Amarish Thesis Retail Marketing in India

Retail Marketing in India.
RETAIL MARKETING IN INDIA
A RESEARCH REPORT
Submitted in partial fulfillment of the requirements for the post Graduate Diploma in Management (PGDM)
By:
Amrish Kumar Yadav PGDM- 200 -!0
"#d$r Th$ Guida#%$ &':

Mr( Gaurav A))ar*a+ ,u-mi..$d T/: Mr( Gaurav A))ar*a+
GREATER N&IDA IN,TIT"TE &0 MANAGEMENT Gr$a.$r N/ida
,YN&P,I, Th$sis Ti.+$: R$.ai+ Mar1$.i#) i# I#dia
I#.r/du%.i/#: The Indian retail industry is now beginning and growing day by
day The !on!ept of retail whi!h in!ludes the shop"eeper to !ustomer intera!tion# has ta"en many forms and dimensions# from the traditional retail outlet and street lo!al mar"et shops to ups!ale multi brand outlets# espe!ially stores or departmental stores In this thesis# I had fo!using on two aspe!ts of retail mar"eting i e ,./r$ R$.ai+i#) and N/# s./r$ R$.ai+i#) ,./r$ R$.ai+i#): Store $etailing in!ludes departmental store# whi!h is a store or multi brand outlet# offering an %arity of produ!ts in &arious !ategories under one roof# trying to !ater to not one or two but many segments of the so!iety N/# s./r$ R$.ai+i#) : 'on store $etailing In!ludes dire!t selling# dire!t mar"eting# automati! &ending Therefore# this !on!ept of retail mar"eting through departmental stores# whi!h is !oming up in a big way in India was de!ided to be studied in detail# through an e(ploratory and !on!lusi&e resear!h
&-2$%.iv$:The o&er all ob)e!ti&e of the thesis is to study the !on!ept of $etail Mar"eting in India &B3E4TI5E :
$etailing in India * Past# present and future
+uture growth potential of $etail Mar"eting in India ,ow do Indian retailers sell their produ!t .hi!h International retailers eyeing Indian mar"et
&B3E4TI5E
The o&er all ob)e!ti&e of the thesis is to throw light on $etail Mar"eting in India ,"B &B3E4TI5E :
$etailing in India * Past# present and future +uture growth potential of $etail Mar"eting in India ,ow do Indian retailers sell their produ!t .hi!h International retailers eyeing Indian mar"et
RE,EAR46 MET6&D&L&GYT
The methods adopted to fulfill the ob)e!ti&e of the study that in!luded !olle!ting primary and se!ondary data I !ondu!ted the sur&ey in order to gather the information/s from the "nowledgeable person of retail stores on the isssue re&erent to my thesis topi!
Th$ s$%/#dary da.a %/++$%.$d 'r/m :

Maga0ines 1ournals .eb sited : The +ran!hising .orld Indian Management ***('ra#%his$i#dia(%/m www "sate!hnopa" !om
INTR&D"4TI&N
Any business that directs its marketing efforts towards satisfying the final consumer based upon the organization of selling goods and services as a means of distribution
2 retailer or retail store is any business enterprise whose sales &olume !omes primarily from retailing $etail organi0ations e(hibit great &ariety and new forms "eep emerging There are store retailers# non store retailers# and retail organi0ations 3onsumers today !an shop for goods and ser&i!es in a wide &ariety of stores The best4 "nown type of retailer is the department store 1apanese department stores su!h as Ta"ashimaya and Mitsu"oshi attra!t millions of shoppers ea!h year These stores feature art galleries# !oo"ing !lasses# and !hildren/s playgrounds 2 retailer is at the end of the distributi&e !hannel ,e pro&ides goods and ser&i!e to the ultimate !onsumers This he does through his small organi0ation# with the help of a few personnel In an indi&idual retail store there is not mu!h s!ope for organi0ation e(!ept in the sense that the shop"eeper has to organi0e o apportions his time and resour!es The need for organi0ation be!omes essential as soon as he hires people o enters into partnership or ta"es the help of members of his family in running his store 2 retailer deals in an assortment of goods to !ater to the needs of !onsumers ,is ob)e!ti&e is to ma"e ma(imum profit out of his enterprise .ith that end in &iew he has to pursue a poli!y to a!hie&e his ob)e!ti&e This poli!y is !alled retailing mi( 2 retailing mi( is the pa!"age of goods and ser&i!es that store offers to the !ustomers for sale It is the !ombination of all efforts planned by the retailer and embodies the ad)ustment of the retail store to the mar"et en&ironment $etailing mi(# a !ommuni!ation mi( and a distribution mi( The ma(imum satisfa!tion to the !ustomers is a!hie&ed by a proper blend of all three The su!!ess of the retail stores# therefore# depends on !ustomers/ rea!tion to the retailing mi( whi!h influen!es the profits of the store# its &olume of turno&er# its share of the mar"et# its image and status and finally its sur&i&al There are three main phases in the life of a retailing institution These are: 4 Inno&ation ( 5ntry ) Trading 6p %ulnerability In the entry stage# a new retailer enters with new pri!e appeal# limiting
In the entry stage# a new retailer enters with new pri!e appeal# limiting produ!t offerings# Sparton Stores 7 8imited ser&i!es Its monopoly power o&er the others is its pri!e ad&antage# whi!h means that it offers produ!ts at low pri!es so as to get a !ompetiti&e edge o&er its !ompetitors
I#dia# R$.ai+: Th$ R/ad Ah$ad
.ith around 9:; !ontribution to the GDP and <; employment of the national wor"for!e# retailing no doubt is a strong pillar of the Indian e!onomy .hat it requires is more !orporate ba!"ed retail operations that ha&e started to emerge o&er the past !ouple of years =ear >??9 has been an important year in the history of retailing when .al4Mart emerged as @ 9 !ompany in the +ortune A?? list This has ne&er happened before when a retailer was at the top of the list B&er A? of the +ortune A?? !ompanies are retailers and >A of the 2sian Top >?? !ompanies are retailers 2lso# in terms of shareholders &alue it has performed !onsiderably better than the ban"ing# insuran!e and !onsumer industries yielding a return on in&estment of 9C; ,owe&er# when we loo" at Indian retail in the global !onte(t it bears no water Instead of !omparing total global retail industry with Indian retail industry# lets !ompare .al4Mart alone with Indian retailers ,ere are ten interesting fa!ts:
9 The annual turno&er of .al4Mart (Sales in >??9 were D>9E billion) is higher than the si0e of Indian retail industry (estimated at about D9C? billion) and almost 9?? times more than the turno&er of ,88 (IndiaFs largest +M3G !ompany) > The si0e of any .al4Mart store is mu!h higher than the si0e of any e(isting shopping mall in India : .al4Mart has o&er G#C?? stores (o&er G< million square meters) where as none of IndiaFs large format store (ShoppersF Stop# .estside# 8ifestyle) ha&e more than 9? stores G 'ew stores opened annually by .al4Mart are about G>?# mu!h higher than all organi0ed Indian retailers put together A The sales per hour of D>> million are in!omparable to any retailer in the world 'umber of employees in .al4Mart are about 9 : million where as the entire Indian retail industry (one of the most fragmented in the world) employs about three million people H .al4Mart has around :?#??? suppliers throughout the world and more than H??#??? SI6Fs on its web site# a number that !annot be !ompared < Daily !ustomers are about 9A < million (almost equi&alent to MumbaiFs entire population) C Time between ea!h Jarbie Sale at .al4Mart is )ust two se!onds (same rate at whi!h babies are produ!ed in IndiaK) E Bne4day sales re!ord at .al4Mart (99L>:L?9) D9 >A billion (roughly two third of ,88Fs annual turno&er) 9? 'one of the Indian organi0ed retailer has &entured o&erseas where as .al4Mart is now in 9? !ountries and will e(pand to >9 !ountries in two years
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$etailing is the last mile infrastru!ture to a!!ess and deli&er goods to !onsumers $etail forms the ba!"bone of the nationFs deli&ery system and its importan!e !an be e(emplified by the networ" of 9A#??? I%I3 outlets whi!h support G la"h plus small and medium handi!raft manufa!turers a!ross the !ountry It also ser&es as the last mile infrastru!ture to the manufa!turers as well as the go&ernment for ta( !olle!tion +or instan!e# the su!!ess of the %2T proposal depends on its being able to be implemented at the retailer le&el# but nobody has !onsulted with them as a body yet on this issue +urthermore# retailing is also an important and large !ontributor to the GDP and a ma)or employment generator In India# for the last four years its !ontribution to the GDP was around 9:; The se!tor gainfully employs H4<; of the total wor"for!e in India
4ha#)i#) R$.ai+ La#ds%a7$

Indian retail is fragmented with o&er 9> million outlets operating in the !ountry and only G; of them being larger than A?? square feet in si0e This is in !omparison to ? E million outlets in 6S2# !atering to more than 9: times of the total retail mar"et si0e as !ompared to India Thus India has the highest number of outlets per !apita in the world with a widely spread retail networ" but with the lowest per !apita retail spa!e (M > sq ft per person) $e!ently# ma)ority of store formats ha&e hit India =et traditional format stores namely the "irana shops# panLbidi shop# hardware shops# wee"ly haats and ba0aars form the bul" +ormats li"e department stores# malls# spe!iality stores as well as dis!ounters are shaping the burgeoning organi0ed se!tor in India Though still in its infan!y with less than >; share of the retail se!tor# organi0ed retail has definitely stru!" its roots in India .hat we are loo"ing now are more !orporate ba!"ed organised retail operations Till se&en years ba!" organi0ed retail was largely restri!ted to
the southern India# barring the Jata !hain Brgani0ed retail has now shifted gears and is mo&ing ahead with a!!elerated speed throughout the !ountry# without any dire!t in!enti&e pro&ided by the go&ernment Brganised retail is growing at a rate of about G?; per annum o&er the last three years .ith a si0e of $s 9A#??? !rore (6SD : billion)# organi0ed retail is &ery mu!h on tra!" a!!ording to IS2 Te!hnopa"Fs pro)e!tions made in 9EEE based on in4house resear!h The pro)e!tions !laimed that organi0ed retail would grow to be a $s :A#??? !rore (6SD < 9 billion) by >??A
R$.ai+i#) i# I#dia 8 Pas.9 7r$s$#. a#d 'u.ur$
E:$%u.iv$ summary
$etailing# !onsidered a sunrise industry today after infote!h# is the most happening industry with almost all the big players &ying for a share of the !o&eted pie Juoyed by a strong in!rease in pri&ate !onsumption (see raph)# retailing is one industry that is waiting to e(plode
Today howe&er# organised retailing is less than > per !ent of the retailing industry in India# that is# about $s A#??? !rore (see table) Therefore# there is no real retail re&olution in IndiaN the industry is still in the stages of infan!y
Share of Brganised $etail

Total Retail (US $ Billion) Organised Retail (US $ Billion) % S are o! organised Retail. 1999 150 1.1 0.7 2002 180 3.3 1.8 2005 225 7 3.2
Sour!e: IS2 Te!hnopa!"

Brgani0ed retailing is bound to grow tremendously pro&ided the right mar"4eting strategies are adopted $etail businesses ha&e bro"en ran" and seem poised to surge ahead with renewed &igour# optimism# !onfiden!e and !ap4ability There is an in!redible amount of a!ti&ity in terms of !reation of retail4riented spa!e a!ross India 2s per some estimates# there are o&er >?? retail mall pro)e!ts under !onstru!tion or under a!ti&e planning stage spanning o&er >A !ities This may translate into o&er >A million sq ft of new retail spa!e in the mar"et within ne(t >G months ,uge retail formats# with high quality ambien!e and &ery !ourteous and ambi&alent sales staff# are the regular features of retail formats in most 2sian !ountries ,owe&er# in India e(!ept for a few big towns where modern retailing formats abound# these features are grossly missing 5TIG e(pe!ts organised retailing to slowly penetrate the se!ond rung and smaller towns whi!h will !atapult the growth rate for the se!tor 5&en though the big retail !hains are !on!entrating on the upper segment and selling produ!ts at higher pri!es li"e 3rossroads# 2"barallyFs and ShopperFs Stop# retail stores are sprouting that !ater to the needs of middle !lass .ith a huge middle !lass population# the retailers li"e $PGFs
+oodworld are tapping this mar"et The mar"et is flooded with produ!ts branded and unbranded The !ustomers are in a dilemma as to pi!" whi!h one Simon Jell of 2T Iearney says OThere is a !lose relation between the growth of brands and the growth of the organi0ed retailing 3ompanies selling branded produ!ts prefer to ha&e big and organi0ed retail outlets su!h as supermar"ets where they !an be differentiated from unbranded produ!tsO Though doubts ha&e been !ast on the future of Indian retailing it is our belief that the retail boom is yet to happen .hile the industry is in the introdu!t4ion stage in most geographies# it has )ust entered the growth region in the metro !ities Today# the right produ!t mi(# right sour!ing strategy# and the right !ommuni!ations are the mantras for su!!ess This paper begins by analy0ing the retail formats in the present Indian s!enario and pro!eeds to outline the "ey strategi! fa!tors in retailing In the last part the paper shows the !hallenges fa!ing retail and our re!omme4ndations for ma"ing organi0ed retailing a su!!ess
Organized retail formats in India
5a!h of the retail stars has identified and settled into a feasible and sustainable business model of its own
ShoppersF Stop 4 d$7ar.m$#. s./r$ format .estside 4 emulated the Mar"s 7 Spen!er model of !00 7$r %$#. 7riva.$ +a-$l# &erygood &alue for money mer!handise for the entire family Giant and Jig Ja0aar 4 hy7$rmar1$.;%ash < %arry s./r$ +ood .orld and 'ilgiris * su7$rmar1$. format Pantaloons and The ,ome Store 4 s7$%ia+i.y retailing
Tanishq has &ery su!!essfully pioneered a &ery high quality organi0ed retail business in fine )ewellery
,.ru%.ur$ /' .h$ r$.ai+i#) i#dus.ry a%%/rdi#) ./ /*#$rshi7 7a..$r#s:

2n unaffiliated or independent retailer 2 !hain retailer or !orporate retail !hain 2 fran!hise system
2 8eased Department (8D) %erti!al Mar"eting System (%MS) 3onsumer 3o4operati&es 2 new entrant in the retail en&ironment is the =dis%/u#.$r= '/rmat It is also is "nown as %ash-a#d-%arry /r hy7$rmar1$t These formats usually wor" on bul" buying and bul" selling Shopping e(perien!e in terms of ambien!e or the ser&i!e is not the mainstay here $PG group has set up the first Fdis4!ounterF in ,yderabad !alled the Giant 'ow Pantaloon is following suit Two !ategories of !ustomers &isit these retail outlets 9 The small retailer +or e(ample# a !ustomer of Giant !ould be a dhabawala who needs to buy edible oil in bul" > The regular !onsumer who spends on big &olumes (large pa!" si0es) pri!e ad&antage per unit be!ause of a
K$y ,.ra.$)i% 0a%./rs i# R$.ai+i#) The "ey to su!!ess is identifying a superior &alue4promise and who is in a better position to do it than retailers- $etailers are the !losest to the point of pur!hase and ha&e a!!ess to a wealth of information on !onsumer shopping beha&iour $etailers ha&e some unique ad&antages for managing brands su!h as !ontinuous and a!tionable dialogue with !onsumers# !ontrol o&er brand
presentation at point4of4sale# !ontrol o&er shopping en&ironment# display lo!ationLad)a!en!ies# and signage 2nd they ha&e used this ad&antage with tremendous su!!ess
Th$ > s.a)$s /' $v/+u.i/# /' .h$ .rad$ %ha##$+ ar$ sh/*# i# .h$ $:hi-i. -$+/*:
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2s seen# the role of the intermediary is being diminished gradually# whi!h has ob&ious impli!ation of ba!"lash of the trade !hannel upwards towards the suppliers This is more se&ere in !ountries su!h as India# where the !hannel e!onomi!s in fa&our of the middlemen is still strong enough gi&en the fragmentation of the retail se!tor Therefore when +ood.orld# the largest gro!er in India has a Pdire!t supplyQ !ontra!t with o&er >?; of its "ey suppliers# it gi&es rise to !onfli!t of interest with the distribution infrastru!ture that suppliers ha&e painsta"ingly built o&er the years Thus !ompanies li"e ,88 ha&e e&ol&ed a distin!t distribution !hannel altogether (!alled PModern TradeQ) to ser&i!e the needs of su!h large gro!ers 5&en the mom and pop stores ("nown as "irana shops) are affe!ted due to this PunfairQ ba!"4end ad&antage e(tended by the supplier to its leading a!!ounts (the emerging supermar"et !hains) The strategies adopted by the retailer to !ompete with branded goods are illustrated by the following diagram Jranding the store and following a pri&ate label strategy is the "ey strategy whi!h helps the retailer to !ompete with branded rodu!ts
L$v$ra)$ Bra#ds
Ma:imi@$ %us./m$r .ra''i% < Pr/'i.a-i+i.y(
K$$7 0/rma.s 4/#s.s#.
Jrand the Store
Strong Pri&ate 8e&el Stratergy
Bptimi0e 2ssortment
De&elop 'ew +ormats
$ein&igor ate 5(isting +or
8oyalty 3ards
Pri!ing 7 Promotion Strategry
Bnline shopping
4ha++$#)$s Ah$ad 0/r R$.ai+i#)

The unorganised nature of retailing has stunted its growth o&er se&eral years O8a!" of industry status affe!ts finan!ing prospe!ts and stunts growth of the industryO# says Iishore Jiyani# managing dire!tor# Pantaloon $etail India In the !urrent s!enario# only players with deep po!"ets ha&e been able to ma"e it big In addition to the ad&ent of Internet# there are many other !hallenges whi!h retailers ha&e to address 6uma# R$s/ur%$s 2&ailability of trained personnel and retaining the human resour!es is a ma)or !hallenge for these big retailers The bigwigs li"e 3rossroads offer high !ompensation and !reate a !ohesi&e en&ironment that ma"es an employee proud to be a part of su!h big retail !hains ,7a%$ a#d I#'ras.ru%.ur$ To establish a retail shop L mall# the real estate and the infrastru!ture are &ery &ital The e(penditure and a&ailability on both the a!!ounts do hinder the growth of the retail !hain The la!" of se!ondary infrastru!ture also affe!ts the logisti!s and supply !hain management for retail !ompanies A-s$#%$ /' r$.ai+$r 'ri$#d+y +a*s
India still does not hav$ r$.ai+-'ri$#d+y laws espe!ially relating to the mo&ement of goods from one state to another $etailers need to put in a whole lot of produ!ts from different parts of the !ountry 4 at times from outside the !ountry 4 on the shelf Jut question of multiple ta( le&els is an issue Then there are laws li"e shops !annot be open for all se&en days# shops ha&e to be open after or !lose before a !ertain time whi!h affe!ts operations
La%1 /' .$%h#i%a+ 1#/*-h/* The Indian go&ernment does not en!ourage any foreign dire!t in&estment (+DI) in the retail industry +DI is normally one of the ways of getting te!hni!al inputs 2nd be!ause of this dearth of +DI in this se!tor# de&elop4ment in terms of people# s"ills et! is happening the hard way 0u.ur$ 7$rs7$%.iv$ .e should see fundamental shifts in the way Indians shop in the &ery near future The =ear >??: !ould well be a landmar" year for organised Indian retailing 2!!ording to a re!ent study done by 5TIG the organi0ed retail industry is e(pe!ted to grow by :? per !ent in the ne(t fi&e years and is e(pe!ted to tou!h $s GA#??? !rore Thus# the growth potential for the organised retailer is enormous In the ne(t >4: years# India will finally see operations of a number of &ery serious international players4 notwithstandi4ng the !urrent restri!tions on +DI in retail Metro from Germany is a &ery su!!essful and resour!eful retailer and their !ash 7 !arry format should offer a good run for money to others Some others will also find perfe!tly legitim4ate ways to operate in India# for e(ample# Mar"s 7 Spen!er# Mango and Shoprite 4ha#)$ A%%$+$ra./rs
The following fa!tors will be signifi!ant in dri&ing growth in the retail se!tor: 4/#sum$r 'a%./rs In!rease in in!ome .or"ing women 3hanges in lifestyle * demand for PglobalQ trends ,u77+y sid$ 'a%./rs Growing importan!e of retailing in politi!al and e!onomi! agenda $eal estate reforms to be underta"en in the ne(t >G months Ma)or restru!turing of the manufa!turing se!tor easing produ!t supply !onstraints for effi!ient retailing $edu!tion in import duties4offering more global sour!ing options Ahi%h %a.$)/ri$s *i++ )r/*B The single biggest opportunity in India in organised retailing is bound to be food and gro!eriesN it is in this se!tor that the largest amount of !onsumer spends is !on!entrated This se!tor has ma(imum opportunity for in&estm4ents and entrepreneurs to !ome in and try to ma"e the supply !hain a little more effi!ient
3onsumer durables is another promising se!tor be!ause# with in!reasing pur!hasing power# !onsumers tend to spend the most on this !ategory 2lso# there is nothing to
pre&ent a !ompany from putting up shops outside the !ity limits# be!ause !onsumer durables are a premeditated pur!hase +urther4more# a&ailability of finan!e options has in!reased spending in this se!tor Third are home produ!ts 4 with in!reasing pri&ate ownership of homes by relati&ely young !ouples# a!ross most ma)or !ities in India# national retail !hains offering home furniture (and a!!essories) ha&e great potential +inally# personal !are produ!ts# pharma!euti!al produ!ts# and health!are ser&i!es ha&e tremendous growth potential $e!ently# we ha&e seen some interest from organised health!are players li"e Ma(# +ortis# Jirlas and the $elian!e group Ah$r$ is .his )r/*.h )/i#) ./ ha77$#B The top 9A !ities in India !ater to :: per !ent of total urban population# but as high as :C per !ent of Se! 2 and J (the top two so!io4e!onomi! !onsumer strata) urban population The ne(t 9A !ities only add to another < per !ent of Se! 2 and J population So logi!ally the fo!us will be restri!ted only to the top 9A !ities $esear!h !ondu!ted by IS2 Te!hnopa"# shows that today EH per !ent of total organised retail is in the top 9? !ities# of whi!h the top si( !ater to C> per !ent ,owe&er# the rate of growth will be higher in the bottom four of the top 9?# whi!h will ha&e a >? per !ent share by >??A against the present share of 9A per !ent
Ahi%h '/rma.s *i++ )r/*B IS2 Te!hnopa"Fs resear!h suggests the top four formats to emerge in the ne(t fi&e years are: R Shopping Malls R Spe!ialty Stores (in new !ategories su!h as offi!e produ!ts# spe!ialty food# opti!al and tra&el)
R Departmental Stores R Supermar"ets
R$%i7$ '/r ,u%%$ss

