What Is Retailing?

Retail consists of the sale of physical goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be individuals or businesses. In commerce, a "retailer" 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. 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 (B2C) transactions and mail order, are forms of non-shop retailing. A marketplace is a location where goods and services are exchanged. The traditional market square is a city square 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

Types of Retailing In 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 follows: Food products Hard goods ("hardliner retailers") - appliances, electronics, furniture, sporting goods, etc. Soft goods - clothing, apparel, and other fabrics. There are the following types of retailers by marketing strategy:

Department 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. Discount stores- tend to offer a wide array of products and services, but they compete mainly on price offers extensive assortment of merchandise at affordable and cut-rate prices. Normally retailers sell less fashion-oriented brands. Supermarkets- sell mostly food products; Warehouse stores- warehouses that offer low-cost, often high-quantity goods piled on pallets or steel shelves; charge a membership fee; Variety Stores or "dollar stores" - these offer extremely low-cost goods, with limited selection;

Demographic - retailers that aim at one particular segment (e.g., high-end retailers focusing on wealthy individuals).

Speciality stores: A typical speciality 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. However, branded stores also come under this format. For example if a

customer visits a Reebok or Gap store then they find just Reebok and Gap products in the respective stores.

Retailing in India Retailing is one of the pillars of the economy in India and accounts for 13% of GDP. The retail industry is divided into organized and unorganized sectors. Over 12 million outlets operate in the country and only 4% of them being larger than 500 sq ft (46 m2) in size. Organized retailing refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. These include the corporate-backed hypermarkets and retail chains, and also the privately owned large retail businesses. Unorganized retailing, on the other hand, refers to the traditional formats of low-cost retailing, for example, the local shops, owner manned general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc. Most Indian shopping takes place in open markets and millions of independent grocery shops called kirana. Organized retail such supermarkets accounts for just 4% of the market as of 2008. Regulations prevent most foreign investment in retailing. Moreover, over thirty regulations such as "signboard licenses" and "anti-hoarding measures" may have to be complied before a store can open doors. There are taxes for moving goods to states, from states, and even within states. An increasing number of people in India are turning to the services sector for employment due to the relative low compensation offered by the traditional agriculture and manufacturing sectors. The organized retail market is growing at 35 percent annually while growth of unorganized retail sector is pegged at 6 percent. The Retail Business in India is currently at the point of inflection. Rapid change with investments to the tune of US $ 25 billion is being planned by several Indian and multinational companies in the next 5 years. It is a huge industry in terms of size and according to India Brand Equity Foundation (IBEF), it is valued at

about US$ 395.96 billion. Organised retail is expected to garner about 16-18 percent of the total retail market (US $ 65-75 billion) in the next 5 years. India has topped the A.T. Kearneys annual Global Retail Development Index (GRDI) for the third consecutive year, maintaining its position as the most attractive market for retail investment. The Indian economy has registered a growth of 8% for 2007. The predictions for 2008 are 7.9%. The enormous growth of the retail industry has created a huge demand for real estate. Property developers are creating retail real estate at an aggressive pace and by 2010, 300 malls are estimated to be operational in the country. With over 1,000 hypermarkets and 3,000 supermarkets projected to come up by 2011, India will need additional retail space of 700,000,000 sq ft (65,000,000 m2) as compared to today. Current projections on construction point to a supply of just 200,000,000 sq ft (19,000,000 m2), leaving a gap of 500,000,000 sq ft (46,000,000 m2) that needs to be filled, at a cost of US$1518 billion. According to the Icier report, the retail business in India is estimated to grow at 13% from $322 billion in 2006-07 to $590 billion in 2011-12. The unorganized retail sector is expected to grow at about 10% per annum with sales expected to rise from $ 309 billion in 2006-07 to $ 496 billion in 2011-12

The Indian Retail Market

Indian market has high complexities in terms of a wide geographic spread and distinct consumer preferences varying by each region necessitating a need for localization even within the geographic zones. India has highest number of outlets per person (7 per thousand) Indian retail space per capita at 2 sq ft (0.19 m2)/ person is lowest in the world Indian retail density of 6 percent is highest in the world. 1.8 million households in India have an annual income of over 45 lakh (US$100,350). Delving further into consumer buying habits, purchase decisions can be separated into two categories: status-oriented and indulgence-oriented. CTVs/LCDs, refrigerators, washing machines, dishwashers, microwave ovens and DVD players fall in the status category. Indulgence-oriented products include plasma TVs, stateof-the-art home theatre systems, iPods, high-end digital cameras, camcorders, and gaming consoles. Consumers in the status category buy because they need to maintain a position in their social group. Indulgence-oriented buying happens with those who want to enjoy life better with products that meet their requirements. When it comes to the festival shopping season, it is primarily the status-oriented segment that contributes largely to the retailers cash register. While India presents a large market opportunity given the number and increasing purchasing power of consumers, there are significant challenges as well given that over 90% of trade is conducted through independent local stores. Challenges include: Geographically dispersed population, small ticket sizes, complex distribution network, and little use of IT systems, limitations of mass media and existence of counterfeit goods.

