Growth of Retail Marketing in India

FINAL PRO1ECT REPORT
ON
GROWTH OF RETAIL MARKETING IN INDIA
Under the Guidance of
Gaurav Kamboj
Maharaja Institute of Management &
Technology
For The Partial Fulfillment of
Post Graduate Diploma in Business Management (PGDBM)
Session (2009-11)
Submitted By:
Puneet vinaik
CONTENTS
Introduction
Executive Summary
Research Methodology
Impact of BRIC in Retailing

Definition of Retailing
Demographics and consumer behavior
The Global Retail Industry - An Overview
Retail Scene in India - Touching meteoric height
Current Status of Retail Marketing in India
Origin of Modern Retailing in India
Different forms of retailing
Key Strategic factors
The current Scenario
Merchandising in retail
Importance of supply chain in retail
Changing face of banking in retail
Food retailing in India
Challenges before organized retailing
Future Perspective
Change Accelerator
Which Categories Will Grow
HIM (2007-09) 2
Where is the growth going To Happen
Which Format will grow
Malls in India
Progressive retail properties in India
Realistic scenario in mall development: -a fact-finding
Retail as an Employment Generator
Retail Sector in the East
Significance of IT in organised Retail
Recipe for Success
An Emerging Middle-Class: Great prospects
Challenges of Retail Vision 2010
Questioner
Analysis
Conclusion -How can it be done
Appendix
Bibliography
HIM (2007-09)
Introduction
!ith or"ani#ed retai$ in India %e""ed at &' 2()000 crore (&' 2(0 bi$$ion) -- out of a tota$
of &' *00)000 crore and mar+etin" com%anie' are 'ettin" u% 'ho%' to %rovide
differentiated 'ervice' to c$ient', -i$$ no. 'a$e' %eo%$e .ere the $in+ bet.een the retai$er
and the %roducer, /ut 'a$e' %er'onne$ are bu'0 'e$$in" a %roduct and do not have a fair
idea of .hat retai$in" i' about, -he focu' i' to %rioriti#e retai$, -hat i') not on$0 to 'e$$ a
%roduct to a con'umer but to "et the con'umer to interact .ith the %roduct, Gone are the
da0' .hen retai$in" meant mere avai$abi$it0 of a %roduct, !ith com%etition becomin"
'tiffer com%anie' are $oo+in" at 1experiential' mar+etin", 2$'o the $ac+ of %ro%er metric'
to mea'ure mar+etin" '%end' i' a 'eriou' i''ue,
In toda01' '.ift$0 chan"in" bu'ine'' environment) there i' no o%tion but to be in the +no.
- to be con'tant$0 on the move) +ee%in" tab' on the 'hiftin" trend' in the mar+et %$ace and
maneuverin" 0our 'trate"0 to 'ta0 on to%, -he retai$ arena toda0 i' ver0 different - the
o%%ortunitie' are incredib$e but e3%$oitin" them i' e3treme$0 tou"h,
4u%er 'mart 'ho%%er' +no. a$$ the ru$e' of the "ame, -he0 can in'tant$0 'en'e a "ood
bu0 and $a% it u% or 'niff out a bad %roduct and di'mi'' it, -heir e3%ectation' are tou"h to
meet but for retai$er' aimin" to ma+e a bi" 'a$e) there i' not much of a choice but to find
.a0' to .in cu'tomer' over and +ee% them %ermanent$0 ha%%0,
In an environment) .hich i' 'ti$$ re'trictive in man0 .a0' and $ac+' ade5uate
infra'tructure) thi' become' a formidab$e ta'+, 4o ho. are Indian retai$er' co%in" u% and
ho. $on" .i$$ it be before or"ani#ed retai$ become' the %rimar0 .a0 of 'e$$in",
-hi' re%ort a$'o 'urve0' the %ro%ert0 mar+et and reiterate' the 'i"nificance of I- in
or"ani#ed retai$ before %re'entin" a %a0bac+ ana$0'i' to revea$ the financia$ a'%ect'
invo$ved,
India1' attem%t to "o the internationa$ .a0 in retai$in" ha' met .ith 'ome 'ucce'' thou"h
not 5uite a' e3%ected, 2t about 2 %er cent of the tota$ retai$ mar+et) .e are 'ti$$ on$0
HIM (2007-09) 6
'cra%in" the 'urface, 7a'0 to 'ee .h0, 8n$0 a fe. $ar"e indu'tr0 hou'e' have inve'ted in
thi' 'ector and even fe.er have %ut in an0 'i"nificant 'um' of mone0 in a bu'ine'') .hich
i' ca%ita$ inten'ive in nature, -he fra"mented ma+e-u% of the con'umin" mar+et) com%$e3
"eo"ra%hica$ and cu$tura$ 'tructure made more difficu$t b0 %oor infra'tructura$ $in+a"e'
do not a$$o. economie' of 'ca$e immediate$0,
/ut a tremendou' o%%ortunit0 e3i't' in the Indian mar+et and or"ani#ed retai$ .i$$ %revai$
a' in other %art' of the .or$d, It i' on$0 a matter of time before that ha%%en' and it i'
%robab$0 c$o'er than .e ima"ine, -hi' i' the ri"ht time to inve't and continue inve'tin" in
the bu'ine'', 9rofit' ma0 come in on$0 after five or even 'even 0ear') but that1' the .a0
thi' indu'tr0 o%erate' and un$i+e 'ome of the other 'ector') thi' i' not a bu'ine'' .here
revenue' are ima"inar0 and %rofit' i$$u'or0, -he mar+et e3i't') the con'umer i' out there
'%endin" that mone0 'ome.here - 0ou ju't have to "et him into 0our 'tore,
In thi' revie. the 'tate of bu'ine'' and %otentia$ and more im%ortant$0) 'tud0 the be't
%ractice' bein" fo$$o.ed b0 variou' retai$er' in India, I a$'o %re'ent in-de%th ana$0'i' of
%ractice' in the food and a%%are$ 'ector' 'u%%orted b0 ca'e 'tudie' and in'i"ht' into the
financia$ 'ide of the bu'ine'',
The size of the industry is estimated at Rs 16,000 crore and is growing at the rate of
about 18-20 per cent per annum. The two areas that have seen action in organized
retail are apparel and food retailing with sales of Rs 5,000 crore and Rs 1,800 crore,
respectively. Segments like consumer durables retailing and books and music have
grown but not as anticipated.
HIM (2007-09) (
Executive Summary
&etai$in") con'idered a 'unri'e indu'tr0 toda0 after Info-ech) i' the mo't ha%%enin"
indu'tr0 .ith a$mo't a$$ the bi" %$a0er' v0in" for a 'hare of the coveted %ie, /uo0ed b0 a
'tron" increa'e in %rivate con'um%tion (see graph)) retai$in" i' one indu'tr0 that i'
.aitin" to e3%$ode,

-oda0 ho.ever) or"ani#ed retai$in" i' $e'' than 2 %er cent of the retai$in" indu'tr0 in
India) that i') about &' ()000 crore,(see table) -herefore) there i' no rea$ retai$ revo$ution
in India: the indu'tr0 i' 'ti$$ in the 'ta"e' of infanc0,
Share of Organized Retail
1999 2002 2006
Total Retail (US $ Bn) 150 180 225
Organized Retail (US $ Bn) 1.1 3.3 7
Share of Organized Retail 0.70 1.80 3.20

HIM (2007-09) ;
8r"ani#ed retai$in" i' bound to "ro. tremendou'$0 %rovided the ri"ht mar+etin"
'trate"ie' are ado%ted, &etai$ bu'ine''e' have bro+en ran+ and 'eem %oi'ed to 'ur"e
ahead .ith rene.ed vi"or) o%timi'm) confidence and ca%abi$it0,
-here i' an incredib$e amount of activit0 in term' of creation of retai$-oriented '%ace
acro'' India, 2' %er 'ome e'timate') there are over 200 retai$ ma$$ %roject' under
con'truction or under active %$annin" 'ta"e '%annin" over 2( citie', -hi' ma0 tran'$ate
into over 2( mi$$ion '5, ft, of ne. retai$ '%ace in the mar+et .ithin ne3t 26 month',
Hu"e retai$ format') .ith hi"h 5ua$it0 ambience and ver0 courteou' and ambiva$ent 'a$e'
'taff) are the re"u$ar feature' of retai$ format' in mo't 2'ian countrie', Ho.ever) in India
e3ce%t for a fe. bi" to.n' .here modern retai$in" format' abound) the'e feature' are
"ro''$0 mi''in", I e3%ect or"ani#ed retai$in" to '$o.$0 %enetrate the 'econd run" and
'ma$$er to.n') .hich .i$$ cata%u$t the "ro.th rate for the 'ector,
7ven thou"h the bi" retai$ chain' are concentratin" on the u%%er 'e"ment and 'e$$in"
%roduct' at hi"her %rice' $i+e <ro''road') 2+bara$$01' and 4ho%%er1' 4to%) retai$ 'tore' are
'%routin" that cater to the need' of midd$e c$a'', !ith a hu"e midd$e c$a'' %o%u$ation) the
retai$er' $i+e &9G1' =ood .or$d are ta%%in" thi' mar+et, -he mar+et i' f$ooded .ith
%roduct' branded and unbranded,
-he cu'tomer' are in a di$emma a' to %ic+ .hich one, 4imon /e$$ of 2- Kearne0 'a0'
>There is a close relation between the growth of brands and the growth of the organized
retailing. Companies selling branded products prefer to have big and organized retail
outlets such as supermarkets where they can be differentiated from unbranded products>
-hou"h doubt' have been ca't on the future of Indian retai$in" it i' our be$ief that the
retai$ boom i' 0et to ha%%en, !hi$e the indu'tr0 i' in the introduction 'ta"e in mo't
"eo"ra%hie') it ha' ju't entered the "ro.th re"ion in the metro citie',
HIM (2007-09) 7
-oda0) the ri"ht product mix, right sourcing strategy, and the right communications are
the mantra' for 'ucce'',
-hi' %a%er be"in' b0 ana$0#in" the retai$ format' in the %re'ent Indian 'cenario and
%roceed' to out$ine the +e0 'trate"ic factor' in retai$in", In the $a't %art the %a%er 'ho.'
the cha$$en"e' facin" retai$ and the recommendation' for ma+in" or"ani#ed retai$in" a
'ucce'',
RESEARCH METHODOLOGY
-he re'earch carried out i' Exploratory in nature and 'am%$in" method' u'ed are
Convenience and 1udgment 'am%$in",
INFORMATION SOURCES:
PRIMARY SOURCE
<on'umer'
SECONDARY SOURCE
...,hindubu'ine''$ine,com
...,'ho%%er''to%,com
...,+'a,com
...,thoma'net,com
DATA COLLECTION TOOLS:
?ue'tionnaire'
9er'ona$ Intervie.'
Ma"a#ine'
Internet
SAMPLE SIZE: ;0
LOCATION : 48@I92-ABe$hiA@<&

LIMITATIONS:
-ime con'traint .a' a $imitin" factor in the %roject, 4ince time avai$ab$e .a' on$0
* .ee+') e$aborate 'tud0 of each and ever0 a'%ect of %er'ona$ %er'%ective ha'
th.arted to divu$"e in tota$it0 the $atent %erce%tion' of the individua$',
9er'ona$ bia' of the con'umer canCt be avoided,
!e .ere not ab$e to intervie. %eo%$e from the mana"ement of the ma$$',
HIM (2007-09) *
!e .ere not ab$e to co$$ect information re"ardin" the financia$ term' due to non-
di'c$o'ure of the 'ame a' re'tricted b0 com%an0 %o$icie',
IMPACT OF BRIC IN RETAIL INDUSTRY
Modern Retail Business Will Create up to 2 million 1obs in Next 2 Years
Our Bureau
Bright future!
CourtesyD The Hindu
<on'umin" c$a'' .ith EF00-6*00 annua$ income around 7(mi$$ion hou'eho$d' thi' 0ear,
9o'itive Govt attitude to o%en) %rivati#e variou' 'ector', &etai$ bi# to create 2 mi$$ion
job' in ne3t 20ear' of .hich more than (0G to be .omen,
M& GI/48@ G, Hedamani) <78) &etai$er' 2''ociation of India) at the /I <$ub
inau"ura$ function at Jan'on' 4choo$ of /u'ine'') <oimbatore, K 4, 4iva 4aravanan,
<oimbatore) 8ct, F
Gro.in" con'umeri'm and avai$abi$it0 of man%o.er are %o.erin" the "ro.th of
or"ani#ed retai$ bu'ine'' in India and no mar+eter can afford to i"nore India1' "ro.th
%otentia$) accordin" to Mr, Gib'on G, Hedamani) <hief 73ecutive 8fficer) &etai$er'
2''ociation of India) and Mumbai,
Inau"uratin" the usiness !ine <$ub at Jan'on' 4choo$ of /u'ine'' (J4/) at
Karumatham%atti near <oimbatore) he 'aid a' %er Goldman Sachs BRIC's report) India
.ou$d be amon" the to% five economie' in the .or$d b0 20(0 a$on" .ith <hina and
/ra#i$,
Demographic profile
HIM (2007-09) 9
-he tota$ number of con'umin" c$a'' .ith an annua$ income $eve$ of bet.een EF)000 and
E6)*00 .ou$d be around 7( mi$$ion hou'eho$d' b0 200; com%ared to 29 mi$$ion
hou'eho$d' a decade a"o, -he demo"ra%hic %rofi$e of India i' a$'o a "reat mar+etin"
a''et, !hi$e) a' %er 2006 data) %eo%$e in the 0-F6 0earC' a"e "rou% con'tituted F,7 %er
cent of the %o%u$ation) the F(-;6 0ear' a"e "rou% form' ;,( %er cent and the %eo%$e
above ;( 0ear' con'titute the ba$ance, -hi' i' a con'tituenc0 that no mar+eter can i"nore,
He a$'o noted the %o'itive attitude of the Government that ha' been +een to o%en variou'
'ector' and %rivati#e 'ome 'uch a' te$ecom) aviation and in'urance, Mr, Hedamani 'aid
the modern retai$ bu'ine'' .ou$d be creatin" u% to t.o mi$$ion job' in the ne3t t.o 0ear',
-he benefit of thi' "ro.th i' that it .ou$d create em%$o0ment at the $oca$ $eve$ and a
'i"nificant %ercenta"e of them .ou$d be fir't time ta3%a0er' in the countr0, 2n im%ortant
feature of thi' em%$o0ment boom .ou$d be that more than (0 %er cent of the'e em%$o0ee'
.ou$d be .omen,
He e'timated that near$0 60 mi$$ion '5 ft retai$ '%ace .ou$d be created over the ne3t five
0ear' b0 e3i'tin" retai$er' and the ma''ive inve'tment in infra'tructure deve$o%ment
.ou$d have a ca'cadin" im%act, 2$$ied activitie' 'uch a' .arehou'in" and di'tribution
.ou$d %rovide "ro.th o%%ortunitie' and 'u%%$0-chain deve$o%ment .ou$d ta+e %$ace in
'econdar0 citie', -he countr01' techno$o"ica$ %ro.e'' cou$d a$'o he$% it become the
bac+bone and bac+-end mana"ement of "$oba$ retai$ 'u%%$0 chain,
9rof M, &avichandran) Birector) J4/) and Mr, B, &aj+umar) 4enior &e"iona$ Mana"er-
<ircu$ation) The "indu) <oimbatore) .ere amon" tho'e %re'ent,
BRIC Report: Many Ifs and Buts Qualify Forecast
Veena Venugopal
Mumbai) Jan, 20
-H7 /&I< re%ort i' no. con'tant$0 5uoted a' a va$idation of India1' emer"in" economic
%ro.e'',
-he Go$dman 4ach' re%ort on /ra#i$) &u''ia) India and <hina (/&I<) 'tate' that India
.i$$ be the third $ar"e't econom0) after the U4 and <hina b0 20(0, -he 'tud0 a''ume'
'tron" and 'tab$e macro economic %o$icie') 'tab$e %o$itica$ in'titution') and hi"h $eve$' of
education and o%enne'' a' the fundamenta$' to the mode$ u'ed,
-he re%ort 'tate') >-here i' a "ood chance that our %rojection' are not met) either throu"h
bad %o$ic0 or bad $uc+,>
M' &oo%a 9uru'hothaman) co-author of the /&I< re%ort) .hi$e %re'entin" the 'ame here)
rai'ed concern' over the $eve$' of 'econdar0 education in India, -hi' i' an im%ortant
variab$e in the mode$ and in com%ari'on to other' in the re%ort) it i' an area .here India
'tand' .ea+
Un$e'' there i' a mar+ed im%rovement in the 5ua$it0 and reach of 'econdar0 education)
the %rediction' of the re%ort are un$i+e$0 to be va$id,
HIM (2007-09) F0
2$'o im%ortant to note in the re%ort) i' the va$idit0 of a%%$ication of the mode$ in 2'ian
economie', 8n a%%$0in" the mode$ to variou' economie' a' the0 'tood in F9;0 and
com%arin" the current $eve$' of the'e economie' a' a"ain't .hat the mode$ .ou$d have
%rojected) none of the 2'ian economie' have 'ho.n %arit0, -he actua$ GB9' are hi"her
than that %rojected in Hon" Kon" and Korea and much $o.er in countrie' 'uch a' India,
-he re%ort cate"orica$$0 'tate' that .hi$e India .i$$ be amon" the three $ar"e't economie'
of the .or$d) it' %er ca%ita income .i$$ 'ti$$ be $o., In fact) thi' %henomenon i' e3%ected
to be true for a$$ /&I< economie') e3ce%t &u''ia, Individua$' in /ra#i$) <hina and India
.i$$ continue to be %oorer on an avera"e than tho'e in the G; economie',
Despite these spoilers, why are Indians excited about the report?
In a countr0-.i'e conc$u'ion) the re%ort 'tate') >!hi$e "ro.th in the G;) /ra#i$) &u''ia
and <hina i' e3%ected to '$o.do.n 'i"nificant$0 over the ne3t (0 0ear') India1' "ro.th
rate remain' above five %er cent throu"hout the %eriod, !ith the on$0 %o%u$ation out of
the /&I< that continue' to "ro. throu"hout the ne3t (0 0ear') India ha' the %otentia$ to
rai'e it' E income %er ca%ita in 20(0 to ( time' current $eve$', 4ti$$) India1' income %er
ca%ita .i$$ be 'i"nificant$0 $o.er than an0 of the countrie' .e $oo+ at,>
4tren"th and 'tabi$it0 of macro economic %o$icie' and %o$itica$ in'titution' over a (0-0ear
%eriod are not a''um%tion' that can be 'hru""ed a.a0 a' a definite %o''ibi$it0, !ith
chan"e' in Government) there .i$$ be chan"e' in macro economic %o$icie' and o%enne''
to "$oba$ trade, !hether the'e chan"e' .i$$ $ead to favorab$e trade and macro economic
condition' i' a moot %oint,
In the event that a$$ the a''um%tion' of the mode$ fa$$ into %$ace for India) the re%ort doe'
he$% in va$idatin" o%timi'tic a''um%tion' about the countr01' "ro.th trajector0,
!hether the e3citement the re%ort "enerated amon" bu'ine'' and %o$itica$ circ$e' i'
becau'e it i' added fodder to the >India i' 'hinin"> %ro%a"anda i' .orth a thou"ht, M'
9uru'hothaman) 'hoc+ed at the attention the re%ort ha' "enerated in India) ca$$' the
timin" >co-incidenta$,>
Definition of retailing
Retailing i' a$$ the activitie' invo$ved in 'e$$in" "ood' and 'ervice' direct$0 to fina$
con'umer' for their %er'ona$, non-bu'ine'' use.
2$thou"h mo't retai$in" i' done in retai$ 'tore') in recent 0ear' non-store retailing
-'e$$in" b0 mai$) te$e%hone (te$emar+etin")) door-to-door contact) vendin" machine') and
numerou' e$ectronic mean' -- ha' "ro.n tremendou'$0,
Store retailing: retai$ 'tore' come in a variet0 of 'ha%e' and 'i#e') and ne. retai$ t0%e'
+ee% emer"in", -he0 can be c$a''ified b0 one or more of 'evera$ characteri'tic'D
HIM (2007-09) FF
&etai$er' can be c$a''ified b0 one or more of 'evera$ characteri'tic'D-
2mount of 'ervice
9roduct $ine
&e$ative %rice'
<ontro$ of out$et'
-0%e of 'tore c$u'ter
Amount of service: different %roduct' re5uire different amount' of 'ervice) and cu'tomer
'ervice %reference' var0D
(F) Self-service retailers increa'ed ra%id$0 in the U4 durin" the Great Be%re''ion in the
F901', <u'tomer' .ere .i$$in" to %erform their o.n >$ocate-com%are-'e$ect> %roce'' to
'ave mone0, -oda0) 'e$f-'ervice i' the ba'i' of a$$ di'count o%eration') and t0%ica$$0 i'
u'ed b0 'e$$er' of convenience "ood' ('uch a' 'u%ermar+et') and nationa$$0 branded) fa't
movin" 'ho%%in" "ood' ('uch a' cata$o" 'ho.room'),
(2) Limited service retailers) 'uch a' 4ear' and J < 9enne0) %rovide more 'a$e'
a''i'tance becau'e the0 carr0 more 'ho%%in" "ood' about .hich con'umer' need
information, -heir increa'ed o%eratin" co't' re'u$t in hi"her %rice',
() Full service retailers) 'uch a' '%ecia$t0 'tore' and fir't-c$a'' de%artment 'tore') have
'a$e'%eo%$e to a''i't cu'tomer' in ever0 %ha'e of the 'ho%%in" %roce'', =u$$ 'ervice
'tore' u'ua$$0 carr0 more '%ecia$t0 "ood' for .hich cu'tomer' $i+e to be .aited on, -he0
%rovide more $ibera$ return %o$icie') variou' credit %$an') free de$iver0) home 'ervicin")
and e3tra' 'uch a' $oun"e' and re'taurant',
Product line: retai$er' can a$'o be c$a''ified b0 the depth and breadth of their %roduct
a''ortment'D
(F) Specialty stores carr0 a narrow %roduct $ine .ith a deep a''ortment .ithin that $ine,
73am%$e' inc$ude 'tore' 'e$$in" '%ortin" "ood') boo+') furniture) e$ectronic') f$o.er') or
to0', -oda0) '%ecia$t0 'tore' are f$ouri'hin") due to the increa'in" u'e of mar+et
'e"mentation) mar+et tar"etin") and %roduct '%ecia$i#ation,
HIM (2007-09) F2
(2) 2 department store carrie' a .ide variet0 of %roduct $ine', 7ach $ine i' o%erated a' a
'e%arate de%artment mana"ed b0 '%ecia$i't bu0er' and merchandi'er', Be%artment 4tore')
are $ar"e retai$ 'tore' .ith a fa'hion orientation that 'e$$ man0 t0%e' of merchandi'e
or"ani#ed in 'e%arate de%artment', =ound in virtua$$0 ever0 major cit0 in the .or$d) mo't
de%artment 'tore' toda0 are %art of $ar"er retai$ or"ani#ation' that o%erate a f$a"'hi% (or
main) 'tore) a' .e$$ a' branch 'tore' in 'ho%%in" center' and ma$$', -he bi""e't 'in"$e
'e"ment of their bu'ine'' i' a%%are$ and acce''orie') accountin" on avera"e for more than
t.o-third' of 'a$e', Mo't de%artment 'tore' a$'o offer a ran"e of cu'tomer 'ervice' 'uch
a' %er'ona$ 'ho%%in" a''i'tance) fa'hion 'ho.') and char"e account',
-he or"ani#ation of a modern de%artment 'tore i' com%$e3 becau'e of the $ar"e number
of "ood' and 'ervice' %rovided,
-0%ica$$0) the o%eration of a 'tore i' conducted throu"h four %rinci%a$ divi'ion'D-
(a) -he merchandi'in" divi'ion) re'%on'ib$e for the %$annin") bu0in") and direct 'e$$in" of
merchandi'e:
(b) -he %ub$icit0 divi'ion) .hich hand$e' adverti'in") di'%$a0) %ub$ic re$ation') and other
'a$e' %romotion function':
(c) -he contro$ divi'ion) .hich dea$' .ith credit) accountin") and other financia$ matter':
(d) 2nd the 'tore mana"ement divi'ion) .hich cover' %er'onne$) 'ervice) 'tore 'ecurit0)
maintenance) and o%erationa$ dutie',
!ithin the'e four divi'ion' are man0 'ubdivi'ion', -he head') or mana"er') of the four
%rinci%a$ divi'ion' re%ort to the "enera$ mana"ement of the 'tore, Man0 variation' of thi'
or"ani#ation %$an e3i't:
() Supermarkets are $ar"e) $o.-co't) $o.-mar"in) hi"h-vo$ume) 'e$f-'ervice 'tore' that
carr0 a .ide variet0 of food) $aundr0) and hou'eho$d %roduct', Mo't U4 'u%ermar+et
'tore' are o.ned b0 $ar"e chain' 'uch a' 4afe.a0) Kro"er) 9ub$i3) !inn-Bi3ie) Je.e$)
and -o%', <hain' account for a$mo't 70G of a$$ 'u%ermar+et 'a$e', 4u%ermar+et'
de%artmenta$i#ed 'e$f-'ervice 'tore' that are the %redominant t0%e of retai$ out$et for food
%roduct', 2n avera"e 'u%ermar+et hand$e' thou'and' of edib$e item' inc$udin" meat)
fre'h fruit' and ve"etab$e') dair0 %roduct') canned "rocerie') ba+er0 item') de$icate''en)
HIM (2007-09) F
and fro#en food', 4ome a$'o carr0 item' 'uch a' 'eafood and $i5uor, @onedib$e' found in
'u%ermar+et' inc$ude hou'eho$d c$eaner') %a%er %roduct') hea$th and beaut0 aid') and
hou'e.are', -he mar+et' are $ocated in 'ho%%in" center') nei"hborhood area') bu'ine''
and center') and a$on" hi"h.a0',
(6) Convenience stores are 'ma$$ 'tore' that carr0 a $imited $ine of hi"h-turnover
convenience "ood', -he'e 'tore' $ocated near re'identia$ area' and remain o%en $on"
hour') 'even da0' a .ee+, <onvenience 'tore' mu't char"e hi"h %rice' to ma+e u% for
hi"her o%eratin" co't' and $o.er 'a$e' vo$ume) but the0 'ati'f0 an im%ortant con'umer
need,
(() Superstores, combination stores, and hypermarkets are a$$ $ar"er than the
conventiona$ 'u%ermar+et, Man0 $eadin" chain' are movin" to.ard 'u%er'tore' becau'e
their .ider a''ortment a$$o.' %rice' to be (-;G hi"her than conventiona$ 'u%ermar+et'1,
<ombination 'tore' are combined food and dru" 'tore', 73am%$e' are 2L91' =ami$0
Mart' and !a$-Mart1' 4u%ercenter', H0%ermar+et' combine di'count) 'u%ermar+et) and
.arehou'e retai$in") and o%erate $i+e a .arehou'e -- %roduct' in .ire ba'+et' are 'tac+ed
hi"h on meta$ rac+') and for+$ift' move throu"h ai'$e' durin" 'e$$in" hour' to re'toc+
'he$ve', -he0 u'ua$$0 "ive di'count' to cu'tomer' .ho carr0 their o.n heav0 a%%$iance'
and furniture out of the 'tore,
Relative prices: retai$er' can a$'o be c$a''ified b0 the %rice' the0 char"e, Mo't retai$er'
char"e re"u$ar %rice' and offer norma$ 5ua$it0 "ood' and cu'tomer 'ervice, 4ome offer
hi"her 5ua$it0 "ood' and 'ervice at hi"her %rice', &etai$er' that feature $o. %rice'
inc$udeD
(F) Discount stores 'e$$ 'tandard merchandi'e at $o.er %rice' b0 acce%tin" $o.er mar"in'
and 'e$$in" hi"her vo$ume, 8cca'iona$ di'count' or '%ecia$' doe' not ma+e a 'tore a
di'count 'tore, 2 true di'count 'tore regularly 'e$$' it' merchandi'e at $o.er %rice')
offerin" mo't$0 nationa$ brand') not inferior "ood',
In recent 0ear') facin" inten'e com%etition from other di'counter' and de%artment 'tore')
man0 di'count retai$er' have >traded u%> b0 im%rovin" their decor) addin" ne. $ine' and
'ervice') and o%enin" 'uburban branche', -hi') of cour'e) ha' $ed to hi"her co't' and
%rice', !ith the di'counter' tradin" u%) off-price retailers have moved in to fi$$ the $o.-
HIM (2007-09) F6
%rice) hi"h-vo$ume "a%, -he0 obtain a chan"in" and un'tab$e co$$ection of hi"her-5ua$it0
merchandi'e) often $eftover
"ood') overrun') and irre"u$ar' at reduced %rice' from manufacturer' or other retai$er',
-he three main t0%e' of off-%rice retai$er' are factory outlets, indeendents, and
!are"ouse clu#s.