0/%us /# .h$ %/#sum$r: It is !lear that !onsumers ha&e !hanged and they are loo"ing for something different 6nderstanding their e&ol&ing needs# aspirations and lifestyles is the underlying "ey to su!!ess for any retailer The primary emphasis should be on a!!ess# e(perien!e and ser&i!e and the se!ondary emphasis on produ!t and pri!e There should be an effort to impro&e ser&i!e by ha&ing better trained sales staff# better a&ailability of produ!ts# and minor but important !on&enien!es# e g deli&ery of goods either to the !ar or e&en home 3ollaborati&e ad&ertising and promotion !an then round off this effort Bra#d .h$ s./re: branding the store will in!rease &olume and enhan!e !ustomer loyalty Jranding is !riti!al to maintaining !ompetiti&e diff4erentiation in an in!reasingly !hallenging retail en&ironment ,owe&er# the brand needs to be !learly !ommuni!ated to the !ustomer D$v$+/7 7riva.$ +a-$+ -ra#d: Pri&ate labels a!t as margin generators# in!reasing sales &olume by positioning the label as pro&iding higher per!ei&ed &alue to !onsumers In the long run# they also in!rease the retailers/ bargaining power with national brand suppliers Pri&ate labels generate !ustomer loyalty by pro&iding e(!lusi&e produ!ts# whi!h wor"s towards differentiation strategy# mu!h sought after by the retailers I# .$rms /' )$/)ra7hy some entrepreneurs should put efforts in !reating !ustom4 de&eloped solutions for tapping the rural and semi4urban spending potential 5&en in
non4metro urban !entres# there are &ery good oppo4rtunities in loo"ing at starting or e(panding operations Some !ities that should see greater organised retail a!tion in the future would be 8udhiana# 3handigarh# 8u!"now# 'agpur# 2hmedabad# Surat# Pune# Io!hi# Thiru&ananthapuram# Guwahati and Jhubaneshwar
I# .$rms /' '/rma. malls ha&e a sustainable !ompetiti&e ad&antage o&er other formats 3onsumer preferen!es are shifting towards malls from traditional mar"ets 2s a result of !onsumer shifts# retailers also prefer to be lo!ated in malls in anti!ipation of higher footfall IS2 3onsumer Butloo" >???SM shows that in!reasingly !onsumers prefer O2ll 6nder Bne $oofQ destination for shopping as well as eating out and entertainment These findings together indi!ate an e(!ellent potential for a mall with the following features: a superior well4managed leisure e(perien!e targeted at all members of the household !omprising of shopping# dining and entertainment# all under one roof a wide range of produ!ts and ser&i!es pro(imity to homes
T6E ,TRIKING NEA 0A4E &0 RETAIL IN INDIA( Ah/ says )r$a. r$.ai+ is /#+y '/r .h$ m$.r/sB 4h$%1 /u. ,ura. *h$r$ r$sid$#.s ar$ sh/77i#) +i1$ #$v$r -$'/r$(
This !ity in Gu)arat has the stateFs largest te(tile mar"et and is IndiaFs !entre for the diamond trade It also holds the distin!tion of being one of IndiaFs !leanest !ities It is Gu)aratFs se!ond largest !ity with a population nudging :? la"h as of >??9 and is home to some of industryFs giants 44 $elian!e being the most prominent among them This is Surat# whi!h is now e(perien!ing a retail re&olution of sorts Surat belies the general feeling that the retail re&olution as we "now o!!urs only in the metros 2 wal" along the main Ghoddod or 2thwa 8ines areas 4 a"in to MumbaiFs Jandra or 3olaba 4 is li"e wal"ing through a large shopping mall ,ere# youFll find e&ery brand# all "inds of produ!ts in e&ery shape# shade and si0e and all types of foodK =ouFll also find four of SuratFs supermar"ets here 44 from the !osy MotherFs Inn to the :4storied Dhira)sons 2ll these are !hanging the way Surat shops
Two of the largest supermar"ets in Surat are Dhira)sons# run by the Modi family and Saha) Superstore owned by the Patel family Joth offer &aluable lessons in how organised retail in smaller towns !an su!!eed Despite dramati! !hanges in the retail s!ene# Surat/s retailers feel the need for a shift in mindset# habits# more modern restaurants and theatres to dri&e lifestyle !hanges 2nd this is already happening ,ere we profile three leading retailers from Surat
Dhira2s/#s
Theirs is a rags to ri!hes story Started as a small G?? sq ft general store in SuratFs 3howpatty42thwa 8ines area# Dhira) Modi and his sons built a retail !hain of four stores# a total of AH#??? square feet in SuratFs prime retail area and are today !onsidered the pioneers of organised retail in Gu)arat The Dhira)sons Megastore is the flagship of the !hain 2t 9A#??? sq ft spread o&er three stories# it sto!"s :C#??? a!ti&e SI6s and employs >?? staff dire!tly 3onsumer spending has redu!ed slightly# agrees $a)ni"ant Modi# but he says# O.e still a&erage $s G?? a bill and around C?? bills a day O Going by his figures# Dhira)sons sales are around $s >? !rore a year# )ust from Dhira)sons Megastore This ma"es the store the largest in Surat in terms of sales The Megastore has around :#??? footfalls a day# of whi!h Modi estimates A? per !ent are buyers There are E !ash !ounters# ea!h lin"ed to a 82' and an automated in&entory system whi!h !an be tra!"ed e&eryday The whole system !ost him $s A la"h 5&ery SI6 is bar !oded with the entire bar !oding system !osting $s > A la"h (ea!h ma!hine bought at $s A?#???4 <?#??? fi&e years ago) but it has been worth it a!!ording to Modi The Megastore has a G#??? sq ft par"ing fa!ility whi!h a!!ommodates 9G49A !ars and >A4:? two4wheelers free of !ost Modi estimates his in&estment in all this at around $s 9A !rore o&er the past two years 5(pansion is on the !ards Says Modi# O.e target a growth of at least 9?49A per !ent a year from now on O ,e understands &ery !learly that to finan!e e(pansions in Surat itself he will need to maintain that rate The Megastore yields gross margins of between 9A4>? per !ent and net of G4A per !ent# whi!h has to grow to aid e(pansion 2lthough there ha&e been se&eral proposals from surrounding !ities li"e Jharu!h# 'a&sari and Jillimora# Modi wants to !onsolidate in Surat first before stepping foot elsewhere 2!quisitions and mergers are one way of !onsolidating whi!h fulfils a part of their &ision statement 4 that of !reating a !hain of retail stores for total dominan!e in Surat +rom one store in 9EE># Dhira)sons now has a !onglomerate of outlets for all "inds of produ!ts along with a supermar"et of 9?#??? sq ft 4 all totalling 9?#C?? sq ft all within > "m of the Megastore 5(!ess sto!" is "ept at a warehouse G "m away 5arlier in >??>#
the Modis bought o&er Iut!hhiFs Supermar"et in the upmar"et Parle point area $a)ni"ant Modi intends to !on&ert this into a su!!essful supermar"et# offering +M3G and "irana at !ompetiti&e pri!es Dhira)sonsF latest e(pansion is into lifestyle retailing with the a!quisition of $ita Supermar"et# lo!ated about 9 "m from the Megastore# for a reported sum of around $s H !rore .ith >H#??? sq ft !arpet area# the new store# !hristened Dhira)sons 8ifestyles# will ha&e G le&els# sto!"ing garments and a!!essories for men# women and !hildren Says Modi# O.e belie&e thereFs s!ope for su!h a store in Surat .ith our brand name whi!h stands for trust and quality in Surat# we !an ma"e headway into this segment O The lifestyle store is slated to open by Diwali >??> Pri!es will be reasonable# says Modi 2!!ording to him# Ohere# you may find some pri!es e&en lower than those in Mumbai This we !an do by sour!ing it right 44 dri&ing bargains with &endors and passing on the differen!e to !ustomers O 3ertainly all the best sour!ing pra!ti!es and pri!ing poli!ies will ha&e to be used if Dhira)sons is to gross the targeted brea"4e&en sales of $s :A !rore from Dhira) 8ifestyles in the first full year# >??: Going one step further# Modi is in ad&an!ed tal"s with Mumbai4based boo"store 3rossword# to be!ome part of Dhira) 8ifestyle 2nd thereFs an added bonus 44 Jarista 4 whi!h may slip in with 3rossword If he pulls it off# itFll be another feather in his !ap In fa!t# he is !onfident of bringing in musi! !hains li"e Planet M to Surat Tal"ing li"e any other professional large4s!ale retailer# he says Dhira)sons is all about pro&iding the right retail e(perien!e and attra!ti&e en&ironment to dri&e sales The Modis !ertainly do ha&e a lot of retail e(perien!e to ma"e it all wor" 44 with C? years of retailing behind them and a name that stands for trust# quality and personal tou!h OThatFs our strong pointO# smiles Modi OMy father and indeed almost e&ery member of the family e&en today "now most of our regular !ustomers by name .e maintain these relations religiously and belie&e this tou!h will ma"e us su!!essful# more than any shop# store or produ!t O Tra&el adds to thin"ing and e(perien!e# !ontinues Modi The Modi family has seen e&ery supermar"et and store in India and o&erseas They ha&e &isited ,ong Iong# Dubai# Singapore# 6I and 6S2 o&er the past C years to understand retailing better and de&elop &endors Today# all the display equipment is imported from Italy
625 based &endors supply !ro!"ery and other goods &ia Mumbai to Surat $egular !ustomers at Dhira)sons# howe&er# feel that imported goods are pri!ed &ery high Does this restri!t his sales- Says Modi# O+ar from it Surat is not as pri!e sensiti&e as Mumbai is ,ere people would pay e&en disproportionately for imported goods O This seems a lega!y of SuratFs dominan!e in the gems and te(tiles industries# where more often than not# generation of una!!ounted money had to be balan!ed by spending it 44 thereby !reating pri!e insensiti&ity 5du!ation forms a !ontinuous pro!ess for the Modis They ha&e sent people to the 8andmar" !ourse# 2run %iraniFs retail !ourse and e&en !he!"ed out the retail !ourses at Manipal and 'irma Institute in 2hmedabad OIt is a ne&er ending !ourse 44 we ha&e to stay ahead of the othersO# affirms Modi This year Dhira)sons be!ame a pri&ate limited !ompany and as e(pansion and growth targets be!ome ambitious# Modi is not a&erse to listing his !ompany on the 2hmedabad sto!" e(!hange too 3urrently# finan!e is from internal a!!ruals and ban"s Modi says ban"s ha&e been &ery &isionary in their belief in retailing and Dhira)sons# ba!"ing him all the way 8o!al go&ernment is a ma)or issue OGi&e me some go&ernment support and retailers !an do )ust as well as any o&erseas !hain#O he affirms $a)nibhai Modi ta"es a wal" e&ery half an hour around his Megastore ,e meets old friends and regular !ustomers# tal"ing to them# addressing them personally The Modis ha&e a &ision statement# whi!h they !all the si( steps to su!!ess 44 prominent amongst them is Fpersonalised publi! relationsF whi!h Modi does e&ery day Sur&eying his shop# he says# without a hint of pretension and with a gleam in his eyes# OI want to be "nown as the Dhirubhai of retailing in Gu)arat O
,aha2,u7$rs./r$
Saha)# )ust under > years old# is the youngest of the new format retailers in Surat 2t :?#??? sq ft# it is the largest single store in Surat# possibly in Gu)arat# says its young 3hairman Mahesh Patel It !ertainly has the largest number of SI6s in Surat 4 9??#??? spread o&er : floors in the 2da)an area of Surat# not e(a!tly as upmar"et as 2thwa 8ines or 3howpatty# where its largest !ompetitor Dhira)sons is lo!ated In a way# Saha) defies the prime rule of retailing: lo!ation# lo!ation and lo!ation O.hen we started in >???#O remembers Patel# Othis lo!ation was somewhere out of the town 5&ery one said itFs a ris" and to be honest# I myself wasnFt sure we would su!!eed Jut then# business is a ris"# and we too" it O ,e had some e(perien!e in retailing# ha&ing spent 9: years in his !hemist shop O.e &isited all the shops and stores in India and found that# unli"e o&erseas# there e(isted no real departmental stores# at least in Gu)arat I belie&e in a real departmental store# you should get E?4EA per !ent of all your requirements under one roof ThatFs e(a!tly what Saha) Superstore offers O Patel says in spite of misgi&ings# Saha) was !onstru!ted in 99 months flat with a $s >4: !rore in&estment ,e is &ery appre!iati&e of ban"s# lo!al finan!iers and his own family# all of whom trusted his instin!t O.e ha&e met all the pro)e!tions that we fore!ast when we approa!hed them for finan!ing#O he says proudly Today# Patel says his store has an a&erage bill &alue of $s G?? and more than C??4E?? bills a day# from footfalls of around >#??? a day Jy these figures# thatFs $s : > la"h a day# $s 9?? la"h a month and $s 9> !rore a year ,e has an ambitious target to tou!h $s 9?? !rore by >??H 4 C times !urrent sales ,e says high targets are a must to inspire his staff whi!h number 9A? !urrently Saha) is spread o&er : floors# with split le&elling and no ele&ators Says Patel# O5&ery floor !an be rea!hed by wal"ing not more than 9? steps before rea!hing a sales floor This ensures the !ustomer doesnFt get tired and goes through a larger array of goods than in an ele&ator O It also "eeps !osts of ele!tri!ity and maintenan!e low Saha) has se!tions
for white goods# garments# pro!essed foods# toys and pro&isions 3redit !ards are a!!epted preferably for pur!hases abo&e $s 9?? per bill +M3G goods are pri!ed below M$P 4 a result of hard negotiations with 9#??? plus suppliers for dis!ounts and passing on the redu!ed pri!es to the !ustomers This puts margins under pressure but in!reases turno&er Patel is !lear# O$ight now we are dri&ing turno&er .e ha&e to de&elop a !lientele Two years from the time we started# we are still in the in&estment mode O Saha) pays serious attention to !onsumer feedba!" +or e(ample# !ustomers were getting tired of the same arrangement of a few !ounters ,e got them rearranged last month Saha) has par"ing for <A !ars# has 9 2TM of the Surat Te(tile Jan" and runs pri&ilege s!hemes to retain !ustomers Saha) has its own 82' system with >? !omputers whi!h update sto!"s and sales e&ery day 5a!h se!tion has its own 35B who handles day4to4day wor" and !ustomer !are Its C !ash !ounters and s!anners update sto!" e&ery day Says Patel# O.e ha&e to !omputerise "eeping in mind today as well as the near future .hen we bought bar !ode s!anners# they !ost us $s :?#??? Su!h !hanges will be helpful in our e(pansion plans O Patel has : bar !ode ma!hines ,e also has A? !ameras# whi!h represent $s A4H la"h of in&estment 'early E? per !ent of his wares are branded in +M3G# $MG and pro!essed foods 1ust o&er A per !ent are pri&ate labels# mainly in pulses# gro!ery and ri!e Gro!ery of all "inds a!!ounts for G? per !ent of total sales and H? per !ent of his goods are pri!ed below M$P ,e has : !hillers and a host of &ending ma!hines for i!e !ream and soft drin"s where he sto!"s dahi# mil" and other !hilled produ!ts ,is staff handles all display# a!ti&ity and sales on its own There is no &endor4managed in&entory yet O.e !an display and run s!hemes and promos as per our requirement and feel# rather than be bound by !ompanies requirements#O e(plains Patel .hi!h is why he is not loo"ing at food !ourts# food ser&i!es or e&ents to dri&e growth There are 9#??? &endors with 9? per !ent of them supplying HA per !ent of all goods OJut if !ustomers want e&en one produ!t# then I ha&e to get a &endor I may not buy regularly# but I need him on the rolls O 2ll &endor data is online# with reports on outstanding and on time deli&ery sent to Patel e&ery morning 8o!al &endors deli&er almost e&ery hour# but
e&en the national ones deli&er on fi(ed days .hen he e(pands# then his bargaining power will in!rease 3urrently# he has no warehouse# what he !an sto!" in the store limits in&entory
.hat about the future- Patel says his !at!hment e(tends as far as %alsad and %api to the south and Jharu!h to the north People ha&e approa!hed him to start off Saha) in their towns# but as of now# he has his hands full in Surat O.e will e(pand in Surat !ity# whi!h I belie&e has enough potential to ta"e in many more stores .e will loo" at rentals or ownership# as the !ase may be# but e(pansion within Surat will definitely be required to meet our self set targets O Patel intends to e(pand dire!tly into 2thwa 8ines area whi!h is where ownership rates !an be as high as $s 9?# ???4 G?#??? a yard depending on lo!ation and spa!e Saha) is a pri&ately held !ompany and Patel has no immediate plans to go publi!
6nli"e Dhira)sons who ha&e CA years of retail e(perien!e# Patel is new to the field Jut the ideas are there already# the options being e(plored ,is son is being groomed for higher studies# possibly an MJ2 later on OI myself am not e&en a graduate#O muses Patel in his third floor e(pansi&e offi!e# OJut I want my ne(t generation to be up to date They will de&elop this shop"eeping into a full s!ale business 4 and lead the way in retailing in Gu)arat O
A 5 ,/#s
Started in 9EE># 'ew 2% Sons is managed by $a)u Modi# and is lo!ated at Parle Point# the !entre of SuratFs happening retail s!ene 2t G#??? square feet# he sto!"s 9A#??? SI6s and is one of the larger supermar"ets Today# there are two 2% Sons within : "m of ea!h other 'ew 2% Sons !lo!"s up >A? bills a day from its A !ash !ounters# ea!h bill of $s >A?4G?? 4 thatFs nearly $s H?#??? a day 4 or $s 9C la"h a month# whi!h suggests annual sales at $s : !rore or so ,e deli&ers home free of !ost with no minimum le&el of pur!hases 2lthough he does not ha&e !redit !ard payment fa!ility as yet# $a)ubhai says he is in dis!ussions with ,D+3 Jan" for the !redit !ard ma!hine lin"up 'ew 2% Sons has GA salesmen and en!ounters nearly 94> per !ent shrin"age Though his store had a !omputer sin!e 9EE># he went in for the automated in&entory management on !omputer only in 9EEE4?? ,e also has a bar !oding ma!hine whi!h !ost him $s > A la"h and $s 9A#??? a year for 2M3 2ll the 9A#??? SI6s are now bar !oded 2ll his A PBS are lin"ed to the 82' and hen!e to the a!!ounts# all of whi!h !ost him $s 9 A la"h
.hat has been the effe!t of these stores on other "iranaLgro!eryLgeneral stores- Says Patel# O.e found that three "irana stores in our immediate neighbourhood ha&e shut down# but beyond our area# we find not mu!h !hange Sales ha&e fallen# we hear# but sin!e these shops are still on# ob&iously# things arenFt &ery bad O ,e has s!hemes# promos and freebies and offers home delie&ery but does not ha&e loyalty !ards
2nother interesting story is of ,arisons departmental store lo!ated right ne(t to Dhira)sons Megastore on 2thwa Gate 2t less than 9#??? sq ft # it is no mat!h for the 9A#??? sq ft megastore# but is definitely trying ,is people a!!ost you outside the steps of Dhira)sons with a pamphlet e(tolling the &irtues of ,arisons Inno&ation is the name of the game +or e(ample# ,arisons deli&ers your pur!hases made between the Ath and 9Ath of e&ery month# of o&er $s 9#A??4 >#??? free of !harge anywhere in Surat ,e also lists
produ!ts whi!h he sells 9?49A per !ent lower than Dhira)sons# whi!h is in any !ase lower than the M$P
,arisons realised that none of the ma)or supermar"ets want to deli&er home and thatFs the segment heFs pit!hing for ,owe&er# not all ha&e been so lu!"y Some smaller "irana stores ha&e lost !lientele
Surat is a !ity that !ares for its money differently Its !iti0ens donFt mind paying for quality# time and ambien!e $etailers here are armed with selling a!umen and a will to e(periment
2lready retailers are rea!hing out to !ompanies and other institutions to allow employees to buy at dis!ounted pri!es at their stores +or e(ample# $elian!e gi&es employees $s 9#:?? as &ou!hers to spend in sele!t retail stores =ou !ould shop at a supermar"et and get dis!ounted theatre ti!"ets or &i!e4&ersa 'one of this is out of bounds in a !ity that !an !hange its lifestyle# dri&en by in!reasing in!omes# greater awareness and ability to spend
4/#%+usi/# - 6/* %a# i. -$ d/#$B