Growth of Indian Retail According to the 8th Annual Global Retail Development Index (GRDI) of AT Kearney, India retail industry is the most promising emerging market for investment. In 2007, the retail trade in India had a share of 8-10% in the GDP (Gross Domestic Product) of the country. In 2009, it rose to 12%. It is also expected to reach 22% by 2010. According to a report by Northbride Capita, the India retail industry is expected to grow to US$ 700 billion by 2010. By the same time, the organized sector will be 20% of the total market share. It can be mentioned here that, the share of organized sector in 2007 was 7.5% of the total retail market. The Indian retail sector is estimated to have a market size of about $ 180 billion; but the organised sector represents only 2% share of this market. Most of the organised retailing in the country has just started recently, and has been concentrated mainly in the metro cities. India is the last large Asian economy to liberalize its retail sector. In Thailand, more than 40% of all consumer goods are sold through the super markets and departmental stores. A similar phenomenon has swept through all other Asian countries. Organised retailing in India has a huge scope because of the vast market and the growing consciousness of the consumer about product quality and services.

The Indian retail sector can be broadly classified into: a) FOOD RETAILERS

There are large number and variety of retailers in the foodretailing sector. Traditional types of retailers, who operate small single-outlet businesses mainly Using family labour, dominate this sector .In comparison, super markets account for a small proportion of food sales in India. However the growth rate of super market sales has being significant in recent years because greater numbers of higher income Indians prefer to shop at super markets due to higher standards of hygiene and attractive ambience. b) 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 .However in recent years, a few retail chains specializing in these products have come into the market. Although these retail chains account for only a small share of the total market , their business is expected to grow significantly in the future due to the growing quality consciousness of buyers for these products . c) 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 lure customers. However, with rapid urbanization, and changing patterns of consumer tastes and preferences, it is unlikely that the traditional outlets will survive the test of time. d) HOME FURNITURE & HOUSEHOLD GOODS Small retailers again dominate this sector. Despite the large size of this market, very few large and modern retailers have established specialized stores for these products. However there is considerable potential for the entry or expansion of specialized retail chains in the country. e) DURABLE GOODS The Indian durable goods sector has seen the entry of a large number of foreign

companies during the post liberalization period. A greater variety of consumer electronic items and household appliances became available to the Indian customer. Intense competition among companies to sell their brands provided a strong impetus to the growth for retailers doing business in this sector.

f) LEISURE & PERSONAL GOODS Increasing household incomes due to better economic opportunities have encouraged consumer expenditure on leisure and personal goods in the country. There are specialized retailers for each category of products (books, music products, etc.) in this sector. Another prominent feature of this sector is popularity of franchising agreements between established manufacturers and retailers.

PRESENT INDIAN SCENARIO Unorganized market: Rs. 583,000 crores Organized market: Rs.5, 000 crores 5X growth in organized retailing between 2000-2005 Over 4,000 new modern retail outlets in the last 3 years Over 5,000,000 sq. ft. of mall space under development The top 3 modern retailers control over 750,000 sq. ft. of retail space Over 400,000 shoppers walk through their doors every week Growth in organized retail on par with expectations and projections of the last 5 Years on course to touch Rs. 35,000 crores (US$ 7 Billion) or more by 2010-11

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 electronics 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 2011. Segments include Food & grocery, e-tailing, home solutions, consumer electronics, entertainment, shoes, books, music & gifts, health & beauty care service

The Future The retail industry in India is currently growing at a great pace and is expected to go up to US$ 833 billion by the year 2013. It is further expected to reach US$ 1.3 trillion by the year 2018 at a CAGR of 10%. As the country has got a high growth rates, the consumer spending has also gone up and is also expected to go up further in the future. In the last four year, the consumer spending in India climbed up to 75%. As a result, the India retail industry is expected to grow further in the future days. By the year 2013, the organized sector is also expected to grow at a CAGR of 40%.