Control of outlets: about *0G of a$$ retai$ 'tore' are inde%endent') accountin" for 2A of
retai$ 'a$e', 8ther form' of o.ner'hi% inc$ude the corporate chain) the voluntary chain
and retailer cooperative) the franchise organization) and the merchandising
conglomerate,
-he chain store i' one of the mo't im%ortant retai$ deve$o%ment' of thi' centur0,
<or%orate chain' a%%ear in a$$ t0%e' of retai$in") but the0 are 'tron"e't in de%artment)
variet0) food) dru") 'hoe) and .omen1' c$othin" 'tore', -he 'i#e of cor%orate chain'
a$$o.' them to bu0 in $ar"e 5uantitie' at $o.er %rice') and chain' "ain %romotiona$
economie' becau'e their adverti'in" co't' are '%read out over man0 'tore' and over a
$ar"e 'a$e' vo$ume, <hain 'tore') are t.o or more retai$ 'tore' dea$in" in the 'ame "enera$
+ind of merchandi'e and o%erated b0 the 'ame firm, -he out$et i' a$'o +no.n a' a
mu$tiunit and i' "enera$$0 o%erated b0 an em%$o0ee-mana"er rather than an individua$
o.ner, -he mana"er of a chain 'tore) un$i+e the inde%endent retai$er) doe' not ma+e
%o$ic0 deci'ion' and i' re'%on'ib$e to the individua$ or com%an0 that o.n' the 'tore,
<hain 'tore' dea$ main$0 in "enera$ merchandi'e) food) dru"') and 'hoe': man0 variet0
and di'count 'tore' are chain'
-he "reat 'ucce'' of cor%orate chain' cau'ed man0 inde%endent' to band to"ether under
contractua$ a''ociation', -he vo$untar0 chain i' a .ho$e'a$er-'%on'ored "rou% of
inde%endent retai$er' that en"a"e' in-"rou% bu0in" and common merchandi'in", -he
retai$er coo%erative i' a "rou% of inde%endent retai$er' that 'et u% a joint$0- o.ned centra$
.ho$e'a$e o%eration' and conduct joint merchandi'in" and %romotion effort',
2 franchise i' a contractua$ a''ociation bet.een a manufacturer) .ho$e'a$er) or 'ervice
or"ani#ation (the franchi'er) and inde%endent bu'ine''%eo%$e (the franchi'ee') .ho bu0
the ri"ht to o.n and o%erate one or more unit' in the
HIM (2007-09) F(
franchi'e '0'tem, =ranchi'in" ha' been %rominent in fa't-food com%anie') mote$') "a'
'tation') video 'tore') auto renta$') hair cuttin" 'a$on') rea$ e'tate) and do#en of other
"ood' and 'ervice', -he com%en'ation received b0 the franchi'er ma0 inc$ude an initia$
fee) a ro0a$t0 on 'a$e') $ea'e fee' for e5ui%ment) and a 'hare of the %rofit',
Merchandising conglomerates are cor%oration' that combine 'evera$ different retai$in"
form' under centra$ o.ner'hi% and 'hare 'ome di'tribution and mana"ement function',
73am%$e' inc$ude Ba0ton-Hud'on and J<9enne0,
Type of store cluster: Mo't 'tore' toda0 c$u'ter to"ether to increa'e their cu'tomer
%u$$in" %o.er and to "ive con'umer' the convenience of one-'to% 'ho%%in"D
Central business districts .ere the main form of retai$ c$u'ter unti$ the F9(01', 7ver0
$ar"e cit0 and to.n had a centra$ bu'ine'' di'trict .ith ban+') de%artment 'tore') '%ecia$t0
'tore') and movie theatre', !hen %eo%$e be"an to move to the 'uburb') ho.ever) the'e
centra$ bu'ine'' di'trict' (.ith their traffic) %ar+in") and crime %rob$em') be"an to $o'e
bu'ine'',
HIM (2007-09) F;
2 shopping center i' a "rou% of retai$ bu'ine''e' %$anned) deve$o%ed) o.ned) and
mana"ed a' a unit, 2$$ 'ho%%in" center' combined account for about FA of a$$ retai$
'a$e',
Non-Store Retailing: a$thou"h mo't "ood' and 'ervice' are 'o$d throu"h 'tore') non-
'tore retai$in" ha' been "ro.in" much fa'ter than 'tore retai$in",
-raditiona$ 'tore retai$er' are facin" increa'in" 'a$e' com%etition from cata$o"') direct
mai$) te$e%hone) home -H 'ho%%in" 'ho.') on-$ine com%uter 'ho%%in" 'ervice') home
and office %artie') and other direct retai$in" a%%roache',
@on-'tore retai$in" inc$ude' direct marketing, direct selling, and automatic vending:
Direct Marketing vehic$e' are u'ed to obtain immediate order' direct$0 from tar"eted
con'umer', 2$thou"h direct mar+etin" initia$$0 con'i'ted mo't$0 of direct mai$ and mai$-
order cata$o"') it ha' ta+en on 'evera$ additiona$ form') inc$udin" te$emar+etin") direct
radio and -H) and on-$ine com%uter 'ho%%in", It' "ro.in" u'e in con'umer mar+etin" i'
$ar"e$0 a re'%on'e to the >dema''ification> of ma'' mar+et') .hich ha' re'u$ted in an
increa'in" number of fra"mented mar+et 'e"ment' .ith hi"h$0 individua$i#ed need',
-rend' that have increa'ed the u'e of direct mar+etin" inc$udeD-
(F) number of .omen in the .or+force:
(2) hi"her co't' of drivin") inc$udin" traffic con"e'tion and %ar+in" %rob$em':
() 'horta"e of retai$ he$%:
(6) $on"er chec+out $ine':
(() to$$-free te$e%hone number':
(;) avai$abi$it0 of credit throu"h %ro$iferation of credit card':
(7) "ro.th of com%uter %o.er L communication techno$o"0: and
(*) increa'in" time %re''ure' on con'umer',
Direct Selling, or door-to-door retai$in") 'tarted centurie' a"o .ith rovin" %edd$er',
-oda0) it ha' "ro.n into a hu"e indu'tr0) .ith more than ;00 com%anie' 'e$$in" their
HIM (2007-09) F7
%roduct' door-to-door) office-to-office) or at home-'a$e' %artie', 2$thou"h 'ome direct
'e$$in" com%anie' are thrivin") door-to-door 'e$$in" ha' a 'ome.hat uncertain future,
-rend' .or+in" a"ain't thi' form of 'e$$in" inc$udeD-
(F) increa'e in 'in"$e-%er'on and .or+in"-cou%$e hou'eho$d' decrea'e' the
chance' of findin" 'omeone at home:
(2) home-%art0 com%anie' are havin" difficu$t0 findin" non-.or+in" .omen .ho
.ant to 'e$$ %roduct %art-time:
() increa'e' in crime' a"ain't individua$' ha' made con'umer' re$uctant to invite
'tran"er' into their home': and
(6) recent advance' in interactive direct-mar+etin" techno$o"0 mean that the
door-to-door 'a$e'%er'on ma0 be re%$aced b0 the te$e%hone) the te$evi'ion) and the
home com%uter,
Automatic Vending i' not ne., In 2F( /,<,) 7"0%tian' cou$d bu0 'acrificia$ .ater from
coin-o%erated di'%en'er', /ut thi' method of 'e$$in" 'oared after !or$d !ar II, -here are
no. about 6,( mi$$ion vendin" machine' in the U4 -- one for ever0 (( %eo%$e, Hendin"
machine' are found ever0.here: com%ared to 'tore retai$in") vendin" machine' offer
con'umer' "reater convenience 26 hour' a da0) and have re%$aced man0 'ervice'
forma$$0 re5uirin" a human interface, =or e3am%$e) .hen .a' the $a't time 0ou .ent to
the ban+ and actua$$0 ta$+ed .ith a >$ive %er'onMN
-he e3%en'ive e5ui%ment and $abour re5uired to 'toc+ and 'ervice vendin" machine'
ma+e' thi' a co't$0 channe$ of di'tribution) and %rice' of vended "ood' are often F(-20G
hi"her than tho'e in retai$ 'tore', 4o) the ada"e >there1' no free $unch> 'ti$$ ho$d' -.e
have to %a0 for the convenience that vendin" machine' %rovide,
-he W"eel of Retailin$ conce%t 'tate' that ne. t0%e' of retai$er' u'ua$$0 be"in a' $o.-
mar"in) $o.-%rice) $o.-'tatu' o%eration') but $ater evo$ve into hi"her-%riced) hi"her-
'ervice o%eration') eventua$$0 becomin" $i+e the conventiona$ retai$er' the0 re%$aced,
HIM (2007-09) F*
Demographics and Consumer Behavior
Courtesy: KSA Analysis
India i' e'timated to have a %o%u$ation of F,06 bi$$ion a' of 200, 9o%u$ation "ro.th i'
e3%ected to 'tabi$i#e at a%%ro3imate$0 one and a ha$f %ercent in the ne3t fe. 0ear', In
recent 0ear') there ha' been a trend in the movement of %o%u$ation from rura$ area' to
urban area') $ar"e$0 a' a re'u$t of increa'ed em%$o0ment o%%ortunitie' in the citie' a' .e$$
a' a %reference of the 0oun"er "eneration to move a.a0 from a"ricu$ture,
HIM (2007-09) F9
-he %ercenta"e of %o%u$ation movin" to <$a'' I to.n') .hich are ba'ica$$0 $ar"e citie'
.ith a %o%u$ation of over F mi$$ion) ha' 'een 'i"nificant "ro.th in recent 0ear', 2' a
re'u$t of thi' trend) the %ercenta"e of %o%u$ation $ivin" in urban area') ha' 'een dramatic
"ro.th in the %a't t.o decade', 8ne of the im%ortant demo"ra%hic trend' in recent time'
i' the chan"e in the a"e %rofi$e of the %o%u$ation, -he %ercenta"e of the %o%u$ation in the
F( to (9 0ear a"e "rou%) .hich i' $ar"e$0 the countr0C' .or+force) i' e3%ected to increa'e
in comin" 0ear',

POPULATION POPULATION- BREAK
UP BY TOWN CLASS URBAN & RURAL
-ota$ 9o%u$ationD *6; mi$$ion 9o%u$ationD 2F7mi$$ion

<en'u' 19F, 8n$0 one fourth of India1' %o%u$ation i' urban,
4ource <en'u' 19F
-o% * metro' con'titute more than one fourth of IndiaC' %o%u$ation
HIM (2007-09) 20
The Global Retail Industry-An Overview
&etai$ ha' %$a0ed a major ro$e .or$d over in increa'in" %roductivit0 acro'' a .ide ran"e
of con'umer "ood' and 'ervice' ,-he im%act can be be't 'een in countrie' $i+e U,4,2,)
U,K,) Me3ico) -hai$and and more recent$0 <hina, 7conomie' of countrie' $i+e 4in"a%ore)
Ma$a0'ia) Hon" Kon") 4ri Ian+a and Bubai are a$'o heavi$0 a''i'ted b0 the retai$ 'ector,
&etai$ i' the 'econd-$ar"e't indu'tr0 in the United 4tate' both in number of
e'tab$i'hment' and number of em%$o0ee', It i' a$'o one of the $ar"e't .or$d.ide, -he
retai$ indu'tr0 em%$o0' more than 22 mi$$ion 2merican' and "enerate' more than E
tri$$ion in retai$ 'a$e annua$$0, &etai$in" i' a U,4, E7 tri$$ion 'ector,
!a$-Mart i' the .or$dC' $ar"e't retai$er, 2$read0 the .or$dC' $ar"e't em%$o0er .ith over
Fmi$$ion a''ociate') !a$-Mart di'%$aced oi$ "iant 733on Mobi$ a' the .or$dC' $ar"e't
com%an0 .hen it %o'ted E2F9 bi$$ion in 'a$e' for fi'ca$ 200F, !a$-Mart ha' become the
mo't 'ucce''fu$ retai$ brand in the .or$d due it' abi$it0 to $evera"e 'i#e) mar+et c$out) and
efficienc0 to create mar+et dominance, !a$-Mart head' =ortune ma"a#ine $i't of to% (00
com%anie' in the .or$d, =orbe' 2nnua$ Ii't of /i$$ionaire' ha' the $ar"e't number
(6(A697) from the retai$ bu'ine'',
GLOBAL RETAIL
1999 2002 2006
Total Retail (US$ Billion) 150 180 225
Organized Retail (US$Billion 1.1 3.3 7
Share of Organized retail 0.7 1.8 3.2
(4ourceD <48) MGI 4tud0)

Top Retailers Worldwide
Rank Retailer Home Country
1 Wal-Mart Stores, Inc. U.S.A.
2 Carrefour Group France
3 The Kroger Co. U.S.A.
4 The Home Depot, Inc. U.S.A.
5 Metro Germany
HIM (2007-09) 2F
(4ourceD 4-8&74 A Be$oitte -ouche -omahat'u)
Retail Scene in India - Touching Meteoric Height
2' the cor%orate' O the 9irama$') the -ata') the &aheja') I-<) 4,KumarC') &9G
7nter%ri'e') and me"a retai$er'- <ro''.ord') 4ho%%erC' 4to%) and 9anta$oon' race to
deve$o% the retai$in" 'ector) retai$ a' an indu'tr0 in India i' comin" a$ive, &etai$ 'a$e' in
India amounted to about &',7600 bi$$ion in 2002) e3%anded at an avera"e annua$ rate of
7G durin" F999-2002, !ith the u%turn in economic "ro.th durin" 200) retai$ 'a$e' are
a$'o e3%ected to e3%and at a hi"her %ace of near$0 F0G, 2cro'' the countr0) retai$ 'a$e' in
rea$ term' are %redicted to ri'e more ra%id$0 than con'umer e3%enditure durin" 200-0*,
-he foreca't "ro.th in rea$ retai$ 'a$e' durin" 200- 200* i' *,G %er 0ear) com%ared
.ith 7,FG for con'umer e3%enditure, Moderni#ation of the Indian retai$ 'ector .i$$ be
ref$ected in ra%id "ro.th in 'a$e' of 'u%ermar+et') de%artmenta$ 'tore' and h0%er mart',
4a$e' from the'e $ar"e-format 'tore' are to e3%and at "ro.th rate' ran"in" from 26G to
69G %er 0ear durin" 200-200*) accordin" to a $ate't re%ort b0 7uro monitor
Internationa$) a $eadin" %rovider of "$oba$ con'umer-mar+et inte$$i"ence,
2,-,Kearne0 Inc, %$ace' India ;th on a "$oba$ retai$ deve$o%ment inde3, -he countr0 ha'
the hi"he't %er ca%ita out$et' in the .or$d - (,( out$et' %er F000 %o%u$ation, 2round 7G
of the %o%u$ation in India i' en"a"ed in retai$in") a' com%ared to 20G in the U42,
In a deve$o%in" countr0 $i+e India) a $ar"e chun+ of con'umer e3%enditure i' on ba'ic
nece''itie') e'%ecia$$0 food-re$ated item', Hence) it i' not 'ur%ri'in" that food) bevera"e'
and tobacco accounted for a' much a' 7FG of retai$ 'a$e' in 2002, -he 'hare of food
re$ated item' had) ho.ever) dec$ined over the revie. %eriod) do.n from 7G in F999,
-hi' i' not une3%ected) becau'e .ith income "ro.th) Indian') $i+e con'umer' e$'e.here)
have 'tarted '%endin" more on non-food item' com%ared .ith food %roduct', 4a$e'
throu"h 'u%ermar+et' and de%artment 'tore' are 'ma$$ com%ared .ith overa$$ retai$ 'a$e',
@everthe$e'') their 'a$e' have "ro.n much more ra%id$0) at a$mo't a tri%$e rate (about
HIM (2007-09) 22
0G %er 0ear durin" the revie. %eriod), -hi' hi"h acce$eration in 'a$e' throu"h modern
retai$ format' i' e3%ected to continue durin" the ne3t fe. 0ear') .ith the ra%id "ro.th in
number' of 'uch out$et' due to con'umer demand and bu'ine'' %otentia$,
-he factor' re'%on'ib$e for the deve$o%ment of the retai$ 'ector in India can be broad$0
'ummari#ed a' fo$$o.'D-
&i'in" income' and im%rovement' in infra'tructure are en$ar"in" con'umer mar+et'
and acce$eratin" the conver"ence of con'umer ta'te',
Ioo+in" at income c$a''ification) the @ationa$ <ounci$ of 2%%$ied 7conomic
&e'earch (@<27&) c$a''ified a%%ro3imate$0 (0G of the Indian %o%u$ation a' $o.
income in F996-9(: thi' i' e3%ected to dec$ine to F7,*G b0 200;-07,
Iibera$i#ation of the Indian econom0 .hich ha' $ed to the o%enin" u% of the mar+et
for con'umer "ood' ha' he$%ed the M@< brand' $i+e Ke$$o""C') Uni$ever) @e't$e) etc,
to ma+e 'i"nificant inroad' into the va't con'umer mar+et b0 offerin" a .ide ran"e of
choice' to the Indian con'umer',
4hift in con'umer demand to forei"n brand' $i+e McBona$d') 4on0) 9ana'onic) etc,
-he Internet revo$ution i' ma+in" the Indian con'umer more acce''ib$e to the "ro.in"
inf$uence' of dome'tic and forei"n retai$ chain', &each of 'ate$$ite -,H, channe$' i'
he$%in" in creatin" a.arene'' about "$oba$ %roduct' for $oca$ mar+et', 2bout 67G of
IndiaC' %o%u$ation i' under the a"e of 20: and thi' .i$$ increa'e to ((G b0 20F(, -hi'
0oun" %o%u$ation) .hich i' techno$o"0-'avv0) .atch more than (0 -H 'ate$$ite channe$')
and di'%$a0 the hi"he't %ro%en'it0 to '%end) .i$$ immen'e$0 contribute to the "ro.th of
the retai$ 'ector in the countr0, 2' India continue' to "et 'tron"$0 inte"rated .ith the
.or$d econom0 ridin" the .ave' of "$oba$i#ation) the retai$ 'ector i' bound to ta+e bi"
$ea%' in the 0ear' to come,
HIM (2007-09) 2
-he Indian retai$ 'ector i' e'timated to have a mar+et 'i#e of about E F*0 bi$$ion: but the
or"ani#ed 'ector re%re'ent' on$0 2G 'hare of thi' mar+et, Mo't of the or"ani#ed retai$in"
in the countr0 ha' ju't 'tarted recent$0) and ha' been concentrated main$0 in the metro
citie', India i' the $a't $ar"e 2'ian econom0 to $ibera$i#e it' retai$ 'ector, In -hai$and)
more than 60G of a$$ con'umer "ood' are 'o$d throu"h the 'u%er mar+et' and
de%artmenta$ 'tore', 2 'imi$ar %henomenon ha' '.e%t throu"h a$$ other 2'ian countrie',
8r"ani#ed retai$in" in India ha' a hu"e 'co%e becau'e of the va't mar+et and the "ro.in"
con'ciou'ne'' of the <on'umer about %roduct 5ua$it0 and 'ervice',

2 'tud0 conducted b0 =itch) e3%ect' the or"ani#ed retai$ indu'tr0 to continue to "ro.
ra%id$0) e'%ecia$$0 throu"h increa'ed $eve$' of %enetration in $ar"er to.n' and metro' and
a$'o a' it be"in' to '%read to 'ma$$er citie' and / c$a'' to.n', =ue$$in" thi' "ro.th i' the
"ro.th in deve$o%ment of the retai$-'%ecific %ro%ertie' and ma$$', 2ccordin" to the
e'timate' avai$ab$e .ith =itch) c$o'e to 2(mn '5, ft, of retai$ '%ace i' bein" deve$o%ed and
.i$$ be avai$ab$e for occu%ation over the ne3t ;-6* month', =itch e3%ect' or"ani#ed
retai$ to ca%ture F(G-20G mar+et 'hare b0 20F0,
2 McKin'e0 re%ort on India 'a0' or"ani#ed retai$in" .ou$d increa'e the efficienc0 and
%roductivit0 of entire "amut of economic activitie') and .ou$d he$% in achievin" hi"her
GB9 "ro.th, 2t ;G) the 'hare of em%$o0ment of retai$ in India i' $o.) even .hen
com%ared to /ra#i$ (F6G)) and 9o$and (F2G),
Current Status of Retail Marketing in India
Winds of %"an$e &!eein$ T"rou$" Retail Industry'
!hat i' it that ha' made the #iraml$s, the Tata$s, the %ahe&a$s, 'TC and 'core' of other'
ta+e a %$un"e into me"a retai$in"M !h0 i' mar+et re'earch) '%ace mana"ement) 7&9)
%romotion' etc no. a nece''ar0 too$ in thi' indu'tr0M
Retail Economics in India.