+or a start# these retailers need to in&est mu!h more in !apturing more spe!ifi! mar"et intelligen!e as well as almost real4time !ustomer pur!hase beha&iour information The retailers also need to ma"e substantial in&estments in understandingLa!quiring some ad&an!ed e(pertise in de&e4loping more a!!urate and s!ientifi! demand fore!asting models $eengin4eering of produ!t4sour!ing philosophies 4 aligned more towards !ollabo4rati&e planning and replenishment should then be ne(t on their agenda The message# therefore# for the e(isting small and medium independent retailers is to !losely e(amine what !hanges are ta"ing pla!e in their immediate &i!inity# and analyse whether their !urrent mar"et offers a potential rede&4elopment of the area into a more modern mult i4option destination If it does# and most !ommer!ial areas in India do ha&e this potential# it would be &ery useful to form a !onsortium of other su!h small retailers in that &i!inity and ta"e a pro4a!ti&e approa!h to pool in resour!es and impro&e the o&erall infrastru!ture The ne(t effort should be to en!ourage retailers to ma"e some in&estment in impro&ing the interiors of their respe!ti&e establishments to ma"e shopping an en)oyable e(perien!e for the !ustomer
A77$#di: : Pr$s$#. I#dia# ,%$#ari/
R$.ai+ R$a+i.i$s:
6norgani0ed mar"et: $s AC:#??? !rores Brgani0ed mar"et: $s A#??? !rores AS growth in organised retailing between >???4>??A B&er G#??? new modern retail outlets in the last : years B&er A#???#??? sq ft of mall spa!e under de&elopment The top : modern retailers !ontrol o&er <A?#??? sq ft of retail spa!e B&er G??#??? shoppers wal" through their doors e&ery wee"
Growth in organi0ed retail on par with e(pe!tations and pro)e!tions of the last A years: on !ourse to tou!h $s :A#??? !rores (6SD < Jillion) or more by >??A4?H
Ma2/r 7+ay$rs: 0&&D AND GR&4ERY 0A,6I&N &T6ER, +oodworld Shoppers/ Stop %i&e"/s Subhi"sha .estside Planet M 'ilgris 8ifestyle Musi! .orld 2dani4 $a)i&/s Piramyd 3rossword 'irma4$adhey Globus 8ifespring 5bony Gautier Pantaloon
K$y 4a.$)/ri$s:
"% 7% 11% 2% 3%
12%
9%
52% Trans #ort $ ealt ) are / is ) l $ o%s ing , lot ing-& oot. ear & %rnit%re-$ o+ e
& ood 'e(erage and to'a)* ) ntertain+ o ent
Sour!e: IS2 Te!hnopa!"
0"T"RE GR&AT6 P&TENTIAL &0 RETAIL MARKETING IN INDIA(
The o&erall retail mar"et in India is li"ely to grow by :H; to tou!h $s C#??#??? !rore by >??C from the !urrent le&el of $s A#CC#??? !rore# a!!ording to an 2sso!iated 3hambers of 3ommer!e and Industry of India (2sso!ham) study The study points out that of the o&erall retail mar"et# the organised se!tor in retail mar"eting is e(pe!ted to tou!h $s 9H#??? !rore by >??C from the present si0e of $s A#??? !rore The retail mar"et at $s A#??? !rore# in!ludes the organised food and gro!ery ($s H?? !rore) 2sso!ham president Mahendra I Sanghi said that initiati&es from all the state go&ernments# and the 3entre are prime fa!tors that will en!ourage the entry of the organised se!tor into retailing in the ne(t few years These initiati&es in!lude allo!ation of land at !on!essional rates# grants of loans at liberalised interest rates to promoters of shopping malls# and rationalisation of state le&ies ,e pointed out that the e(pansion and di&ersifi!ation of the organised se!tor in retail mar"eting is !urrently under way be!ause of the demand fa!tor The other reason whi!h substantiates ma)or foray of the organised se!tor into retail mar"eting is the a&ailability of real estate and infrastru!ture fa!ilities in most of the states for setting up retail stores PSu!h laws will no longer be there in the near future as liberalisation has already rea!hed its ad&an!ed stage and states are !ompeting with one and another for attra!ting in&estment This will moti&ate and en!ourage the foray of organised se!tor into retailing#
parti!ularly when the entry of +DIs into retailing is being strongly opposed by a se!tion of so!iety and polity as well#Q a!!ording to the release 2!!ording to 2sso!ham estimates# the retail se!tor will !reate A?#??? )obs annually in the !oming fi&e years The retail se!tor is the se!ond largest sour!e of employment and )ob mar"et is re!epti&e to retailing e(perien!e# with business s!hools fo!ussing on the se!tor and large retailers setting up retail a!ademies
0&4", &N GR&AT6

Two years ago# in the !onte(t of !hanging mar"ets# we outlined a strategy for ,industan 8e&er to deli&er sustainable profitable growth This strategy builds on the past and resha4 pes for the future I would li"e to update you on the progress made in e(e!uting this strategy and also outline our future approa!h
GR&AT6 P&TENTIAL
Bur published results for >??> show a sales de!line of H <; on a!!ount of Dis!ontin4 uation of non &alue adding businesses and di&estments Bur domesti! +M3G business was flat with the growth in ,ome 7 Personal 3are being offset by a de!line in +oods This may lead to a question on our growth potential Indeed# there is a !ommon mis!o4 n!eption that our !ategories are mature with little s!ope for growth In fa!t# the &ery opposite is true Se&eral of our !ategories still ha&e low usership le&els In addition# the a!tual amount used per !apita is far lower in India as !ompared to other !ountries# as shown below:
P$r 4a7i.a+ 4/#sum7a.i/# CK)sD +abri! .ash > H: G <9 E ?: 9: E? Personal .ash ? A? ? C< 9 GH 9 :9 Toothpaste ? ?< ? G? ? H9 ? >: Shampoo ? ?G ? :C ? <> ? G? Tea ? HG 4 4 > >C
India Thailand Jra0il 6I
2lso# the GDP growth of about A; is dri&ing up dis!retionary in!ome of our !onsumers by about C; per annum 8itera!y le&els are rising# !reating higher aspirations further fuelled by the world they see on tele&ision There is no doubt that todayFs !onsumer wants a better quality of life whi!h is what our brands help realise
,owe&er# ,88 is fa!ed with the !hallenge that +M3G mar"ets# after growing in strong double4digits throughout the nineties are now de!lining in &alue for the last !ouple of years .hy is this happening- In urban India# !onsumers are now being e(posed to and are trying se&eral new !ategories# su!h as mobile phones# leisure# durables et!# and are# therefore# down4trading their +M3G pur!hases $ural demand has been dampened by three unusually poor monsoons in the last four years .e belie&e that both these fa!tors are transitory in nature and +M3G mar"ets will surely find a new growth equilibrium Je that as it may# we are leaders in many +M3G !ategories# and are ta"ing a!ti&e steps to re4 attra!t !onsumer spending to our brands .e are doing this by pro&iding e(!iting# new and differentiated benefits as well as greater &alue# thereby leading growth .e ha&e e&ery !onfiden!e in the &alidity of this approa!h gi&en our e(perien!e in re!ent years# whereby se&eral of our biggest brands# supported by su!h inno&ation# ha&e grown strongly# e&en in this &ery !hallenging !onte(t
0&4",,ING T6E 4&MPANY

.ith in!reased !ompetition for the !onsumer/s wallet in today/s mar"et en&ironment# dri&ing growth requires a mu!h higher le&el of resour!e in all areas# be it te!hnology# media spend or people talent 3onsumer brands in e&eryday life is our area of !ore !ompeten!e both in India and globally with 6nile&er and thus our area of fo!us Two years ago# the +M3G business a!!ounted for CA; of ,88 Today# EA; of ,88 is its +M3G business# of whi!h CH; is domesti!# with E; being e(ports of !onsumer brands B&er the years# we had entered se&eral non4+M3G businesses in line with national priorities These businesses were su!!essful and !reated good &alue ,owe&er# with the opening up of India# staying in these businesses would ha&e required us to in&est hea&ily in a!!essing te!hnology and a!hie&ing world4!lass !ompetiti&eness In line with our strategy# we ha&e e(ited non4+M3G businesses li"e 2nimal +eeds# Seeds# +la&ours 7 +ragran!es# 'i!"el 3atalyst and 2dhesi&es with total sales of o&er $s H?? !rores In doing so# we ha&e se!ured good &alue realising in all $s G:? !rores with a profit on disposal of o&er $s >H? !rores .e also had a &ery broad e(port portfolio !o&ering se&eral areas whi!h also has been restru!tured and fo!ussed Going forward# the ma)or thrust is on dri&ing e(ports of our !onsumer brands primarily to other 6nile&er !ompanies from whom we re!ei&e !onsiderable support This is an area where we see enormous potential for growth# gi&en our !lear !ompetiti&e ad&antage Indeed we are already supplying Tea bags to Singapore# 2ustralia# 1apan and the 6S2# Personal Produ!ts to the Middle 5ast# +ar 5ast and 2fri!an !ountries and are mar"eting Pears globally In all# su!h e(ports already !onstitute o&er G?; of our total e(ports of 6S D :?? million .e are also dri&ing e(ports in other !hosen areas where India has a !ompetiti&e ad&antage# li"e $i!e# 3astor and Marine produ!ts Marine produ!ts# for e(ample# ha&e huge potential gi&en India/s long !oastline and Sust4 ainable fishing !apability .e are the largest e(porters of Marine produ!ts from India and ha&e already built up a leading position in shrimp e(ports to the demanding mar"ets of
the 6S2 and 5urope .e also a!quired 2malgam# a leader in &alue4added Marine produ!ts# to dri&e further growth in this area 2t the same time# we ha&e dis!ontinued a number of non &alue4adding e(ports Bur !ontinuing e(ports are now growing by about 9A;
0&4", &N P&AER BRAND,

In the +M3G business# we had de&eloped a portfolio of o&er 99? brands organi!ally and through a!quisitions Se&eral of these had o&erlapping benefits and !ompeted dire!tly with ea!h other# while others were simply too small Growing brands in todayFs mar"et requires s!ale .e# therefore# de!ided to fo!us all our resour!es on thirty Power Jrands These were identified for their si0e# brand strength# uniqueness and growth potential In addition# they span all the rele&ant benefit and pri!e positions in our mar"et +or e(ample# in 8aundry# we !hose three brands: Surf 4 pro&iding the &ery best stain remo&al# $in 4 ma"ing !lothes loo" &ery good# and .heel4offering great !leaning and &alue These three brands also !o&er the entire pri!e spe!trum for e&ery !lass of !onsumer
.e ha&e migrated se&eral of our other brands to !on&erge with these Power Jrands and har&ested others 'ow# Power Jrands a!!ount for o&er E:; of our domesti! !onsumer business Indeed# through this approa!h# we are a!hie&ing big s!ale with se&eral brands being indi&idually as big as our !ompetitor !ompanies The top fi&e brands together a!!ount for sales of o&er $s :??? !rores# and last year# grew by o&er 9?; .e see ea!h of these mega brands a!hie&ing a potential s!ale of $s 9??? !rores in the foreseeable future
GR&AING T6E P&AER BRAND, ,ow will we grow the Power Jrands- +irstly# by le&eraging their s!ale 44 this is !ru!ial in a !rowded mar"et where :??? ad&ertisements are seen on tele&ision e&ery month and where the number of SI6s sto!"ed by retailers has gone up by about G?; in last three years Jrand s!ale enables us to get a larger share of the !onsumerFs mind as well as a larger share of the retail shelf +or instan!e fi&e of our Power Jrands are among the top ten most hea&ily ad&ertised brands in India .e deri&e s!ale !ompetiti&e ad&antage from our !ombined media spends R$d$'i#i#) 4a.$)/ri$s .e are redefining the way we loo" at our !ategories +or e(ample# we ha&e traditionally measured our presen!e in shampoos by our mar"et share of more than A?; Bur real opportunity# howe&er# is to &iew this as the hair wash mar"et 44 indeed !onsumers often use soap# natural produ!ts or )ust water to wash their hair# apart from shampoos Seen this way# our share of hair wash is only <;# pro&iding enormous spa!e for growth Similarly# the laun!h of 8ipton I!e Tea is attra!ting younger !onsumers and also re4 defining the role of tea in a !onsumer/s life The thrust in pla!ing Tea# 3offee and I!e4!ream &ending ma!hines in offi!es# fa!tories and pla!es of publi! !ongregation is !reating new opportunities to !onsume our brands out of home 5(tension of the 8a"me brand beyond !osmeti!s to Salons is another e(ample
Li-$ra.i#) Bra#ds In addition# we are liberating brands from their e(isting !ategory mindset ,istori!ally#brands originated and stayed within a !ategory produ!t format .e# howe&er# see ourPower Jrands as being able to o!!upy a unique osition in the !onsumer/s mind andtherefore being able to stret!h into other produ!t formats or !ategories The laun!h of
+air 7 8o&ely Soap# 8ifebuoy Tal!# ta"ing the Ma( I!e4!ream brand to 3onfe!tionery are all e(amples of e(tending brands into new !ategories 2ll these e(tensions ha&e had a promising start and there are more to !ome E:%i.i#) I##/va.i/#s 2 "ey dri&er of growth is inno&ation that surprises and delights !onsumers with new# differentiated and rele&ant benefits .e identify these benefits by pla!ing the !onsumer at the &ery heart of our business Traditionally# the !onsumer has been brought into the business through the lens of the ar"eting department# using mar"et resear!h tools and te!hniques This is &aluable and ne!essary ,owe&er# mu!h deeper insight is needed in todayFs !ompetit4i&e en&ironment .e need to go well beyond listening to what the !onsumer tells us Indeed we need to de&elop a degree of intima!y and understand what is deep in her sub4!ons!ious mind 44 and seldom or ne&er arti!ulated .e are doing this by ha&ing !ross4fun!tional teams interfa!e !ontinuously with the !onsumer at her home# in the shops# sharing her life# thereby buildi4ng a deep and shared understanding This will help deepen our P!olle!ti&e intuitionQ and enable us to deli&er better produ!ts as well as superior d&ertis4ing
L$v$ra)i#) T$%h#/+/)y '/r I##/va.i/# .e !ontinue to in&est in te!hnology# both to ma"e our produ!ts better as well as to se!ure !ost ad&antage B&er the years# we ha&e built se&eral global te!hnology !entres in India with about >?? $7D people This# !oupled with a!!ess to o&er A??? $7D personnel in the global 6nile&er networ"# with a total budget of 6SD 9 : billion# gi&es us enormous ad&antage There is often a mis!on!eption that e&eryday produ!ts li"e ours do not need high te!hnolo4gy This is totally untrue 44 in fa!t# we need te!hnology of a &ery high order to offer superior benefits at an affordable pri!e +or instan!e# the re!ently relaun!hed Surf 5(!el is based on proprietary te!hnology de&eloped after e(tensi&e resear!h It ensures that rinsing is mu!h easier and qui!"er This new Surf 5(!el redu!es
the time ta"en for rinsing by as mu!h as A?;# thereby pro&iding huge !on&enien!e Most importantly# it redu!es the amount of water used by A?;# whi!h is a signifi!ant benefit# gi&en the a!ute s!ar!ity of water in most of India Gi&en that laundry !onsumes upto >?; of household water# this te!hnology will indeed ma"e a big impa!t Similarly# we ha&e re!ently laun!hed Inorr 2nnapurna Salt with the benefit of pro&iding Pinta!t iodineQ to the !onsumer Iodine added to salt is lost in transport# storage as well as in the pro!ess of !oo"ing .e ha&e de&eloped a proprietary patented te!hnology that en!apsulates iodine# prote!ting its bio4a&ailability This is a &ery "ey benefit# gi&en the importan!e of iodine# espe!ially for the mental de&elopment of young !hildren
TA4KLING 4&MPETITI5E 46ALLENGE,

