primary data:- primary data has been
collected from the 100 respondents by the
questionnaire method.
B)SECONDARY DATA:- secondary data has
been collected from various sites like www.big
consultant.com, www.india briefing
news.com., www.mairec.org. etc.
 SWOT ANALYSIS OF RETAIL
MARKETING
STRENGTH
ORGANIZED RETAILING AT 3.31BILLION, GROWING AT 8%.
IMPROVEMENT STANDARD OF LIVING.
2ND LARGEST CONTRIBUTOR TO GDP AFTER
AGRICULTURE AT 20%.
PATTERN OF CONSUMPTION CHANGING ALONG WITH
SHOPPING TRENDS.
CONSUMER SPENDING INCREASING AT 11% ANNUALLY.
 WEAKNESS
LACK OF TRAINED MANPOWER.
INADEQUATE INFRASTRUCTURE.
LACK OF HUGE INVESTMENT FOR
EXPANSION.
LACK OF INDUSTRY STATUS.
WEAK BRAND IMAGE THAN
COMPETITORS
 OPPORTUNITIES
INCREASE IN CONSUMING MIDDLE CLASS POPULATION.

SPEND MOVING TOWARDS LIFESTYLE PROUCTS.

INCREASE IN USE OF CREDIT CARDS.

UPCOMING INTERNATIONAL PLAYERS.

FAST EVOLVING SHOPPING MALL FORMATS.

INVESTMENT OPPORTUNITIES
 CHALLENGES
TAX STRUCTURE IN INDIA FAVOURS SMALL
RETAIL BUSINESS.

HIGH COST OF REAL ESTATE.

LOW RETAIL MANAGEMENT SKILL.

DECREASE CUSTOMER DEMAND, RECESSIONS,

PRICE WAR AMONG COMPETITORS.
 WHAT IS RETAIL MARKETING

Retail is derived from the French word RETAILLER

which means to cut A piece off or to break bulk.
First point of customer contact.
Consumption is by the end customer.
Retailer is the process who sell goods in small quantities
 FUNCTINS OF RETAIL MARKETING
Buying and assembling of goods.
Storage of goods.
Credit facility.
Personal services.
Display of goods
 CLASSIFICATION OF RETAIL SECTOR
1. FOOD RETAILERS
There are large number and variety of retailers in the food-
retailing sector. Traditional types of retailers, who operate small
single-outlet businesses mainly using family labour, dominate
this sector.

2. HEALTH & BEAUTY PRODUCTS

With growth in income levels, Indians have started spending
more on health and beauty products. Here also small, single-
outlet retailers dominate the market.
 CONTINUED
3. CLOTHING & FOOTWEAR
Numerous clothing and footwear shops in shopping centers and
markets operate all over India. Traditional outlets stock a limited
range of cheap and popular items; in contrast, modern clothing
and footwear stores have modern products and attractive displays
to customers.
4. DURABLE GOOD
The Indian durable goods sector has seen the entry of a large
number of foreign companies during the post liberalization
period.
 CONTINUED
5. LEISURE & PERSONAL GOODS

Increasing household incomes due to better economic

opportunities have encouraged consumer expenditure on leisure and
personal goods in the country.
 GROWTH OF RETAIL SECTOR
AN INCREASING NUMBER OF PEOPLE IN INDIA ARE
TURNING TO THE SERVICE SECTOR FOR
EMPLOYMENT DUE TO THE RELATIVE LOW
COMPENSATION OFFERED BY THE TRADITIONAL
AGRICULTURE AND MANUFACTURING SECTORS. THE
ORGANIZED RETAIL MARKET IS GROWING AT 3.5
PERCENT ANNUALLY WHILE GROWTH OF
UNORGANIZED RETAIL SECTOR IS PEGGED AT 6
PERCENT.
 CONTINUED
ACCORDING TO REPORT, ORGANIZED RETAIL
ACCOUNTS FOR 7% OF INDIAS ROUGHLY $435
BILLION RETAIL MARKET AND IS EXPECTED TO BE
REACH 20% BY 2020. FOOD ACCOUNTS FOR 70% OF
INDIAN RETAIL, BUT IT REMAINS UNDER PENETRATED
BY ORGANIZED RETAIL. ORGANIZED RETAIL HAS A
31% SHARE IN CLOTHING AND APPAREL AND
CONTINUES TO SEE GROWTH IN THIS SECTOR.
 CONTINUED
India's retail market is expected to grow tremendously in next
few years. According to AT Kearney, The Windows of
Opportunity shows that Retailing in India was at opening stage
in 1995 and now it is in peaking stage in 2006. The first few
companies to come up with retail chains were in textile sector,
for example, Bombay Dyeing, S Kumar's, Raymonds, etc.
Later Titan launched retail showrooms in the organized retail
sector.
The evolution of the sector includes the continuous
improvement in the supply chain management, distribution
channels, technology, back-end operations, etc. this would
finally lead to more of consolidation, mergers and acquisitions
and huge investments.
 CONTINUED
Organized retail business in India is very small but
has tremendous scope.
Historical /rural reach - weekly mkt village fair
melas
Traditional reach - convenience store/kirana
Government supported - khadi and village stores
Modern format - super market dept. store
 MAJOR TYPE OF RETAIL SECTOR
IT IS IN RETAILING THAT VERY DRASTIC CHANGES
HAVE BEEN OCCURRED DURING THE LAST TWO
DECADES. SOME INSTITUTIONS HAVE DISAPPEARED
WHEREAS NEWER ONES HAVE BEEN ADDED. THIS
PROCESS OF DELETION/ ADDITION STILL CONTINUES IN
NEWER FORMS. THE INSTITUTIONS CARRYING ON THE
RETAIL BUSINESS CAN BE CLASSIFIED AS UNDER :