HIM (2007-09) 26
-raditiona$$0 retai$in" ha' not been a 'tructura$$0 or"ani#ed indu'tr0 in India, 8r"ani#ed
retai$ net.or+ .a' 'een on$0 in fabric') .ith $ar"e mi$$' bui$din" their o.n e3c$u'ive
'tore' e,", &a0mondC') /omba0 B0ein" etc,
<urrent$0 there are about (F0000 retai$ out$et' 'e$$in" about &'6790bn .orth of
%roduct', &etai$ univer'e in India com%ri'e' $ar"e) medium "enera$ 'tore') chemi't' and
%an-bidi (a%art from acce''orie' 'tore'), 8f the'e Othan+' to unem%$o0ment) the number
of %an-bidi out$et' are 'teadi$0 ri'in", 8n account of the fra"mented nature of Indian
retai$ indu'tr0 the inhabitants to stores ratio in India i' about F(0DF) i,e, there i' a store
caterin" to every ()* people, -hi' ratio varie' from countr0 to countr0, In china the ratio
i' 'imi$ar to that of India .here a' inca'e of more deve$o%ed countrie' the ratio .ou$d be
hi"her, =or in'tance in 7uro%e the inhabitant to stores ratio i' 2000DF,2' mar+et' mature)
con'umer e3%ectation' ri'e it .ou$d be a nece''it0 for 'ma$$ retai$er' to come to"ether
and form innovative and 'tron" 'u%%$0 chain that .i$$ cut throu"h di'tribution and
increa'e mar"in',
Turnaround Times
In $a't cou%$e of 0ear' thi' indu'tr0 ha' made re'%on'ive move from it' ho%efu$ 'ta"e',
8r"ani#ed retai$in" 'tarted %ic+in" u% in 4outhern India, 2vai$abi$it0 of $and at %rime
$ocation' cou%$ed .ith chea%er rea$ e'tate %rice' (com%ared to Mumbai L Be$hi) made it
%o''ib$e to have mu$ti 'tored 'ho%%in" com%$e3e' here, It too+ t.o 0ear' of rece''ion to
"et thi' conce%t of 'ho%%in" to major citie' $i+e Mumbai L Be$hi, &ece''ion brou"ht
%ro%ert0 %rice' do.n in the'e citie', It .a' durin" thi' %eriod of indu'tr0 '$um% that bi"
bu'ine'' hou'e' too+ notice of the %otentia$ in retai$in", 2 c$a''ic e3am%$e bein"- Ia+me
Itd, -he com%an0 after 'e$$in" off it' co'metic divi'ion to HII) made an a""re''ive
fora0 into retai$in", It' retai$ chain brandedC!e't'ideC a$read0 com%ri'e' 6 'tore'- one
each in /an"a$ore) H0derabad) <hennai and Mumbai, 2 ca'h hoard of &'F07bn .i$$
enab$e Ia+me to ro$$ out 'tore' a""re''ive$0,
HIM (2007-09) 2(
Consumerism Cycle
<on'umer c0c$e 'tart' .ith 'ndustry +ictating the mar+et, 7ventua$$0 .ith time the
distributor gains control over the mar+et, 2t thi' 'ta"e di'tributor become' an im%ortant
$in+ bet.een manufacturer and cu'tomer, !hen mar+et' 'tart deve$o%in" further
e3%andin" it' hori#on') 'udden$0 retailers turn out to be vita$ %oint in thi' 'u%%$0 chain,
In India .e are enterin" into thi' third 'ta"e .here retai$er' contro$ the mar+et, !ith
'ho%%in" attitude' of %eo%$e chan"in") Indian mar+et' toda0 de'ire' for va$ue added
%roduct' and 'ervice' .ith "ood ambience and brand') which only a retailer can provide.
!herea' deve$o%ed countrie' have reached the fina$ 'ta"e .here customer dictates. U4)
UK and other deve$o%ed mar+et' have no. reached a 'ta"e .herein con'umer' are
.i$$in" to 'ave on %rice b0 "oin" to di'count 'tore' .here ambience and 'ervice' are $o.
and "ood' are unbranded,
ItC' a viciou' c0c$e) but for the ne. a'%ect - ,mnipresent net. -hou"h it .ou$d be
'ometime before e-commerce "ear' u% in India, /ut a$$ the 'ame a mer"er of Internet)
cata$o"ue') te$e%hone and te$evi'ion i' inevitab$e,
What Makes it Attractive
-oda0 the number of 'ma$$er retai$er' (E(00%a) ha' 'hot u% from 60G in F990 to (6G in
F99;) .herea' the number of $ar"e 'tore' (turnover of E000%a) increa'ed from 2,*G to
;,(G, -hu' thou"h $ar"e retai$er' are "ro.in" the 'ma$$er out$et' are "ro.in" even fa'ter,
Ho.ever chan"in" 'ho%%in" attitude' of an avera"e cu'tomer .i$$ ma+e future "ro.th
increa'in"$0 difficu$t for unor"ani#ed retai$ 'ector,
<urrent$0 in India) or"ani#ed retai$in" account' for ;G of the indu'tr0 turnover)
com%ri'in" va$ue-added food' (&'770bn)) mu'ic L entertainment (&'60bn)) co$our
co'metic' (&'F2bn) etc, /0 200( or"ani#ed retai$in" .i$$ account for 20G the tota$
retai$in" indu'tr0 turnover (&'*00bn),
/i" bu'ine'' hou'e' toda0 are in a %o'ition to %rovide Indian ma''e' .ith 'ho%%in"
'ati'faction) entertainment) 5ua$it0 %roduct) %o$ite 'a$e'%er'on) %roduct information and
HIM (2007-09) 2;
di'count', -hou"h mar"in' current$0 are $o. due to hi"h %ro%ert0 co't and %oor
infra'tructure, -hi' i' the on$0 bu'ine'' .here one bu0' in credit and 'e$$' for ca'h,
=urther the number of hou'eho$d' earnin" more than &'F(0000 %er annum amount' to
0mn toda0 and i' e3%ected to "ro. to *0mn b0 2007,2dditiona$$0 financia$ in'titution'
are encoura"in" 'uch venture', I<I<I ha' recent$0 'anctioned term $oan' to Hive+ L co) a
me"a-retai$er) in <hennai to meet their e3%an'ion %$an', Her0 'hort$0 the mar+et .i$$ a$'o
.itne'' I98C' for 'ome of the'e %etail .entures.
Proven success
In ear$0 90C') K, &aheja Grou% 'tarted a me"a 2%%are$' 'tore' in Mumbai- /0hoppers
0top$. Initia$$0) the "rou% .a' aver'e to 'tart out$et' at 4outh Mumbai
for variou' rea'on' $i+e $o. .a$+-in') '%ace con'traint') narro.ed tar"et audience etc,
Ho.ever the 'ucce'' of <ro''road') an ardent riva$) ha' %rom%ted them to 'tart one at
4outh Mumbai in near future, -he "rou% ha' more of 'uch 'tore') one each at /an"a$ore)
H0derabad and Jai%ur, !ithin 'even 0ear' of o%eration' it ha' a 0ear$0 turnover of
&'F,0bn, -he "rou% ha' %$an' of o%enin" about 20 me"a a%%are$ 'tore' in ne3t 2 0ear',
=or thi' the com%an0 %$an' to 'e$$ 2(,FG 'ta+e for &'((9mn to 4in"a%ore ba'ed inve'tor
!arbur" 9incu', -he 'ucce'' 'tor0 of 4ho%%er' 4to% ha' convinced other bu'ine''
hou'e' to ta+e a $ea%,
Origin of Modern Retailing in India
&etai$in") .hich i' one of the $ar"e't 'ector' in the "$oba$ econom0) i' "oin" throu"h a
tran'ition %ha'e in India, Ho.ever the Indian retai$ 'ector i' 'ti$$ in a na'cent 'ta"e,
8r"ani#ed retai$in" 'ti$$ contribute' to on$0 about 2G of the tota$ retai$in" in the countr0,
@o. a 5ue'tion that .ou$d ari'e i' .hat con'titute' 8r"ani#ed &etai$in", Mr, &a"hu
9i$$ai) the Mana"in" Birector of =ood !or$d) .hich i' one of the $eadin" or"ani#ed food
retai$in" chain in India 'a0' that) 1,rganized %etailing presupposes a retailers$ ability to
manage or more importantly influence a set of supply chain variables in a commercially
viable and sustainable way2. 7fficient mana"ement of the 'u%%$0 chain to en'ure the
%rofitabi$it0 of the entire chain) $ar"e out$et' .ith modern ambiance and faci$itie') a .ide
HIM (2007-09) 27
%roduct %rofi$e) 'e$f 'ervice faci$itie' etc are "enera$$0 the feature' of a modern retai$
'tore, 8r"ani#ed retai$in" aim' at %rovidin" an idea$ 'ho%%in" e3%erience for the
con'umer ba'ed on the advanta"e' of $ar"e-'ca$e %urcha'e') con'umer %reference
ana$0'i') e3ce$$ent ambience and choice of merchandi'e, Ho.ever) there are no 'in"$e
format') de'i"n') faci$itie' or %roduct %ortfo$io' that can be identified a' the 'ucce''
formu$a and a' a "enera$ ru$e differentiation bet.een chain' i' nece''ar0 to increa'e
viabi$it0, =or a $on" time) the corner "rocer0 'tore .a' the on$0 choice avai$ab$e to the
con'umer) e'%ecia$$0 in the urban area', -hi' i' '$o.$0 "ivin" .a0 to internationa$
format' of retai$in", -he traditiona$ food and "rocer0 'e"ment ha' 'een the emer"ence of
'u%ermar+et'A
Grocer0 chain', -he Indian food retai$ mar+et i' 'ti$$ in 'ta"e-F) .hich re%re'ent' the
P=ir't 4te%'C in the 4ta"e' of Maturit0 of Modern &etai$ =ood Mar+et,
-he 'ta"e' of thi' %ro"re''ion and the %o'ition of the other major countrie' are "iven
be$o.D
Stages of Maturity of Modern Food Retail Markets
Iar"e$0 in the %o't inde%endence %eriod) Indian retai$in" ha' been unor"ani#ed) to the
mo't %art untouched b0 cor%orate bu'ine'' %rinci%$e', !hen the econom0 'tarted to be
o%ened in the F9*0' the 'ituation be"an to chan"e '$o.$0, 7mer"ence of retai$ chain' .a'
HIM (2007-09) 2*
at fir't .itne''ed in the te3ti$e' 'ector) .ith com%anie' $i+e /omba0 B0ein") &a0mond)
4, KumarP' and Gra'im) o%enin" their o.n out$et', -itan then 'ucce''fu$$0 created a
retai$in" conce%t) b0 e'tab$i'hin" it' 'erie' of e$e"ant 'ho.room', -he $ater ha$f of the
ninetie' ha' been a .itne'' to a fre'h .ave of entrant' in the retai$in" bu'ine'', -he ne.
chain' have not been re'tricted to te3ti$e' and "arment 'e$$er' but there have been entrant'
from variou' fie$d' of commerce, =ood!or$d and 4ubhi+'ha in food and =a't-Movin"
<on'umer Good': Mu'ic.or$d and Mu'iccafe in mu'ic: Hive+' and Hija0 'a$e' in the
con'umer durab$e' etc .ere the be"inner', @o.
the number of %$a0er' and the variet0 of format' and %roduct cate"orie' ref$ect variet0,
Different Forms of Retailing
(oular For)ats
H0%er mart'
Iar"e 'u%ermar+et') t0%ica$$0 ()(00 - ()000 '5, ft)
Mini 'u%ermar+et') t0%ica$$0 (F)000 - 2)000 '5, ft)
<onvenience 'tore) t0%ica$$0 (7)(0 - F)000 '5, ft)
Bi'countA'ho%%in" $i't "rocer
-raditiona$ retai$er' tr0in" to reinvent b0 introducin" 'e$f-'ervice format' a' .e$$ a'
Ha$ue-added 'ervice' 'uch a' credit free home de$iver0 etc,
-he Indian retai$ 'ector can be broad$0 c$a''ified intoD-
a) FOOD RETAILERS
-here are $ar"e number and variet0 of retai$er' in the food-retai$in" 'ector, -raditiona$
t0%e' of retai$er') .ho o%erate 'ma$$ 'in"$e-out$et bu'ine''e' main$0 u'in" fami$0 $abour)
dominate thi' 'ector ,In com%ari'on) 'u%er mar+et' account for a 'ma$$ %ro%ortion of food
'a$e' in India, Ho.ever the "ro.th rate of 'u%er mar+et 'a$e' ha' bein" 'i"nificant in
recent 0ear' becau'e "reater number' of hi"her income Indian' %refer to 'ho% at 'u%er
mar+et' due to hi"her 'tandard' of h0"iene and attractive ambience,
b) HEALTH & BEAUTY PRODUCTS
HIM (2007-09) 29
!ith "ro.th in income $eve$') Indian' have 'tarted '%endin" more on hea$th and beaut0
%roduct', Here a$'o 'ma$$) 'in"$e-out$et retai$er' dominate the mar+et, Ho.ever in recent
0ear') a fe. retai$ chain' '%ecia$i#in" in the'e %roduct' have come into the mar+et,
2$thou"h the'e retai$ chain' account for on$0 a 'ma$$ 'hare of the tota$ mar+et) their
bu'ine'' i' e3%ected to "ro. 'i"nificant$0 in the future due to the "ro.in" 5ua$it0
con'ciou'ne'' of bu0er' for the'e %roduct',
c) CLOTHING & FOOTWEAR
@umerou' c$othin" and foot.ear 'ho%' in 'ho%%in" center' and mar+et' o%erate a$$ over
India, -raditiona$ out$et' 'toc+ a $imited ran"e of chea% and %o%u$ar item': in contra't)
modern c$othin" and foot.ear 'tore' have modern %roduct' and attractive di'%$a0' to $ure
cu'tomer', Ho.ever) .ith ra%id urbani#ation) and chan"in" %attern' of con'umer ta'te'
and %reference') it i' un$i+e$0 that the traditiona$ out$et' .i$$ 'urvive the te't of time,
,
d) HOME FURNITURE & HOUSEHOLD GOODS
4ma$$ retai$er' a"ain dominate thi' 'ector, Be'%ite the $ar"e 'i#e of thi' mar+et) ver0 fe.
$ar"e and modern retai$er' have e'tab$i'hed '%ecia$i#ed 'tore' for the'e %roduct',
Ho.ever there i' con'iderab$e %otentia$ for the entr0 or e3%an'ion of '%ecia$i#ed retai$
chain' in the countr0,
e) DURABLE GOODS
-he Indian durab$e "ood' 'ector ha' 'een the entr0 of a $ar"e number of forei"n
com%anie' durin" the %o't $ibera$i#ation %eriod, 2 "reater variet0 of con'umer e$ectronic
item' and hou'eho$d a%%$iance' became avai$ab$e to the Indian cu'tomer, Inten'e
com%etition amon" com%anie' to 'e$$ their brand' %rovided a 'tron" im%etu' to the
"ro.th for retai$er' doin" bu'ine'' in thi' 'ector,
f) LEISURE & PERSONAL GOODS
Increa'in" hou'eho$d income' due to better economic o%%ortunitie' have encoura"ed
con'umer e3%enditure on $ei'ure and %er'ona$ "ood' in the countr0, -here are '%ecia$i#ed
retai$er' for each cate"or0 of %roduct' (boo+') mu'ic %roduct') etc,) in thi' 'ector,
HIM (2007-09) 0
2nother %rominent feature of thi' 'ector i' %o%u$arit0 of franchi'in" a"reement' bet.een
e'tab$i'hed manufacturer' and retai$er',
7ach of the retai$ 'tar' ha' identified and 'ett$ed into a fea'ib$e and 'u'tainab$e bu'ine''
mode$ of it' o.nD-
4ho%%er'1 4to% - department store format
!e't'ide - emu$ated the Mar+' L 4%encer mode$ of 100 per cent private label) ver0
"ood va$ue for mone0 merchandi'e for the entire fami$0
Giant and /i" /a#aar - hypermarket/cash & carry store
=ood !or$d and @i$"iri' O supermarket format
9anta$oon' and -he Home 4tore - speciality retai$in"
-ani'h5 ha' ver0 'ucce''fu$$0 %ioneered a ver0 hi"h 5ua$it0 or"ani#ed retai$ bu'ine''
in fine je.e$$er0
HIM (2007-09) F
4tructure of the retai$in" indu'tr0 accordin" to ownership patternsD-
2n unaffi$iated or inde%endent retai$er
2 chain retai$er or cor%orate retai$ chain
2 franchi'e '0'tem
2 Iea'ed Be%artment (IB)
Hertica$ Mar+etin" 40'tem (HM4)
<on'umer <o-o%erative'
2 ne. entrant in the retai$ environment i' the 'discounter' format, It i' a$'o i' +no.n a'
cashand- carry or hypermarket, -he'e format' u'ua$$0 .or+ on bu$+ bu0in" and bu$+
'e$$in",
4ho%%in" e3%erience in term' of ambience or the 'ervice i' not the main'ta0 here, &9G
"rou% ha' 'et u% the fir't 1di'counter1 in H0derabad ca$$ed the Giant, @o. 9anta$oon i'
fo$$o.in" 'uit,
Two categories of customers visit these retail outlets.
F, -he 'ma$$ retai$er, =or e3am%$e) a cu'tomer of Giant cou$d be a dhaba.a$a .ho need'
to bu0 edib$e oi$ in bu$+,
2, -he re"u$ar con'umer .ho '%end' on bi" vo$ume' ($ar"e %ac+ 'i#e') becau'e of a
%rice advanta"e %er unit,
Key Strategic factors
-he chan"e' in the nationC' 'ocia$ 'tructure $i+e) im%rovement of the Indian econom0)
con'umeri'm) urbani#ation) %rofu'ion of brand' have been the main cau'a$ factor for the
deve$o%ment of the'e modern format', Indian food bu0in" behavior i' "radua$$0 chan"in"
in re'%on'e to the chan"in" 'ocia$ 'tructure ,-he increa'in" number of nuc$ear fami$ie')
doub$e income hou'eho$d' and .or+in" .omen) "reater .or+ %re''ure and increa'ed
commutin" time have %ut the con'umer' under con'tant time %re''ure, -he other e5ua$$0
im%ortant factor' in the chan"in" Indian $and'ca%e are the increa'in" inf$uence of
chi$dren) "radua$ acce%tance of fro#en) 'emi-%roce''ed and %roce''ed food' b0 the Indian
HIM (2007-09) 2
con'umer) the "ro.in" inf$uence of te$evi'ion in deci'ion ma+in" and im%rovement in
$iterac0 rate', 2' the modern hou'e.ife 'tart' 'ho%%in" for her'e$f 'he a%%reciate' and
.e$come'D-
a %$ea'ant 'ho%%in" environment:
convenience of one-'to% 'ho%%in" .ith .ider %roduct %ortfo$io at a 'in"$e $ocation:
4%eed and efficienc0 in %roce''in",
more information:
better 5ua$it0 and h0"iene: and
Bi'count too if %o''ib$e,
-he im%roved income and the increa'ed %urcha'in" %o.er of a $ar"er 'ection of the
Indian %o%u$ation ma+e' the o%enin" of out$et') .hich %rovide the .ho$e bunch of the'e
im%roved 'ervice' a viab$e o%%ortunit0,
-he +e0 to 'ucce'' i' identif0in" a 'u%erior va$ue-%romi'e and .ho i' in a better %o'ition
to do it than retai$er'M &etai$er' are the c$o'e't to the %oint of %urcha'e and have acce'' to
a .ea$th of information on con'umer 'ho%%in" behaviour, &etai$er' have 'ome uni5ue
advanta"e' for mana"in" brand' 'uch a' continuou' and actionab$e dia$o"ue .ith
con'umer') contro$ over brand %re'entation at %oint-of-'a$e) contro$ over 'ho%%in"
environment) di'%$a0 $ocationAadjacencie') and 'i"na"e, 2nd the0 have u'ed thi'
advanta"e .ith tremendou' 'ucce'',
2' 'een) the ro$e of the intermediar0 i' bein" dimini'hed "radua$$0) .hich ha' obviou'
im%$ication of bac+$a'h of the trade channe$ u%.ard' to.ard' the 'u%%$ier', -hi' i' more
'evere in countrie' 'uch a' India) .here the channe$ economic' in favour of the
midd$emen i' 'ti$$ 'tron" enou"h "iven the fra"mentation of the retai$ 'ector, -herefore
.hen =ood!or$d) the $ar"e't "rocer in India ha' a direct 'u%%$0N contract .ith over
20G of it' +e0 'u%%$ier') it "ive' ri'e to conf$ict of intere't .ith the di'tribution
infra'tructure that 'u%%$ier' have %ain'ta+in"$0 bui$t over the 0ear', -hu' com%anie' $i+e
HII have evo$ved a di'tinct di'tribution channe$ a$to"ether (ca$$ed Modern -radeN) to
'ervice the need' of 'uch $ar"e "rocer', 7ven the mom and %o% 'tore' (+no.n a' +irana
HIM (2007-09)
4ho%') are affected due to thi' unfairN bac+-end advanta"e e3tended b0 the 'u%%$ier to
it' $eadin" account' (the emer"in" 'u%ermar+et chain'),
-he 'trate"ie' ado%ted b0 the retai$er to com%ete .ith branded "ood' are i$$u'trated b0
the fo$$o.in" dia"ram, /randin" the 'tore and fo$$o.in" a %rivate $abe$ 'trate"0 i' the
+e0 'trate"0 .hich he$%' the retai$er to com%ete .ith branded %roduct',
The current Scenario
-he chan"e in the 'ocia$ format' ha' $ed to the deve$o%ment of modern retai$ out$et')
main$0 in the 'outhern %art' of the countr0, <hennai) /an"a$ore and H0derabad are
deve$o%in" a' the hub of or"ani'ed retai$ in India, -he cu$ture i' '%readin" to the
other%art' of the countr0 too) .ith the .e'tern and northern %art' of the countr0 too
%rovidin" "ood o%%ortunitie' current$0,
Bifferent %$a0er' are tr0in" out different format', 2 'ucce''fu$ fu$$0 Indian or P'.ade'hiC
mode$ in Indian retai$in" i' 0et to be deve$o%ed, -he mode$') .hich are hi"h$0 'ucce''fu$
HIM (2007-09) 6
in certain area' of the countr0) are ab$e to achieve on$0 moderate 'ucce'' in certain other
area',
Retail Realities:
QUnor"ani#ed mar+etD &', (*)000 crore'
Q8r"ani#ed mar+etD &',()000 crore'
Q(R "ro.th in or"ani'ed retai$in" bet.een 2000-200(
Q8ver 6)000 ne. modern retai$ out$et' in the $a't 0ear'
Q8ver ()000)000 '5, ft, of ma$$ '%ace under deve$o%ment
Q-he to% modern retai$er' contro$ over 7(0)000 '5, ft, of retai$ '%ace
Q8ver 600)000 'ho%%er' .a$+ throu"h their door' ever0 .ee+
QGro.th in or"ani#ed retai$ on %ar .ith e3%ectation' and %rojection' of the $a't(
Sear'D on cour'e to touch &', ()000 crore' (U4E 7 /i$$ion) or more b0 200(-0;
Major players:
HIM (2007-09) (
Major players with yearly turnover
HIM (2007-09) ;
Key Categories:
4ourceD K42 -echno%ac+
Merchandising in retail
-he modern con'umer i' %o'in" a cha$$en"in" ta'+ for Indian retai$, More a.are) more
confident and much more demandin") toda01' con'umer .ant' the be't %roduct at the be't
%rice, 2nd that1' not a$$, -he manner in .hich the %roduct i' %re'ented to him ha' to be
%erfect too, &etai$er' have) therefore) been bu'0 tr0in" to +ee% %ace .ith a$$ the'e
re5uirement' at the 'ame time 'trivin" to remain %rofitab$e, 2 tou"h job indeed, @ot
'ur%ri'in"$0) mo't of them are %a0in" 'eriou' attention to their %roduct' and focu'in" on
the variou' a'%ect' of merchandi'e and 'u%%$0 chain mana"ement to "ive cu'tomer' .hat
the0 de'ire - "ood 5ua$it0 at an affordab$e %rice, Ho.ever) there are %$ent0 of area' that
.i$$ need the e3%re'' attention of the retai$er' if the0 .ant to derive the mo't out of their
'0'tem' and %roce''e' on merchandi'in" and 'ourcin" %ractice' of $ar"e retai$er' in India,
HIM (2007-09) 7
!hat doe' a carma+er have to do to 'ucceed in hi' bu'ine''M -he mo't im%ortant thin"
obviou'$0 i' to ma+e "ood car' - car' that cu'tomer' .ant to bu0, -hi' ho$d' true for an0
bu'ine'' rea$$0, <om%anie' '%end enormou' amount' of time) mone0 and effort in
under'tandin" the con'umer to en'ure that their offerin" i' ju't ri"ht - the ri"ht %roduct
attribute' at the ri"ht %rice and tar"etin" the ri"ht need .ith the ri"ht me''a"e,
4imi$ar$0) if 0ou are a retai$er) the fir't thin" 0ou .ant to "et ri"ht i' 0our merchandise. All
other aspects like ambience and customer service are definitely important but are still secondary to the
kind of merchandise offered. The decisions involved here can be quite complex. A retail chain not only
deals with thousands of customers, it also offers a wide variety of SKUs, often more than the product
rane of even the larest companies. So matchin products to customer needs is not an easy task at the
best of times for a retailer and certainly the most important for lon!term survival.
