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Retail Marketing: An Empirical Study
Introduction
Retailing is one of the world’s largest industries. It is in a permanent stateof change, and the pace of this change has been accelerating over the lastdecade. From the marketing perspective, retailers are, by definition, closer to theconsumer than manufacturing companies. Retailers represent the culmination of the marketing process and the contact point between consumers andmanufactured products. While retailing has long set buying decisions as itshighest priority and was very focused on the product assortment, it now follows amore holistic approach to management and marketing and is seizing theopportunity to be consumer oriented, engage in the personal contact withcustomers, gather information on consumer behaviour and exploit insights intoconsumer behaviour and preferences. What was once a simple way of doingbusiness is transforming into a highly sophisticated form of management andmarketing. Retail marketing consistently features more efficient, more meaningfuland more profitable marketing practices.Today retail, which is derived into organized and unorganized, is emergingrapidly as a big industry all over the world and hence, India is also not untouchedwith this. So there is a need to know the current and the future trends of retail inIndia. For the third year in a row, India has topped AT Kearney’s annual GlobalRetail Development Index (GRDI). The Indian retail market is expected to growfrom the current US$ 350 billion to US$ 427 billion by 2010. This study will be
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Retail Marketing: An Empirical Study
based on the latest retail trends being adopted by the companies, why the bigfishes are showing their interest in this sector particularly. Of the current size,organized retail – or modern retail – constitutes only 3 to 4 percent i.e. US $8billion (36,000 crore INR approx). The rest of the retail pie is crowded withunorganized retail – or the traditional shops. India’s retail market which is seenas THE GOLDMINE by global players, has grabbed attention of the mostdeveloped nations.
4%96%organisedunorganised10%90%organisedunorganised
Current PositionPosition By 2010Fig. 1.1Market estimates say that by 2010, organised retail will form 10 percent of the pie – up substantially from the current 3 to 4 percent. According toEuromonitor International, the entire sector will grow – in value terms – by 39.6percent between 2006 and 2011. This means that it will strike an average agrowth of rate of almost 7 percent annually. According to the Indian Brand EquityFoundation (IBEF), “Driven by changing lifestyles, strong income growth andfavourable demographic patterns, Indian retail is expanding at a rapid place. Thecountry may have 600 new shopping centres by 2010. Mall space from a meager 
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Retail Marketing: An Empirical Study
one million square feet in 2002, is expected to touch 40 million square feet byend – 2008.”Retail is the accumulation of various marketing practices directed towardsproviding the best merchandise available. It consists of the sale of goods or merchandise, from a fixed location such as a big department store or a smallstore (the kirana shop), in small or individual lots for direct consumption by thepurchaser. Retailing may include subordinated services, such as delivery. Aretailer buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells smaller quantities to the end-user i.e., the consumer or the end-buyer. In the supplychain, retailers come at the end, just before the consumer.Manufacturer 
Wholesaler 
Retailer 
Consumer Manufacturer 
Retailer 
Consumer Fig. 1.2“Retailing includes all activities involved in selling goods or servicesdirectly to final consumers for personal, non-business use. A retailer or retailstore is any business enterprise whose sales volume comes primarily fromretailing.” Retail is India's largest industry, accounting for over 10 per cent of thecountry's GDP and around eight per cent of the employment. Retail industry inIndia is at the crossroads. It has emerged as one of the most dynamic and fastpaced industries with several players entering the market.The presence of 15 million
kirana
stores brings into light the very fact thatthe Indian retail industry is highly fragmented/ unorganized. Retailing in India is
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