A.IN-STORE RETAILING
B.NON-STORE RETAILING
 IN- STORE RETAILING
1. DEPARTMENT STORES

DEPARTMENT STORES CONSIST OF SEPARATE SECTIONS,

KNOWN AS DEPARTMENTS SUCH AS CLOTHING, SPORTING
GOODS, AUTOMOTIVE SUPPLIES, HEALTH & BEAUTY
PRODUCTS AND ELECTRONIC EQUIPMENT. SOME DEPARTMENT
STORES MAY ALSO SELL FOOD PRODUCTS.
2.GROCERY STORES
GROCERY STORES SELL PACKAGED DRY FOOD PRODUCTS AS
WELL AS PERISHABLE ITEMS LIKE PRODUCE, DAIRY AND MEAT
PRODUCTS.GROCERY STORES ALSO SELL NON- FOOD ITEMS
SUCH AS STATIONERY SUPPLIES, COOKWARE, HEALTH &
BEAUTY PRODUCTS. LARGER GROCERY STORES MAY INCLUDE
FEATURES LIKE FAST FOOD RESTAURANTS AND FLOWER SHOPS
AS WELL AS MODERN CONVENIENCE LIKE INTERNET CAFES.
 3.SPECIALITY STORES
SPECIALTY STORES SELL SPECIFIC TYPES OF
MERCHANDISE SUCH AS JEWELLERY, ELECTRONIC
EQUIPMENT OR TOYS. THE SPECIALTY STORES MAY
FURTHER DIVIDED INTO DIFFERENT CATEGORIES
WITHIN THE SPECIALTY.
 4. HYPER MARKET
IN COMMERCE, A HYPERMARKET IS A STORE WHICH COMBINES
A SUPERMARKET & DEPARTMENT STORES. THE RESULT IS A
GIGANTIC RETAIL FACILITY WHICH CARRIES AN ENORMOUS
RANGE OF PRODUCTS UNDER ONE ROOF, INCLUDING FULL
LINES OF FRESH GROCERIES AND APPARELS.
 5.SUPERMARKET

SUPERMARKETS USUALLY OFFER PRODUCTS AT LOW PRICES BY

REDUCING MARGINS. TO MAINTAIN A PROFIT, SUPERMARKETS
ATTEMPT TO MAKE UP FOR THE LOW MARGINS WITH A HIGH
VOLUME OF SALES. CUSTOMERS USUALLY SHOP BY PUTTING
THEIR PRODUCTS INTO TROLLEYS OR BASKETS AND PAY FOR THE
PRODUCTS AT THE CHECKOUT.
NON-STORE RETAILING
A LARGE MAJORITY ABOUT 80% OF RETAIL TRANSACTIONS ARE
MADE IN RETAIL STORES. HOWEVER, A GROWING VOLUME OF
SALES IS TAKING PLACE AWAY FROM STORES. RETAILING
ACTIVITIES RESULTING IN TRANSACTIONS THAT OCCUR AWAY
FROM A PHYSICAL STORE ARE CALLED NON-STORE RETAILING.
IT IS ESTIMATED THAT NON-RETAIL STORES ACCOUNT FOR
ALMOST 20% OF TOTAL RETAIL TRADE. FOLLOWING ARE THE
THREE TYPES OF NON- STORE RETAILING:
 CONTINUED
DIRECT SELLING
Direct selling refers to personal contact between a sales
person and a consumer away from a retail store. This
type of retailing has also been called in home selling.

TELEMARKETING
Telemarketing refers to a sales person initiating contact
with a shopper and closing a sale over the telephone.
 ON- LINE RETAILING
When a firm uses its website to offer products for sale
and then individuals or organizations use their
computers to make purchases from this company, the
parties have engaged in electronic transactions (also
called on line selling or internet marketing).
 EVOLUTION OF RETAIL SECTOR
Retailing is one of the biggest sectors and it is
witnessing revolution in India. The new
entrant inRetailing in India signifies the
beginning of retail revolution. India's retail
market is expected to grow tremendously in
next few years. According to AT Kearney, The
Windows of Opportunity shows that Retailing
in India was at opening stage in 1995 and now
it is in peaking stage in 2006.
 CONTINUED
Eventually the government supported the rural
retail and many indigenous franchise stores came
up with the help of Khadi& Village Industries
Commission. The economy began to open up in
the 1980s resulting in the change of retailing. The
first few companies to come up with retail chains
were in textile sector, for example, Bombay
Dyeing, S Kumar's, Raymonds, etc. Later Titan
launched retail showrooms in the organized retail
sector.
 CONTINUED
Shopping malls emerged in the urban areas giving a
world-class experience to the customers. Eventually
hypermarkets and supermarkets emerged. The evolution
of the sector includes the continuous improvement in the
supply chain management, distribution channels,
technology, back-end operations, etc. India's retail market
is expected to grow tremendously in next few years. India
shows US$330 billion retail market that is expected to
grow 10% a year, with modern retailing just beginning. In
India, the most of the retail sector is unorganized. The
main challenge facing the organized sector is the
competition from unorganized sector.
ANALYSIS AND
INTERPRETATIONS