In an idea$ .or$d) a retai$er .ou$d have the ri"ht 5uantit0 of the ri"ht merchandi'e in the
ri"ht %$ace at the ri"ht time) .hi$e meetin" the com%an01' financia$ "oa$', In the $e3icon
of retai$) thi' %roce'' i' termed merchandi'e mana"ement, -here are man0 variab$e' and
deci'ion %oint' invo$vin" "ood' .ithin a retai$in" o%eration ,-hi' i' .here the im%ortance
of t.o too$' of mana"ement O
Merchandi'e mana"ement and
4u%%$0 chain mana"ement come' into %$a0,
4im%$0 %ut) merchandise management is the act of managing the product(s) whereas supply chain
management is the act of managing the suppliers of the product(s). "mportantly, both these tools help the
retailer to earn profits, which keeps his business runnin.
Merchandise Management
-here are t.o +e0 f$o.' here, 8ne i' the "ood' f$o.) .herein the merchandi'e "ood'
move from the manufacturer to the retai$ 'tore and from there to the con'umer, -here are
norma$$0 a fe. a""re"ation and di'tribution %oint' in bet.een, Good' can a$'o f$o.
bac+.ard if rejected, -he other i' the information f$o., -he'e are inter$in+ed, -he "ood'
f$o. occur' becau'e of %urcha'e' made from the retai$er b0 the cu'tomer on the one
hand) and order' %$aced on the manufacturer b0 the retai$er on the other, Movement of
"ood' create' information in the form of chan"e' in 'toc+' and %a0ment,
HIM (2007-09) *
4o .hat i' the retai$er1' %riorit0 in thi' current and counter-current of merchandi'e and
informationM 2' in an0 other bu'ine'') a retai$er aim' to 'ati'f0 the con'umer and to
ma3imi'e financia$ "ain' at the 'ame time, -.o +e0 e$ement' of thi' are 'u%%$0 chain
mana"ement) .hich dea$' .ith the 'ourcin" and f$o. of "ood': and merchandi'e
mana"ement) .hich i' the actua$ mana"in" of "ood', Mana"in" "ood' im%$ie' deci'ion'
$i+e .hat to 'e$$) ho. much) .hen) of .hat t0%e and 'o on, /oth the'e area' of bu'ine''
o%timi'ation encom%a'' man0 activitie' and function', In traditiona$ bu'ine'' term')
merchandi'e mana"ement inc$ude' ro$e' of %$annin") %urcha'e) 'a$e' and mar+etin",
Io"i'tic' inc$ude' tran'%ortation and .arehou'in",
!hi$e traditiona$$0) the'e t.o area' have been treated 'e%arate$0) in the F990')
boundarie' bet.een the'e have increa'in"$0 b$urred a' retai$ or"ani'ation' have tried to
"enerate end-to-end efficiencie', In fact) in mo't retai$ or"ani'ation') the 'u%%$0 chain
and merchandi'e team' have b$ended to brin" out the be't re'u$t', Iet u' $oo+ at the chief
area' .ithin the'e t.o function',
The Merchandising Function
Merchandi'in" i') %erha%') the mo't im%ortant function for an0 retai$ or"ani'ation) a' it
decide' .hat fina$$0 "oe' on the 'he$f of the 'tore, It 'tart' .ith the %$annin" function and
end' .ith the revie. function, -here are 'evera$ 5ue'tion' that the retai$er need' to
an'.er .hi$e underta+in" merchandi'e %$annin"D
!hich %$annin" %rocedure do I need to ado%t - ho. do I or"ani'e m0 merchandi'e to
faci$itate %$annin"M
!hat %ricin" 'trate"0 to ado%tM
!hich brand' to 'toc+ - do I need to "o in for %rivate $abe$ or 'hou$d I 'toc+ e3terna$
$abe$'M
Ho. do I +no. .hether m0 %$annin" ha' been 'ucce''fu$ or notM
Ho. do I di'%o'e off '$o. movin" "ood'M
HIM (2007-09) 9
-he robu'tne'' of the retai$er1' merchandi'in" %roce'' i' de%endent on ho. .e$$ he can
determine each of the above %arameter', !e ta+e a brief $oo+ at each of the'e a'%ect'.
Importance of Supply chain in retail
-he modern retai$in" in India i' boomin" and India can %o'ition it'e$f a' a $ead %$a0er in
2'ia) if the retai$ 'ector here attain' the com%etitive 'tren"th' b0 re'%ondin" to the
<han"in" Mar+et', 4%e$$in" out the 'trate"0 for efficient mana"ement of 4u%%$0 <hain)
b0 20F0 the 'u%%$0 chain mu't be hi"h$0 focu'ed and differentiated, >In toda01' hi"h$0
com%etitive environment) a' com%anie' are under inten'e %re''ure to reduce co't')
e3%and into ne. mar+et' and deve$o% ne. %roduct') ever0 manufacturer1' 'u%%$0 chain i'
e3%andin" and becomin" increa'in"$0 com%$e3, Ho.ever) com%$e3it0 i' not the enem0 to
the 'u%%$0 chain K effective$0 mana"in" com%$e3it0 can be a manufacturer1' "reate't
a''et)> 73%ert' from the retai$ bu'ine'' affirmed that the current retai$ boom in India can
on$0 'u'tain it' momentum if 'u%%$0 chain Mana"ement i' "iven the to% %riorit0 b0 the
retai$ %$a0er',
-he 'u%%$0 chain ha' a +e0 ro$e to %$a0 in the e3%an'ion and %rofitabi$it0 of man0
com%anie') but it ha' rare$0 been ada%ted to meet the ne. demand' %$aced u%on it, -he
critica$ differentiatin" factor' that '0nchroni#e acro'' the entire "$oba$ 'u%%$0 chain
are <o$$aboratin" .ith cu'tomer') rather than on$0 .ith 'u%%$ier', 2$'o) Underta+in"
cu'tomer %rofi$in") cu'tomer $o0a$t0 and cu'tomer 'e"mentation initiative' and
increa'in" %erformance throu"h mana"in" %roduct' and introducin" ne. %roduct' are
vita$ in the chan"ed 'cenario,
In India the retai$ 'ector i' the 'econd $ar"e't em%$o0er after a"ricu$ture and i' hi"h$0
fra"mented, It %redominant$0 con'i't' of 'ma$$ inde%endent) o.ner mana"ed 'ho%',
-here are 'ome F2 mi$$ion retai$ out$et' in India, Intere'tin"$0 3. T 4earney 5lobal %etail
+evelopment 'ndex 6**7 places 'ndia as the second amongst the emerging markets in the
world. 4tudie' indicate that or"ani#ed retai$ .i$$ "ro. from a 2G of the tota$ retai$
HIM (2007-09) 60
indu'tr0 to a 'i"nificant 20G b0 the end of the decade the retai$ 'ector current$0 "ro.in"
at a rate of *,(G,
It ha' been 'een internationa$$0 that deve$o%ment of modern retai$ format' i' direct$0
$in+ed to the $eve$ of deve$o%ment of $oca$ economie', In India thi' i' be"innin" to
ha%%en) but ha' a $on" .a0 to "o, -here are certain bott$enec+' in the 'u%%$0 chain in
Indian retai$ 'e"ment that fra"ment the .ho$e mar+et are 'tructure of or"ani#ation)
Infra'tructure $acuna and ab'ence of effective u'e of Information -echno$o"0, -he'e core
i''ue' are current$0 im%edin" the "ro.th of retai$ 'ector in India from reachin" at %ar
.ith the .or$d-c$a'' o%eration',
-he Indian retai$ 'ector %otentia$ i' too va't to be i"nored for $on", -he major cha$$en"e'
for retai$ 'ector in India are manifo$d, -o meet the'e "ro.in" cha$$en"e' the -erm' and
definition' re$ated to tradin" 'uch a' retai$in") .ho$e'a$in") direct 'e$$in") mu$ti$eve$
mar+etin" etc 'hou$d be a$i"ned) .ith internationa$$0 acce%ted norm',
Changing face of banking in retail
!ith a jum% in the Indian econom0 from a manufacturin" 'ector) that never rea$$0 too+
off) to a na'cent 'ervice 'ector) /an+in" a' a .ho$e i' under"oin" a chan"e, 2 $ar"er
o%tion for the con'umer i' "ettin" tran'$ated into a $ar"er demand for financia$ %roduct'
and cu'tomi'ation of 'ervice' i' fa't becomin" the norm than a com%etitive advanta"e,
!ith the &etai$ ban+in" 'ector e3%ected to "ro. at a rate of 0G %$a0er' are focu'in"
more and more on the &etai$ and are .a+in" u% to the %otentia$ of thi' 'ector of ban+in",
2t the 'ame time) the ban+in" 'ector a' a .ho$e i' 'eein" 'tructura$ chan"e' in re"u$ator0
frame.or+' and 'ecuriti'ation and 'trin"ent @92 norm' e3%ected to be in %$ace b0 2006
mean' the fa'ter one ada%t' to the'e chan"in" d0namic') the fa'ter i' one e3%ected to "ain
the advanta"e, In thi' I tr0 to 'tud0 the rea'on' behind the eu%hemi'm re"ardin" the
&etai$-focu' of the Indian ban+' and tr0 to a''e'' ho. much of it i' .orth the attention
that it i' attractin",
HIM (2007-09) 6F
Potential for Retail in India:
-he Indian %$a0er' are bu$$i'h on the &etai$ bu'ine'' and thi' i' not tota$$0 unfounded,
-here are t.o main rea'on' behind thi'D-
=ir't$0) it i' no. undeniab$e that the face of the Indian con'umer i' chan"in", -hi' i'
ref$ected in a chan"e in the urban hou'eho$d income %attern, -he direct fa$$out of 'uch a
chan"e .i$$ be the con'um%tion %attern' and hence the ban+in" habit' of Indian') .hich
.i$$ no. be '+e.ed to.ard' &etai$ %roduct', 2t the 'ame time) India com%are' %rett0
%oor$0 .ith the other economie' of the .or$d that are no. becomin" com%arab$e in term'
of '%endin" %attern' .ith the o%enin" u% of our econom0, =or in'tance) .hi$e the tota$
out'tandin" &etai$ $oan' in -ai.an i' around 6FG of GB9) the fi"ure in India 'tand' at
$e'' than (G, -he com%ari'on .ith the !e't i' even more 'ta""erin",
2nother com%ari'on that i' natura$ .hen com%arin" &etai$ 'ector' i' the u'e of credit
card', Here a$'o) the %otentia$ $ie' in the fact that of a$$ the con'umer e3%enditure in India
in 200F) $e'' than FG .a' throu"h %$a'tic) the corre'%ondin" U4 fi"ure 'tandin" at F*G,
But how competitive are the players
-he fact that the 'tati'tic' revea$ a hu"e %otentia$ a$'o brin"' .ith it a threat that i' true
for an0 'ector of a countr0 that i' o%enin" u%, Ju't ho. com%etitive are our ban+'M I' the
threat of "ettin" drubbed b0 forei"n com%etition rea$M -o ana$0#e thi') one need' to "et
into the 'hoe' of the forei"n ban+', In other .ord') ho. do the0 'ee u'M 2re .e "ood
ta+eover tar"et'M
Goin" b0 internationa$ 'tandard') a $ar"e %ortion of the Indian %o%u$ation i' 'im%$0 not
ban+ab$eN O ta+in" %rofitabi$it0 into con'ideration, 8n the other hand) the financia$
'ervice' mar+et i' hi"h$0 over-$evera"ed in India, <om%etition i' fierce) %articu$ar$0 from
$oca$ %rivate ban+' 'uch a' HB=< and I<I<I) in the bu'ine'' of home) car and con'umer
$oan', -here) %reci'e$0 $ie the %itfa$$' of 'uch e3%$o'ive "ro.th, 2$$ ban+' are tar"etin"
the f$uffie't 'e"ment i,e, the u%.ard$0 mobi$e urban 'a$aried c$a'', 2$thou"h the %$a0er'
are '%readin" their o%eration' into 'e"ment' $i+e 'e$f- em%$o0ed and the 'emi-urban rich)
HIM (2007-09) 62
it i' an o%en 'ecret that the bi" cit0 Indian 0u%%ie' form the mo't %rofitab$e 'e"ment,
8ver-de%endence on thi' 'e"ment i' bound to brin" in inf$e3ibi$it0 in the bu'ine'',
What about the foreign giants
-he forei"n ban+' have identified thi' %rob$em but there are certain '0'tematic ri'+'
invo$ved in o%eratin" in the &etai$ mar+et for them, -he'e inc$ude re"u$ator0 re'triction'
that %revent them from e3%andin" their branch net.or+, 4o the'e ban+' often ta+e the
Birect 4e$$in" 2"ent (B42) route .hereb0 $o.-end job' $i+e 'ourcin" or tran'action
%roce''in" are out'ourced to 'ma$$ re"iona$ $a0er', 4o no. on) .hen 0ou 'ee a $oan me$a
or a road 'ho. 'ho.ca'in" the retai$ bou5uet of an e$ite M@< "iant) 0ou +no. that a
'i"nificant commi''ion earned out of an0 'uch boo+in" "et' %$ou"hed bac+ to our o.n
econom0, 9erha%') one of the bi""e't im%ediment' in forei"n %$a0er' $evera"in" the
Indian mar+et' i' the ab'ence of %o'itive credit bureau', In the .e't the ri'+ %rofi$e can
be ea'i$0 ma%%ed to thin"' $i+e 44@' and thi' information can be %ub$ic$0 traded, 92@ i'
a 'te% in thi' direction but $ot more .or+ need to be done, !hat ha' been a %o'itive 'te%
to.ard' thi' i' a ne"ative fi$e 'harin" 'tarted b0 a con'ortium of FF ban+', Ho.ever) a' a
McKin'e0 'tud0 %oint' out actua$ .rite-off' on @92' 'ho. a 'tron" ne"ative corre$ation
.ith 'harin" of %o'itive information, 8n to% of thi') the '%end-no.-%a0-$ater credit
cultureN in India i' ju't not %ic+in" u%, 2 '.ift $e"a$ %rocedure a"ain't con'umer'
creatin" bad debt i' virtua$$0 non-e3i'tent, =ina$$0) the va't "eo"ra%hica$ and cu$tura$
diver'it0 of the countr0 ma+e' credit %o$ic0 formu$ation a tou"h job and it 'im%$0 cannot
be dictated from a !a$$ 4treet or a 4in"a%ore boardroomT 2$$ the'e add u% to the
unattractivene'' of the Indian retai$ mar+et to the forei"n %$a0er',
4o over the %a't fe. 0ear') in '%ite of the entr0 of M@<' in man0 indu'trie') &etai$
/an+in" ha' 'een a f$urr0 of %anic+0 e3it', =e.er than 60 remain in India and their 'hare
of tota$ ban+ a''et' current$0 7,2G i' fa$$in", -ho'e that remain mi"ht be thou"ht to be
$i+e$0 bu0er' of Indian ban+', Set <itiban+) H4/< and 4tandard <harteredKa$$ in India
for more than a centur0) and .ith re$ative$0 $ar"e retai$ net.or+'K'eem to have no
%re''in" need to ac5uire a $oca$ ban+, 7'tab$i'hed forei"n ban+' have %referred to ta+e
over cu'tomer' or bu'ine''e' from other forei"n ban+' that .ant to $eave, -hu' H4/<) in
HIM (2007-09) 6
recent 0ear') ha' ac5uired cu'tomer' from =rance1' /@9) German01' Beut'che /an+ and
Ja%an1' /an+ of -o+0o-Mit'ubi'hi, 2/@ 2mro too+ over /an+ of 2merica1' retai$
bu'ine'',
So all for the keeping then
-hi' .i$$ %erha%' be the mo't .ron"fu$ inference that can be dra.n from the above, 8ne
ju't cannot afford to $oo+ in.ard' and re%eat the mi'ta+e' that .ere the 'ide effect' of the
@ationa$i#ation of the /an+in" 40'tem, 2 "ro.in" mar+et can never be an a$ibi for $ac+
of innovation, Indian ban+' have 'ho.n $itt$e or no intere't in innovative tai$or-made
%roduct', -he0 have often tried to co%0 %roce'' de'i"n' that have been te'ted) a$beit
'ucce''fu$$0) in the !e't, 7ach economic cu$ture ha' it' o.n trait' and one .ho
'ucce''fu$$0 ada%t' tho'e to the bu'ine'' i' the eventua$ .inner, 2 ca'e in %oint i' the
'ucce''fu$ im%$ementation of micro-credit net.or+' in /an"$ade'h, 9o'itionin" a ban+ a'
a tech-'avv0 financia$ vendor in a countr0 .here Internet %enetration i' an ab0'ma$
F,;(G can on$0 add to the over-$evera"in" a' %ointed out ear$ier, -he focu' of the 'ector
'hou$d remain in macroeconomic .ea$th creation and not increa'in" the %er ca%ita
indebtedne'' that .i$$ do $itt$e but add to the @92 burden, &etai$ /an+in" in India ha' to
be deve$o%ed in the Indian .a0) not.ith'tandin" the $on" 5ueue' in front of the te$$er
counter' in the 9ub$ic 'ector ban+'T
HIM (2007-09) 66
HIM (2007-09) 6(
Food retailing in "ndia
In a countr0 .here there are "rocer0 'ho%' at ever0 'treet corner and a ve"etab$e L fruit
vendor near each bu' 'to%) ho. can or"ani'ed retai$ of food become fea'ib$eM -o counter
the unbeatab$e advanta"e' of convenience of a ho%) '+i% and a jum% acce'' and home
de$iver0) or"ani'ed retai$er' 'eem to have ju't one o%tion - offer attractive %rice' to the
con'umer,
2 'ucce''fu$ retai$er1' .innin" ed"e .i$$ therefore come from 'ourcin" - ho. be't it can
$evera"e it' 'ca$e to drive merchandi'e co't' do.n) increa'e 'toc+ turn' and "et better
credit term' from it' vendor', -here are obviou' and hidden area' .here co't' can %runed
and the benefit' of thi' $o.er co't of retai$in" can be %a''ed on to cu'tomer' a' $o.er
%rice') .hich in turn 'hou$d fue$ demand, 8ne .a0 of trimmin" co't' i' if the %re''ure
%oint' in the $on") often unnece''ar0) 'u%%$0 chain for %roduce and 'ta%$e' can be
identified and 'uitab$0 dea$t .ith, -hi' i' ea'ier 'aid than done, -he food 'u%%$0 chain in
India i' fu$$ of inefficiencie' - a re'u$t of inade5uate infra'tructure) too man0 midd$emen)
com%$icated $a.' and an indifferent attitude, In thi' cha%ter) .e ta+e a $oo+ at 'ome of
the'e i''ue',
Bi"e't thi', India i' one of the $ar"e't %roducer' of mi$+) fruit' and ve"etab$e' in the
.or$d, Set) the or"ani'ed food retai$ bu'ine'' in the countr0 i' amon" the $ea't
deve$o%ed, -he iron0 i' not 'o difficu$t to com%rehend if one $oo+' at the Indian food
chain, =rom the farm to the 'tore) the $in+' are too man0 and fu$$ of %rob$em',
2 $ar"e chun+ of fre'h fruit' and ve"etab$e' i' $o't due to $ac+ of %o't-harve't
hand$in") 'tora"e and %roce''in" faci$itie',
-onne' of "rain' are .a'ted due to im%ro%er hand$in" and 'tora"e) %e't infe'tation
and %oor $o"i'tic' mana"ement,
Intermediarie' or 1midd$emen1 "obb$e u% a $ar"e %ortion of the earnin"' .hich 'hou$d
"o to the farmer,
HIM (2007-09) 6;
@ot on$0 that) the'e midd$emen cau'e de$a0' .hich in a bu'ine'' of %eri'hab$e "ood'
can be $etha$, -he re'u$t i' a chain 'tuffed .ith inefficiencie',
=or or"ani'ed retai$ of food to be 'ucce''fu$) it i' im%ortant to "et rid of the'e
inade5uacie' 'o that co't' are %runed and) more im%ortant) the benefit' of the "ain' are
%a''ed on to the con'umer,
India ha' 'een ra%id deve$o%ment' in 'evera$ area') mo't notab$0 in income')
demo"ra%hic 'hift' to 0oun"er %o%u$ation' and reach and e3%o'ure to media and different
cu$ture', Indian' 'he$$ out u% to ( %er cent of their income' on food, =ood con'um%tion
ha' been ri'in" at an avera"e annua$ rate of about F0 %er cent in nomina$ term',
Ho.ever) the retai$in" of food and 'ta%$e' ha' remained $ar"e$0 unchan"ed, 8ver 90 %er
cent of a$$ %roduce i' 'o$d via the .et mar+et' .ith or"ani'ed bu'ine'' accountin" for ju't
2 %er cent of food and 'ta%$e' retai$in",
2$thou"h the or"ani'ed %$a0er') .hich emer"ed in the $ate F990') have e'tab$i'hed
them'e$ve' 5uite firm$0 in the $oca$ mar+et') the0 have 0et to ma+e an im%act on a
nationa$ $eve$, Subhiksha is lare in #hennai and has $ust started workin its way throuh Tamil %adu
whereas Margin Free operates in Kerala. FoodWorld has been the more adventurous of the three ! havin
ventured into more than one state ! but is concentrated in the south.
!hi$e mo't ob'erver' have acce%ted the ro$e of $ar"e format or"ani'ed retai$ in c$othin"
and $ife't0$e mar+et') there are 'ti$$ 'ome $in"erin" doubt' on ho. or"ani'ed retai$ .i$$
%erform in the food' and "rocer0 'e"ment in India, -he under$0in" i''ue i' - can
or"ani'ed retai$ in food and "rocer0 com%ete .ith the 'mom-and-pop' stores, which offer the
unbeatable advantaes of convenience of access ! you are sure to find one less than half a km from your
house ! and home delivery.
4ubhi+'ha) for e3am%$e) .or+' on a formu$a of one 'tore ever0 F,( +m (a$thou"h it
'tarted off .ith one 'tore ever0 2 +m), 4o the'e 'tore' e3%ect the cu'tomer to trave$ a bit
or %$an their 'ho%%in" in advance, !hat .i$$ ma+e the cu'tomer do thatM
HIM (2007-09) 67
8r"ani#ed retail essentially can look to offer one or more of the followin ! better rane of merchandise,
better ambience or lower prices workin on economies of scale. &f these, the last is what the lare chains
have focused on since it is somethin that a one!store operation cannot match. Subhiksha started off as a
discounter ! even its stores are desined to keep overheads low. 'ood(orld and %iliris seem to be
treadin a middle path ! some amount of discountin combined with some effort at ambience.