In pursuit of growth# we are a!utely !ons!ious of the !hallenge posed by !ompetition# espe!ially the low pri!e players This phenomenon is not new to us in India or indeed to other de&eloped mar"ets where low pri!e lo!al players and trade brands !o4 e(ist with large branded players li"e oursel&es .e are quite !lear that we will be able to sustain growth in the fa!e of su!h !ompetition as we ha&e done in the past In the 8aundry mar"et where there are o&er a thousand lo!al players# our brand .heel is now the !lear mar"et leader and the largest brand in ,88 .hat is more# this has not !ome at a !ost to our bottomline as it is strongly profitable In Personal .ash also# we grew our business by double4digits last year in the fa!e of &ery aggressi&e low pri!e !ompetition .e will !ompete with low pri!e !ompetitors by playing to our strengths 44 using our strongest brands ba!"ed by superior te!hnology and the lowest !ost supply !hain .e will su!!eed in this by le&eraging our unique !ombination of lo!al and global s!ale
NEA GR&AT6 A4&RN, Three years ago# we had identified se&eral new opportunities for growth as an out!ome of Pro)e!t Millennium .e ha&e made &ery good progress in nurturing these growth a!orns for the future Spe!ifi!ally# we are dri&ing nas!ent !ategories in our !urrent businesses su!h as Deodorants and Pro!essed +oods In addition# we ha&e entered new ad)a!ent !ategories li"e 3onfe!tionery and 2yur&edi! ,ealth 3are .e are also pioneering a retaili4ng business !alled Sangam and building a dire!t4to4!onsumer business !alled ,88 'etwor" Ta"en together# all these new initiati&es in!rease the si0e of our mar"et opportunity by about G?;
LE5ERAGING 6LL ,4ALE 0&R GR&AT6 The power of ,88/s s!ale is deri&ed from its !ombined &olume of about G million tonnes# sales of $s 9?#??? !rores and its presen!e a!ross more than >? distin!t !onsumer !ategories ,88Fs brands are a&ailable in : million outlets and tou!h the li&es of two out of three Indians .e are le&eraging this s!ale to deri&e !ompetiti&e ad&antage and sustainable growth
Bui+di#) ,u77+y 4hai# 4/m7$.i.iv$#$ss .e are ma"ing a quantum !hange in our supply !hain# both in terms of enhan!ed !ustomer ser&i!e as well as in!reased effi!ien!y Bur supply !hain is !omple(# with o&er >??? suppliers# 9??T manufa!turing lo!ations# <??? sto!"ists and about one million retail outlets Signifi!ant in&estment in Information Te!hnology has pro&ided !onne!ti&ity a!ross the supply !hain# from the supplier to the sto!"ist# thereby enhan!ing !ustomer ser&i!e while bringing down wor"ing !apital Today# we "now what our sto!"ists ha&e sold e&ery day# to almost a million outlets This has brought us mu!h !loser to the mar"et
pla!e and signifi!antly enhan!ed our speed of response ,88Fs s!ale of operations gi&es a distin!t !ost benefit Juying raw and pa!"ing materials for ,88 as a whole# rather than separately for !ategories# gi&es us e!onomies of s!ale +or e(ample# inputs for pa!"aging# li"e paper# board and polymers# are bought !entrally for all di&isions generating big sa&ings Similarly# in the areas of logisti!s and portation# s!ale enables greater effi!ien!y .e are also e(ploiting our s!ale in optimising sour!ing of our produ!ts 2ll this gi&es us a !ompetiti&e ad&antage in our !ost stru!ture
D$$7$r 4/mmi.m$#. ./ Rura+ I#dia Bur s!ale also gi&es us the opportunity to build the deepest possible dire!t distribution rea!h into rural India# where o&er <?; of our population li&e Interior &illages are diffi!ult to a!!ess be!ause of wea" infrastru!ture In addition# a large proportion is media dar" with no awareness of any brands Jy !onsolidating our !ategories we are establishing a single distribution !hannel for rural India .e ha&e already appointed H??? sub4sto!"ists for rural mar"ets# and are now !o&ering appro(imately A?#??? &illages# rea!hing about >A? million !onsumers In addition# we ha&e also embar"ed upon an ambitious dire!t distribution programme !alled Pro)e!t Sha"ti to rea!h the smallest of &illages Bur &ision is to rea!h o&er 9??#??? &illages# thereby tou!hing about 9?? million rural !onsumers .e ha&e already piloted this initiati&e in A??? &illages and are now e(tending this rapidly Pro)e!t Sha"ti pro&ides a unique mi!ro4enterprise opportunity for under4pri&ileged rural women 2rmed with mi!ro4!redit from ban"s# they be!ome dire!t4to4home distributors in these small &illages# pro&iding rele&ant produ!ts as well as impro&ing the o&erall awareness of nutrition and hygiene In turn# they benefit through sustainable in!ome# thereby !reating a &irtuous !y!le of growth Pro)e!t Sha"ti uniquely !ombines our business interest with our ongoing !ommitment to the de&elopment of rural India and women
Par.#$ri#) M/d$r# Trad$ In addition to our ongoing !ommitment to the traditional gro!ery trade# we are building a spe!ial relationship with the small but fast emerging modern trade Bur s!ale enables us to pro&ide superior !ustomer ser&i!e in!luding daily ser&i!ing# impro&ing their range a&ailability whilst redu!ing in&entor4ies .e are using the opportunity of interfa!ing more dire!tly with our !onsumers in this retail en&ironment through spe!ially designed !ommun4i!ation and promotions This is building traffi! into the stores while yielding high growth for our business
B"ILDING PR&4E,,ED 0&&D, There is a big opportunity to grow Pro!essed +oods# whi!h are still a &ery small proportion of the o&erall largely !ommoditised foods mar"et
0//ds Mar1$. ,.ru%.ur$ Pro!essed Semi Pro!essed 6npro!essed H; 9H; <C;
,ow4e&er# de&eloping this mar"et will require rele&ant and differentiated produ!ts whi!h !ater to Indian tastes and habits as well as sustained and !onsiderable in&estment and time for mar"et de&elopment B&er the years# we had grown our +oods and Je&erages business# organi!ally and through a!quisition to signifi!ant s!ale ,owe&er# it was ne!essary for us to in!rease the inherent profitability profile in se&eral areas in order to generate the !apa!ity to in&est in mar"et de&elopment B&er the last !ouple of years# our gross margins ha&e impro&ed by E;# albeit at the !ost of some topline# thereby pro&iding the fuel to in&est in both inno&ation and differentiation .e ha&e redu!ed our losses in I!e4!ream signifi!antly# and !onsiderably impro&ed the performan!e of the re!ently a!quired Modern +oods Going forward# our priority is to lead growth of this mar"et through inno&ation .e ha&e re!ently laun!hed Iissan Jisti(# Iissan Mr +ruit# 8ipton I!e# Modern 2tta Jread and the Inorr 2nnapurna 3ulinary range# all of whi!h ha&e met with an en!ouraging response
TALENT 0&R GR&AT6

+inally# the most important determinant of our growth is the quality of our people .e are deeply pri&ileged to !ontinue to attra!t the &ery best talent as the number one preferred employer at leading !ampuses .e are also en!ouraging di&ersity in our talent s"ills# espe!ially for our newer business4es# and are also bringing in a large number of talented women Bur training programmes ha&e been re&amped to e(pose entrants to lo!al and global business 44 they spend time in Indian &illages and international !ities 44 all within a 9>4month training programme ,88Fs wide &ariety of !ategories and 6nile&erFs global operations pro&ide enormous de&elopment opportunit4ies through organised !areer planning 2 lot of emphasis has always been pla!ed on s"ill de&elopment 44 today we are also !on!entrating on building indi&idual and leadership !apabilities .e offer an energising and empower4ing en&ironment enabled by !reating small teams fo!ussed on "ey initiati&es .e ha&e found this the best way of !ombining both s!ale and speed Deeper in the !ompany# in fa!tories and offi!es# we are unleashing the talent and !reati&e potential of all employees through initiati&es su!h as TPM In !on!lusion# let me say that ,88Fs most &aluable assets are its brands and people TodayFs mar"et is &ery dynami! and in!reasingly !ompetiti&e .e ha&e !onfiden!e in our strategy and are learning to grow e&en in de!lining mar"ets .e are putting in pla!e "ey enablers to build our !apability for sustained high performan!e .e ha&e brands with ri!h heritage and strong !onsumer equity .e ha&e people who bring the power of their ideas and e(e!ution to e(ploit the full potential of our brands towards deli&ering !ontinued profitable growth for ,industan 8e&er
Contents
$5T2I8 S35'2$IB I' I'DI2
Unlimited Opportunity
The Global Retail Industry: An Overview Retail Scene in India: Touching Meteoric Scales Different or!s of Retailing Malls in India Challenges of Retailing in India Retail as an "!#loy!ent Generator Retail Industry in the "ast: Current Scenario$ Growth %ros#ects and &#co!ing %ro'ects
Retail "ducation in the "ast actors needed to #ro!ote the Industry in (est )engal Conclusion
The Global Retail Industry : An Overview

$etail has played a ma)or role world o&er in in!reasing produ!ti&ity a!ross a wide range of !onsumer goods and ser&i!es The impa!t !an be best seen in ountries li"e 6 S 2 # 6 I #Me(i!o# Thailand and more re!ently 3hina 5!onomies of !ountries li"e Singapore# Malaysia# ,ong Iong# Sri 8an"a and Dubai are also hea&ily assisted by the retail se!tor $etail is the se!ond4largest industry in the 6nited States both in number of establishments and number of employees It is also one of the largest world wide The retail industry employs more than >> million 2meri!ans and generates more than D: trillion in retail sale annually $etailing is a 6 S D< trillion se!tor .al4Mart is the world/s largest retailer 2lready the world/s largest employer with o&er 9million asso!iates# .al4Mart displa!ed oil giant 5((on Mobil as the world/s
largest !ompany when it posted D>9E billion in sales for fis!al >??9 .al4Mart has be!ome the most su!!essful retail brand in the world due its ability to le&erage si0e# mar"et !lout# and effi!ien!y to !reate mar"et dominan!e .al4Mart heads +ortune maga0ine list of top A?? !ompanies in the world +orbes 2nnual 8ist of Jillionaires has the largest number (GALGE<) from the retail business 01OB21 R*T231 (So%r)e 4 ,SO 5/03 St%d6) 1999 150 1.1 0.7 2002 180 3.3 1.8 2005 225 7 3.2
Total Retail (US $ Billion) Organised Retail (US $ Billion) % S are o! organised Retail.
To# Retailers (orldwide Rank 1 2 3 " 5 Retailer 7al8/art Stores5 3n). ,arre!o%r 0ro%# T e 9roger ,o. T e $o+e :e#ot5 3n). /etro Country U.S.2. &ran)e U.S.2. U.S.2. 0er+an6
*Source: STOR"S + Deloitte Touche To!ahatsu,
Retail Scenario in India : Touching Meteoric Scales