Conclusion
In India the retail sector is the second largest employer after agriculture, although it is highly fragmented and predominantly consists of small independent, owner managed shops .There are over 12 million retail outlets in India , and organised retail trade is worth about Rs.12,90,000 crore . The country is witnessing a period of boom in retail trade, mainly on account of a gradual increase in the disposable incomes of the middle and uppermiddle class households. More and more corporate houses including large real estate companies are coming into the retail business, directly or indirectly, in the form of mall and shopping center builders and managers. New formats like super markets and large discount and department stores have started influencing the traditional looks of bookstores, furnishing stores and chemist shops. The retail revolution, apart from bringing in sweeping, positive changes in the quality of life in the metros and bigger towns, is also bringing in slow changes in lifestyle in the smaller towns of India. Increase in literacy, exposure to media, greater availability and penetration of a variety of consumer goods into the interiors of the country, have all resulted in narrowing down the spending differences between the consumers of larger metros and those of smaller towns. However, the supply of quality real estate space would be instrumental in propelling the future growth momentum of the retail sector in India. The addition of better and affordable retail space would enable retailers to deliver more better-quality products and services to the consumers, resulting in increase in operational efficiencies and decline in costs for the supply chain. India is one of the complex real estate markets in the world due to the large degree of variation and inconsistence in the market practice and regulatory norms. A combined effort by both central and state governments in terms of appropriate zoning laws, transparency in ownership, and availability of loans for retail land, is very much necessary for reducing existing bottlenecks.

Accordance of industry status to retail in India is an issue that needs to be addressed soon. Recognition would ease financing prospects, as well as standardize and unify taxes for the industry. An alignment of the retail sector with the tourism sector could also promote India as a global shopping hub. For the retail sector to achieve further growth, the spread of organised retailing has to become a national phenomenon. According to KSA Technopak, a leading consulting firm, the organised sector will grow to almost Rs.30, 000 crores by 2005, representing 6% of the total retail market. The top 6 cities will account for 66% of total organised retailing. Although many international retailers and brands still regard India as too difficult, they would welcome the opportunity to create an appropriate joint venture, if they felt India was changing. The growth of the organised retail industry in the country will mean thousands of new jobs, increasing income levels and living standards, better products, and services, a better shopping experience, and more social activities.

The Raymond Shop

The Raymond Shop is a premium retail store offering complete wardrobe solutions to the discerning man through its range of fine fabrics for suits, jackets, trousers, shirts & finely crafted garments from Raymond, contemporary range of readymades from Park Avenue, stylish casual wear for occasions beyond work from Parx, smart casuals from ColorPlus and luxury formals from Manzoni. It also offers Made to Measure a unique offering for a perfect comfort fit. Added to this is a quality Custom Tailoring service which makes The Raymond Shop an ideal destination for anyone to look good and feel great. The Raymond Shop has been a pioneer in organized retailing in the country starting around five decades ago. The Raymond Shops wide reach and range of products, makes it the largest one stop retail network in the country. This chain of shops has over the years become a yardstick by which other retail stores are judged. The retail chain constantly sets new standards and creates environments that make shopping a pleasure. The Raymond Shop is a premium retail store offering complete wardrobe solutions to the discerning man through its range of fine fabrics for suits, jackets, trousers, shirts & finely crafted garments from Raymond, contemporary range of readymades from Park Avenue, stylish casual wear for occasions beyond work from Parx,

smart casuals from ColorPlus and luxury formals from Manzoni. It also offers Made to Measure a unique offering for a perfect comfort fit. Added to this is a quality Custom Tailoring service which makes The Raymond Shop an ideal destination for anyone to look good and feel great.

Brands under Raymond To let customers soak in the brand experience, Raymond has setup exclusive brand stores. Each store makes available to customers the entire product range of garments and accessories. These provide customers a unique and leisurely shopping experience while also presenting them a new look to suit every new occasion be it formal, casual, outdoor, travel or occasion wear.

The Raymond Shop is a premium retail store offering complete wardrobe solutions for men, which includes topof-the-line brands Raymond, Manzoni, Park Avenue, ColourPlus and Parx.

The Park Avenue store offers the perfect premium lifestyle experience and addresses the customers need for Business, Evening, Leisure, Travel and Heritage Wear.

Exclusive stores where one can shop for smart casual shirts, trousers and elegant accessories.

Get a cool trendy makeover for that chilled out out of office look!