Ioo+in" at the trend' in the $a't 2- 0ear') di'countin" a%%ear' to be the direction .here
food retai$ 'eem' to be headin" and .e be$ieve that a 'ucce''fu$ nationa$ chain .i$$ be a
di'counter, !hi$e a di'counter need' to +ee% 'tore overhead' $o.) it' .innin" ed"e
come' from 'ourcin" - ho. be't it can $evera"e it' 'ca$e to drive merchandi'e co't' do.n)
increa'e 'toc+ turn' and "et better credit term' from it' vendor',
There are obvious and hidden areas where costs can pruned and the benefits of this
lower cost of retailing can be passed on to customers as lower prices, which in turn
should fuel demand. One way of trimming costs is if the pressure points in the long,
often unnecessary, supply chain for produce and staples can be identified and
suitably dealt with. This chapter takes a look at some of these issues.
Challenges before organized retailing
&etai$in" a' an indu'tr0 in India ha' 'ti$$ a $on" .a0 to "o, -o become a tru$0 f$ouri'hin"
indu'tr0) retai$in" need' to cro'' the fo$$o.in" hurd$e'D-
Automatic approval is not allowed for foreign investment in retail.
Regulations restricting real estate purchases, and cumbersome local laws.
Taxation, which favours small retail businesses.
Absence of developed supply chain and integrated IT management.
Lack of trained work force.
Low skill level for retailing management.
Intrinsic complexity of retailing - rapid price changes, constant threat of
product
HIM (2007-09) 6*
Obsolescence and low margins
-he retai$er' in India have to $earn both the art and 'cience of retai$in" b0 c$o'e$0
fo$$o.in" ho. retai$er' in other %art' of the .or$d are or"ani#in") mana"in") and co%in"
u% .ith ne. cha$$en"e' in an ever-chan"in" mar+et%$ace,
Indian retai$er' mu't u'e innovative retai$ format' to enhance 'ho%%in" e3%erience) and
tr0 to under'tand the re"iona$ variation' in con'umer attitude' to retai$in", Retail
marketing efforts have to improve in the country -
advertising, promotions, and campaigns to attract customers;
building loyalty by identifying regular shoppers and offering benefits to them;
efficiently managing high-value customers;
and monitoring customer needs constantly, are some of the aspects which Indian
retailers need to focus upon on a more pro-active basis.
Be'%ite the %re'ence of the ba'ic in"redient' re5uired for "ro.th of the retai$ indu'tr0 in
India) it 'ti$$ face' 'ub'tantia$ hurd$e' that .i$$ retard and inhibit it' "ro.th in the future,
8ne of the +e0 im%ediment' i' the $ac+ of =BI 'tatu', -hi' ha' $ar"e$0 $imited ca%ita$
inve'tment' in 'u%%$0 chain infra'tructure) .hich i' a +e0 for deve$o%ment and "ro.th of
food retai$in" and ha' a$'o con'trained acce'' to .or$d-c$a'' retai$ %ractice', Mu$ti%$icit0
and com%$e3it0 of ta3e') $ac+ of %ro%er infra'tructure and re$ative$0 hi"h co't of rea$
e'tate are the other im%ediment' to the "ro.th of retai$in", !hi$e the indu'tr0 and the
"overnment are tr0in" to remove man0 of the'e hurd$e') 'ome of the roadb$oc+' .i$$
remain and .i$$ continue to affect the 'mooth "ro.th of thi' indu'tr0, =itch be$ieve' that
.hi$e the mar+et 'hare of or"ani'ed retai$ .i$$ "ro. and become 'i"nificant in the ne3t
decade) thi' "ro.th .ou$d) ho.ever) not be at the 'ame ra%id %ace a' in other emer"in"
mar+et', 8r"ani'ed retai$in" in India i' "ainin" .ider acce%tance, -he deve$o%ment of
the or"ani'ed retai$ 'ector) durin" the $a't decade) ha' be"un to chan"e the face of
retai$in") e'%ecia$$0) in the major metro' of the countr0, 73%erience' in the deve$o%ed and
deve$o%in" countrie' %rove that %erformance of or"ani'ed retai$ i' 'tron"$0 $in+ed to the
HIM (2007-09) 69
%erformance of the econom0 a' a .ho$e, -hi' i' main$0 on account of the reach and
%enetration of thi' bu'ine'' and it' 'cientific a%%roach in dea$in" .ith cu'tomer' and their
need',
In '%ite of the %o'itive %ro'%ect' of thi' indu'tr0) Indian retai$in" face' 'ome major
hurd$e') .hich have 't0mied it' "ro.th, 7ar$0 'i"n' of or"ani#ed retai$ .ere vi'ib$e even
in the F970' .hen @i$"iri' (food)) Hive+' (con'umer durab$e') and @a$$i' ('aree') 'tarted
their o%eration', Ho.ever) a' a re'u$t of the roadb$oc+') the indu'tr0 remained in a
rudimentar0 'ta"e, !hi$e the'e retai$er' "ave the nece''ar0 ambience to cu'tomer') $itt$e
effort .a' made to introduce .or$d-c$a'' cu'tomer care %ractice' and im%rove o%eratin"
efficiencie', Moreover) mo't of the'e modern deve$o%ment' .ere re'tricted to 'outh
India) .hich i' 'ti$$ re"arded a' a /8ecca of 'ndian %etail$.
Government restrictions on FDI
8r"ani'ed retai$in" in India i' 0et to "et an indu'tr0 'tatu', -he con'e5uence i' 5uite
obviou', F00G =orei"n Birect Inve'tment (=BI) i' not %ermitted in retai$in" in India,
8.ner'hi% of retai$ chain' i' a$$o.ed on$0 to the e3tent of 69G, -he =ood !or$d chain i'
one 'uch venture) .ith an o.ner'hi% %attern of (FD69 bet.een &9G and Bair0 =arm
Internationa$) Hon" Kon", =orei"n %$a0er' can enter the .ho$e'a$e 'ector) in the ca'h and
carr0 format, -he Metro chain ha' recent$0 entered the countr0 a' a Pca'h and carr0C
out$et, 2 branch ha' been o%ened in /an"a$ore and a 'econd .ou$d be o%ened ver0 'oon
in the 'ame cit0, -he fear that the 'ma$$-'ca$e retai$er' .i$$ be di'%$aced i' de$a0in" the
=BI a%%rova$', 8n the other hand) .ithout the =BI) the 'ector i' de%rived of acce'' to
forei"n techno$o"ie' that i' im%erative for fa'ter "ro.th, -he Government ha' a$$o.ed
=BI in direct mar+etin") but ha' re'ervation' about e3tendin" it to the retai$ 'ector,
&etai$in" i' a Ptechno$o"0 inten'iveC indu'tr0, Under the $ibera$i#ed re"ime of the !-8
the P9rotected natureC of an indu'tr0 ma0 do more harm than "ood, In the 'hort-run the
Government ma0 'ucceed in %rotectin" the dome'tic indu'tr0) but in the $on" run .e
HIM (2007-09) (0
.ou$d be $oo'in" too man0 o%%ortunitie' and techno$o"ica$ innovation', -hi' in addition
.ou$d a$'o b$oc+ an0 attem%t b0 the dome'tic indu'tr0 to become com%etitive
internationa$$0,
Lack of a uniform tax
-he countr0 re5uire' a uniform ta3 '0'tem for the or"ani#ed retai$in", -he $ac+ of thi'
'tand' a' an ob'truction to the 'ettin" u% of a tru$0 nationa$ chain, -he %re'ent chain') in
'%ite of c$aimin" to be nationa$ chain' are re'tricted to certain re"ion' of the countr0,
9$a0er' are confined to 'tate barrier', 4ince retai$in" i' e''entia$$0 a bu'ine'' of 'u%%$0in"
commoditie' to $ocation' far from %roduction unit') a differentia$ ta3 '0'tem in different
'tate' i' 'ure$0 turnin" to be a hindrance to fa'ter deve$o%ment of thi' Indu'tr0, 2 centra$
ta3 '0'tem become' more im%erative in a countr0 $i+e India .here) the re"iona$ di'%arit0
in %roduction of commoditie' i' hi"h,
Lack of adequate infrastructure
9$a0er' are forced to 'et u% their o.n infra'tructure) a' there are fe. inde%endent
$o"i'tic' 'o$ution %rovider', 7ntre%reneur' to inve't in infra'tructure deve$o%ment for
different 'ta"e' of the 'u%%$0 chain are a$'o $imited,
Dominance of the unorganized sector
-he unor"ani#ed 'ector ha' dominance over the or"ani#ed 'ector in India) e'%ecia$$0
becau'e of the $o. inve'tment need', In India) or"ani#ed retai$in" i' on$0 2G of tota$
retai$in" of .orth U4E F*0 bi$$ion, -hi' i' %$a0in" at mu$ti%$e $eve$', =or in'tance) the
rea'on for $o. number of di'count 'tore' in India i' an effect of the dominance of the
unor"ani'ed 'ector, -he manufacturer'C have hi"h bar"ainin" %o.er in the %ricin" of
%roduct' a' a re'u$t of thi' 'ma$$ 'ca$e of o%eration of retai$er', -he $obb0in" b0 the
unor"ani'ed 'ector i' a$'o the main rea'on for the Government of IndiaC' re'triction' on
F00G =BI in retai$in" in the countr0,
HIM (2007-09) (F
Low operational size
-he number of retai$ out$et' in India i' more than the number of out$et' in mo't of the
other countrie') 'ma$$ 'i#e retai$ out$et' dominate the Indian 'cene, 9;G of the out$et' are
$e''er than (00 '5 ft, -he retai$ chain' of India are a$'o 'ma$$er than tho'e in the
deve$o%ed countrie', =or in'tance) the 'u%er'tore food chain) =ood !or$d i' havin" on$0
(2 out$et' .herea' P<arrefour- 9romode'C ha' **00 'tore' in 2; countrie', -he vo$ume of
'a$e' in Indian retai$in" i' ver0 $o.) .hich i' on$0 EF*0 bi$$ion, 7ven the $ar"e't %$a0er'
have a turn over of on$0 U4 E F60 mi$$ion) .hich i' ver0 'ma$$ b0 the "$oba$ 'tandard',
India .ith 'econd $ar"e't %o%u$ation in the !or$d and a fa't "ro.in" econom0 ha' hu"e
unta%%ed %otentia$ of or"ani#ed retai$in") .hich i' not "iven it' due .ei"hta"e b0 the
"overnment,
Labour employment problems
8r"ani#ed retai$in" i' a 26 R 7 active bu'ine'', Ho.ever) thi' i' much re'tricted current$0
in India becau'e of the $abour ru$e' and re"u$ation, -he 'ector i' unab$e to em%$o0 retai$
'taff on contract ba'i', -hi' ma+e' it difficu$t to efficient$0 mana"e em%$o0ee 'chedu$e'
e'%ecia$$0 for ;(-da0 o%eration', -he indu'tr0 ha' to ta+e '%ecia$ c$earance for e3tended
.or+in" hour' and even 'even da0' .or+in" from the Iabour de%artment, Ho.ever) in
the recent bud"et "overnment ha' re$a3ed norm' on em%$o0ment of contract $abour)
.hich i' e3%ected to benefit the indu'tr0,
Government Initiatives for Improvement of the Sector
2%art from a$$o.in" =BI into the indu'tr0) Government 'hou$d con'ider %rovidin"
incentive' and amendin" $abour $a.' etc, 4horta"e and hi"h co't of rea$ e'tate) tenanc0
$e"i'$ation and hi"h %ro%ert0 ta3 etc, are the another area' to be concentrated b0 the
Government, Government 'hou$d re$a3 'uch $a.' and ma+e avai$ab$e %ro%ert0 at
rea'onab$e %rice', Government 'hou$d introduce a 4in"$e !indo. 40'tem at the $oca$
Government $eve$ to c$ear the mu$ti%$e number of $icen'e' and com%$e3 re"u$ation',
HIM (2007-09) (2
Government 'hou$d a$'o introduce uniform ta3ation a$$ over the countr0 to re$a3 the $a.'
that are re'trictin" the inter-'tate f$o. of "ood',
Future Perspective
!e 'hou$d 'ee fundamenta$ 'hift' in the .a0 Indian' 'ho% in the ver0 near future, -he
Sear 200* cou$d .e$$ be a $andmar+ 0ear for or"ani'ed Indian retai$in", According to a
recent study done by ETIG the organized retail industry is expected to grow by 30
per cent in the next five years and is expected to touch Rs. 45,000 crore. -hu') the
"ro.th %otentia$ for the or"ani'ed retai$er i' enormou', In the ne3t 2- 0ear') India .i$$
fina$$0 'ee o%eration' of a number of ver0 'eriou' internationa$ %$a0er' - not.ith'tandin"
the current re'triction' on =BI in retai$, Metro from German0 i' a ver0 'ucce''fu$ and
re'ourcefu$ retai$er and their ca'h L carr0 format 'hou$d offer a "ood run for mone0 to
other', 4ome other' .i$$ a$'o find %erfect$0 $e"itimate .a0' to o%erate in India) for
e3am%$e) Mar+' L 4%encer) Man"o and 4ho%rite,
Change Accelerators
-he fo$$o.in" factor' .i$$ be 'i"nificant in drivin" "ro.th in the retai$ 'ectorD
<on'umer factor'
QIncrea'e in income
Q!or+in" .omen
Q<han"e' in $ife't0$e O demand for "$oba$N trend'
Q4u%%$0 'ide factor'
QGro.in" im%ortance of retai$in" in %o$itica$ and economic a"enda
Q&ea$ e'tate reform' to be underta+en in the ne3t 26 month'
QMajor re'tructurin" of the manufacturin" 'ector ea'in" %roduct 'u%%$0 con'traint' for
efficient retai$in"
Q&eduction in im%ort dutie'-offerin" more "$oba$ 'ourcin" o%tion'
HIM (2007-09) (
Which categories will grow
-he 'in"$e bi""e't o%%ortunit0 in India in or"ani'ed retai$in" i' bound to be food and
"rocerie': it i' in thi' 'ector that the $ar"e't amount of con'umer '%end' i' concentrated,
-hi' 'ector ha' ma3imum o%%ortunit0 for inve'tment' and entre%reneur' to come in and
tr0 to ma+e the 'u%%$0 chain a $itt$e more efficient,
<on'umer durab$e' i' another %romi'in" 'ector becau'e) .ith increa'in" %urcha'in"
%o.er) con'umer' tend to '%end the mo't on thi' cate"or0, 2$'o) there i' nothin" to
%revent a com%an0 from %uttin" u% 'ho%' out'ide the cit0 $imit') becau'e con'umer
durab$e' are a %remeditated %urcha'e, =urthermore) avai$abi$it0 of finance o%tion' ha'
increa'ed '%endin" in thi' 'ector,
-hird are home %roduct' - .ith increa'in" %rivate o.ner'hi% of home' b0 re$ative$0
0oun" cou%$e') acro'' mo't major citie' in India) nationa$ retai$ chain' offerin" home
furniture (and acce''orie') have "reat %otentia$,
=ina$$0) %er'ona$ care %roduct') %harmaceutica$ %roduct') and hea$thcare 'ervice' have
tremendou' "ro.th %otentia$, &ecent$0) .e have 'een 'ome intere't from or"ani'ed
hea$thcare %$a0er' $i+e Ma3) =orti') /ir$a' and the &e$iance "rou%,
Where is this growth going to happen
-he to% F( citie' in India cater to %er cent of tota$ urban %o%u$ation) but a' hi"h a' *
%er cent of 4ec 2 and / (the to% t.o 'ocio-economic con'umer 'trata) urban %o%u$ation,
-he ne3t F( citie' on$0 add to another 7 %er cent of 4ec 2 and / %o%u$ation, 4o $o"ica$$0
the focu' .i$$ be re'tricted on$0 to the to% F( citie', &e'earch conducted b0 K42
-echno%a+) 'ho.' that toda0 9; %er cent of tota$ or"ani'ed retai$ i' in the to% F0 citie') of
.hich the to% 'i3 cater to *2 %er cent, Ho.ever) the rate of "ro.th .i$$ be hi"her in the
HIM (2007-09) (6
bottom four of the to% F0) .hich .i$$ have a 20 %er cent 'hare b0 200( a"ain't the %re'ent
'hare of F( %er cent,
Which formats will grow
-he re'earch 'u""e't' the to% four format' to emer"e in the ne3t five 0ear' areD-
4ho%%in" Ma$$'
4%ecia$t0 4tore' (in ne. cate"orie' 'uch a' office %roduct') '%ecia$t0 food) o%tica$
and trave$)
Be%artmenta$ 4tore'
4u%ermar+et'
Malls in India
8ver the $a't 2- 0ear') the Indian con'umer mar+et ha' 'een a 'i"nificant "ro.th in the
number of modern-da0 'ho%%in" center') %o%u$ar$0 +no.n a' /malls$, -here i' an
increa'ed demand for 5ua$it0 retai$ '%ace from a varied 'e"ment of $ar"e-format retai$er'
and brand') .hich inc$ude food and a%%are$ chain') con'umer durab$e' and mu$ti%$e3
o%erator', 4ho%%in"-centre deve$o%ment ha' attracted rea$-e'tate deve$o%er' and
cor%orate hou'e' acro'' citie' in India,
2' a re'u$t) from ju't ma$$' in 2000) India i' a$$ 'et to have over 220 ma$$' b0 200(,
-oda0) the e3%ected demand for 5ua$it0 retai$ '%ace in 200* i' e'timated to be around 60
mi$$ion '5uare feet, !hi$e %reviou'$0 it .a' the $ar"e) or"ani'ed retai$er' O .ith their
modern) u%-mar+et out$et') and direct con'umer interface- .ho had been a +e0 factor
drivin" the "ro.th of or"ani'ed retai$ in the countr0) no. it i' the ma$$' .hich are
%$a0in" the ro$e, =actor' 'uch a' avai$abi$it0 of %h0'ica$ '%ace) %o%u$ation den'itie') cit0
%$annin" and 'ocio-economic %arameter' have driven the Indian mar+et to evo$ve) to a
certain e3tent) it' o.n definition of a Pma$$C, =or e3am%$e) .hi$e a ma$$ in U42 i'
HIM (2007-09) ((
600)000 to F mi$$ion '5,ft, in 'i#e) an Indian ver'ion can be an0.here bet.een *0)000
'5,ft, and (00)000 '5,ft,
/0 200*) tota$ ma$$ '%ace in the ; citie' of Mumbai) /an"a$ore) H0derabad) <hennai)
Ko$+ata) and @ationa$ <a%ita$ &e"ion (Be$hi) @oida) Gur"aon) i' e3%ected to increa'e to
over 2F,F mi$$ion '5, ft, <om%ared to other bi" citie') Ko$+ata and H0derabad are
re$ative$0 ne. entrant' in the ma$$ 'e"ment) but are .itne''in" 5uic+ "ro.th, 4ma$$er
citie' $i+e 9une) 2hmedabad) Iuc+no.) Iudhiana) Jai%ur) <handi"arh and Indore are a$'o
e3%ected to 'ee a formidab$e "ro.th in the "ro.th of ma$$' in the near future,
/ut ma$$' in India need to have a c$ear %o'itionin" throu"h the deve$o%ment of
differentia$ %roduct a''ortment and differentia$ %ricin") in order to com%ete effective$0 in
a "ro.in" ma$$ mar+et, 4e"mentation in ma$$') $i+e u%-mar+et ma$$') mid-mar+et ma$$')
etc,) %ro%er %$annin") correct identification of need') 5ua$it0 %roduct' at $o.er %rice') the
ri"ht 'tore mi3) and the ri"ht timin") .ou$d en'ure the 'ucce'' of the Pma$$ revo$utionC in
India,
Progressive retail properties in India
India ha' 'een a 'ur"e of 'ho%%in" ma$$' in the recent %a't, 2$on" .ith the deve$o%ment
of 'ho%%in" ma$$') a 'i"nificant number of mu$ti%$e3e' are bein" deve$o%ed a' an inte"ra$
%art of the'e ma$$', -he'e %rovide amenitie' 'uch a' food court' and video "ame %ar$our'
addin" va$ue to cu'tomer1' 'ho%%in" e3%erience, 9H&) I@8R) 4at0am <ine%$e3e' and
4hrin"ar =i$m' are drivin" the mu$ti%$e3 bu'ine'' e3%an'ion acro'' the nation) .hi$e
2%%u Ghar) the Be$hi-ba'ed amu'ement %ar+) ha' %$an' of e3%andin" their o%eration',
&etai$ 'a$e' in India amounted to about &' 7)600 bi$$ion in 2002, !ith the u%turn in
economic "ro.th durin" 200) retai$ 'a$e' are a$'o e3%ected to e3%and at a hi"her %ace of
near$0 F0 %er cent, 2cro'' the countr0) retai$ 'a$e' in rea$ term' are %redicted to ri'e more
ra%id$0 than con'umer e3%enditure durin" 200-200*, -he foreca't "ro.th in the overa$$
rea$ retai$ 'a$e' durin" 200- 200* i' *, %er cent %er 0ear) com%ared .ith 7,F %er cent for
HIM (2007-09) (;
con'umer e3%enditure, 4a$e' from the'e $ar"e-format 'tore' are to e3%and at "ro.th rate'
ran"in" from 26 %er cent to 69 %er cent %er 0ear durin" 200-200*) accordin" to a $ate't
re%ort b0 7uromonitor Internationa$) a $eadin" %rovider of "$oba$ con'umer mar+et
inte$$i"ence,
Inve'tment in retai$ rea$ e'tate continue' to 0ie$d the hi"he't return' .hen com%ared to
the re'identia$ and office 'e"ment, =or in'tance) HB=<) the inve'tor in 4ho%%er'1 4to%)
9une) ha' achieved a net return of F(,6 %er cent %er annum on it' initia$ inve'tment,
4imi$ar$0) the '%ace $ea'ed b0 2dida' in 2n'a$ 9$a#a) Be$hi ha' 0ie$ded a net return of
F(,* %er cent %er annum to the inve'tor) accordin" to Kni"ht =ran+ India &etai$ &evie.