2s the !orporates the Piramals# the Tatas# the $ahe)as# IT3# S Iumar/s# $PG 5nterprises# and mega retailers4 3rosswords# Shopper/s Stop# and Pantaloons ra!e to re&olutioni0e the retailing se!tor# retail as an industry in India is !oming ali&e $etail sales in India amounted to about $s <G?? billion in >??># e(panded at an a&erage annual rate of <; during 9EEE4>??> .ith the upturn in e!onomi! growth during >??:# retail sales are also e(pe!ted to e(pand at a higher pa!e of nearly 9?; 2!ross the !ountry# retail sales in real terms are predi!ted to rise more rapidly than !onsumer e(penditure during >??:4?C The fore!ast growth in real retail sales during >??:4 >??C is C :; per year# !ompared with < 9; for !onsumer e(penditure Moderni0ation of the Indian retail se!tor will be refle!ted in rapid growth in sales of supermar"ets# departmental stores and hypermarts Sales from these large4format stores are to e(pand at growth rates ranging from >G; to GE; per year during >??:4>??C# a!!ording to a latest report by 5uromonitor International# a leading pro&ider of global !onsumer4mar"et intelligen!e 2 T Iearney In! pla!es India Hth on a global retail de&elopment inde( The !ountry has the highest per !apita outlets in the world 4 A A outlets per 9??? population 2round <; of the population in India is engaged in retailing# as !ompared to >?; in the 6S2 In a de&eloping !ountry li"e India# a large !hun" of !onsumer e(penditure is on basi! ne!essities# espe!ially food4related items ,en!e# it is not surprising that food# be&erages and toba!!o a!!ounted for as mu!h as <9; of retail sales in >??> The share of food4 related items had# howe&er# de!lined o&er the re&iew period# down from <:; in 9EEE This is not une(pe!ted# be!ause with in!ome growth# Indians# li"e !onsumers elsewhere#
ha&e started spending more on non4food items !ompared with food produ!ts Sales through supermar"ets and department stores are small !ompared with o&erall retail sales 'e&ertheless# their sales ha&e grown mu!h more rapidly# at almost a triple rate (about :?;per year during the re&iew period) This high a!!eleration in sales through modern retail formats is e(pe!ted to !ontinue during the ne(t few years# with the rapid growth in numbers of su!h outlets due to !onsumer demand and business potential The fa!tors responsible for the de&elopment of the retail se!tor in India !an be broadly summari0ed as follows: U$ising in!omes and impro&ements in infrastru!ture are enlarging !onsumer mar"ets and a!!elerating the !on&ergen!e of !onsumer tastes 8oo"ing at in!ome !lassifi!ation# the 'ational 3oun!il of 2pplied 5!onomi! $esear!h ('325$) !lassified appro(imately A?; of the Indian population as low in!ome in 9EEG4 EAN this is e(pe!ted to de!line to 9< C; by >??H4?< U8iberali0ation of the Indian e!onomy whi!h has led to the opening up of the mar"et for !onsumer goods has helped the M'3 brands li"e Iellogs# 6nile&er# 'estle# et! to ma"e signifi!ant inroads into the &ast !onsumer mar"et by offering a wide range of !hoi!es to the Indian !onsumers UShift in !onsumer demand to foreign brands li"e M!Donalds# Sony# Panasoni!# et! UThe internet re&olution is ma"ing the Indian !onsumer more a!!essible to the growing influen!es of domesti! and foreign retail !hains $ea!h of satellite T % !hannels is helping in !reating awareness about global produ!ts for lo!al mar"ets 2bout G<; of India/s population is under the age of >?N and this will in!rease to AA; by >?9A This young population# whi!h is te!hnology4sa&&y# wat!h more than A? T% satellite !hannels# and display the highest propensity to spend# will immensely !ontribute to the growth of the retail se!tor in the !ountry 2s India !ontinues to get strongly integrated with the
world e!onomy riding the wa&es of globali0ation# the retail se!tor is bound to ta"e big leaps in the years to !ome The Indian retail se!tor is estimated to ha&e a mar"et si0e of about D 9C? billionN but the organised se!tor represents only >; share of this mar"et Most of the organised retailing in the !ountry has )ust started re!ently# and has been !on!entrated mainly in the metro !ities India is the last large 2sian e!onomy to liberali0e its retail se!tor In Thailand# more than G?; of all !onsumer goods are sold through the super mar"ets and departmental stores 2 similar phenomenon has swept through all other 2sian !ountries Brganised retailing in India has a huge s!ope be!ause of the &ast mar"et and the growing !ons!iousness of the !onsumer about produ!t quality and ser&i!es 2 study !ondu!ted by +it!h# e(pe!ts the organi0ed retail industry to !ontinue to grow rapidly# espe!ially through in!reased le&els of penetration in larger towns and metros and also as it begins to spread to smaller !ities and J !lass towns +uelling this growth is the growth in de&elopment of the retail4spe!ifi! properties and malls 2!!ording to the estimates a&ailable with +it!h# !lose to >Amn sq ft of retail spa!e is being de&eloped and will be a&ailable for o!!upation o&er the ne(t :H4GC months +it!h e(pe!ts organi0ed retail to !apture 9A;4>?; mar"et share by >?9?
2 M!Iinsey report on India says organised retailing would in!rease the effi!ien!y and produ!ti&ity of entire gamut of e!onomi! a!ti&ities# and would help in a!hie&ing higher GDP growth 2t H;# the share of employment of retail in India is low# e&en when !ompared to Jra0il (9G;)# and Poland (9>;)
Different or!s of Retailing : "!ergence of new for!ats of retailing in India
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OOD R"TAI-"RS There are large number and &ariety of retailers in the food4retailing se!tor Traditional
types of retailers# who operate small single4outlet businesses mainly using family labour# dominate this se!tor In !omparison# super mar"ets a!!ount for a small proportion of food sales in India ,owe&er the growth rate of super mar"et sales has being signifi!ant in re!ent years be!ause greater numbers of higher4in!ome Indians prefer to shop at super mar"ets due to higher standards of hygiene and attra!ti&e ambien!e
') ."A-T. / )"A&T0 %ROD&CTS .ith growth in in!ome le&els# Indians ha&e started spending more on health and beauty produ!ts ,ere also small# single4outlet retailers dominate the mar"et ,owe&er in re!ent years# a few retail !hains spe!iali0ing in these produ!ts ha&e !ome into the mar"et
2lthough these retail !hains a!!ount for only a small share of the total mar"et # their business is e(pe!ted to grow signifi!antly in the future due to the growing quality !ons!iousness of buyers for these produ!ts .
)) C-OT.I1G / OOT("AR 'umerous !lothing and footwear shops in shopping !enters and mar"ets operate all o&er India Traditional outlets sto!" a limited range of !heap and popular itemsN in !ontrast# modern !lothing and footwear stores ha&e modern produ!ts and attra!ti&e displays to lure !ustomers ,owe&er# with rapid urbani0ation# and !hanging patterns of !onsumer tastes and preferen!es# it is unli"ely that the traditional outlets will sur&i&e the test of time d) .OM" &R1IT&R" / .O&S".O-D GOODS Small retailers again dominate this se!tor Despite the large si0e of this mar"et# &ery few large and modern retailers ha&e established spe!iali0ed stores for these produ!ts ,owe&er there is !onsiderable potential for the entry or e(pansion of spe!iali0ed retail !hains in the !ountry
e) D&RA)-" GOODS The Indian durable goods se!tor has seen the entry of a large number of foreign !ompanies during the post liberali0ation period 2 greater &ariety of !onsumer ele!troni! items and household applian!es be!ame a&ailable to the Indian !ustomer Intense !ompetition among !ompanies to sell their brands pro&ided a strong impetus to the growth for retailers doing business in this se!tor
!) -"IS&R" / %"RSO1A- GOODS In!reasing household in!omes due to better e!onomi! opportunities ha&e en!ouraged !onsumer e(penditure on leisure and personal goods in the !ountry There are spe!iali0ed retailers for ea!h !ategory of produ!ts (boo"s# musi! produ!ts# et! ) in this se!tor 2nother prominent feature of this se!tor is popularity of fran!hising agreements between established manufa!turers and retailers
Malls In India
B&er the last >4: years# the Indian !onsumer mar"et has seen a signifi!ant growth in the number of modern4day shopping !enters# popularly "nown as Vmalls/ There is an in!reased demand for quality retail spa!e from a &aried segment of large4format retailers and brands# whi!h in!lude food and apparel !hains# !onsumer durables and multiple( operators Shopping4!entre de&elopment has attra!ted real4estate de&elopers and !orporate houses a!ross !ities in India 2s a result# from )ust : malls in >???# India is all set to ha&e o&er >>? malls by >??A Today# the e(pe!ted demand for quality retail spa!e in >??H is estimated to be around G? million square feet .hile pre&iously it was the large# organised retailers *with their modern# up4mar"et outlets# and dire!t !onsumer interfa!e4 who had been a "ey fa!tor dri&ing the growth of organised retail in the !ountry# now it is the malls whi!h are playing the role
+a!tors su!h as a&ailability of physi!al spa!e# population densities# !ity planning# and so!io4e!onomi! parameters ha&e dri&en the Indian mar"et to e&ol&e# to a !ertain e(tent# its own definition of a Vmall/ +or e(ample# while a mall in 6S2 is G??#??? to 9 million sq ft in si0e# an Indian &ersion !an be anywhere between C?#??? sq ft and A??#??? sq ft Jy >??A# total mall spa!e in the H !ities of Mumbai# Jangalore# ,yderabad# 3hennai# Iol"ata# and 'ational 3apital $egion (Delhi# 'oida# Gurgaon) is e(pe!ted to in!rease to o&er >9 9 million sq ft 3ompared to other big !ities# Iol"ata and ,yderabad are relati&ely new entrants in the mall segment# but are witnessing qui!" growth Smaller !ities li"e Pune# 2hmedabad# 8u!"now# 8udhiana# 1aipur# 3handigarh and Indore# are also e(pe!ted to see a formidable growth in the growth of malls in the near future Jut malls in India need to ha&e a !lear positioning through the de&elopment of differential produ!t assortment and differential pri!ing# in order to !ompete effe!ti&ely in a growing mall mar"et Segmentation in malls# li"e up4mar"et malls# mid4mar"et malls# et! # proper planning# !orre!t identifi!ation of needs# quality produ!ts at lower pri!es# the right store mi(# and the right timing# would ensure the su!!ess of the Vmall re&olution/ in India
Challenges of Retailing in India
$etailing as an industry in India has still a long way to go To be!ome a truly flourishingindustry# retailing needs to !ross the following hurdles: U2utomati! appro&al is not allowed for foreign in&estment in retail U$egulations restri!ting real estate pur!hases# and !umbersome lo!al laws UTa(ation# whi!h fa&ours small retail businesses
U2bsen!e of de&eloped supply !hain and integrated IT management U8a!" of trained wor" for!e U8ow s"ill le&el for retailing management UIntrinsi! !omple(ity of retailing * rapid pri!e !hanges# !onstant threat of produ!t obsoles!en!e and low margins
The retailers in India ha&e to learn both the art and s!ien!e of retailing by !losely following how retailers in other parts of the world are organi0ing# managing# and !oping up with new !hallenges in an e&er4!hanging mar"etpla!e Indian retailers must use inno&ati&e retail formats to enhan!e shopping e(perien!e# and try to understand the regional &ariations in !onsumer attitudes to retailing $etail mar"eting efforts ha&e to impro&e in the !ountry 4 ad&ertising# promotions# and !ampaigns to attra!t !ustomersN building loyalty by identifying regular shoppers and offering benefits to themN effi!iently managing high4&alue !ustomersN and monitoring !ustomer needs !onstantly# are some of the aspe!ts whi!h Indian retailers need to fo!us upon on a more pro4a!ti&e basis Despite the presen!e of the basi! ingredients required for growth of the retail industry in India# it still fa!es substantial hurdles that will retard and inhibit its growth in the future Bne of the "ey impediments is the la!" of +DI status This has largely limited !apital in&estments in supply !hain infrastru!ture# whi!h is a "ey for de&elopment and growth of food retailing and has also !onstrained a!!ess to world4!lass retail pra!ti!es Multipli!ity and !omple(ity of ta(es# la!" of proper infrastru!ture and relati&ely high !ost of real estate are the other impediments to the growth of retailing .hile the industry and the go&ernment are trying to remo&e many of these hurdles# some of the roadblo!"s will remain and will !ontinue to affe!t the smooth growth of this industry +it!h belie&es that while the mar"et share of organised retail will grow and be!ome signifi!ant in the ne(t de!ade# this growth would# howe&er# not be at the same rapid pa!e as in other emerging
mar"ets Brganised retailing in India is gaining wider a!!eptan!e The de&elopment of the organised retail se!tor# during the last de!ade# has begun to !hange the fa!e of retailing# espe!ially# in the ma)or metros of the !ountry 5(perien!es in the de&eloped and de&eloping !ountries pro&e that performan!e of organised retail is strongly lin"ed to the performan!e of the e!onomy as a whole This is mainly on a!!ount of the rea!h and penetration of this business and its s!ientifi! approa!h in dealing with !ustomers and their needs In spite of the positi&e prospe!ts of this industry# Indian retailing fa!es some ma)or hurdles (see Table 9)# whi!h ha&e stymied its growth 5arly signs of organi0ed retail were &isible e&en in the 9E<?s when 'ilgiris (food)# %i&e"s (!onsumer durables) and 'allis (sarees) started their operations ,owe&er# as a result of the roadblo!"s (mentioned in Table 9)# the industry remained in a rudimentary stage .hile these retailers ga&e the ne!essary ambien!e to !ustomers# little effort was made to introdu!e world4!lass !ustomer !are pra!ti!es and impro&e operating effi!ien!ies Moreo&er# most of these modern de&elopments were restri!ted to south India# whi!h is still regarded as a VMe!!a of Indian $etail/
R$.ai+ as a# Em7+/ym$#. G$#$ra./r
The retail se!tor !an generate huge employment opportunities# and !an lead to )ob4led e!onomi! growth In most ma)or e!onomies# Vser&i!es/ form the largest se!tor for !reating employment 6S alone ha&e o&er 9>; of its employable wor"for!e engaged in the retail se!tor The retail se!tor in India employs nearly >9 million people# a!!ounting for roughly H <; of the total employment ,owe&er# employment in organised retailing is still &ery low# be!ause of the small share of organised retail business in the total Indian retail trade The share of organised retailing in India# at around >;# is abysmally low#
!ompared to C?; in the 6S2# G?; in Thailand# or >?; in 3hina# thus lea&ing the huge mar"et potential largely untapped 2 modern retailLretail ser&i!es se!tor has the potential of !reating o&er > million new (dire!t) )obs within the ne(t H years in the !ountry (assuming only C49?; share of organised retailing)# a!!ording to 2r&ind Singhal# 3MD# IS2 Te!hnopa" $etail !an !reate as many new )obs as the JPBLITeS se!tor in India 2 strong retail front4end !an also pro&ide the ne!essary fillip to agri!ulture 7 food pro!essing# handi!rafts# and small 7 medium manufa!turing enterprises# !reating millions of new )obs indire!tly Through it/s strong lin"ages with se!tors li"e tourism and hospitality# retail has the potential of !reating )obs in these se!tors also Though the Planning 3ommission has identified retail as a prospe!ti&e employment generator# in order to strengthen the multiplier effe!t of the growth in organised retailing upon the o&erall employment situation# a pro4a!ti&e go&ernmental support me!hanism needs to e&ol&e for nurturing the se!tor Issues li"e +DI in retail# allo!ation of go&ernment4 !ontrolled land on more fa&orable terms# strong politi!al and bureau!rati! leadership# et! # need to be addressed adequately
Retail Sector in the "ast : Current Scenario$ Growth %ros#ects and &#co!ing %ro'ects
The retail se!tor in 5astern India is largely Iol"ata4!entri%( The !ity of Iol"ata has !ome a long way in terms of retail maturity with a proliferation of brands and organised retail !hains Shopping trends in the !ity ha&e witnessed a radi!al shift o&er the re!ent yearsN
from the !on&entional trader run stand alone shops to more organi0ed 7 large retail formats 5&idently# the future of retailing in the !ity lies in new4age shopping malls# whi!h pro&ide &ariety# &alue and !on&enien!e in a more !omfortable en&ironment This is also e&ident by a surge in the !onsumer spending on branded goods in the re!ent timesN for e(ample the !ityFs Musi! .orld outlet has re!orded the highest earnings per square feet amongst all its outlets in the !ountry The !ity has also wel!omed the other retail !hains su!h as Pantaloons# .estside and Shopper/s Stop Though Iol"ata has been a bit late in !at!hing up with the retail re&olution in the !ountry# the !ity has great potential to be!ome a retail hub in the near future Going by the 9EE9 !ensus# the !ity qualifies as the se!ond largest metro mar"et in IndiaN nearly one out of e&ery si( shops lo!ated in the !ountry/s top >A !ities# !an be tra!ed to Iol"ata To a mar"et strategist# Iol"ata undoubtedly is an ideal lo!ation for the growth of the retail industry Jesides being the prin!ipal retail4and4ser&i!es mar"et to a &ast hinterland !omprising of the eastern and northeastern states of the !ountry# the !ity also ser&es as a !enter of trade and !ommer!e for the region Its pro(imity to Jangladesh# a !ountry of 9: !rore !onsumers# and to the South45ast 2sian mar"ets# is another fa!tor for whi!h the !ity is fast merging as a &ibrant business !enter The Iol"ata Port and the ,aldia Port are also instrumental in a!ting as gateways to landlo!"ed !ountries li"e 'epal and Jhutan The disposable in!omes of Iol"atans ha&e also been on the rise * a!!ording to a report by the 'ational 3oun!il of 2pplied 5!onomi! $esear!h ('325$)# about H>; of the households in Iol"ata had annual in!omes of up to $s 9C# ??? in 9ECA4CHN while )ust a de!ade later# the figure had tou!hed $s >A#???4<<#??? for some H9; of the households The !ity truly represents an amalgamation of the ad&antages of a metro !ity# and the !omparati&ely modest li&ing !osts of a non4metro town 8ately# Iol"ata has emerged as a strong prospe!ti&e destination in the e(pansion plans of retailers and is now per!ei&ed as a latent but highly potential mar"et Prominent retail !hains li"e Musi! .orld# .estside# Dominos# Pi00a ,ut# Shopper/s Stop# .illsSport# Jarista# and Pantaloons ha&e already established their presen!e in the mar"et 2part from
these new4age# large retail !hains whi!h ha&e started operating su!!essfully in the !ity# there are a large number of traditional# spe!iali0ed mar"ets li"e the Jowba0ar mar"et# Jagri mar"et# 3hina ba0aar# 8a"e mar"et# Jurraba0ar mar"et# 3handni mar"et# et! # and high4street mar"ets at Par" Street# 5splanade area# 3ama! Street# Sha"espeare Sarani# Gariahat# whi!h offer a wide &ariety of items li"e stationary items# dairy produ!ts# ele!troni! goods and applian!es# glassware# !ro!"ery# wooden furniture# )ewellery# musi!al instruments# fruits# flowers# &egetables# fish# flesh meat# te(tiles# spi!es# dry fruits# sugar# salt# gro!eries# paints# hardware items# et! Jesides these mar"ets# there are small4format# non4branded shopping !omple(esLmalls li"e the 2L3 Mar"et# %ardaan Mar"et# 'ew Mar"et# and the Shreeram 2r!ade# whi!h offer a wide &ariety of items# from garments# wat!hes# and footwear# to !onsumer durables li"e household ele!troni! gadgets The lo!al retail !hains whi!h ha&e be!ome household names in Jengal in!lude IAram-a)h 6a.%h$ri$s L.d(J9 KhadimJs# and ,r$$ L$a.h$rs Bperational sin!e 9EEC# Aram-a)h 6a.%h$ri$s L.d is today one of the foremost !ompanies in the mar"eting of poultry produ!ts 5n!ouraged by the su!!ess of its P!hi!"enQ brand # and the reali0ation that there was a &oid in the Iol"ata mar"et for quality food stuff sold under a single roof # the !ompany too" the initiati&e in starting P!on&enien!e storesQ named P 2rambagh/s +ood MartQ in >??? 2n aggressi&e e(pansion strategy has seen the !ompany/s physi!al strength grow to 9G outlets in Iol"ata# with another A4H outlets being in the pipeline 5a!h of these stores are between A?? 7 C?? sq ft in dimension # and pa!"ed with at least G???4GA?? food and other +M3G items Good quality # the right quantity# use of !orre!t weights# and a low M$P are the main fa!tors whi!h ha&e !ontributed to an impressi&e growth of this !hain 2rambagh has tie ups with 'i!!o Par"# Iwality .alls#Iellogs India and +rito 8ays# among others These tie ups help the !hain in produ!t and ser&i!es promotion Joth KhadimJs and ,r$$ L$a.h$rs are lo!al footwear !ompanies whi!h ha&e been tremendously su!!essful# and ha&e now rea!hed out to international mar"ets KhadimJs
has e(!lusi&e showrooms not only in .est Jengal# but also in states li"e Jihar# 1har"hand# Tripura# Brissa# Madhya Pradesh# 2ndhra Pradesh# Iarnata"a# Gu)arat# and Tamil 'adu The !ompany offers produ!ts li"e Premium shoes# Gents/ shoes# 8adies/ shoes# Iids/shoes# and 8eather 2!!essories Ihadim/s has be!ome the destination for people from all wal"s of life# with a great range of footwear to !hoose from The motto of the !ompany is to pro&ide good quality fashionable shoes at affordable pri!es ,r$$ L$a.h$rs entered the Iol"ata mar"et in 9EC< with its first outlet in the !ity at 8indsay Street# whi!h be!ame hugely su!!essful The !ompany/s se!ond mega outlet at +ree S!hool Street# whi!h has a floor area of more than <A?? sq ft # pro&ides a great shopping e(perien!e to its !ustomers Today the !ompany has a number of outlets s!attered o&er .est Jengal# Brissa and Jihar# and has &entured into the international mar"ets of the Middle 5ast# Singapore# Maldi&es# 6S2# Denmar"# Gree!e# Germany# 'etharlands and 2ustria Sree 8eathers has started a new $7D se!tion under the guidan!e of Italian and German e(perts# to enhan!e the !omfort le&el of it/s produ!ts# and has plans of setting up a modern footwear fa!tory at Iasba Industrial area in Iol"ata The two prominent fun4entertainmentLamusement par"s in Iol"ata whi!h ha&e gained immense popularity among the masses# parti!ularly !hildren# are Ni%%/ Par"# and AGua.i%a Situated in Salt 8a"e# and spread o&er an area of G? a!res# Ni%%/ Par19 promoted by the 'i!!o Group# !an be termed as the VDisneyland of .est Jengal/# with a &ariety of unusual and e(!iting games and rides li"e the Toy Train# 3able 3ar# Tilt4a4.hirl# .ater 3hute# .ater 3oaster# +lying Sau!er# Pirate Ship# and Moonra"er The 3a&e $ide is the latest addition# and is perhaps the only of it/s "ind in this part of the world AGua.i%a9 an C4a!re water par"# is situated at $a)arhat in Iol"ata# whi!h !ame up in >??? This Theme Par" offers &isitors a !ool respite from the heat and grime of !ity life The par"# whi!h !an a!!ommodate around A??? people# has an artifi!ial ri&er meandering through it %isitors !an swim and wade in the ri&er water# whi!h is re!y!led e&ery hour
for maintaining the !leanliness 2quati!a has breathta"ing rides su!h as the Jla!" ,ole# Tornado and .a&e Pool The 2qua Dan!e +loor# where &isitors !an sway to non4stop musi!# has water4spraying no00les on the roof whi!h fill the surrounding air with water 2quati!a also hosts big e&ents and programmes li"e fashion shows whi!h are great !rowd4pullers The medium and large4format# branded and non4branded shopping !omple(es4malls whi!h ha&e !ome up in Iol"ata# and are operating su!!essfully# are : U0/rum: It is a two la"h square feet mall# situated on 5lgin $oad # in South Iol"ata with Shopper/s Stop as an!hor This shopping mall established by Sunsam properties within the Saraf Group was opened to the publi! in Mar!h >??: # with the laun!h of Shopper/s Stop 2long with the retail brands ha&ing their outlets# the +orum also houses# a :?? !apa!ity food !ourt and a G4auditorium multiple( !alled I'BS The multiple(# I'BS has been the first of its "ind in the !ity# ha&ing a sitting !apa!ity for o&er 9??? &iewers# and situated o&er :???? square feet ,en!e it !an be really a great e(perien!e of shopping and mo&ie4going for the Iol"atans# who do not want to !ompromise on the quality aspe!t The retail outlets at +orum ha&e witnessed almost :?4:A ; in!rease in sales after the opening up of the multiple( in >??: Most retailers are e(tremely happy with the growth rate and e(pe!t their sales to in!rease further in the !oming months 2t I'BS # ti!"et sales ha&e been a&eraging at almost E?; of the theatre !apa!ity * the highest bo( offi!e sales amongst all the multiple(es in the !ountry +orum has truly !hanged the e(perien!e of Iol"atans with regard to shopping and entertainment in the !ity
U22 4ama% ,.r$$.: This large format4shopping !omple( is lo!ated on 3ama! Street The retail brands li"e Pantaloons #.estside # Pi00a ,ut # Planet M# Grain of Salt and 2dd 8ife # ha&e already set up their outlets in the !omple( It has G distin!t blo!"s with a !ommon atrium The most ad&antageous aspe!t here is its huge par"ing spa!e in the basement It also houses smaller multi4branded outlets The footfalls stay steady throughout the wee" and gets to an un!ontrollable high o&er the wee"end Some of the outlets ran" among the
leading indi&idual retail outlets of the !ountry
The total floor area of the !omple( is
:C?#??? square feet # and has G restaurants and : banquet halls UM$.r/ P+a@a: Situated on ,o 3hi Minh Sarani # this is basi!ally a large s!ale retail !um offi!e de&elopment area The lower three floors with an area of A?#???4H?#??? square feet is meant for retail business 2long with the retail units there is also a spa!e for Jowling whi!h is frequented by younger people UEmami N/( !: This mall is lo!ated on 8ord Sinha $oad Its !lose pro(imity to the
3howringhee4Par" Street belt helps it to !ater to a large se!tion of quality !ons!ious !onsumers The usual fa!ilities of power ba!"up# &erti!al transportation and par"ing are a&ailable o&er here The biggest disad&antage that it fa!es is its !ar par"ing area# whi!h has a meagre !apa!ity of )ust <? !ars at a time The biggest attra!tion here is its P8andmar" boo"storeP on the third floor# whi!h has a wide range of boo"s# musi! and stationary items U4i.y 4$#.r$: The re!ently inaugurated V3ity 3entre/ pro)e!t adds another feather to the already &ibrant retail business in the !ity The pro)e!t# promoted by industrialist ,arsh&ardhan 'eotia# and lo!ated at Salt 8a"e# has been designed by one of India/s best "nown ar!hite!ts# 3harles 3orrea V3ity 3entre/ is a dynami! mi( of shopping mall# 3ineple( (I'BS)# entertainment area# food !ourt# offi!es# and residen!es4 nestling amidst open spa!es# lush greens# and the !ontours of an ideal !itys!ape Jig brands li"e Shopper/s Stop and 2didas ha&e set up their shops in the !omple( There are se&eral aspe!ts to V3ity 3entre/ N with no boundaries to separate it from the street# it is open to e&eryone4 all in!ome and age groups The 3omple( has a par"ing spa!e for as many as C?? !ars# 9G entry and e(it points# and large spa!es to amble around The V3ity 3entre/# whi!h is the single4largest ar!hite!tural endea&our in Iol"ata in re!ent times# has truly !hanged the way the !ity loo"s# and !omplements the !ity/s artisti! heritage The lo!ation of the pro)e!t ma"es Salt 8a"e the epi!enter of not )ust its immediate population (nearly half a million)# but also of the up!oming# ad)oining township of $a)arhat (with an e(pe!ted population of about <A?#???)
UE#%+av$: Spread o&er :H#??? sq ft # the 5n!la&e# has !ome up at up4mar"et 2lipore# and has fi&e shopping le&els# and an open4to4s"y atrium The !omple(# promoted by the 3al!utta Metropolitan Group# has fine restaurants in!luding +ood Jar# $ed Jar# 3oo"ee Jar# !offee shops# a !hildrens/ entertainment 0one named VIool Iids/# among other fa!ilities 2nother prominent supermar"et whi!h offers a wide range of produ!ts# and pro&ides !ustomers with a great shopping e(perien!e# is 4>- Th$ Mar1$. P+a%e The shop !ommands o&er H9?? sq ft in the heart of Iol"ata# at 8ee $esiden!y# >H# 8ee $oad The appro(imately >A#???4strong produ!t menu in!ludes a wide range of produ!ts li"e fresh fruits and &egetables# rare herbs# gro!eries# ready4to4eat food# personal4!are items# !onfe!tionaries# !ho!olates# home4!are produ!ts# newspapers# maga0ines# and so on Though the retail business mainly re&ol&es around Iol"ata# towns li"e Durgapur# Siliguri and ,aldia also ha&e the potential of be!oming busy retail addresses 2lready# the Dur)a7ur 4i.y 4$#.r$ pro)e!t# promoted by Jengal Shristi Infrastru4!ture De&elopment 8td # has !ome up in Durgapur# in Jurdwan distri!t The pro)e!t# whi!h was inaugurated on the 9? th of 2ugust# >??:# is a modern# multi4fa!ility# multi4utility# urban pla0a# spread o&er a sprawling :<?#??? sq ft It is a !onfluen!e of shopping# !ommer!e# entertainment# edu!ation# re!reation# health# hospitality# medi!al amenities# and premium residential a!!ommodation 8ush green open spa!es# an integrated entertainment multiple(# and &arious other urban amenities# pro&ide a fas!inating e(perien!e Durgapur is well4 !onne!ted by both rail and road# and the pro)e!t lo!ation is easily a!!essible from the bordering towns of 2sansol# $anigun)# Santini"etan# and Jurnpur 2 number of prominent pro)e!ts in the retail se!tor are !oming up in Iol"ata Some of these are: U,/u.h 4i.y: The up!oming# :94a!re South 3ity pro)e!t promises of a lifestyle of int4 ernational standards The pro)e!t will ha&e four :A4storey residential towers# a sprawling !lub# a shopping mall with entertainment 0ones# and a multiple( Modernte!hnology will ensure earthqua"e resistan!e# high4speed ele&ators# adequate fire4fighting and prote!tion
systems# internal se!urity and traffi! management# and all !on!ei&able !i&i! !omforts The in4!omple( South 3ity 2!ademy# spread o&er : A a!res# will be equipped with a learning resour!e !enter# gym# !afeteria# an auditorium for e(tra4!urri!ular a!ti&ities li"e debates# dramati!s# and sports# and a so!!er field The South 3ity 3lub will ha&e an air4 !onditioned sports !enter# guest rooms# banquet fa!ilities# swimming pools# a dining restaurant# a pub lounge# a business !enter# and a health !lub# among other things The mega !omple( will also ha&e India/s largest shopping mall4 the 1un!tion# spread a!ross an area of <??#??? sq ft # whi!h will ha&e large an!hor stores# a multiple(# a food !ourt# a si(4s!reen 3ineple(# an entertainment 0one# and par"ing spa!e for nearly C?? !ars The team behind this big &enture !omprises a host of e(perien!ed ar!hite!ts and De&4 elopers 2mong them are : Dulal Mu"her)ee 7 2sso!iates (the prin!ipal ar!hite!ts)NSmallwood $eynolds Stewart Stewart 7 2sso!iates In! # the 2tlanta4based international design !onsultantsN Peridian 2sia PT5 8td # Singapore4based lands!ape ar!hite!tsN Meinhardt (Singapore) PT5 8td # stru!tural !onsultantsN and M' 3onsultant# stru!tural engineers UMa#i ,Guar$: Mani Square# a proposed pro)e!t on a G4a!re plot ne(t to 2pollo Gle4 neagles ,ospital on 5 M Jypass# will ha&e a A??#??? sq ft spa!e# whi!h will in!lude a te!hnology par"# a H4s!reen multiple( # a food !ourt # business !lub # a multile&el 9???4 !ar par"ing area # a G?#??? sq ft hypermart ( PGiantQ )# as well as other dire!t retail stores Designed and engineered by S22 2r!hite!ts of Singapore and Meinhardt of 2ustralia # and promoted by the Mani Group# Mani Square will be the single stop solution to all requirements of modern4day professionals and !ustomers The pro)e!t will ha&e ready4 to4use !entrally air4!onditioned offi!es with 9??; power ba!"4up #lease4lines and round4 the4!lo!" support ser&i!es # whi!h will be e(tremely attra!ti&e for IT and ITeS !ompanies $etail giants li"e 8ifestyle # .estside # Shoppers/ Stop and 3ineple( ma)ors li"e Shringar and P%$ ha&e already shown interest to set up units in the !omple( U0/r. K#/:: +ort Ino(# a mega )ewellery mall# owned and promoted by the +ort Group# is s!heduled for a September# >??G inauguration The pro)e!t# a E4storied !omple(# on an
area of appro(imately C?#??? sq ft # will ha&e an estimated :< showrooms# G? offi!es# ba!"ed by G lifts# C es!alators The +ort Group is !onfident about eli!iting a positi&e !onsumer response# and pro&iding the !ustomer with a !omfortable# se!ure# and refreshing shopping e(perien!e# by !reating a!!ess to the best produ!ts# from the best )ewellers# at the best pri!es The pro)e!t# whi!h is !oming up at 3ama! Street# will ha&e a formidable line4up of se!urity measures in!luding alarm system with instant lin"s to the poli!e headquarters and fire ser&i!es# >G4hour armed se!urity guards# et! UGariaha. Ma++: Gariahat Mall# whi!h is !oming up at an area between the Gariahat !rossing# and the $ashbehari4 5M Jypass 3onne!tor# will appro(imately be of C?#??? sq ft # and will be a!!essible from e&ery point in the southern belt of the !ity The A4floor stru!ture will boast of world4!lass fa!ilities and ambien!e# an e(pansi&e atrium# high !eilings# !apsule lifts# and multi4le&el a!!ess up to the top floor The s!ientifi! fusion of lofty !eilings# flat slabs# and a !entral atrium illuminated by natural light# is intended to e&o"e a sense of spa!e# height# and depth .hile an entire blo!" has been earmar"ed for the an!hor shop# the : rd and the G th floors are entirely reser&ed for )ewellery outlets# and the A th floor will house restaurants and eating pla!es Toplight 3ommer!ials 8td (T38)# one of the prominent real4estate de&elopers in Iol"ata# and the promoter of the mall# e(pe!ts to !omplete the pro)e!t by De!ember# >??G UM$.r/7/+is: The 9#G9#??? sq ft VMetropolis/ will be one of Iol"ata/s newest retail4 !um4entertainment addresses The !omple( will ha&e a G4s!reen# 9???4seater 3ineple(# a H4 outlet food !ourt# a sports bar# a restaurant# and a :A?4!apa!ity !ar par" Jeing de&eloped by the 3al!utta Metropolitan Group (3MG)# the VMetropolis/ is designed by the reputed ar!hite!tural firm# Peddle Thorp International of ,ong Iong# and will !ome up at an area ad)a!ent to 3MG/s prestigious e(isting residential !omple(# V,iland Par"/# whi!h has about E?? apartments and :A penthouses VMetropolis/ will ha&e the ,yatt $egen!y# IT3 Sonar Jangla# Peerless ,ospital# and 6dayan 3ondo&ille among its distingui4shed neighbours
UPam ,h/77i#) 4$#.r$: The mar&ellous Pam Shopping 3entre# promoted )ointly by Pam De&elopers# and the Iol"ata Muni!ipal 3orporation# is s!heduled for an end42ugust (>??G) inauguration This H?#??? sq ft eye4!at!her at $ashbehari 2&enue# will boast of a unique refle!ti&e glass !urtain# and an artisti!ally lands!aped entran!e ramp# besides ha&ing fi&e le&els of shopping The 3omple( will ha&e shops selling a wide range of produ!ts in!luding garments# and )ewellery U6/m$+a#d: ,omeland# a 9#??#??? sq ft e(!lusi&e shopping mall# promoted by the Merlin Group# is !oming up in the heart of 3entral Iol"ata# !lose to 3howringhee and 5lgin $oad !rossing The fi&e4storied# !entrally air4!onditioned shopping !enter will ha&e stylish spa!es ranging from :?? sq ft to >??? sq ft # and spa!ious e(hibition and produ!t laun!h area The mall will also ha&e 2TM !enters at !on&enient points# internationally styled !afW and food stops# >G4hour power ba!"up fa!ility# and adequate !ar par"ing fa!ilities U,i+v$r ,7ri#)s: VSil&er Springs/# a prestigious )oint &enture pro)e!t between Jengal Sil&er Springs Pro)e!ts 8td and the Iol"ata Muni!ipal 3orporation# is due for a De!ember# >??A !ompletion Shapoor)i Pallon)i has done the piling of VSil&er Springs/# and renowned ar!hite!t 1 P 2garwal has designed the pro)e!t The pro)e!t will ha&e around A?? residential flats# 9? high4rises of 9C and 9G stories# a magnifi!ent shopping mall named VSil&er 2r!ade/# of <?#??? sq ft area# and a VSpring 3lub/ of an area of <?#??? sq ft The &endors at the shopping mall in!lude Mainland 3hina and a ,yundai dealer4 showroom VSil&er 2r!ade/ will be a GT: mall# with the : by Mainland 3hina for : spe!iality restaurantsN while the >
nd rd
floor being ta"en up
floor will ha&e a +ood
3ourt with 9< multi4!uisine food !ounters The mall will be ba!"ed by a large par"ing spa!e for 9A? !ars VSil&er Springs/ will boast of a modern# up4mar"et residential !omple(# the shopping mall# VSil&er 2r!ade/# a Montessori S!hool# an 23 3ommunity ,all# among other new4age fa!ilities Bhu-a#$sh*ar is another !ity# whi!h has the potential of be!oming a retail hotspot in the 5ast The !ity is fast de&eloping into a bustling !enter for e!onomi! a!ti&ity# with
software giants li"e Infosys and Satyam ha&e already set up their offi!es This is gi&ing rise to a new breed of !onsumers with high disposable in!omesN thereby !reating lifestyle and aspiration le&els at par with other fast4mo&ing metropolitan !ities Jhubaneshwar represents two fa!es of retailing 4 one# a traditional store e&ol&ing with time# and another# a re!ently inaugurated mall from a group that is !redited with ha&ing re&olutioni0ed the retail s!enario in Iol"ata U,a.yam ,hivam ,u#daram: This >A year old multi4brand department store is famous for its offerings in te(tiles and ready4to4wear garments The uniqueness of the store lies in its ability to in!ul!ate the latest retail !on!epts in terms of sele!tion and display of mer!handise in4store ambien!e# and other attra!ti&e features This C#??? sq ft store# whi!h is being upgraded to a 9H#??? sq ft one# spends a good amount of money annually on brand4promotion e(er!ises 2t the store# half of the retail spa!e is de&oted to menswear # >A ; to womens/ wear # 9A; to !hildren/s wear # and the rest 9?; to teenagers 2bout $s >A la"h in systems# while the standing sto!" of mer!handise is worth about $s A !rore U0/rum Ma++: Jhubaneshwar/s +orum mall# laun!hed on >Eth of Mar!h#>??G# is e(pe!ted to bring in a turning point in the !ity/s retailing and retail real4estate de&elopment 8o!ated at Ihar&el 'agar# 6nit III# in the 3entral Jusiness Distri!t# the mall is the brain!hild of $ahul Saraf# the man who masterminded the su!!ess of +orum at Iol"ata The G4le&el +orum mall has a total area of 9<?#??? sq ft # with 99A#??? sq ft de&oted to the retail and +7J The ground# first# and se!ond floors# is dedi!ated to pure retailing# while the food !ourt and entertainment 0ones are lo!ated on the third floor The top floor is reser&ed for IT and related business and trade The prominent brands that ha&e ta"en spa!e in the mall in!lude Jig Ja0ar (an!hor)# Pi00a ,ut# Mousta!he# Du"es# Sree 8eathers# Jas"in $obins# Planet M# among others The up!oming brands in!lude Jenetton# Jla!"berry/s# 3handrani Pearls# Jata# and Siyaram/s The mall has re!ei&ed a great responseN the a&erage footfalls being <??? per day# with e(pe!tations of an in!rease to C??? +orum has not only be!ome a shopping destination for the people of
Jhubaneshwar# but also for people from surrounding areas li"e 3utta!" and other towns in the state The retail re&olution is slowly ma"ing !hanges in lifestyle in smaller towns also This is e&ident from the fa!t that e&en a small town li"e Bha)a+7ur in Jihar# today has it/s own shopping mall The already operational shopping !enter# named ,riyash Aa7 Ka A7#a Ba@arQ# lo!ated at 1iwan Sagar Towers# D ' Singh $oad# has been promoted by the Iishorepuria Group of 3ompanies The > floor4 $s 9 9? !rore pro)e!t has about 99#??? sq ft of total retail spa!e# and offers a wide range of produ!ts li"e garments# applian!es# furniture# !osmeti!s# ele!troni! items# among others The mall# whi!h has a par"ing spa!e for 9? !ars# and A? motorbi"es# has re!ei&ed great response4 the a&erage footfalls being E??4EA? There are plans to further impro&e infrastru!tural fa!ilities in the !omple(N a well4equipped food !ourt is !oming up# with ,industan 8e&er 8td (,88) as one of the possible partners The 5ast is fast emerging as a formidable retail mar"et The spread of retailing beyond Iol"ata would !reate an integrated Vretail 0one/ whi!h would !hange the way people in this part of India wor" and li&e
"P4&MMING PR&3E4T,( Pu#2a- *$ddi#)s )$. %/+/ur(
Pun)ab will soon get malls spe!ially designed for wedding li"e Bma(e mall !oming up in Patiala Marriages in Pun)ab go&ernment to a!quire more gaiety# with wedding4malls !oming up in the state Multi4!rore real estate ma)or Bma(e is setting up a state of the art wedding4mall in Patiala# attra!ted by the state/s ri!h lifestyle and high per !apita in!ome Spread o&er >#<A#??? square feet and with an in&estment of $s 9G? 3rore# Bma(e/s weeding4mall is li"ely to be !ompleted in two and a half years The mall# lo!ated in the !ity near histori!al Jaradari Gardens# will pro&ide its !ustomers shopping4!um4entertainment fa!ilities .ith a showroom# banquet halls# a hotel# and a multiple(# it will be a one4stop destination for the entire range of wedding related items The mall will also ha&e offer trousseaus# )ewelleries# banquet items# beauty parlors# whitegoods# lifestyle produ!ts# furnatureand furnishings# floral# de!orations# and mehndi artists $ight from getting to organising honeymoon tours# all "inds of ser&i!es will be a&ialable at Bma(e/s wedding mall Spea"ing to Jusiness Standard# Senior %i!e president Iunal Janergi said they !hose Patiala in pla!e of 8udhina# 1allandar and 2mritsar be!ause of high litera!y (C9 per!ent)# high per !apita in!ome ($s >C#:AG) and the royal lega!y of the !ity Moreo&er# Patiala is !lose to 3handigarh and 8udhina
Jenergi said that wedding mar"et in India was of $s A?#??? !rore and it was growing
Bn a&erage# an upper middle !lass family spends between $s A??#??? and $s 9A lahg on wedding Pun)ab has a high population of '$Is# who !an spend about $s >A la"h on wedding Ieeping all these fa!tors in mind# oma(e has designed a wedding4mall where a marriage !an be arranged with all pur!hase# e&en at $s : la"h# &ery mu!h within the rea!h of an a&erage Pun)abi family The wedding mall will ha&e two huge banquet halls where four marriages !an ta"e pla!e simultaneously Jut the 3hief 3hara!teristi! of the mall would be the shopping !omple(# Janer)i said# The ob)e!ti&e was to aid shopping by sa&ing the !onsumer frequent &isits to the mar"et
R$.ai+ Edu%a.i/# i# .h$ Eas.
The retail se!tor# whi!h is poised for robust future growth# needs more and more professionally qualified personnel# with spe!iali0ed "nowledge in retailing It is thus ne!essary to ha&e more and more business s!hools in the !ountry# whi!h offer spe!iali0ed !ourses in retailing The need for pro&iding quality retail management edu!ation has been re!ogni0ed by theI40AI Busi#$ss ,%h//+ in Iol"ata# whi!h offers a !omprehensi&e retail management programme that enables the students to !riti!ally analy0e the retailing pro!ess# the en&ironment within whi!h it operates# and the institutions and fun!tions that are performed The !ourse aims to ma"e students aware of the differen!es between retail mar"eting strategy and finan!ial strategy# and pro&ides "nowledge of mer!handise management The programme in!ul!ates analyti!al s"ills useful for retail de!ision4 ma"ing# and pro&ides a foundation for those students who plan to ma"e !areer in the field of retailing or related dis!iplines The !ourse !o&ers !riti!al topi!s li"e understanding the retail !ustomer# and institutionsN retail mar"eting strategiesN retail organi0ation 7 managementN pri!ing strategiesN retail sellingN logisti!s 7 information systems# et!
$e!ently# the I#.$r#a.i/#a+ ,%h//+ /' Busi#$ss < M$dia has# in its newly inaugurated !ampus at Salt 8a"e# Iol"ata# started offering a >4year full4time Post Graduate Programme in Management# with retail management as on of the spe!iali0ations The !ourse !o&ers essential topi!s li"e retail organi0ation 7 managementN introdu!tion to ris" managementN retail lo!ation analysisN branding the retail organi0ationN retail mar"eting 7 sales strategy# et! This !ourse has been laun!hed loo"ing at the tremendous growth potential of the retail se!tor in the !oming years# and aims to gear up students to the rapidly !hanging business en&ironment Xuality retail edu!ation is ne!essary to !reate a &ast pool of qualified retail management professionals who !an ta!"le the !hallenges of this intensely !ompetiti&e industry To !ater to the in!reasing demand for te!hni!ally effi!ient wor"for!e in the retail se!tor#
more and more management institutions in the !ountry should design and introdu!e inno&ati&e retail management programmes
0a%./rs #$$d$d ./ 7r/m/.$ .h$ ,$%./r i# A$s. B$#)a+