Raymond is one of India's largest and oldest clothing and apparel companies. In the last fiscal, it exited its loss-making overseas operations and shut down its Thane plant. Its strong brand 'Raymond' has allowed it to bypass wholesalers and increase its retail presence. The company has built a robust distribution network, reaching out to over 400 towns. Most of these stores are franchisees and the inventory is bought out by these franchisees without any recourse to the company. This makes it an asset light mode The company, which sells apparel brands such as Manzoni, Park Avenue, Parx and ColorPlus, had revenues of 8 billion rupees from its apparel division in 2009/10. Raymond expects revenue of its biggest brand, Park Avenue, to grow 30 percent year-onyear."Park Avenue is a 5-billion-rupee brand and we expect sales from this to grow at least 30 percent in FY12," Singhania said. The company is also planning to launch additional branded outlets for Park Avenue in the next financial year. Singhania said the firm plans to open 100 new retail stores under the brand Raymond in FY12. Raymond Ltd, the textile and apparel major owning brands like Color Plus, Park Avenue, Parx, Manzoni, Be, and Zapp children wear, is aiming to increase its retail top line to Rs 1100 crore by 2010 from Rs 700 crore at present. Aniruddha Deshmukh,

Raymond's president for retail and FMCG, said the company's retail expansion strategy will lead to growth. The plan is to increase the number of retail stores to 950 by 2010 from 430 at present across the globe, he said. Of the 430 retail stores, comprising The Raymond Shop and exclusive brand outlets, across 170 cities on 10 lakh sqft, 355 are The Raymond Shop, of which 328 are in India and 27 abroad. Deshmukh said the company has all along been stressing on the franchisee model with 90% of The Raymond Shop being franchised out as it attains a quicker breakeven. Thus, the expansion plan would also put emphasis on the model. Exclusive brand outlets are all Raymondowned. Generally, these exclusive brand outlets and The Raymond Shop in the malls take longer in breaking even. Since expansion would involve a huge investment, late breakeven would put pressure on the company's bottom line, Deshmukh said. Although he did not disclose the expansion investment, Deshmukh said Raymond would be covering 20 lakh sqft retail space by 2010. He said to further strengthen its retail presence, Raymond will focus on tier-II, III, IV and V cities. At present, it has 76 stores in small towns, which contribute around 12-13% to its total turnover.

Bibliography

WWW.WIKIPEDIA.COM WWW.GOOGLE.COM WWW.RAYMONDINDIA.COM WWW.YAHOO.COM

Creating the finest suiting in the world

Over time, Raymond has mastered the craft of producing the finest suitings in the world using super fine wool (with a fine count from 80s to 240s) and blending the same with superfine polyester and other specialty fibres like Cashmere, Angora, Alpaca, Pure Silk, Linen etc.

We also produce and market plush-velvet furnishing fabric in a wide array of designs and colours for Indian and overseas markets. Technological Breakthroughs to our Credit Raymond has been pioneering technological breakthroughs over the years and was the first to introduce Polyester-Wool and Polyester-Wool-Viscose in the Indian market. During the last decade many path breakthroughs were made. 1995: Superfine pure wool collection under the Lineage Line (Super 100s to Super 140s).

1996: The Renaissance Collection made of Merino wool blended with polyester and specialty fibres (Super 100s to Super 140s).

1999: The Chairman's Collection of Super 150s made from Merino Wool and Cashmere followed by Super 160s to Super 190s. 2002: Super 200s (13.5 microns) fabrics under the Chairman's Collection. 2003: Applause Wool-Rich home washable suiting. 2003: Super 210s (13.2 microns) fabrics under the Chairman's Collection. 2004: Super 220s (12.7 microns) fabrics under the Chairman's Collection. 2005: Raymond achieved a historical milestone with the creation of the world's finest worsted-suiting fabric from the finest wool ever produced in the world- The Super 230s fabric made up of 11.8 micron of wool.

2005: Launch of 'Expressions' an exquisite collection of all wool and polywool suiting fabric specially crafted using exotic fibres like Cashmere, Angora, Mohair, Bamboo, Casein.

Sterling College of Arts, Commerce and Science

Topic: Indian Retail Scenarios

Name: Aniket Y. Khot Course: S.Y.B.M.S Roll No: 27 Subject: Marketing Management

Submitted To:Prof. Ipshita Das

Index
Sr. no 1 2 3 4 5 6 What Is A retailing? Retailing in India Indian Retail Market Growth & future Example Conclusion Content