200-2006, 9o%u$ation "ro.th combined .ith an increa'e in di'%o'ab$e income' ha'
"iven a boo't to the retai$ indu'tr0,
-he brand-con'ciou' urban %o%u$ation form' the $ar"e't 'e"ment of demand for the
majorit0 of retai$er', -hi' 'e"ment ha' "ro.n ,22 %er cent %er annum over the %a't
decade) com%ared to the overa$$ %o%u$ation "ro.th of 2,F %er cent %er annum, =urther)
over the %a't decade) con'umer '%endin" ha' increa'ed at an avera"e of FF,( %er cent %er
annum, In addition to the "ro.th in %o%u$ation and con'umer '%endin") '%endin" habit'
are a$'o chan"in", -hi' ha' not "one unnoticed b0 retai$er', 2n increa'in" number of
retai$er' are focu'in" on ma$$',
Realistic scenario in mall development:-a fact-finding
8ver a 0ear a"o) Iandmar+ <on'truction <om%an0 be"an .or+ on a ma$$ ca$$ed -he Hub
in Gore"aon) a 'uburb in .e'tern Mumbai, -oda0) con'truction i' a$mo't over, Go to the
'ite and 0ou .i$$ 'ee $abourer' '.armin" a$$ over, !or+ i' %ro"re''in" 'teadi$0: an
im%er'ona$ "re0 'tructure that ha' not a f$ec+ of %aint on it and 'urrounded b0
'caffo$din"' $oom' $ar"e over the road) even a' the interior' be"in to ta+e 'ha%e, -he
$abourer' are a$$ 'et to %ut the fina$ touche' on the fir't %ha'e of the 2,*( $a+h '5uare ft
com%$e3 a' the0 race to fini'h the ma$$ b0 Januar0 2006,
HIM (2007-09) (7
!hat1' more) in the Ki'hore /i0ani-%romoted =ood /a#aar) Kumar ha' mana"ed to "et a
"ood anchor tenant, 7''entia$$0) anchor' are the corner 'tone of a ma$$1' 'ucce''D the0 %u$$
in the cro.d', 2 "ood anchor cou$d be a de%artment 'tore) a mu$ti%$e3) a h0%ermar+et O
an0thin" that can attract cro.d') da0 after da0, Mo't tenant' .ou$d enter a ma$$ on$0 if
the0 are convinced of the anchor1' ca%abi$it0 of %u$$in" in the cro.d, @o .onder ma$$'
"ive the anchor tenant' di'count' on the rent', -he 9anta$oon "rou%1' food and "rocer0
retai$in" bu'ine'') a$on" .ith Movietime) a mu$ti%$e3) ha' %ic+ed u% c$o'e to 60G of a$$
the retai$ '%ace in the fir't %ha'e of -he Hub,
2nd 0et) 'omeho. one i' not u%beat, 9art of thi' can be attributed to the fact that four
other ma$$' are comin" u% .ithin 2 +m of -he Hub, More im%ortant$0) he i' rea$i'in" that
thi' bu'ine'' mi"ht be no.here a' %rofitab$e a' he initia$$0 thou"ht, -a+e the dea$ .ith
=ood /a#aar) .hich i' anchorin" the fir't %ha'e of hi' ma$$ (%e""ed at F,2( $a+h '5, ft),
Kumar 'a0'D >I have a renta$ a"reement .ith =ood /a#aar) .here the0 .i$$ %a0 a month$0
renta$ of &' 60 %er '5, ft,> !hen %rodded on the 'i"nificance of tho'e number') he
re$uctant$0 admit'D >I can1t even recover m0 con'truction co't .ith that +ind of rent,>
-hat i' 'ome.hat ironica$, 4ettin" u%) runnin" and mana"in" a ma$$ i' 'u%%o'ed to be a
nice$0 %rofitab$e underta+in", If 0ou 'et u% a mid-'i#ed ma$$ of) 'a0) 2,( $a+h '5, ft from
'cratch 'ome.here in 'uburban Mumbai) 0ou mi"ht have to inve't a' much a' &' F00
crore "iven $and and con'truction co't', /ut if 0ou "et a month$0 renta$ of &' *0 %er '5,
ft) .hich i' %ar for the cour'e) 0ou can brea+ even .ithin (-; 0ear' even .ithout a F00G
occu%anc0, -hat1' an annua$i'ed F*-20G return on inve'tment (&oI), @o.) con'ider
Kumar once a"ain, 8n the 20G ma$$ '%ace he ha' $ea'ed to =ood /a#aar) he .i$$ ma+e
bare$0 &' F,2 crore %er 0ear) .hen it cou$d ea'i$0 have been doub$e, -o com%ound hi'
%rob$em') .hi$e hi' ma$$ .i$$ be read0 in another t.o month') 'o far he ha' found ta+er'
for $e'' than ha$f of the tota$ '%ace - and for a far $o.er rate than he .anted, @e"otiation'
are 'ti$$ under.a0 for the re't of the '%ace, -hin"' are comin" uncomfortab$0 c$o'e to the
.ire
HIM (2007-09) (*
-hi' i' the other face of the ma$$ boom in thi' countr0, -o 'ee the better-+no.n face)
#oom into Mumbai) do.n the !e'tern 73%re''.a0 hi"h.a0 'tretch from /andra to
Gore"aon) or a$on" the $in+ road %a't 2ndheri) or a$on" the 7a'tern 73%re''.a0 hi"h.a0
to.ard' -hane and be0ond, Sou .i$$ 'ee count$e'' hoardin"' tom-tomin" ne. ma$$'
under con'truction, 8r ta+e the @ationa$ <a%ita$ &e"ion, Brive do.n the Mehrau$i-
Gur"aon road, -here are a' man0 a' ei"ht ma$$' on thi' 'tretch of road) .ith 'i3 more to
be added, In @oida) 0ou .i$$ 'ee more hoardin"') evidence of a boom in ma$$
con'truction, Indeed) India 'tand' on the cu'% of a ma$$ boom - about 00 ma$$' .i$$
'%rin" u% a$$ over the countr0 over the ne3t 2- 0ear', /et.een them) the0 .i$$ cover
more than 2( mi$$ion '5, ft of retai$ '%ace, Mumbai and Be$hi a$one .i$$ have over 20
ma$$' each in the ne3t t.o 0ear',
I' thi' e3%$o'ion ju'tified, It i' certain that there i' a need for the ma$$',D <on'ider ju't FG
of the entire Indian %o%u$ation, 2ddin" a rea'onab$e a''um%tion of 20 '5, ft of retai$
'%ace %er %er'on) there i' an immediate re5uirement for over 200 mi$$ion '5, ft of '%ace
for cu'tomer', @everthe$e'') the mu'hroomin" of the ma$$' ha' made him a $itt$e
cautiou', 4o if there i' a re5uirement for ma$$') .h0 are %eo%$e u%'et, -he %rob$em $ie'
e$'e.here - in 'u%%$0 out'tri%%in" demand, -here are 'im%$0 too man0 ma$$' cha'in" too
fe. tenant', <ontra't thi' .ith the 'cenario three 0ear' a"o) .hen retai$er' .ere ma+in" a
bee$ine for <ro''road' in Mumbai and 2n'a$ 9$a#a in Be$hi,
-hat i' not to 'a0 that the retai$ indu'tr0 i' not "ro.in", It definite$0 i', 8n$0 that the
retai$er' 'eem to have different con'ideration' .hen it come' to 'ettin" u% out$et',
<on'ider the Mehrau$i-Gur"aon hi"h.a0, !h0 .ou$d an0 retai$er enter a ma$$ here in the
face of com%etition , 2 ma$$ deve$o%er from Gur"aon 'aid the0 %$a0er' to enter hi' ma$$)
one of ei"ht in a 'tretch, 8ne rea$$0 fai$' to under'tand) .ith that +ind of com%etition)
ho. the0 cou$d add an0 va$ue to the ma$$,
Set ma$$ deve$o%er' %robab$0 thin+ the more of their +ind the merrierD =un &e%ub$ic
o%ened o%%o'ite =ame (the 4hrin"ar-o.ned mut$i%$e3) in 2ndheri) the .ee+$0 %rofit after
ta3 (92-) came do.n to &' F7 $a+h from &' F9 $a+h in the fir't .ee+, /ut =un
HIM (2007-09) (9
&e%ub$ic1' 92- for the fir't .ee+ .a' &' FF $a+h, !hat intere'ted me the mo't .a' not
then dec$ine in %rofit') but the overa$$ increa'e in entertainment '%endin" of &' 9 $a+h in
the 'ame .ee+) on the 'ame %atch of road, 4o traffic on the .ho$e ma0 ri'e in Ma$$vi$$e,
/ut .i$$ 0ou) a' a retai$ brand) 'et u% mu$ti%$e out$et' in the 'ame area, 9robab$0 not,
4o ho. ha' the %$a0in" fie$d chan"ed thenM Here are a fe. intere'tin" outcome' that have
emer"edD -
Mall developers are now playing it safe,
-he0 are en'urin" the0 have a ba'ic minimum number of tenant' before the0 'tart .or+
on deve$o%in" the ma$$', Boe' thi' mean the ma$$ deve$o%er' have under'tood the
do.n'ide ri'+' the0 face, Ma$$ deve$o%er' have .i'ened u%, Mo't of them 'tart
con'truction on$0 after the0 are 'ure that the0 have "ot tenant' to occu%0 (-60G of the
ma$$, -hi' .ou$d en'ure at $ea't a ca'h brea+-even before the %roject "et' off the "round,
In orbit in Ma$ad) Mumbai) and Unitech in @oida) 'chedu$ed to o%en 'oon) 'ecured
tenant' for one-third of the '%ace before "ettin" the %roject' off the "round, Ho.ever) on
the condition of anon0mit0) a ma$$ deve$o%er admitted he had to com%$ete con'truction
even before he cou$d convince tenant' to move into the ma$$) becau'e the c$ient' .anted
to 'ee the %h0'ica$ re%re'entation of the ma$$, -hi' become' an unviab$e %ro%o'ition if
tenant' do bac+ out eventua$$0,
Ma$$' "ive anchor tenant' '%ace at a rate $o.er than for the re't of the ma$$, @o. there
are but a handfu$ of %$a0er' $ar"e enou"h to anchor a ma$$, -he de%artment 'tore' inc$ude
4ho%%er'1 4to%) 9anta$oon) !e't'ide) 7bon0 and Iife4t0$e, -here are ju't t.o
h0%ermar+et') /i" /a#aar and Giant) .hi$e mu$ti%$e3 %$a0er' inc$ude =ame) Ino3) 2d$ab'
and 9H&, Moreover) a mu$ti%$e3 and a h0%ermar+et don1t even ma+e for an idea$ anchor
tenantD -he $imited ba'+et of $ar"e-'ca$e or"ani'ed retai$er' ma+e' it ver0 difficu$t for
ma$$' to "et the +ind of anchor tenant' the0 .ant, 2 ma$$ deve$o%er ha' to a%%roach ever0
HIM (2007-09) ;0
avai$ab$e retai$er to "et him to anchor hi' ma$$, 7ven toda0) the countr0 ha' no bi" retai$
chain in the .hite "ood' or the %harmaceutica$ 'e"ment,
-he ba$ance of %o.er ha' 'hifted in favour of the retai$er', =aced .ith a 'evere anchor
crunch) ma$$ deve$o%er' have to bend over bac+.ard' to faci$itate anchor') 'ome of
.hom have reduced renta$' b0 a' much a' ;0G of the ori"ina$ $ea'e renta$', It .ou$d ta+e
'ome time before %arit0 i' re'tored bet.een the'e t.o,D -he advent of =BI (forei"n direct
inve'tment) in retai$ .i$$ definite$0 'ha+e the $oca$ retai$er' out of their 'mu"ne'', It i' a
%it0 .e don1t have the 4e$frid"e' of the .or$d a' 0et in India: the0 .ou$d %rovide for a
$ar"er retai$ ba'+et,
Beve$o%er' are them'e$ve' drivin" a.a0 other tenant', -hi' i' becau'e of the hi"h
maintenance %rice' the0 char"e from the'e 'econdar0 tenant', 4ince "ettin" an anchor at
a rea'onab$e renta$ (for a ma$$ deve$o%er) i' "oin" to be difficu$t) a ma$$ .i$$ tr0 and
hed"e it' bet' .ith the other tenant' b0 factorin" in an additiona$ com%onent to the
renta$' ca$$ed the common area maintenance (<2M) char"e, -hi' i' e''entia$$0 the co't of
infra'tructura$ faci$itie' - air-conditionin") ener"0) etc, - that a ma$$ %rovide' the tenant,
Ma$$' char"e a' much a' &' 20 %er '5, ft ever0 month a' <2M and drive u% the renta$') a
4cenario that man0 tenant' find) .e$$ untenab$e,
4uffice to 'a0) ma$$' .i$$ $o'e tenant' if the0 overchar"e, Ho. then can the0 chan"e the
renta$ 'cenario, &enta$' 'hou$d be a direct function of footfa$$' after the ma$$ i' 'et u%, 4o
if the footfa$$' increa'e) on$0 then 'hou$d a ma$$ deve$o%er hi+e renta$' for a ne. tenant,
Learning to float.
-hi' 'cene toda0 i' remini'cent of <a$ifornia durin" the Go$d &u'hD $ot' of %ro'%ector'
ru'hin" in and 'ta+in" out $and) ho%in" to 'tri+e it bi", Mo't fe$$ b0 the .a0'ide, -hat .i$$
be the ca'e here too) un$e'',,,
-he thornie't i''ue 'ti$$ remain' the renta$', 2' renta$ e3%ectation' of the ma$$ deve$o%er
and the tenant are un$i+e$0 to match) the be't .a0 out .ou$d then be to enter into a
HIM (2007-09) ;F
revenue-'harin" a"reement, 2 tenant .ou$d "ive the ma$$ o.ner a %ercenta"e of hi'
revenue') .ith or .ithout a minimum "uarantee, (=e. anchor' %a0 the ma$$ o.ner' in
advance for con'truction) the .a0 it ha%%en' e$'e.here in rea$ e'tate deve$o%ment,) -he
a"reement .ou$d var0 for different tenant' de%endin" on the rea$-e'tate co't of the tenant
- it .ou$d be $o. for an a%%are$ 'tore) .ho'e inventor0 e3%en'e' .i$$ be hi"her) and hi"h
for a "amin" and entertainment hub) .hich doe'n1t rea$$0 re5uire an0 additiona$ e3%en'e
after the machine' have been 'et u%, -hi' i' the 'im%$e't .a0 for a retai$er to minimi'e hi'
ri'+, 7ven if retai$er' have %oor 'a$e') a $ar"e %art of their turnover i' not $o't to renta$',
-here are 'i"n' that 'uch a"reement' are becomin" common,D !e have faci$itated a
revenue-'harin" a"reement :.hereb0 the ma$$ receive' ,(-6G of the month$0 turnover',
4ho%%er'1 4to% ha' a$'o entered into an a"reement .ith Inorbit) .here 4ho%%er'1 .i$$ %a0
either month$0 renta$' of &' 0-60 %er '5, ft) or ;-7G of the turnover) .hichever i'
hi"her, /ari'ta ha' an a"reement .ith Ino3) a' doe' McBona$d',
4uch a"reement' have other benefit', -he0 cou$d reduce tenant turnover 'i"nificant$0 and
en'ure that the ma$$ remain' .e$$ occu%ied, -he0 cou$d a$'o %rom%t the ma$$ deve$o%er to
$oo+ for .a0' b0 .hich footfa$$' can be increa'ed) a' that .ou$d be to hi' advanta"e, -hat
$a't benefit ha' %rom%ted man0 ma$$ deve$o%er' to ro%e in con'u$tant' to 'tud0
catchment') %'0cho"ra%hic' and '%endin" habit' of con'umer', -he idea i' to ma% out the
brand' the0 .ant in their ma$$, 8n$0 after an e3hau'tive 'tud0 of con'umer %attern' did
.e decide .hat brand' .e .anted in the ma$$, -hi' i' im%ortant a' mo't ma$$' cater to
47< 2 of the %o%u$ation: the number of brand' thi' c$a'' of %eo%$e bu0' are 'ti$$ $imited,
Inorbit ha' a$'o conducted 'tudie' to ta% '0ner"ie' that e3i't bet.een tenant', 4o) it
decided to %$u" it' anchor mu$ti%$e3 (=ame) a$on" .ith food o%tion' McBona$d' and
9i##a Hut) and an entertainment hub) -ime#one, 4o) an0one .ho vi'it' the ma$$ i' offered
a com%$ete entertainment o%tion, 8ne rea$$0 can1t e3%ect a behavioura$ 'ea chan"e from
the avera"e Indian con'umer, 8ne don1t e3%ect him to bu0 je.e$$er0 or boo+' .hen he
come' to .atch a movie) but .e .ou$d $i+e to bund$e the entertainment and food o%tion'
to"ether) becau'e that 'eem' $i+e a "ood '0ner"i'tic combination,
HIM (2007-09) ;2
8ther ma$$' are tr0in" to 'ort out ba'ic infra'tructure i''ue', 7ven toda0) man0 do not
have 'ound infra'tructure faci$itie', <ro''road') for in'tance) doe'n1t have a 'ervice
entrance for it' retai$er', 2t a ma$$ in Gur"aon) an em%$o0ee of a food court .a' '%otted
cuttin" hi' ve""ie' ri"ht out'ide the ma$$ entrance before o%eratin" hour') 'im%$0 becau'e
there .a' no %$ace .ithin the ma$$ to do 'oT /ut no.) Inorbit ha' a 'e%arate frei"ht
e$evator and a $oadin" and un$oadin" doc+ 'o that the re"u$ar ma$$ activit0 i' not
di'turbed, 9re'ti"e =orum in /an"a$ore "ot 4ho%%er'1 4to% to anchor the ma$$ after it
en'ured a 2-tonne ba'ement and 'ervice ca%acit0, GHK 8ne in H0derabad ha' a car %ar+
for *00 car') .hi$e Inorbit ha' one for F)200 car', Ma$$' deve$o%er' have a$'o been ro%in"
in the be't de'i"ner' and architect') both $oca$$0 and from abroad to en'ure that $oo+'
aren1t com%romi'ed on,
Set) thi' i' not enou"h, Ma$$' a$'o need to be 'en'itive to retai$er'1 need', 2 mu$ti%$e3
o.ner cite' the e3am%$e of a ma$$ turnin" off the $i"ht' at 9 %,m,) before the $a't 'ho.
be"an) "ivin" the im%re''ion that the ma$$ .a' 'hut, 2' a re'u$t) the bo3 office '$ac+ened,
It too+ 'ome confrontation before the ma$$ mana"er' +e%t the $i"ht' on $on"er, -he 'ame
ma$$ a$'o refu'ed to he$% the mu$ti%$e3 .ith food and theatre $icence',
Ma$$ deve$o%er' have traditiona$$0 been rea$ e'tate bu'ine''men $oo+in" to diver'if0,
Mo't have not rea$$0 bothered .ith the dai$0 o%eration' of the ma$$ once the tenant' are
in, /ut no.) the0 are rea$i'in" the need to active$0 do 'o even a' the0 under'tand ho.
$o. footfa$$' cou$d $ead to an e3odu' of tenant', =or that) the0 need to %ut a %remium on
5uic+) efficient and 'ati'factor0 'ervice) both to con'umer' and to the retai$er', Inorbit
and 9re'ti"e =orum are a$read0 movin" in that direction, -he0 have in'ta$$ed footfa$$
counter' to ma% the entire ma$$ and 'tud0 e3act$0 .here cu'tomer' head to and ho. much
time the0 '%end in different area' of the ma$$, !ith thi' +ind of com%etition) 'u'tenance
for ma$$' .i$$ on$0 ha%%en if the0 continue to dra. in the cro.d', 2nd that ta'+ i' not
ea'0, /ut if one attract' the number') he .i$$ thrive in the com%ounded "ro.th that the
indu'tr0 e3%ect' to 'ee over the ne3t F0 0ear',
Retail as an Employment Generator
HIM (2007-09) ;
The retail sector can generate huge employment opportunities, and can lead to job-
led economic growth. In mo't major economie') P'ervice'C form the $ar"e't 'ector for
creatin" em%$o0ment, U4 a$one have over F2G of it' em%$o0ab$e .or+force en"a"ed in
the retai$ 'ector,
-he retai$ 'ector in India em%$o0' near$0 2F mi$$ion %eo%$e) accountin" for rou"h$0 ;,7G
of the tota$ em%$o0ment, Ho.ever) em%$o0ment in or"ani'ed retai$in" i' 'ti$$ ver0 $o.)
becau'e of the 'ma$$ 'hare of or"ani'ed retai$ bu'ine'' in the tota$ Indian retai$ trade, -he
'hare of or"ani'ed retai$in" in India) at around 2G) i' ab0'ma$$0 $o.) com%ared to *0G in
the U42) 60G in -hai$and) or 20G in <hina) thu' $eavin" the hu"e mar+et %otentia$
$ar"e$0 unta%%ed, 2 modern retai$Aretai$ 'ervice' 'ector ha' the %otentia$ of creatin" over
2 mi$$ion ne. (direct) job' .ithin the ne3t ; 0ear' in the countr0 (a''umin" on$0 *-F0G
'hare of or"ani'ed retai$in"), &etai$ can create a' man0 ne. job' a' the /98AI-e4 'ector
in India, 2 'tron" retai$ front-end can a$'o %rovide the nece''ar0 fi$$i% to a"ricu$ture L
food %roce''in") handicraft') and 'ma$$ L medium manufacturin" enter%ri'e') creatin"
mi$$ion' of ne. job' indirect$0, -hrou"h it' 'tron" $in+a"e' .ith 'ector' $i+e touri'm and
ho'%ita$it0) retai$ ha' the %otentia$ of creatin" job' in the'e 'ector' a$'o,
-hou"h the 9$annin" <ommi''ion ha' identified retai$ a' a %ro'%ective em%$o0ment
"enerator) in order to 'tren"then the mu$ti%$ier effect of the "ro.th in or"ani'ed retai$in"
u%on the overa$$ em%$o0ment 'ituation) a %ro-active "overnmenta$ 'u%%ort mechani'm
need' to evo$ve for nurturin" the 'ector, I''ue' $i+e =BI in retai$) a$$ocation of
"overnment-contro$$ed $and on more favorab$e term') 'tron" %o$itica$ and bureaucratic
$eader'hi%) etc,) need to be addre''ed ade5uate$0,
Retail Sector in the East: Current Scenario & Growth
Prospects
-he retai$ 'ector in 7a'tern India i' $ar"e$0 Ko$+ata-centric. -he cit0 of Ko$+ata ha' come
a $on" .a0 in term' of retai$ maturit0 .ith a %ro$iferation of brand' and or"ani'ed retai$
chain', 4ho%%in" trend' in the cit0 have .itne''ed a radica$ 'hift over the recent 0ear':
HIM (2007-09) ;6
from the conventiona$ trader run 'tand-a$one 'ho%' to more or"ani#ed L $ar"e retai$
format',
7vident$0) the future of retai$in" in the cit0 $ie' in ne.-a"e 'ho%%in" ma$$') .hich
%rovide variet0) va$ue and convenience in a more comfortab$e environment, -hi' i' a$'o
evident b0 a 'ur"e in the con'umer '%endin" on branded "ood' in the recent time': for
e3am%$e the cit01' Mu'ic !or$d out$et ha' recorded the hi"he't earnin"' %er '5uare feet
amon"'t a$$ it' out$et' in the countr0, -he cit0 ha' a$'o .e$comed the other retai$ chain'
'uch a' 9anta$oon') !e't'ide and 4ho%%erC' 4to%,-hou"h Ko$+ata ha' been a bit $ate in
catchin" u% .ith the retai$ revo$ution in the countr0) the cit0 ha' "reat %otentia$ to
become a retai$ hub in the near future,
Goin" b0 the F99F cen'u') the cit0 5ua$ifie' a' the 'econd $ar"e't metro mar+et in India:
near$0 one out of ever0 'i3 'ho%' $ocated in the countr0C' to% 2( citie') can be traced to
Ko$+ata, -o a mar+et 'trate"i't) Ko$+ata undoubted$0 i' an idea$ $ocation for the "ro.th
of the retai$ indu'tr0, /e'ide' bein" the %rinci%a$ retai$-and-'ervice' mar+et to a va't
hinter$and com%ri'in" of the ea'tern and northea'tern 'tate' of the countr0) the cit0 a$'o
'erve' a' a center of trade and commerce for the re"ion, It' %ro3imit0 to /an"$ade'h) a
countr0 of F crore con'umer') and to the 4outh-7a't 2'ian mar+et') i' another factor for
.hich the cit0 i' fa't emer"in" a' a vibrant bu'ine'' center, -he Ko$+ata 9ort and the
Ha$dia 9ort are a$'o in'trumenta$ in actin" a' "ate.a0' to $and$oc+ed countrie' $i+e @e%a$
and /hutan,
-he di'%o'ab$e income' of Ko$+atan' have a$'o been on the ri'e O accordin" to a re%ort
b0 the @ationa$ <ounci$ of 2%%$ied 7conomic &e'earch (@<27&)) about ;2G of the
hou'eho$d' in Ko$+ata had annua$ income' of u% to &',F*) 000 in F9*(-*;: .hi$e ju't a
decade $ater) the fi"ure had touched &',2()000-77)000 for 'ome ;FG of the hou'eho$d',
-he cit0 tru$0 re%re'ent' an ama$"amation of the advanta"e' of a metro cit0) and the
com%arative$0 mode't $ivin" co't' of a non-metro to.n, Iate$0) Ko$+ata ha' emer"ed a' a
'tron" %ro'%ective de'tination in the e3%an'ion %$an' of retai$er' and i' no. %erceived a'
a $atent but hi"h$0 %otentia$ mar+et,
HIM (2007-09) ;(
9rominent retai$ chain' $i+e Mu'ic !or$d) !e't'ide) Bomino') 9i##a Hut) 4ho%%erC'
4to%) !i$$'4%ort) /ari'ta) and 9anta$oon' have a$read0 e'tab$i'hed their %re'ence in the
mar+et, 2%art from the'e ne.-a"e) $ar"e retai$ chain' .hich have 'tarted o%eratin"
'ucce''fu$$0 in the cit0) there are a $ar"e number of traditiona$) '%ecia$i#ed mar+et' $i+e
theD -
/o.ba#ar mar+et)
/a"ri mar+et)
<hina ba#aar)
Ia+e mar+et)
/urraba#ar mar+et)
<handni mar+et) etc,)
and hi"h-'treet mar+et' at 9ar+ 4treet)
7'%$anade area)
<amac 4treet)
4ha+e'%eare 4arani)
Gariahat)
.hich offer a .ide variet0 of item' $i+e 'tationar0 item') dair0 %roduct') e$ectronic "ood'
and a%%$iance') "$a''.are) croc+er0) .ooden furniture) je.e$$er0) mu'ica$ in'trument')
fruit') f$o.er') ve"etab$e') fi'h) f$e'h meat) te3ti$e') '%ice') dr0 fruit') 'u"ar) 'a$t)
"rocerie') %aint') hard.are item') etc, /e'ide' the'e mar+et') there are 'ma$$-format) non-
branded 'ho%%in" com%$e3e'Ama$$' $i+e the 2A< Mar+et) Hardaan Mar+et) @e. Mar+et)
and the 4hreeram 2rcade) .hich offer a .ide variet0 of item') from "arment') .atche')
and foot.ear) to con'umer durab$e' $i+e hou'eho$d e$ectronic "ad"et',
-he $oca$ retai$ chain' .hich have become hou'eho$d name' in /en"a$ inc$udeD -
Arambagh Hatcheries Ltd.