2 number of important issues need to be addressed suitably to foster the further growth# and ensure !ompetiti&eness of the retail se!tor in .est JengalLIol"ata These !an be summari0ed as follows : UThe prin!ipal issue with the de&elopment of retail in Iol"ata is the a!quisition of appr4 opriate spa!es for retail# and the !ost thereof in the !ity Bne of the main !omponents of the !ost of su!h spa!es is the in!iden!e of ta( in terms of Iol"ata Muni!ipal 3orporation 2!t# 9EC? The IM3 2!t stipulates that an amount of G?; of the annual &alue as determined uLs 9<G of the 2!t will be the amount of ta(# in addition to whi!h the premises that are used for non4residential purposes (whi!h in!ludes all retail and !ommer!ial establishments)# there will be an additional le&y of sur!harge of A?; of the abo&e ta( This effe!ti&ely translates into a ta( of H?; on the annual &alue (being the gross annual rental redu!ed by 9?; for mainten4an!e ) of a property# whi!h is an e(tremely high ta( threshold +ormatted retail# whi!h is a de&eloping industry# !annot afford su!h high rates of ta( whi!h it must effe!ti&ely bear to transparently a!quire property for the !ondu!t of its business in Iol"ata These rates are amongst the highest in the world# and dis!ourage the growth of the retail business The muni!ipal ta( in Iol"ata is so high# that the total e(pense on !ommer!ial# rental premises be!omes mu!h more e(pensi&e than in other fast growing !ities li"e Jangalore# ,yderabad# 3hennai# et!
%ro#erty Ta2 rates for co!!ercial$ tenanted #re!ises in different cities:
3ol4ata *3MC, 18.90
)anglore 5.58
Chennai 7.75
Delhi 5.7;
Gurgaon 3.21
1avi Mu!bai 3.00
*All igures are %ro#erty Ta2 in Rs5+s65ft5+!onth,
It is thus absolutely ne!essary for the !on!erned authorities to ta"e ne!essary steps for rationali0ation of the muni!ipal ta( rates in Iol"ata to pre&ent loss of business# employment# and de&elopment opportunities UThe rele&ant pro&isions of the Shops 7 5stablishment 2!t stipulate that a !ommer!ial establishment of any "ind (whi!h in!ludes a retail operation) must allow its employees one and a half day of lea&e for e&ery wee" of wor" It also stipulates the total number of hours that any establishment !an remain open for business on any wor"ing day In this !ompetiti&e en&ironment &irtually e&ery retail# entertainment and food business requires to !ondu!t its business e&ery day of the wee" and pro&isions li"e this se&erely inhibit their profitability U2 number of retail en&ironments ha&e been as"ed to pay an entertainment ta( for the musi! that they play in their stores In fa!t it has also been reported that su!h ta(es also demanded if a tele&ision is used inside su!h an establishment This is our &iew in puniti&e sin!e su!h musi! or tele&ision is not intended to pro&ide any formal entertainment UThere is !onfusion about the si0e# number and nature of the signage that a !ommer!ial establishment is allowed to display outside its premises The IM3 has of late begun to demand ta( on su!h signage at the same rates as are appli!able to hoardings 2 standard needs to be instituted proportionate to the area o!!upied by a !ommer!ial establishment indi!ating dimensions of the free signage permitted by the establishmentso that there is no !onfusion that is allowed to persist in this !onne!tion
UThe issue of fi(ing of Ma(imum $etail Pri!e (M$P) by manufa!turers# whi!h is ma"ing retailers un!ompetiti&e# needs to be addressed urgently UThe rigidity of the .eights 7 Measures 2!t# whi!h empowers the arrests of members from the Joard of Dire!tors of a !ompany# is another issue# whi!h demands immediate attention Iol"ata is an ideal lo!ation for the growth of the retail industry The inherent ad&antages of .est JengalLIol"ata need to be e(ploited fully by strengthening the go&ernmentalLadministrati&e support me!hanism state e!onomy 2 !omprehensi&e# rational retail
support poli!y !an go a long way in ma"ing the se!tor a!t as an engine of growth for the
4/#%+usi/#
In India the retail se!tor is the se!ond largest employer after agri!ulture# although it is highly fragmented and predominantly !onsists of small independent# owner * managed shops There are o&er 9> million retail outlets in India # and organised retail trade is worth about $s 9>#E?#??? !rore (September#>??:) The !ountry is witnessing a period of boom in retail trade# mainly on a!!ount of a gradual in!rease in the disposable in!omes of the middle and upper4middle !lass households More and more !orporate houses in!luding large real estate !ompanies are !oming into the retail business# dire!tly or indire!tly# in the form of mall and shopping !enter builders and managers 'ew formats li"e super mar"ets and large dis!ount and department stores ha&e started influen!ing the traditional loo"s of boo"stores# furnishing stores and !hemist shops The retail re&olution# apart from bringing in sweeping# positi&e !hanges in the quality of life in the metros and bigger towns# is also bringing in slow !hanges in lifestyle in the smaller towns of India In!rease in litera!y#e(posure to media# greater a&ailability and penetration of a &ariety of !onsumer goods into the interiors of the !ountry# ha&e all resulted in narrowing down the spending differen!es between the !onsumers of larger metros and those of smaller towns ,owe&er# the supply of quality real estate spa!e would be instrumental in propelling the future growth momentum of the retail se!tor in India The addition of better and affordable retail spa!e would enable retailers to deli&er more better4quality produ!ts and ser&i!es to the !onsumers# resulting in in!rease in operational effi!ien!ies and de!line in !osts for the supply !hain India is one of the !omple( real estate mar"ets in the world due to the large degree of &ariation and in!onsisten!e in the mar"et pra!ti!e and regulatory norms 2 !ombined effort by both !entral and state go&ernments in terms of appropriate 0oning laws# transparen!y in ownership# and a&ailability of loans for retail land# is &ery mu!h ne!essaryfor redu!ing e(isting bottlene!"s 2!!ordan!e of Vindustry status/ to retail in India is an issue that needs to be addressed soon $e!ognition would ease finan!ing prospe!ts# as well as standardi0e and unify ta(es
for the industry 2n alignment of the retail se!tor with the tourism se!tor !ould also promote India as a global shopping hub +or the retail se!tor to a!hie&e further growth# the spread of organised retailing has to be!ome a national phenomenon 2!!ording to IS2 Te!hnopa"# a leading !onsulting firm# the organised se!tor will grow to almost $s :?# ??? !rores by >??A# representing H; of the total retail mar"et The top H !ities will a!!ount for HH; of total organised retailing 2lthough many international retailers and brands still regard India as too diffi!ult# they would wel!ome the opportunity to !reate an appropriate )oint &enture# if they felt India was !hanging The growth of the organised retail industry in the !ountry will mean thousands of new )obs# in!reasing in!ome le&els and li&ing standards# better produ!ts# and ser&i!es# a better shopping e(perien!e# and more so!ial a!ti&ities <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<o<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<
6&A D& INDIAN RETAILER, ,ELL T6EIR PR&D"4TB
This brings to broadly identify and !ategori0e the types of retail mar"eting# whi!h are defined as follows: !( ,./r$ R$.ai+i#) 2( N/#s./r$ R$.ai+i#)
Store $etailing
Departmental Store Convenience Stores Specialty Stores Discount Store Catalog Showroom
Non Store Retailling.