Khadim`s) and
Sree Leathers,

HIM (2007-09) ;;
8%erationa$ 'ince F99*) Arambagh Hatcheries Ltd, i' toda0 one of the foremo't
com%anie' in the mar+etin" of %ou$tr0 %roduct', 7ncoura"ed b0 the 'ucce'' of it'
chic+enN brand) and the rea$i#ation that there .a' a void in the Ko$+ata mar+et for
5ua$it0 food 'tuff 'o$d under a 'in"$e roof) the com%an0 too+ the initiative in 'tartin"
convenience 'tore'N named 2ramba"hC' =ood MartN in 2000, 2n a""re''ive e3%an'ion
'trate"0 ha' 'een the com%an0C' %h0'ica$ 'tren"th "ro. to F6 out$et' in Ko$+ata) .ith
another (-; out$et' bein" in the %i%e$ine, 7ach of the'e 'tore' are bet.een (00 L *00 '5,
ft, in dimen'ion) and %ac+ed .ith at $ea't 6000-6(00 food and other =M<G item',
Good 5ua$it0)
the ri"ht 5uantit0)
u'e of correct .ei"ht')
and a $o. M&9 are the main factor' .hich have contributed to an im%re''ive "ro.th
of thi' chain, 2ramba"h ha' tie u%' .ith @icco 9ar+) K.a$it0 !a$$') Ke$$o"' India
and =rito Ia0') amon" other', -he'e tie-u%' he$% the chain in %roduct and 'ervice'
%romotion,
/oth Khadim`s and Sree Leathers are $oca$ foot.ear com%anie' .hich have been
tremendou'$0 'ucce''fu$) and have no. reached out to internationa$ mar+et', Khadim`s
ha' e3c$u'ive 'ho.room' not on$0 in !e't /en"a$) but a$'o in 'tate' $i+e /ihar)
Jhar+hand) -ri%ura) 8ri''a) Madh0a 9rade'h) 2ndhra 9rade'h) Karnata+a) Gujarat) and
-ami$ @adu, -he com%an0 offer' %roduct' $i+e 9remium 'hoe') Gent'C 'hoe') Iadie'C
'hoe') Kid'C 'hoe') and Ieather 2cce''orie', KhadimC' ha' become the de'tination for
%eo%$e from a$$ .a$+' of $ife) .ith a "reat ran"e of foot.ear to choo'e from, -he motto of
the com%an0 i' to %rovide "ood 5ua$it0 fa'hionab$e 'hoe' at affordab$e %rice',
Sree Leathers entered the Ko$+ata mar+et in F9*7 .ith it' fir't out$et in the cit0 at
Iind'a0 4treet) .hich became hu"e$0 'ucce''fu$, -he com%an0C' 'econd me"a out$et at
=ree 4choo$ 4treet) .hich ha' a f$oor area of more than 7(00 '5, ft,) %rovide' a "reat
'ho%%in" e3%erience to it' cu'tomer', -oda0 the com%an0 ha' a number of out$et'
'cattered over !e't /en"a$) 8ri''a and /ihar) and ha' ventured into the internationa$
mar+et' of the Midd$e 7a't) 4in"a%ore) Ma$dive') U42) Benmar+) Greece) German0)
HIM (2007-09) ;7
@ethar$and' and 2u'tria, 4ree Ieather' ha' 'tarted a ne. &LB 'ection under the
"uidance of Ita$ian and German e3%ert') to enhance the comfort $eve$ of itC' %roduct') and
ha' %$an' of 'ettin" u% a modern foot.ear factor0 at Ka'ba Indu'tria$ area in Ko$+ata,
-he t.o %rominent fun-entertainmentAamu'ement %ar+' in Ko$+ata) .hich have "ained
immen'e %o%u$arit0 amon" the ma''e') %articu$ar$0 chi$dren) are Nicco Park) and
Aquatica, 4ituated in 4a$t Ia+e) and '%read over an area of 60 acre') Nicco Park,
%romoted b0 the @icco Grou%) can be termed a' the PBi'ne0$and of !e't /en"a$C) .ith a
variet0 of unu'ua$ and e3citin" "ame' and ride' $i+e the -o0 -rain) <ab$e <ar) -i$t-a-
!hir$) !ater <hute) !ater <oa'ter) =$0in" 4aucer) 9irate 4hi%) and Moonra+er, -he
<ave &ide i' the $ate't addition) and i' %erha%' the on$0 of itC' +ind in thi' %art of the
.or$d,
Aquatica, an *-acre .ater %ar+) i' 'ituated at &ajarhat in Ko$+ata) .hich came u% in
2000, -hi' -heme 9ar+ offer' vi'itor' a coo$ re'%ite from the heat and "rime of cit0 $ife,
-he %ar+) .hich can accommodate around (000 %eo%$e) ha' an artificia$ river meanderin"
throu"h it, Hi'itor' can '.im and .ade in the river .ater) .hich i' rec0c$ed ever0 hour
for maintainin" the c$ean$ine'', 25uatica ha' breathta+in" ride' 'uch a' the /$ac+ Ho$e)
-ornado and !ave 9oo$, -he 25ua Bance =$oor) .here vi'itor' can '.a0 to non-'to%
mu'ic) ha' .ater'%ra0in" no##$e' on the roof .hich fi$$ the 'urroundin" air .ith .ater,
25uatica a$'o ho't' bi" event' and %ro"ramme' $i+e fa'hion 'ho.' .hich are "reat
cro.d-%u$$er', -he medium and $ar"e-format) branded and non-branded 'ho%%in"
com%$e3e'Ama$$') .hich have come u% in Ko$+ata) and are o%eratin" 'ucce''fu$$0) areD
Forum: It i' a t.o $a+h '5uare feet ma$$) 'ituated on 7$"in &oad) in 4outh Ko$+ata .ith
4ho%%erC' 4to% a' anchor, -hi' 'ho%%in" ma$$ e'tab$i'hed b0 4un'am %ro%ertie' .ithin
the 4araf Grou% .a' o%ened to the %ub$ic in March 200) .ith the $aunch of 4ho%%erC'
4to%, 2$on" .ith the retai$ brand' havin" their out$et') the =orum a$'o hou'e') a 00
ca%acit0 food court and a 6-auditorium mu$ti%$e3 ca$$ed I@8R, -he mu$ti%$e3) I@8R ha'
been the fir't of it' +ind in the cit0) havin" a 'ittin" ca%acit0 for over F000 vie.er') and
'ituated over 0000 '5uare feet, Hence it can be rea$$0 a "reat e3%erience of 'ho%%in" and
HIM (2007-09) ;*
movie "oin" for the Ko$+atan') .ho do not .ant to com%romi'e on the 5ua$it0 a'%ect,
-he retai$ out$et' at =orum have .itne''ed a$mo't 0-( G increa'e in 'a$e' after the
o%enin" u% of the mu$ti%$e3 in 200, Mo't retai$er' are e3treme$0 ha%%0 .ith the "ro.th
rate and e3%ect their 'a$e' to increa'e further in the comin" month' ,2t I@8R) tic+et 'a$e'
have been avera"in" at a$mo't 90G of the theatre ca%acit0 O the hi"he't bo3 office 'a$e'
amon"'t a$$ the mu$ti%$e3e' in the countr0, =orum ha' tru$0 chan"ed the e3%erience of
Ko$+atan' .ith re"ard to 'ho%%in" and entertainment in the cit0,
22 Camac Street: -hi' $ar"e format-'ho%%in" com%$e3 i' $ocated on <amac 4treet ,-he
retai$ brand' $i+e 9anta$oon') !e't'ide ) 9i##a Hut ) 9$anet M) Grain of 4a$t and 2dd Iife
) have a$read0 'et u% their out$et' in the com%$e3, It ha' 6 di'tinct b$oc+' .ith a common
atrium, -he mo't advanta"eou' a'%ect here i' it' hu"e %ar+in" '%ace in the ba'ement, It
a$'o hou'e' 'ma$$er mu$ti-branded out$et', -he footfa$$' 'ta0 'tead0 throu"hout the .ee+
and "et' to an uncontro$$ab$e hi"h over the .ee+end, 4ome of the out$et' ran+ amon" the
$eadin" individua$ retai$ out$et' of the countr0, -he tota$ f$oor area of the com%$e3 i'
*0)000 '5uare feet) and ha' 6 re'taurant' and ban5uet ha$$',
,
Metro Plaza: 4ituated on Ho <hi Minh 4arani) thi' i' ba'ica$$0 a $ar"e-'ca$e retai$ cum
office deve$o%ment area, -he $o.er three f$oor' .ith an area of (0)000-;0)000 '5uare feet
i' meant for retai$ bu'ine'', 2$on" .ith the retai$ unit' there i' a$'o a '%ace for /o.$in"
.hich i' fre5uented b0 0oun"er %eo%$e,
Emami No. 1: -hi' ma$$ i' $ocated on Iord 4inha &oad, It' c$o'e %ro3imit0 to the
<ho.rin"hee-9ar+ 4treet be$t he$%' it to cater to a $ar"e 'ection of 5ua$it0 con'ciou'
con'umer', -he u'ua$ faci$itie' of %o.er bac+u%) vertica$ tran'%ortation and %ar+in" are
avai$ab$e over here, -he bi""e't di'advanta"e that it face' i' it' car %ar+in" area) .hich
ha' a mea"re ca%acit0 of ju't 70 car' at a time, -he bi""e't attraction here i'
it'Iandmar+ boo+'tore on the third f$oor) .hich ha' a .ide ran"e of boo+') mu'ic and
'tationar0 item',
HIM (2007-09) ;9
City Centre: -he recent$0 inau"urated P<it0 <entreC %roject add' another feather to the
a$read0 vibrant retai$ bu'ine'' in the cit0, -he %roject) %romoted b0 indu'tria$i't
Har'hvardhan @eotia) and $ocated at 4a$t Ia+e) ha' been de'i"ned b0 one of IndiaC' be't-
+no.n architect') <har$e' <orrea, P<it0 <entreC i' a d0namic mi3 of 'ho%%in" ma$$)
<ine%$e3 (I@8R)) entertainment area) food court) office') and re'idence'- ne't$in" amid't
o%en '%ace') $u'h "reen') and the contour' of an idea$ cit0'ca%e, /i" brand' $i+e
4ho%%erC' 4to% and 2dida' have 'et u% their 'ho%' in the com%$e3, -here are 'evera$
a'%ect' to P<it0 <entreC: .ith no boundarie' to 'e%arate it from the 'treet) it i' o%en to
ever0one- a$$ income and a"e "rou%', -he <om%$e3 ha' a %ar+in" '%ace for a' man0 a'
*00 car') F6 entr0 and e3it %oint') and $ar"e '%ace' to amb$e around, -he P<it0 <entreC)
.hich i' the 'in"$e-$ar"e't architectura$ endeavor in Ko$+ata in recent time') ha' tru$0
chan"ed the .a0 the cit0 $oo+') and com%$ement' the cit0C' arti'tic herita"e, -he $ocation
of the %roject ma+e' 4a$t Ia+e the e%icenter of not ju't it' immediate %o%u$ation ha$f a
but a$'o of the u%comin") adjoinin" to.n'hi% of &ajarhat ,
Enclave: 4%read over ;)000 '5, ft,) the 7nc$ave) ha' come u% at u%-mar+et 2$i%ore) and
ha' five 'ho%%in" $eve$') and an o%en-to-'+0 atrium, -he com%$e3) %romoted b0 the
<a$cutta Metro%o$itan Grou%) ha' fine re'taurant' inc$udin" =ood /ar) &ed /ar) <oo+ee
/ar) coffee 'ho%') a chi$dren'C entertainment #one named PKoo$ Kid'C) amon" other
faci$itie', 2nother %rominent 'u%ermar+et) .hich offer' a .ide ran"e of %roduct') and
%rovide' cu'tomer' .ith a "reat 'ho%%in" e3%erience) i' <- the Mar+et 9$ace, -he 'ho%
command' over ;F00 '5,ft, in the heart of Ko$+ata) at Iee &e'idenc0) 2;) Iee &oad, -he
a%%ro3imate$0 2()000-'tron" %roduct menu inc$ude' a .ide ran"e of %roduct' $i+e fre'h
fruit' and ve"etab$e') rare herb') "rocerie') read0-to-eat food) %er'ona$-care item')
confectionarie') choco$ate') home-care %roduct') ne.'%a%er') ma"a#ine') and 'o on,
-hou"h the retai$ bu'ine'' main$0 revo$ve' around Ko$+ata) to.n' $i+e Bur"a%ur) 4i$i"uri
and Ha$dia a$'o have the %otentia$ of becomin" bu'0 retai$ addre''e', 2$read0) the
Durgapur City Centre %roject) %romoted b0 /en"a$ 4hri'ti Infra'tructure Beve$o%ment
Itd,) ha' come u% in Bur"a%ur) in /urd.an di'trict, -he %roject) .hich .a' inau"urated
on the F0th of 2u"u't) 200) i' a modern) mu$ti-faci$it0) mu$ti-uti$it0) urban %$a#a) '%read
HIM (2007-09) 70
over a '%ra.$in" 70)000 '5,ft, It i' a conf$uence of 'ho%%in") commerce) entertainment)
education) recreation) hea$th) ho'%ita$it0) medica$ amenitie') and %remium re'identia$
accommodation, Iu'h "reen o%en '%ace') an inte"rated entertainment mu$ti%$e3) and
variou' other urban amenitie') %rovide a fa'cinatin" e3%erience, Bur"a%ur i' .e$$
connected b0 both rai$ and road) and the %roject $ocation i' ea'i$0 acce''ib$e from the
borderin" to.n' of 2'an'o$) &ani"unj) 4antini+etan) and /urn%ur,
2 number of %rominent %roject' in the retai$ 'ector are comin" u% in Ko$+ata, 4ome of
the'e areD-
South City: -he u%comin") F-acre 4outh <it0 %roject' %romi'e' of a $ife't0$e of
internationa$ 'tandard', -he %roject .i$$ have four (-'tore0 re'identia$ to.er') a
'%ra.$in" c$ub) a 'ho%%in" ma$$ .ith entertainment #one') and a mu$ti%$e3, Modern
techno$o"0 .i$$ en'ure earth5ua+e re'i'tance) hi"h-'%eed e$evator') ade5uate fire fi"htin"
and %rotection '0'tem') interna$ 'ecurit0 and traffic mana"ement) and a$$ conceivab$e
civic comfort', -he in-com%$e3 4outh <it0 2cadem0) '%read over ,( acre') .i$$ be
e5ui%%ed .ith a $earnin" re'ource center) "0m) cafeteria) an auditorium for
e3tracurricu$ar activitie' $i+e debate') dramatic') and '%ort') and a 'occer fie$d, -he 4outh
<it0 <$ub .i$$ have an air-conditioned '%ort' center) "ue't room') ban5uet faci$itie')
'.immin" %oo$') a dinin" re'taurant) a %ub $oun"e) a bu'ine'' center) and a hea$th c$ub)
amon" other thin"', -he me"a com%$e3 .i$$ a$'o have IndiaC' $ar"e't 'ho%%in" ma$$- the
Junction) '%read acro'' an area of 700)000 '5,ft,) .hich .i$$ have $ar"e anchor 4tore') a
mu$ti%$e3) a food court) a 'i3-'creen <ine%$e3) an entertainment #one) and %ar+in" '%ace
for near$0 *00 car', -he team behind thi' bi" venture com%ri'e' a ho't of e3%erienced
architect' and deve$o%er', 2mon" them areD Bu$a$ Mu+herjee L 2''ociate' (the %rinci%a$
architect'): 4ma$$.ood &e0no$d' 4te.art 4te.art L 2''ociate' Inc,) the 2t$anta-ba'ed
internationa$ de'i"n con'u$tant': 9eridian 2'ia 9-7 Itd,) 4in"a%ore-ba'ed $and'ca%e
architect':Meinhardt (4in"a%ore) 9-7 Itd,) 'tructura$ con'u$tant': and M@ <on'u$tant)
'tructura$ en"ineer',
Mani Square: Mani 45uare) a %ro%o'ed %roject on a 6-acre %$ot ne3t to 2%o$$o
G$enea"$e' Ho'%ita$ on 7,M,/0%a'') .i$$ have a (00)000 '5 ft, '%ace) .hich .i$$ inc$ude
HIM (2007-09) 7F
a techno$o"0 %ar+) a ;-'creen mu$ti%$e3) a food court) bu'ine'' c$ub) a mu$ti$eve$ F000-
car %ar+in" area ) a 60)000 '5 ft, h0%ermart ( GiantN )) a' .e$$ a' other direct retai$ 'tore'
,Be'i"ned and en"ineered b0 422 2rchitect' of 4in"a%ore and Meinhardt of 2u'tra$ia )
and %romoted b0 the Mani Grou%) Mani 45uare .i$$ be the 'in"$e 'to% 'o$ution to a$$
re5uirement' of modern-da0 %rofe''iona$' and cu'tomer' , -he %roject .i$$ have read0-
to-u'e centra$$0 air-conditioned office' .ith F00G %o.er bac+-u%) $ea'e$ine' and round-
the-c$oc+ 'u%%ort 'ervice') .hich .i$$ be e3treme$0 attractive for I- and I-e4
com%anie' ,&etai$ "iant' $i+e Iife't0$e ) !e't'ide ) 4ho%%er'C 4to% and <ine%$e3 major'
$i+e 4hrin"ar and 9H& have a$read0 'ho.n intere't to 'et u% unit' in the com%$e3 ,
Fort Knox: =ort Kno3) a me"a je.e$$er0 ma$$) o.ned and %romoted b0 the =ort Grou%)
i' 'chedu$ed for a 4e%tember) 2006 inau"uration, -he %roject) a 9-'toried com%$e3) on an
area of a%%ro3imate$0 *0)000 '5,ft,) .i$$ have an e'timated 7 'ho.room') 60 office')
bac+ed b0 6 $ift') * e'ca$ator', -he =ort Grou% i' confident about e$icitin" a %o'itive
con'umer re'%on'e) and %rovidin" the cu'tomer .ith a comfortab$e) 'ecure) and
refre'hin" 'ho%%in" e3%erience) b0 creatin" acce'' to the be't %roduct') from the be't
je.e$$er') at the be't %rice', -he %roject) .hich i' comin" u% at <amac 4treet) .i$$ have a
formidab$e $ine-u% of 'ecurit0 mea'ure' inc$udin" a$arm '0'tem .ith in'tant $in+' to the
%o$ice head5uarter' and fire 'ervice') 26-hour armed 'ecurit0 "uard') etc,
Gariahat Mall: Gariahat Ma$$) .hich i' comin" u% at an area bet.een the Gariahat
cro''in") and the &a'hbehari- 7M /0%a'' <onnector) .i$$ a%%ro3imate$0 be of *0)000
'5,ft) and .i$$ be acce''ib$e from ever0 %oint in the 'outhern be$t of the cit0, -he (-f$oor
'tructure .i$$ boa't of .or$d-c$a'' faci$itie' and ambience) an e3%an'ive atrium) hi"h
cei$in"') ca%'u$e $ift') and mu$ti-$eve$ acce'' u% to the to% f$oor, -he 'cientific fu'ion of
$oft0 cei$in"') f$at '$ab') and a centra$ atrium i$$uminated b0 natura$ $i"ht) i' intended to
evo+e a 'en'e of '%ace) hei"ht) and de%th, !hi$e an entire b$oc+ ha' been earmar+ed for
the anchor 'ho%) the rd and the 6th f$oor' are entire$0 re'erved for je.e$$er0 out$et') and
the (th f$oor .i$$ hou'e re'taurant' and eatin" %$ace', -o%$i"ht <ommercia$' Itd, (-<I))
one of the %rominent rea$-e'tate deve$o%er' in Ko$+ata) and the %romoter of the ma$$)
e3%ect' to com%$ete the %roject b0 Becember) 2006,
HIM (2007-09) 72
Metropolis: -he F)6F)000 '5,ft, PMetro%o$i'C .i$$ be one of Ko$+ataC' ne.e't retai$-cum
entertainment addre''e', -he com%$e3 .i$$ have a 6-'creen) F000-'eater <ine%$e3) a ;-
out$et food court) a '%ort' bar) a re'taurant) and a (0-ca%acit0 car %ar+, /ein" deve$o%ed
b0 the <a$cutta Metro%o$itan Grou% (<MG)) the PMetro%o$i'C i' de'i"ned b0 the re%uted
architectura$ firm) 9edd$e -hor% Internationa$ of Hon" Kon") and .i$$ come u% at an area
adjacent to <MGC' %re'ti"iou' e3i'tin" re'identia$ com%$e3) PHi$and 9ar+C) .hich ha'
about 900 a%artment' and ( %enthou'e', PMetro%o$i'C .i$$ have the H0att &e"enc0) I-<
4onar /an"$a) 9eer$e'' Ho'%ita$) and Uda0an <ondovi$$e amon" it' di'tin"ui'hed
nei"hbour',
Pam Shopping Centre: -he marve$$ou' 9am 4ho%%in" <entre) %romoted joint$0 b0
9am Beve$o%er') and the Ko$+ata Munici%a$ <or%oration) i' 'chedu$ed for an end-
2u"u't (2006) inau"uration, -hi' ;0)000 '5, ft, e0e-catcher at &a'hbehari 2venue) .i$$
boa't of a uni5ue ref$ective "$a'' curtain) and an arti'tica$$0 $and'ca%ed entrance ram%)
be'ide' havin" five $eve$' of 'ho%%in", -he <om%$e3 .i$$ have 'ho%' 'e$$in" a .ide
ran"e of %roduct' inc$udin" "arment') and je.e$$er0,
Homeland: Home$and) a F)00)000 '5, ft, e3c$u'ive 'ho%%in" ma$$) %romoted b0 the
Mer$in Grou%) i' comin" u% in the heart of <entra$ Ko$+ata) c$o'e to <ho.rin"hee and
7$"in &oad cro''in", -he five-'toried) centra$$0 air-conditioned 'ho%%in" center' .i$$
have 't0$i'h '%ace' ran"in" from 00 '5, ft, to 2000 '5, ft,) and '%aciou' e3hibition and
%roduct $aunch area, -he ma$$ .i$$ a$'o have 2-M center' at convenient %oint')
internationa$$0 't0$ed cafU and food 'to%') 26-hour %o.er bac+u% faci$it0) and ade5uate
car %ar+in" faci$itie',

Silver Springs: 4i$ver 4%rin"'C) a %re'ti"iou' joint venture %roject bet.een /en"a$
4i$ver 4%rin"' 9roject' Itd, and the Ko$+ata Munici%a$ <or%oration) i' due for a
Becember) 200( com%$etion, 4ha%oorji 9a$$onji ha' done the %i$in" of P4i$ver 4%rin"'C
and reno.ned architect J,9,2"ar.a$ ha' de'i"ned the %roject, -he %roject .i$$ have
around (00 re'identia$ f$at') F0 hi"h-ri'e' of F* and F6 'torie') a ma"nificent 'ho%%in"
HIM (2007-09) 7
ma$$ named P4i$ver 2rcadeC) of 70)000 '5,ft, area) and a P4%rin" <$ubC of an area of
70)000 '5,ft, -he vendor' at the 'ho%%in" ma$$ inc$ude Main$and <hina and a H0undai
dea$er- 'ho.room, P4i$ver 2rcadeC .i$$ be a GV ma$$) .ith the rd f$oor bein" ta+en u%
b0 Main$and <hina for '%ecia$it0 re'taurant': .hi$e the 2nd f$oor .i$$ have a =ood
<ourt .ith F7 mu$ti-cui'ine food counter', -he ma$$ .i$$ be bac+ed b0 a $ar"e %ar+in"
'%ace forF(0 car', P4i$ver 4%rin"'C .i$$ boa't of a modern) u%-mar+et re'identia$
com%$e3) the 'ho%%in" ma$$) P4i$ver 2rcadeC) a Monte''ori 4choo$) an 2< <ommunit0
Ha$$) amon" other ne.-a"e faci$itie',
Bhubaneshwar i' another cit0) .hich ha' the %otentia$ of becomin" a retai$ hot'%ot in
the 7a't, -he cit0 i' fa't deve$o%in" into a bu't$in" center for economic activit0) .ith
'oft.are "iant' $i+e Info'0' and 4at0am have a$read0 'et u% their office', -hi' i' "ivin"
ri'e to a ne. breed of con'umer' .ith hi"h di'%o'ab$e income': thereb0 creatin" $ife't0$e
and a'%iration $eve$' at %ar .ith other fa't-movin" metro%o$itan citie', /hubane'h.ar
re%re'ent' t.o face' of retai$in" - one) a traditiona$ 'tore evo$vin" .ith time) and another)
a recent$0 inau"urated ma$$ from a "rou% that i' credited .ith havin" revo$utioni#ed the
retai$ 'cenario in Ko$+ata,
Satyam Shivam Sundaram: -hi' 2(-0ear-o$d mu$ti-brand de%artment 'tore i' famou'
for it' offerin"' in te3ti$e' and read0-to-.ear "arment', -he uni5uene'' of the 'tore $ie'
in it' abi$it0 to incu$cate the $ate't retai$ conce%t' in term' of 'e$ection and di'%$a0 of
merchandi'e in-'tore ambience) and other attractive feature', -hi' *)000 '5 ft, 'tore)
.hich i' bein" u%"raded to a F;)000 '5 ft, one) '%end' a "ood amount of mone0 annua$$0
on brand-%romotion e3erci'e', 2t the 'tore) ha$f of the retai$ '%ace i' devoted to