Direct Marketing Automatic Vending Direct Selling
Store $etailing
Store retailing pro&ides !onsumers to shop for goods and ser&i!es in a wide &ariety of stores and it also helps the 3onsumers to get all the needed goods and ser&i!es from one shop only The different types of store retailing are gi&en below: Departmental Store These stores are usually build in large area and "eep &ariety of goods under one shed It is usually di&ided into different se!tions li"e !lothing# "ids se!tion# home furnishings# ele!troni! applian!es and other household goods In a departmental store a !onsumer !an buy &ariety of goods under one shed Convenience Stores These are relati&ely small stores lo!ated near residential area# open for long hours se&en days a wee"# and !arrying a limited line of high turno&er !on&enien!e produ!ts at slightly higher pri!es than departmental stores Many su!h stores also ha&e added ta"eout sandwi!hes# !offee and pastries O ! "rice Retailer These stores sell goods at low pri!e with lower margins 7 higher &olumes These stores sell goods with deteriorated quality The defe!ts are normally minor This target at the persons belonging to the lower in!ome group# though some ha&e a !olle!tion of
imported goods aimed to target the younger generation The !ompany owned showroom selling the se!onds produ!ts is a typi!al e(ample of off 4 pri!e retailer Specialty Stores These stores fo!us on leisure tastes of different indi&iduals They ha&e a narrow produ!t line with deep assortment su!h as apparel stores# sporting goods stores# furniture stores# florists and boo"stores These stores are usually e(pensi&e and satisfy the needs of sele!ted !onsumers who ha&e li"ing or preferen!e for e(!lusi&e things Supermarket These stores are relati&ely large# low !ost# low margin# high &olume# self ser&i!e operations designed to ser&e total needs for food# laundry and household maintenan!e produ!ts Supermar"ets earn an operating profit of only 9 ; on sales and 9?; on net worth Discount Store These stores sell standard mer!handise at lower pri!es by a!!epting lower margins and selling higher &olumes The use of o!!asional dis!ounts or spe!ials does not ma"e a dis!ount store 2 true dis!ount store regularly sells its mer!handise at lower pri!es# offering mostly national brands# not inferior goods In re!ent years# many dis!ount retailers ha&e Ptraded upQ They ha&e impro&ed de!or# added new lines and ser&i!es# and opened suburban bran!hesYall of whi!h has led to higher !osts and pri!es 2nd as some department stores ha&e !ut their pri!es to !ompete with dis!ounters 'ot only that# dis!ount stores ha&e mo&ed beyond general mer!handise into spe!ialty mer!handise stores# su!h as dis!ount sporting goods stores# ele!troni!s stores# and boo"stores Catalog Showroom
3atalog showrooms generally sell a broad sele!tion of high4mar"up# fast4mo&ing# brand4name goods at dis!ount pri!es These in!lude )ewelry# power tools# !ameras# luggage small applian!es# toys# and sporting goods 3atalog showrooms ma"e their money by !utting !osts and margins to pro&ide low pri!es that will attra!t a higher &olume of sales 3atalog showrooms ha&e been struggling in re!ent years to hold their share of the retail mar"et
Non Store Retailling.
It is another type of retail mar"eting Different types of nonstore retailing are gi&en below:
Direct Marketing Dire!t mar"eting has its roots in mail4order mar"eting but today in!ludes rea!hing people in other ways than &isiting their homes or offi!es# in!luding telemar"eting# tele&ision dire!t response mar"eting# and ele!troni! shopping Automatic Vending 2utomati! &ending has been applied to a !onsiderable &ariety of mer!handise# in!luding impulse goods with high !on&enien!e &alue (!igarettes# soft drin"s# !andy# newspaper# hot be&erages) and other produ!ts (hosiery# !osmeti!s# food sna!"s# hot soups and food# paperba!"s# re!ord albums# film# T4shirts# insuran!e poli!ies# and e&en fishing worms)
Direct Selling Dire!t selling whi!h started !enturies ago with itinerant peddlers has burgeoned into a DE billion industry# with o&er H?? !ompanies selling door to door# offi!e to offi!e# or at home sales parties 2 &ariant of dire!t selling is !alled multile&el mar"eting# whereby !ompanies su!h as 2mway re!ruit independent businesspeople who a!t as distributors for their produ!ts# who in turn re!ruit and sell to sub distributors# who e&entually re!ruit others to sell their produ!ts# usually in !ustomer homes
,h/77$rsJ ,./7
Pioneers in organi0ed retailing in India# ,h/77$rs= ,./7 L.d(# was started by the $ahe)as# with the &ery first outlet being in Mumbai ( a retail area of GA?? sq ft ) in 9EE9 It now holds around 9#EA#??? sq ft of retail spa!e from ,h/77$rs= ,./7 alone It also has !hain of stores in other formats# with 4r/ss */rds and ,h/77$rss./7(4/m under its wings ,h/77$rs= ,./7# is a spe!ialty !hain of garment and a!!essory retail stores with outlets in Mumbai# Jangalore# ,yderabad# 1aipur# and 'ew Delhi 4r/ss*/rds is a spe!ialty !hain of boo"s# musi! and gifts retail stores with outlets in Mumbai# Jangalore# 2hmedabad# Delhi# Pune# 'asi"# Goa and %adodara ,h/77$rss./7(4/m CI#diaD Pv.( L.d# is 9??; subsidiary of ,h/77$rs= ,./7 L.d( It has been floated with the intention of brea"ing down lo!ation barriers and helping !ustomers from around the world to O+eel the ShoppersF Stop shopping e(perien!eO# online
MARKETING MI? &0 ,6&PPER,J ,T&P

Pr/du%. Shoppers/ Stop offers their !ustomers a range of the finest national and international brands# and a quality and pri!e assuran!e that is ba!"ed by their guarantee# stamped on e&ery bill: O.e are responsible for the goods we sell O .ith the in!reasing number of nu!lear families# wor"ing women# greater wor" pressure and in!reased !ommuting time# !onsumers are loo"ing for !on&enien!e 2nd# !on&enien!e is defined as ha&ing e&erything under one roof# longer hours and multipli!ity of !hoi!e Shoppers Stop has gauged the !hanging trends and in response to
this it houses a &ariety of produ!ts under one roof thus pro&iding the !ustomers with &alue for time in addition to &alue for money The produ!t range in!ludes the following items: 3osmeti!s 1ewellery Perfumes .at!hes Sun glasses Jags 2pparels for men# women and !hildren Sports equipment ,ome furnishings Pri!ing is not as important as !on&enien!e# today/s !onsumer is more upbeat about Zmoney spendingF and more !ons!ious about Ztime spendingF# and the !onsumer prefers shopping for most of their requirements from a single store Most of the produ!ts at Shoppers/ Stop are branded Bne of the prominent features of branded produ!ts is the fa!t that they are a&ailable at the same pri!es within a parti!ular geographi!al region Therefore# in terms of pri!ing its produ!ts Shoppers Stop !an e(er!ise only a limited amount of !ontrol P+a%$ ShoppersF StopFs first outlet in Delhi opened in De!ember last year that too" the total number of stores to se&en The !ompany has two stores in Mumbai and one ea!h in Jangalore# ,yderabad# 1aipur and 3hennai The !ompany is planning to open a store in Iol"ata Massi&e e(pansions ha&e been planned for Delhi by opening four new !enters The ob)e!ti&e is to ma"e state4of4the4art malls to Oma"e shopping !omfortable Q 2nother pla!e where the !ompany intends to sell its produ!ts in a big way is the internet
Pri%$
Pr/m/.i/# ShoppersF Stop has been positioned as a store that offers its !ustomers an international shopping e(perien!e In their efforts to pro&ide this e(perien!e# they ha&e held# numerous path brea"ing e&ents and promotions# whi!h ha&e got them both national and international a!!olades besides the appre!iation of their !ustomers 2s already ta"en up earlier some of the hugely popular promotional s!hemes ta"en by the !ompany are: Th$ 0$s.iva+ /' Bri.ai# Pari1rama Th$ Dis#$y 4ar#iva+ D&TY 4 Th$ D$si)#$r &' Th$ Y$ar 5a+$#.i#$s Day
o o o o o
,ere we should remember that the four Ps of mar"eting mi( represents the sellers/ &iew of the mar"eting tools a&ailable for influen!ing buyers +rom a buyer/s point of &iew# ea!h mar"eting tool is designed to deli&er a !ustomer benefit The sellers/ four Ps !orrespond to the !ustomers/ four 3s .inning !ompanies are those who !an meet !ustomer needs e!onomi!ally and !on&eniently and effe!ti&e !ommuni!ation
,A&T ANALY,I, &0 ,6&PPER,J ,T&P

Strengths Prime lo!ation 5(perien!ed and !ompetent management ,ighly trained and moti&ated sales for!e Jrand equity 8arge s!ale operations in &arious !ities throughout the !ountry allows them to reap the benefits of Pe!onomies of s!aleQ 8arge floor spa!e allowing for better &isual mer!handising 8arge area also allows to sto!" a large &ariety of produ!ts under one roof +inan!ial ba!"ing by the $ahe)a Group A$a1#$ss$s 2 large organi0ation stru!ture leads to delayed de!isions This !an pro&e fatal for a business in the dynami! fashion industry Shoppers Stop has a !entralised pur!hasing department in Mumbai# this fa!t sometimes results in delayed de!isions in adapting to !hanging mar"et trends 8arge s!ale of operations sometimes a!ts as a barrier to personali0ed !ustomer relations 8arge s!ale operations lead to redu!ed fle(ibility by in!reasing the amount of o&erheads and a huge !ommitment in terms of fi(ed !osts &77/r.u#i.i$s 2!!ording to the 3onsumer Butloo" study# !onsumers are generally satisfied with the ser&i!e that organi0ed retailers e(tend to them More importantly# they are in!reasingly regarding these organi0ed retailers as pro&iding Z&alue4for4money/ These findings indi!ate that large retailers will !apture most of the higher !onsumer spending
2part from the metros# !ities li"e 2hmedabad# Pune# 8u!"now# Indore and 3oimbatore ha&e shown substantial retail presen!e Most sport modern retail formats li"e supermar"ets# department stores and spe!ialty !hains These mar"ets are e(pe!ted to show e(ponential growth in the ne(t few years Thus Shoppers Stop has the opportunity to e(plore new mar"ets Thr$a.s The time when retailers had to worry about !ompetition only from their peers down the street has !ome to an end Shoppers Stop is now fa!ing in!reased !ompetition in the form of international retail !hains that are ma"ing a beeline towards the highly potential Indian mar"ets Moreo&er many big Indian business houses are also &ying a spa!e in the Indian retail s!ene
RETAIL MARKETING PR&M&TI&N IN INDIA R&LE &0 AD5ERTI,ING AND DI00ERENT MEDIA
The most effi!ient method of rea!hing method of rea!hing these potential !ustomers for most retail is the mar"eting tool "nown as ad&ertising +or purposes of definition: 2d&ertising is any paid form of non personal presentation and promotion of ideas# goods# or ser&i!es by an identified sponsor The definition points out the true role of ad&ertising in the promotional mi( of a store Advertising id non personal# The retailer !annot e(pe!t ad&ertising to do all the selling It will not repla!e personal selling effort where it is needed 2d&ertising and personal selling must !omplement one another Advertising can sell something $esides a product# The retailer should use ad&ertising to sell the ser&i!e of the store +or many retailers# ser&i!es are their only
differential ad&antage +or some retailers# selling ideas as also signifi!ant If a retailer is trying to promote a !i&i! !ause o a unique or different retailing image# this idea may be presented through the store/s ad&ertising Advertising is a paid orm o promotion# The retailer !an !ontrol the pla!ement and !ontent of the ad&ertising for the store Advertising re%uires an identi ied sponsor# The retailer wants to be sure the store is identified 2 retailer should ta"e e(tra !are to insure that a potential !ustomer has no doubt as to the name of the store and where the store is lo!ated 2s a retailer studied the store/s ad&ertising program# fa!tors to be !onsidered in!lude Advertisings effect on the retail image Characteristics of available media Advertising schedule Advertising budget Cumulative effect of advertising Objective of advertising Coordination of advertising with the other parts of
the marketing program. Jy e(amining these "ey fa!tors# a retailer !an impro&e his understanding of the role and !apabilities of ad&ertising This understanding should in turn results in a more effe!ti&e and more effi!ient ad&ertising !ampaign 5a!h of these fa!tors for effe!ti&e ad&ertising are equally important to well4planned ad&ertising 2lthough ad&ertising/s effe!t on the retail image will be dis!ussed first# non of the se&en ad&ertising areas in many stronger than any other in the !hain of ad&ertising su!!ess
5ARI&", M&DE, &0 AD5ERTI,ING (

For an advertisement to be effective it must be noticed, read, comprehended, believed, and acted upon. For one who has no ob ective, nothing is relevant. It is &ery mu!h important to set the ob)e!ti&e of the ad to be deli&ered for any of the produ!t The produ!t is either of the +M3G# 3onsumer Durable# Ser&i!e produ!t# et! but e&en that the !ompany is loo"ing for the promotion a!ti&ities whi!h help them in promoting the produ!t 2d&ertising ob)e!ti&es# li"e organisational ob)e!ti&es# should be operational They should be effe!ti&e !riteria for de!ision ma"ing and should pro&ide standards with whi!h results !an be !ompared +urthermore# they should be effe!ti&e tools# pro&iding a line between strategi! and ta!ti!al de!ision Knowledge of the various available advertising media and their various methods of application for retail situation is a vital to a wellplanned, successful advertising program. Outdoor !ransit "pecial Advertising Advertising Advertising or a given situation, there are particular media that would be appropriate for a retailer to use.
#irect $ail Advertising %#onation& Advertising 'ewspaper Advertising $aga(ine Advertising !elevision Advertising
RETAIL MARKETING IN INDIA

Retail mar"eting is the most important part of the entire logisti!s !hain in a business espe!ially in !onsumer related produ!ts .ithout proper retailing the !ompanies !anFt do their business $etailing is the pro!ess of selling goods in small quantities to the
publi! and is not meant for resale $etail is deri&ed from the +ren!h word retailer# meaning to !ut a pie!e off or to brea" bul" There are &arious ways of ma"ing goods a&ailable to !onsumers li"e: 3ompany to distributor to wholesaler to retailer to !onsumer 3ompany to salesperson to !onsumer 3ompany to !onsumers (onlineL phoneL !atalog ordering)
These three are among the most !ommon ways of ma"ing the goods a&ailable to !onsumers Jut in India the three layered system of distributor# wholesaler and retailer# forms the ba!"bone of the front4end logisti!s of most of the !onsumer4good !ompanies In this system the !ompany operating on all India basis appoints hundreds of distributors a!ross the !ountry that supplies to &arious retailers and wholesalers .holesalers in turn !an either dire!tly sell in the mar"et or !an supply to retailers The !urrent retailing system pre&alent a!ross the !ountry is highly fragmented and unorgani0ed 2nyone with some money and some real estate !an open a small shop and be!ome a retailer !atering to the lo!ality in whi!h he opens the shop There are a number of reasons behind this fragmented retail mar"et Some of the ma)or reasons being: Po&erty and lower litera!y le&els 8ow per !apita in!ome Sa&ings fo!used and less indulgen!e mindset Poor infrastru!ture fa!ilities li"e roads et! $estri!tions on intra4state good mo&ement ,igh ta(es 'o e(posure to media ,igh import duties on imported goods
+DI in retailing is not allowed $etailing is not !onsidered as a business or industry by the go&ernment ,itherto none of the business s!hools in India were offering spe!iali0ed !ourses on retailing 5(pensi&e supply !hain )esides this there is other reasons too, which led to stifling of growth of organi(ed segment of retailing sector and which instead led to highl* fragmented market. !oda* in +ndia we have more than 12mn retail outlets and most of then are famil* run and locall* owned. !here are ver* few nationall* present retail stores. +n +ndia the process of bu*ing and selling at these unorgani(ed retail outlets, is highl* characteri(ed b* bargaining and negotiations. )ut slowl* with increasing influence of media and urbani(ation the market is shifting towards organi(ed segment. "eeing the huge market si(e of retail business in the countr* and the current level of organi(ed segment, man* pla*ers have jumped into the fra* and man* are waiting for the right opportunit* to enter it.
Pr$s$#. R$.ai+ ,%$#ari/ I# I#dia

Retail e&perts ind 'ndian industry promising Retail Sales (o (ouch Rs. )*+*** Cr. ,y -**. Mall Mania# (he Developing Mall Culture 'n 'ndia (he (raditional Retail Scene And (he Challenge "osed ,y (he 'nternet. R$.ai+ $:7$r.s 'i#d I#dia# i#dus.ry 7r/misi#) The retail mo&ement in India has a!quired the !riti!al mass that is required for rapid a!!eleration in terms of industry growth as well as geographi!al spread The Indian retail industry !an no longer be !alled nas!ent
The spread of super stores to the northern !ities su!h as Delhi# 3handigarh# 1aipur and Iol"ata is e&iden!e of the fa!t that organi0ed retailing in India has emerged from its southern bastion The retailing boom is being dri&en by in!reased e(pe!tations as well as !hanging shopping beha&ior of the urban Indian !onsumer .ith the in!reasing number of nu!lear families# wor"ing women# greater wor" pressure and increased commuting time, consumers are looking for convenience. And, convenience is defined as ha&ing e&erything under one roof# longer hours and multipli!ity of !hoi!e Bn the supply side# the !urrent ineffi!ient supply !hain in India# parti!ularly for food items has led a few players to !onsolidate their operations to ta"e ad&antage of e!onomies of s!ale and mat!h !onsumer e(pe!tations in terms of deli&ery as well as spa!e So# we ha&e a situation where both demand and supply side dynami!s are fuelling the growth of organi0ed retailing in India# although impro&ements in the supply !hain are yet to fully mat!h with !onsumer e(pe!tations The future growth need not ne!essarily !ome only from the big metros# where there already e(ists a good retail networ" The fa!t that big Indian retail !hains are mo&ing into pla!es li"e Indore or 3handigarh is an important indi!ator of future growth +or the $s A???4!rore organi0ed retail industry it is# perhaps# time to tap the relati&ely smaller !ities R$.ai+ ,a+$s T/ T/u%h Rs( >09000 4r( By 200F $etail is e(!iting# and a!tion in the se!tor promises to hot up IS2 a leading international !onsultan!y belie&es the organi0ed se!tor will grow si( folds to almost $s :?#??? !rore by >??A The share of organi0ed se!tor in total retail sales will grow from one per !ent now to si( per !ent by >??A .hile pro)e!tions !an be slippery# hard fa!ts point to e(!iting growth ahead for this se!tor 2!!ording to IS2# organi0ed retailing is fo!using on only S5342 !ities# India/s >: largest !ities That is where a large portion of the !ountryFs urban population e(ists Today C> per !ent of organi0ed retailing !omes from the top si( !ities and 9> per !ent
from the ne(t four IS2 says the top 9? !ities pro&ide EG per !ent of organi0ed retail sales in India Jy >??A# IS2 pro)e!ts the top si( !ities will a!!ount for HH per !ent of total organi0ed retailing and the ne(t four for >? per !ent The top 9? !ities will a!!ount for CH per !ent of organi0ed retail sales There !ould be &ariations in growth patterns in different segments The se!ond half of the top 9? !ities will pro&ide large growth for food and gro!eries# while the top si( would still be the growth !enters for !onsumer durables# belie&es IS2 The spread of organi0ed retailing is unli"ely to be a national phenomenon yet This appears to be the !ase so far South India# parti!ularly 3hennai# ,yderabad and Jangalore# ha&e seen the emergen!e of !hain stores or large format stores .hile garment stores ha&e been around for sometime# other segments li"e food and gro!eries# !onsumer durables and e&en boo"s and musi! ha&e witnessed the emergen!e of organi0ed players in large !ities in South India The la!" of trained manpower or alternati&ely the tremendous s!ope the se!tor has to pro&ide employment is another issue Ma++ Ma#ia: Th$ D$v$+/7i#) Ma++ 4u+.ur$ I# I#dia Till late last year# there were )ust three international style shopping malls in India 44Spen!er in 3hennai# 3rossroads in Mumbai# 2nsal Pla0a in 'ew Delhi and Sriram/s 2r!ade in Iol"ata Jy the end of >??9# that number will ha&e )umped to at least >?
It loo"s li"e a &irtual stampede +ifteen players with a !umulati&e in&estment of $s :<A !rore are set to !hange !itys!apes a!ross India In the ne(t one year# !lose to G?4 la"h square feet of retail spa!e will be de&eloped In three years# this will rise to <?4la"h sq ft 2s the retail industry e&ol&es# !onsumers want more &ariety before ma"ing their pur!hase de!ision 2 study on !onsumer outloo" suggests that o&er C?; of !onsumers
want a wide range of produ!ts at hand while shopping This signifies that people are finally ready for multi4option !omple(es Many old4time !orporates are seriously !onsidering using their idle assets It ma"es sense for landowners to de&elop it and "eep the returns rather than sell it outright or e&en lease it# espe!ially when there is opportunity here It is perhaps the best way to use an idle real estate asset The limited "itty of brands has yet another signifi!ant "no!"4on effe!t 4 the typi!al si0e of Indian malls In the 6S and South45ast 2sia# malls are as large as A? la"h sq ft Spen!er is by far the largest mall in India 4 it o!!upies < la"h sq ft and e&en that is dwarfed by 2siaFs largest mall# the G4million sq ft mega mall in Malaysia 5&en the >H malls that are being planned are li"ely to measure between A?#??? sq ft and > la"h sq ft The Indian mall !annot offer too many !hoi!es in terms of brands So# de&eloping a &ery large mall !an ne&er be sustainable Th$ Tradi.i/#a+ R$.ai+ ,%$#$ A#d Th$ 4ha++$#)$ P/s$d By Th$ I#.$r#$.( The Internet is !hanging the stru!ture and definition of tradable ser&i!es worldwide# a!!ording to the .orld Trade Brgani0ation/s report on 5le!troni! 3ommer!e It predi!ts that the 'et will profoundly transform inter4organi0ational !ommer!e# retail# and Go&ernment pro!urement se!tors worldwide The ripple4effe!t of these !hanges is affe!ting the sale of items li"e boo"s# P3s# apparel# ti!"ets and musi! in ad&an!ed Internet e!onomies li"e the 6 S 44 and will soon impa!t India as well 3lose to D< C billion worth of retail goods were sold &ia the 'et in the 6 S in 9EEC Deep produ!t sele!tion# easy shipping# and attra!ti&e online promotions made items li"e boo"s and apparel a fa&ourite with 'et shoppers
8eading online ser&i!e 2meri!a Bnline (2B8) reported that the ma)ority of the goods sold in the re!ord4brea"ing 3hristmas FEC season (amounting to o&er D9 billion) !onsisted of toys# apparel and boo"s 2nd it is a!tually in the business4to4business se!tor# and not the business4to4 !onsumer se!tor# that the 'et is e(pe!ted to ha&e its most dramati! impa!ts as !ompanies hoo" up Intranets and 5(tranets to !ut !osts# impro&e effi!ien!y# and !reate whole new mar"et spa!es Su!h trends are be!oming &isible in the 2sian !onte(t as well +or instan!e# the site of trade information publisher 2sianSour!es !om# a business4to4business trade inquiry hub# is fa!ilitating millions of dollars of international trade leads for 2sian !ompanies in the manufa!turing# pharma!euti!al and apparel se!tors +rom humble email messaging and real4time mar"et resear!h to online sour!ing and e4 retailing# the 'et has mu!h to offer Indian businesses Se!tors li"e the apparel industry ha&e only re!ently begin to sit up and ta"e noti!e of the potential of e4business for a wide range of a!ti&ities in apparel design and de&elopment# su!h as online brand building# &isual mer!handising# and data warehousing $etailing will undergo tremendous !hange in India in the ne(t de!ade# a!!ording to Simon Jell# prin!ipal !onsultant for retail pra!ti!e at 2 T Iearney (India) Bne of the "ey global trends in the retail industry# is the Obattle of the formatsO between different "inds of outlets: &alue dis!ounters# spe!ialty stores# small independents# mega4stores# and non4store retailing In addition to !atalogue and Tele4 shopping# a new but fast growing segment in the non4store !ategory of outlets is the e4 retail !enter# or .eb4based mer!handising dri&en by e4!ommer!e Bnline sales for the 6 S apparel industry amounted to D9A< million in 9EEC# but will shoot up to at least DHA? million by year >??9
These trends will soon be repli!ated in India as well 2!!ording to estimates by the year >??A# more than >? per !ent of the apparel retail turno&er in India would be a!!ounted for by organi0ed !hains# who will use sophisti!ated information te!hnology to !ut !osts# impro&e mar"et responsi&eness and manage !ustomer loyalty programs This new trend is best typified by ShoppersF Stop# whi!h has in&ested hea&ily in retailing te!hnology su!h as an 5$P system and has also laun!hed a .eb site
www shoppersstop !om

The !ompany is OdeterminingO integrated !ustomer demographi! and psy!ho graphi! information from multiple offline and online sour!es to better understand !ustomer buying habits# said Mr 'a&een Singh# mar"eting manager of ShoppersF Stop In fa!t# quite a few Indian apparel organi0ations are already online# with Obro!hurewareO .eb sites pro&iding basi! information 4 su!h as the Indian 2pparel 5(port Promotion 3oun!il# Jala)i Garments# Polo India# Meena"hi Sarees# and www apprelindia !om There are hardly any e(amples of third4party business4to4business sites in India# whi!h !ould ser&e as online hubs for strengthening !ooperation and information sharing between apparel manufa!turers and retailers for mutual growth and business opportunities Sites li"e www !lothesnet !om and www fashionwindows !om in the 6 S are superb e(amples of online business !ommunities geared towards the apparel se!tor They feature email newsletters# sear!hable business inquiry message boards# and dire!tories of !ompanies offering ser&i!es li"e &isual mer!handising and ni!he garment design 54retailing is mo&ing into the a!!elerated growth stage in the 6 S # but is still at the early de&elopment stage in India 8e&eraging 'et4based te!hnologies will be "ey for
apparel !ompanies and brands wishing to operate at the Owarp speedO of the information4 age e!onomy The .eb will allow apparel stores to ma"e more produ!ts more a!!essible to more !onsumers 54!ommer!e in India is &ery mu!h ali&e# of !ourse# with sites offering boo"s for sale in Jombay# &egetables in Delhi# and mo&ie ti!"ets in Jangalore ID3 (India) estimates that the &alue of sales o&er the 'et in India will mushroom to $s 9#>?? !rore in year >??9# if the Internet user base ta"es off Sites li"e $ediff4on4the4'et already ha&e about >?#??? registered users for their e4 !ommer!e ser&i!e# whi!h was laun!hed in 2ugust 9EEC E? per !ent of the payments o!!ur &ia !redit !ards# and 9? per !ent &ia !heques The a&erage pur!hase amount is $s H?? Bnline retailers must ensure smooth logisti!s# en!ourage repeat traffi!# anti!ipate !onsumer needs# offer sli!" na&igation# and build strong online relationships with Internet users The Indian apparel se!tor howe&er# fa!es other !hallenges in areas li"e urban land mar"et !eilings# la!" of industry status# !onser&ati&e !onsumer spending habits# negle!t of rural mar"ets# la!" of !onfiden!e from the finan!ial !ommunity# and low le&els of professionalism Jesides# the Indian fashion industry is )ust about a de!ade old# as !ompared to more than a !entury for .estern 3ounterparts 2nd as !ompared to other emerging e!onomies li"e Jra0il and South45ast 2sian !ountries# India is >? years behind in adoption of large4s!ale retail models ,owe&er# efforts are on to !lear these hurdles and mo&e ahead smoothly and swiftly Some of these are as follows: To better equip the Indian garment industry with nationwide mar"et grasp# the 'ational 3oun!il of 2d&an!ed 5!onomi! $esear!h ('325$) will ta"e on the apparel industry as a ma)or fo!us for a future study 5du!ational institutes li"e 'I+T are stepping up !ourse offerings and internship programs for students in areas li"e Internet mar"eting In terms of online assistan!e# more than a hundred .eb solutions !ompanies ha&e sprung up all o&er India# offering ser&i!es ranging from basi! .eb page publishing to
international mar"eting and !onsulting strategies 3ompanies li"e Polaris and 'et Jase 3omputing are already wor"ing on .eb4based solutions for the retail industry The dri&ers for !reating an organi0ed# moderni0ed retail se!tor for Indian apparel will thus be fa!tors li"e e!onomies of s!ale# time4to4mar"et# and the use of information te!hnologies li"e the Internet
I#.$r#a.i/#a+ R$.ai+$rs $y$i#) I#dia# Mar1$.(
$etail giants heading towards Indian stores
2 plethora of International apparel brands and retail giants are waiting to !apatilise on the Indian mar"et pla!e in a big way If you are thin"ing about the growing importan!e atta!hed to India# attribute it to the !ountry/s rise as global business pro!ess outsour!ing (JPB) hub Indian Gen =# earning loads of Vdisposable/ !ash in the JPBs# has been found to the single largest !onsumer for international apparel brands International brands and retailers ha&e released that their brands ha&e a high re!all &alues amongst the urban Indian youth# e&en when their produ!ts are not present in the world and now s!outing for opportunities Tommy ,ilfiger# the latest entrant in the mar"et has de!ided to open se&en e(!lusi&e stores by B!tober >??G and three more by +eb >??A
I#.$r#a.i/#a+ R$.ai+$rs $y$i#) I#dia# Mar1$.(

R$.ai+$r .al4Mart Mar"s 7 Spen!er <48e&el 3arrefour 2u!han Shoprite Dairy +irm Metro Mango Ty7$ ,ypermar"ets 8ifestyle stores Supermar"ets Multi4format retailer ,ypermar"ets Supermar"ets Multi4format retail 3ash 7 3arry 2pparel retail ,.a.us .ait 7 wat!h 2lready in 5&aluating Postponed 5ntry 5&aluating Bpening in Mumbai Tied up with $PG 2lready in 2lready in
8andmar"
8ifestyle stores
2lready in
RSour!e: The +ran!hising .orld
Aa+ 8 Mar. 7+a#s ./ $#.$r I#dia(
The Indian $etail se!tor may soon see the world/s biggest retailer# .al4Mart Stores# In! on its radar The D>GAbillion !ompany has reportedly initiated studies on the Indian mar"et and is wor"ing on a big4bang entry# on!e +DI norms are rela(ed The !ompany is interested in India as a destination for stores of there own# e(ploring possible opportunities for presen!e ,owe&er# for business reasons# .al4Mart does not say mu!h about spe!ifi! in&estment plans The 6S4based gaint operates 9#GEG stores in the international mar"et .al4Mart plans to open 9>? to 9:? additional stores in the e(isting mar"ets in !urrent fis!al
A#)+/-Du.%h 7$.r/+$um )ia#. ,h$++ is %/mi#) ./ $:7a#d i.s r$.ai+ mar1$.i#) a%.ivi.i$s i# I#dia
A#)+/-Du.%h 7$.r/+$um )ia#. ,h$++ is !ommitting a sum of $s >A? !rore to e(pand its retail mar"eting a!ti&ities in India %i"ram Mehta# !hairman of Shell group of !ompanies in India# said the petrol stations will be established in the South to laun!h these stations on its own Shell# whi!h announ!ed the laun!h of its first petrol station in India at Jangalore after a gap of >C years# intends P.e are not willing to dis!lose how many stations will be established for this amount Bur national roll4out will o!!ur after the first phase is !ompleted#Q Mr Mehta said Shell is the single largest !orporate in&estor in India# ha&ing in&ested DC>Am (around $s :#A?? !rore)# he added It has the permission to laun!h as many as >#??? petrol stations The giant got the 6nion go&ernment/s nod for the retail foray only in September this year The group intends to adhere to the pres!ribed norms of opening petrol stations in rural !entres The go&ernment norms stipulate that A A; of ea!h player/s petrol station networ" be in rural areas The group has a Mo6 with M$P8 to lift the sto!" for petroleum M$P8# whi!h is now a part of the B'G3 stable# runs a 9>m tonne refinery in Mangalore 5a!h Shell station will sto!" petrol and diesel# besides
ha&ing a !on&enien!e store
Mr Mehta said that Shell intended to sti!" to "nitting and
was not loo"ing at in&esting in any petro4!hemi!al &enture in India
4/#%+usi/# 6/* %a# i. -$ d/#$B CPas.9Pr$s$#. < 0u.ur$D

+or a start# these retailers need to in&est mu!h more in !apturing more spe!ifi! mar"et intelligen!e as well as almost real4time !ustomer pur!hase beha&iour information The retailers also need to ma"e substantial in&estments in understandingLa!quiring some ad&an!ed e(pertise in de&e4loping more a!!urate and s!ientifi! demand fore!asting models $eengin4eering of produ!t4sour!ing philosophies 4 aligned more towards !ollabo4rati&e planning and replenishment should then be ne(t on their agenda The message# therefore# for the e(isting small and medium independent retailers is to !losely e(amine what !hanges are ta"ing pla!e in their immediate &i!inity# and analyse whether their !urrent mar"et offers a potential rede&4elopment of the area into a more modern mult i4option destination If it does# and most !ommer!ial areas in India do ha&e this potential# it would be &ery useful to form a !onsortium of other su!h small retailers in that &i!inity and ta"e a pro4a!ti&e approa!h to pool in resour!es and impro&e the o&erall infrastru!ture The ne(t effort should be to en!ourage retailers to ma"e some in&estment in impro&ing the interiors of their respe!ti&e establishments to ma"e shopping an en)oyable e(perien!e for the !ustomer
4&N4L",I&N 0&R GR&AT6 +inally# the most important determinant of our growth is the quality of our people .e are deeply pri&ileged to !ontinue to attra!t the &ery best talent as the number one preferred employer at leading !ampuses .e are also en!ouraging di&ersity in our talent s"ills# espe!ially for our newer business4es# and are also bringing in a large number of talented women Bur training programmes ha&e been re&amped to e(pose entrants to lo!al and global business 44 they spend time in Indian &illages and international !ities 44 all within a 9>4month training programme ,88Fs wide &ariety of !ategories and 6nile&erFs global operations pro&ide enormous de&elopment opportunit4ies through organised !areer planning 2 lot of emphasis has always been pla!ed on s"ill de&elopment 44 today we are also !on!entrating on building indi&idual and leadership !apabilities .e offer an energising and empower4ing en&ironment enabled by !reating small teams fo!ussed on "ey initiati&es .e ha&e found this the best way of !ombining both s!ale and speed Deeper in the !ompany# in fa!tories and offi!es# we are unleashing the talent and !reati&e potential of all employees through initiati&es su!h as TPM
In !on!lusion# let me say that ,88Fs most &aluable assets are its brands and people TodayFs mar"et is &ery dynami! and in!reasingly !ompetiti&e .e ha&e !onfiden!e in our strategy and are learning to grow e&en in de!lining mar"ets .e are putting in pla!e "ey enablers to build our !apability for sustained high performan!e .e ha&e brands with ri!h heritage and strong !onsumer equity .e ha&e people who bring the power of their ideas and e(e!ution to e(ploit the full potential of our brands towards deli&ering !ontinued profitable growth for ,industan 8e&er
CONC !SION
6/* d/ I#dia# r$.ai+$rs s$++ .h$ir 7r/du%.B

The Indian retail industry is now beginning and growing day by day multi brand 5&en 5bony is trying to follow the !hain system and &ery soon they are planning to open their outlet in Gu)rat They are strongly tied to independent intermediaries# whi!h they !annot easily gi&e up Jut they must e&entually realign themsel&es with the high4growth &erti!al mar"eting systems on less attra!ti&e terms +urthermore# &erti!al mar"eting systems !onstantly threaten to bypass large manufa!turers and setup their own manufa!turing The new !ompetition in retail mar"eting is no longer between independent business units but between whole systems of !entrally programmed networ"s (!orporate# administered# and !ontra!tual) !ompeting against one another to a!hie&e the best !ost e!onomies and !ustomer response In India the retail se!tor is the se!ond largest employer after agri!ulture# although it is highly fragmented and predominantly !onsists of small independent# owner * managed shops There are o&er 9> million retail outlets in India # and organised retail trade is worth about $s 9>#E?#??? !rore (September#>??:) The !ountry is witnessing a period of boom in retail trade# mainly on a!!ount of a gradual in!rease in the disposable in!omes of the
middle and upper4middle !lass households More and more !orporate houses in!luding large real estate !ompanies are !oming into the retail business# dire!tly or indire!tly# in the form of mall and shopping !enter builders and managers 'ew formats li"e super mar"ets and large dis!ount and department stores ha&e started influen!ing the traditional loo"s of boo"stores# furnishing stores and !hemist shops The retail re&olution# apart from bringing in sweeping# positi&e !hanges in the quality of life in the metros and bigger towns# is also bringing in slow !hanges in lifestyle in the smaller towns of India In!rease in litera!y#e(posure to media# greater a&ailability and penetration of a &ariety of !onsumer goods into the interiors of the !ountry# ha&e all resulted in narrowing down the spending differen!es between the !onsumers of larger metros and those of smaller towns
"I" IO#RAPH$
Books: ,. -hilip Kotler .. /. K. #ube* Journals: ,. )usiness 1orld .. !he ranchising 1orld. Internet: ,. francchiseindia.com .. 2oogle.com 3. Altavista.com --$arketing $anagement 0etail $anagement

Amarish Thesis Retail Marketing in India

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Retail Marketing in India.

RETAIL MARKETING IN INDIA

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