men'.ear) 2( G to .omen'C .ear) F(G to chi$drenC' .ear) and the re't F0G to
teena"er', 2bout &', 2( $a+h in '0'tem') .hi$e the 'tandin" 'toc+ of merchandi'e i'
.orth about &', ( crore,
Forum Mall: /hubane'h.arC' =orum ma$$) $aunched on 29th of March) 2006) i'
e3%ected to brin" in a turnin" %oint in the cit0C' retai$in" and retai$ rea$-e'tate
deve$o%ment, Iocated at Kharve$ @a"ar) Unit III) in the <entra$ /u'ine'' Bi'trict) the
HIM (2007-09) 76
ma$$ i' the brainchi$d of &ahu$ 4araf) the man .ho ma'terminded the 'ucce'' of =orum at
Ko$+ata, -he 6-$eve$ =orum ma$$ ha' a tota$ area of F70)000 '5,ft,) .ith FF()000 '5,ft,
Bevoted to the retai$ and =L/, -he "round) fir't) and 'econd f$oor') i' dedicated to %ure
retai$in") .hi$e the food court and entertainment #one' are $ocated on the third f$oor, -he
to% f$oor i' re'erved for I- and re$ated bu'ine'' and trade, -he %rominent brand' that
have ta+en '%ace in the ma$$ inc$ude /i" /a#ar (anchor)) 9i##a Hut) Mou'tache) Bu+e')
4ree Ieather') /a'+in &obin') 9$anet M) amon" other', -he u%comin" brand' inc$ude
/enetton) /$ac+berr0C') <handrani 9ear$') /ata) and 4i0aramC', -he ma$$ ha' received a
"reat re'%on'e: the avera"e footfa$$' bein" 7000 %er da0) .ith e3%ectation' of an increa'e
to *000, =orum ha' not on$0 become a 'ho%%in" de'tination for the %eo%$e of
/hubane'h.ar) but a$'o for %eo%$e from 'urroundin" area' $i+e <uttac+ and other to.n'
in the 'tate,
-he retai$ revo$ution i' '$o.$0 ma+in" chan"e' in $ife't0$e in 'ma$$er to.n' a$'o, -hi' i'
evident from the fact that even a 'ma$$ to.n $i+e Bhagalpur in /ihar) toda0 ha' itC' o.n
'ho%%in" ma$$, -he a$read0 o%erationa$ 'ho%%in" center) named ~Sriyash Aap Ka Apna
Bazar) $ocated at Ji.an 4a"ar -o.er') B,@, 4in"h &oad) ha' been %romoted b0 the
Ki'hore%uria Grou% of <om%anie', -he 2 f$oor- &',F,F0 crore %roject ha' about
FF)000'5,ft, of tota$ retai$ '%ace) and offer' a .ide ran"e of %roduct' $i+e "arment')
a%%$iance') furniture) co'metic') e$ectronic item') amon" other', -he ma$$) .hich ha' a
%ar+in" '%ace for F0 car') and (0 motorbi+e') ha' received "reat re'%on'e- the avera"e
footfa$$' bein" 900-9(0, -here are %$an' to further im%rove infra'tructura$ faci$itie' in the
com%$e3: a .e$$-e5ui%%ed food court i' comin" u%) .ith Hindu'tan Iever Itd, (HII) a'
one of the %o''ib$e %artner',
-he 7a't i' fa't emer"in" a' a formidab$e retai$ mar+et, -he '%read of retai$in" be0ond
Ko$+ata .ou$d create an inte"rated Pretai$ #oneC .hich .ou$d chan"e the .a0 %eo%$e in
thi' %art of India .or+ and $ive,
Significance of IT in organised Retail
HIM (2007-09) 7(
&etai$in") India1' $ar"e't indu'tr0 and one of the bi""e't 'ource' of em%$o0ment in the
countr0) "enerate' more than F0 %er cent of IndiaC' GB9, 8r"ani'ed retai$in") ho.ever)
occu%ie' a mini'cu$e t.o to three %ercent of the overa$$ Indian retai$in" indu'tr0,
8r"ani'ed retai$in") .hich aim' at %rovidin" an idea$ 'ho%%in" e3%erience for the
con'umer ba'ed on the advanta"e' of $ar"e-'ca$e %urcha'e') con'umer %reference
ana$0'i') e3ce$$ent ambience and choice of merchandi'e) ha' been ado%ted in a $ar"e
number of citie' in India .ith man0 bu'ine'' hou'e' inve'tin" in thi' 'e"ment,
Increa'in"$0) the or"ani'ed retai$ indu'tr0 i' rea$i'in" the im%ortance of information
techno$o"0 in brin"in" about %roce'' im%rovement') .hich .ou$d re'u$t in "reater
o%eratin" efficiencie' and hence increa'ed %rofit', /ut the a.arene'' of I- '0'tem' that
are avai$ab$e i' $o.) re'u$tin" in %oor deci'ion-ma+in", 2 number of or"ani'ed retai$er'
in India have in'ta$$ed 'o$ution' ran"in" from 'im%$e 9oint of 4a$e (9o4) '0'tem' to
com%$e3 &etai$ 7&9',
/ut .ho are the'e retai$er' and .hat +ind of I- '0'tem' have the0 em%$o0ed, /road$0)
one can c$a''if0 the retai$er' into four t0%e') name$0D-
(2) Large retailers having a chain of over 30 stores: -he'e $ar"e retai$er') main$0
'u%ermar+et' and de%artmenta$ 'tore') u'e cu'tom-bui$t '0'tem', 4ome of them have
im%$emented 7&9 %ac+a"e' to ta+e care of their bac+-office '0'tem',
(2) Mid-sized retailers handling more than 5 stores, with plans to expand to about
15-20 stores in the next two years: -he'e retai$er' %rimari$0 have de%artmenta$ 'tore
format' caterin" to a variet0 of merchandi'e, 2 number of them have their o.n %rivate
$abe$' for a$$ the merchandi'e 'o$d in their 'tore', -hi' $ar"e "rou% of retai$er' ha' '%ent a
$ot of time and effort in im%$ementin" %ac+a"ed I- 'o$ution' for 9o4) demand
foreca'tin") %urcha'e order' and inventor0 mana"ement, 2 %roven 'o$ution in man0
countrie') .hich ha' found acce%tance .ith man0 retai$er' in India) i' &etai$ 9ro) a "ood
fit for retai$er' .ith F-(0 'tore', Hi"her-end 'o$ution' $i+e JB2) 429 I4 &etai$ or &ete+)
HIM (2007-09) 7;
tar"eted at $ar"er retai$er' .ith more than 00 'tore') have a$'o found acce%tance in India)
thou"h the %a0bac+ %eriod for 'uch inve'tment' can be a' hi"h a' five to ei"ht 0ear',
() -he manufacturer-retai$erD -he'e retai$ 'ho.room' are e3c$u'ive$0 o.ned b0 the
manufacturer or are o.ned and mana"ed b0 franchi'ee' of the manufacturer, 4ome of
the'e retai$ out$et' a$'o have &etai$ 9ro for 9o4 a' .e$$ a' the bac+-office) .hi$e other'
have their 'oft.are deve$o%ed from vendor' for the 'ame functiona$itie', In thi' 'e"ment
of retai$in") it ha' been noticed that the manufacturer1' o.n 'tore' and franchi'ee have
different I- %ac+a"e') .hich $ead to data inte"ration %rob$em' and de$a0ed recei%t of
information at the head office of the manufacturer retai$er,
(4) Small retailers with less than five stores: -he'e cou$d be '%ecia$t0 a%%are$ retai$er')
di'count 'tore' or de%artmenta$ 'tore', -he0 u'ua$$0 have a vendor deve$o%ed 9o4 '0'tem
connected to an inventor0 '0'tem) thou"h 'ome of them have 'tarted u'in" more
'o%hi'ticated 'oft.are %ac+a"e',
Future IT trends for the retail segment
-he $a't fe. month' have not been ver0 "ood for retai$er' around the .or$d, -he Indian
retai$ indu'tr0 ha' "ro.n ju't ( %er cent) com%ared to a F0 to F( %er cent 0ear-on-0ear
"ro.th in the %reviou' 0ear', In the ne3t fe. month') Indian retai$er' .i$$ tr0 to ma+e do
.ith their current I- '0'tem', @e. 'tore' .i$$ be o%ened: different format' .i$$ be
e3%erimented .ith) and the e3i'tin" I- '0'tem' .i$$ be e3tended) or additiona$ $icen'e'
.i$$ be bou"ht for I- a%%$ication',
In the 'hort term) the em%ha'i' .ou$d be on u'in" the e3i'tin" I- re'ource' to "enerate
more information, 2t thi' 'ta"e) retai$er' %$an to $evera"e "ain' from their I- inve'tment',
8ne .a0 of en'urin" thi' i' to have information about their cu'tomer' and devi'e .a0' to
"et re%eat bu'ine'' from e3i'tin" cu'tomer', In order to do thi') the retai$er .ou$d need
<u'tomer &e$ation'hi% Mana"ement (<&M) or 8n-Iine 2na$0tica$ 9roce''in" (8I29)
'oft.are to run on to% of it' e3i'tin" databa'e,
HIM (2007-09) 77
Customer relationship management
<&M cou$d be u'ed for) amon"'t other thin"') cam%ai"n mana"ement) to under'tand the
bu0in" %attern' of 1$o0a$t0 cardho$der'1 and the inte"ration of mu$ti-channe$ 'a$e', -here
are a number of <&M %ac+a"e' $i+e -a$i'ma) 4iebe$) <$arif0) &ete+ <&M) 4a$e' Io"i3)
etc,) .hich cou$d be u'ed for thi' %ur%o'e, -he on$0 concern here i' that the databa'e to
be ana$0'ed b0 the <&M %ac+a"e on$0 record' %urcha'e' identified throu"h the cu'tomer
$o0a$t0 card' of the retai$ chain) .hich add' u% to about 2( to 0 %er cent of a$$ 'a$e', =or
the retai$er) the f$i% 'ide to thi' i' that he "et' detai$ed information of the bu0in" %attern'
of hi' e3i'tin" cu'tomer' and he can %$an 'trate"ie' to "et tho'e cu'tomer' to come bac+
to hi' 'tore,
Online Analytical Processing (OLAP) tools
-o ana$0'e a .ider '%ectrum of data) retai$er' cou$d u'e 8I29 too$' in order to 'e"ment
the 'a$e' and carr0 out behaviour ana$0'i', 8I29 too$' that cou$d be u'ed are 2rthur
9$annin") 8rac$e 2na$0'er) 2da0tum) <o"no') /u'ine'' 8bject') etc, -he'e 8I29 too$'
are ver0 ver'ati$e and can ana$0'e the 'a$e' data from the 9o4 and determine the trend of
'a$e' for the cate"orie' and 'ub-cate"orie' of merchandi'e 'o$d from the variou' 'tore',
-hi' ana$0'i' .ou$d enab$e the retai$er' to under'tand the t0%e of merchandi'e 'o$d) the
fre5uenc0 of 'a$e) the "eo"ra%hica$ '%read of the 'a$e') and a$'o %rovide 1.hat if1 ana$0'i'
for %rojected 'a$e') %rice chan"e') etc, &etai$er' can then increa'e 'a$e' b0 %rovidin" the
correct merchandi'e and devi'in" %romotion 'trate"ie',
B2B software
=or manufacturer-retai$er' and other retai$er' .ho %romote their o.n %rivate $abe$') the
need in the current conte3t .ou$d be to monitor the com%$ete manufacturin" and 'u%%$0
chain, -hi' can be done throu"h vendor mana"ement 'oft.are) .hich uti$i'e' the Internet
for acce''in" the detai$', -hi' /2/ 'ite .ou$d entai$ confirmin" the "arment de'i"n to the
vendor b0 the retai$er) monitorin" the fabric %urcha'e' from the fabric vendor')
monitorin" the 'titchin" and de$iver0 of the a%%are$ to the retai$er1' de$iver0 centre (B<))
and the invoicin" and %a0ment to the vendor' b0 the retai$er, 2cce''in" the Internet from
HIM (2007-09) 7*
an0 $ocation cou$d do a$$ thi', -he vendor' .ou$d enter the re$evant data from their end,
-hi' .ou$d he$% reduce co't' and en'ure the avai$abi$it0 of merchandi'e at the 'tore',
Collaborative planning and forecasting (CPFR) tools
-he u'e of co$$aborative %$annin" and foreca'tin" too$' (<9=&) .ou$d he$% contro$ co't'
for the vendor and the retai$er) a' %roduction .ou$d ta+e %$ace after ta+in" into account
the %$anned merchandi'e re5uirement' of the retai$er, -hi' .ou$d be a !eb-ba'ed '0'tem)
and can be bui$t to 'uit the need' of the retai$er and the vendor,
Hence) the 'hort term I- need' of the or"ani'ed retai$er .ou$d revo$ve around hi' abi$it0
to 'ervice the cu'tomer' in a better manner b0 u'in" <&M and 8I29 too$') and to reduce
co't' b0 u'in" !eb-ba'ed '0'tem' of vendor mana"ement and <9=&,-o meet the
"ro.in" need' of the future) there i' a need no. to ta+e 'toc+ of the %re'ent I-
infra'tructure and $oo+ at the re5uirement' for the future, -he re5uirement of the future
.ou$d be to evo$ve I- a' a 'trate"ic enab$er for the or"ani'ation,
!ith reduced bu'ine'' due to the .ea+ economic 'ituation in the countr0 reducin" 'a$e'
and %roductivit0) retai$er' need to $oo+ c$o'e$0 at their interna$ '0'tem' and %rocedure',
@on-va$ue-addin" activitie' need to be .eeded out and re%$aced b0 efficient '0'tem' and
%rocedure', -hi' e3erci'e .ou$d he$% retai$er' to define the efficient functiona$it0
re5uired for the future, Havin" defined the functiona$it0) retai$er' need to under'tand ho.
information techno$o"0 .ou$d 'u%%ort the efficient im%$ementation of the revi'ed
'0'tem' and %rocedure' in term' of com%uter '0'tem') hard.are) 'oft.are and
net.or+in", &etai$er' a$'o need to under'tand ho. the I- '0'tem' .ou$d be inte"rated
and net.or+ed acro'' the countr01' 'tore' and the head office of the retai$er,
!ith the %rojected "ro.th of or"ani'ed retai$in" in India) $ar"e to mid-'i#ed retai$er' need
to u%"rade their I- '0'tem' and ta+e into con'ideration the techno$o"0 trend' K 'ome of
.hich are current$0 na'cent) but .hich .i$$ evo$ve to become im%ortant a''et' for the
future,
Retail ERP packages
HIM (2007-09) 79
In the future there .ou$d be a need to eva$uate if retai$ 7&9 %ac+a"e' $i+e JB2) 429 I4
&etai$ and &ete+ are 'uitab$e for Indian retai$er', -he'e %roduct' have an inte"rated
'o$ution for demand foreca'tin") merchandi'in") re%$eni'hment') 'u%%$0 chain) etc, Mo't
of the'e %ac+a"e' have bui$t-in <&M) 8I29 too$') co$$aborative %$annin" and 'u%%$0
chain '0'tem' that are ti"ht$0 inte"rated .ith the merchandi'in" and foreca'tin"
functiona$it0, -hou"h the f$i% 'ide i' that the'e %ac+a"e' are co't$0) the return on
inve'tment ta+e' $on"er and e3%erti'e to im%$ement the '0'tem' are "radua$$0 bein"
deve$o%ed in India, Hence) it .ou$d be a "ood idea to eva$uate the'e %ac+a"e') determine
the co't-benefit ana$0'i') and .herever %o''ib$e) 'ource the 'oft.are from one vendor
or"ani'ation that .ou$d %rovide a$$ the functiona$ re5uirement' of the retai$er from an
information techno$o"0 %er'%ective,
-he Indian e3%erience in im%$ementin" &etai$ 7&9' ha' been difficu$t due to the $ac+ of
trained 7&9 %ac+a"e im%$ementer' in India, Hence) the co't of im%$ementation ha' "one
u%) a' %ac+a"e e3%ert' have to be brou"ht in from abroad, /ut thi' i' true for a$$ 7&9
im%$ementation in India) .hether in the retai$ 'ector or in the manufacturin" 'ector, In the
%a't) manufacturin" indu'trie' a$'o faced difficu$tie' in im%$ementin" 7&9 %ac+a"e'
'%ecifica$$0 meant for the indu'tr0) but over time) .ith e3%erti'e in the %ac+a"e' and in
their im%$ementation bui$din" u% .ithin India) the 'ucce'' rate' of 'uch im%$ementation'
have increa'ed, Hence) over the ne3t t.o to three 0ear') &etai$ 7&9 e3%erti'e .i$$ "ro.
and .i$$ be ab$e to 'u%%ort the need' of Indian retai$er') .ho in that timeframe .ou$d
have %ro"re''ed u% the $earnin" curve on the benefit' of information techno$o"0,
Business optimisation software
(a.) 9roduct %ricin" 'oft.are
8ne of the mo't critica$ cha$$en"e' faced b0 retai$er' carr0in" thou'and' of %roduct' A
4KU' i' 1%ricin"1 K the abi$it0 to %rice a$mo't a$$ the %roduct' 'uitab$0) a$$ the time) 'o
that 'a$e' of even individua$ item' 0ie$d a net %rofit, -he advent of 'o%hi'ticated %rice
o%timi'ation A revenue mana"ement techni5ue' offer 'i"nificant %ro'%ect' for enhancin"
%rofitabi$it0,
HIM (2007-09) *0
Bemand-ech and Khimetric') t.o U4-ba'ed 'oft.are %roduct vendor' have come u%
.ith %roduct' that he$% retai$er' to o%timi'e the %rice' of their %roduct', -he'e com%anie'
have been beta te'tin" their 'oft.are %roduct .ith 'ome of the retai$er' in the U4, -he
advent of %ricin" deci'ion 'u%%ort techni5ue' for the retai$ indu'tr0 ha' o%ened u%
variou' %o''ibi$itie' for the retai$er', -hou"h it .i$$ ta+e 'ome time for 'uch %roduct' to
come to India) retai$er' here need to under'tand the feature' of the %roduct' and ho.
the'e %roduct' can he$% them in their %ricin" deci'ion',
(b). Merchandi'e o%timi'ation 'oft.are
&etai$er' 'ti$$ have difficu$t0 in en'urin" that cu'tomer re5uirement' are fu$fi$$ed, -here
are a $ar"e number of occa'ion' .hen cu'tomer' have found that the item' are not
avai$ab$e .hen the0 vi'it the 'tore', Increa'in"$0) from a retai$er1' %er'%ective) there are
time' .hen "ood' are 'o$d at mar+ed-do.n %rice', @o. a ne. 'et of 'oft.are
a%%$ication' ha' been deve$o%ed .hich a%%$0 'o%hi'ticated data %roce''in" techni5ue' to
e3i'tin" inventor0 and 'a$e' data to accurate$0 determine future %attern' of 'u%%$0 and
demand at the item and 'tore $eve$, -he'e t0%e' of bu'ine'' o%timi'ation 'oft.are are 'ti$$
at a na'cent 'ta"e in term' of u'a"e, /ut in the 0ear' to come the'e 'oft.are a%%$ication'
.i$$ be u'ed b0 a $ar"e number of retai$ or"ani'ation',
Mobile computing
-he u'e of mobi$e com%utin" for o%timi'in" inventor0 and 'u%%$0 chain efficiencie' have
been enab$in" retai$er' to reduce co't', !29 (!ire$e'' 2%%$ication 9rotoco$)-enab$ed)
handhe$d %er'ona$ di"ita$ a''i'tant' (9B2) and mobi$e %hone' are becomin" increa'in"$0
im%ortant for retai$ o%eration', !ith the u'e of mobi$e com%utin") inventor0 %o'ition' of
actua$ 'toc+ in hand at the 'tore' can be entered in the mobi$e handhe$d device' and
tran'mitted to the bac+-office com%uter' for verification of 'toc+, 4imi$ar$0) 'u%%$0 chain
efficiencie' can be increa'ed b0 orderin" item' throu"h !29-enab$ed 9B2') .hich .i$$
reduce the timeframe for the 'u%%$0 of 'toc+',
HIM (2007-09) *F
B2C
-he "ro.th in /2< retai$in" ha' not ta+en off in India) %rimari$0 becau'e of the
a%%rehen'ion in the mind' of the con'umer about the 'ecurit0 of the %a0ment '0'tem' and
the efficiencie' of the 'u%%$0 chain, -he con'umer i' concerned about the fact that the
artic$e' ordered mi"ht not reach him due to inefficiencie' in the $o"i'tic' of de$iverin" the
%roduct to hi' homeAoffice, 8ver time) the'e inefficiencie' .i$$ a$'o be removed) and over
the ne3t t.o to three 0ear') retai$er' .i$$ have to cater increa'in"$0 to thi' channe$, -he0
.ou$d need to 'tart bui$din" the I- infra'tructure to enab$e 'uch tran'action' over the @et,
Retail exchanges
Hariou' retai$ e3chan"e' have been 'et u% in the U4 and in 7uro%e, 8ne of them i' the
!or$d !ide &etai$ 73chan"e) .hich enab$e' retai$er' to interact .ith vendor' and .ith
other retai$er' for /2/ tran'action', 4uch e3chan"e' he$% in reducin" tran'action co't',
-he0 need to be 'et u% in India too,
8vera$$) in the $on" run) Indian retai$er' need to $oo+ at an inte"rated I- 'u%%ort '0'tem to
ta+e care of their information re5uirement', Indian retai$er' .ou$d have to %$an their I-
re5uirement' +ee%in" in mind the'e future deve$o%ment', -he0 need to 'tart no. 'o that
the0 are %re%ared .hen bu'ine'' %ic+' u% in the month' ahead
Recipe for Success
Focus on the consumerD- It i' c$ear that con'umer' have chan"ed and the0 are $oo+in"
for 'omethin" different, Under'tandin" their evo$vin" need') a'%iration' and $ife't0$e' i'
the under$0in" +e0 to 'ucce'' for an0 retai$er, -he %rimar0 em%ha'i' 'hou$d be on acce'')
e3%erience and 'ervice and the 'econdar0 em%ha'i' on %roduct and %rice, -here 'hou$d be
an effort to im%rove 'ervice b0 havin" better trained 'a$e' 'taff) better avai$abi$it0 of
%roduct') and minor but im%ortant convenience') e,", de$iver0 of "ood' either to the car
or even home, <o$$aborative adverti'in" and %romotion can then round off thi' effort,
HIM (2007-09) *2
QBrand the storeD -brandin" the 'tore .i$$ increa'e vo$ume and enhance cu'tomer $o0a$t0,
/randin" i' critica$ to maintainin" com%etitive differentiation in an increa'in"$0
cha$$en"in" retai$ environment, Ho.ever) the brand need' to be c$ear$0 communicated to
the cu'tomer,
QDevelop private label brand:- 9rivate $abe$' act a' mar"in "enerator') increa'in" 'a$e'
Ho$ume b0 %o'itionin" the $abe$ a' %rovidin" hi"her %erceived va$ue to con'umer', In the
$on" run) the0 a$'o increa'e the retai$er'C bar"ainin" %o.er .ith nationa$ brand 'u%%$ier',
9rivate $abe$' "enerate cu'tomer $o0a$t0 b0 %rovidin" e3c$u'ive %roduct') .hich .or+'
to.ard' differentiation 'trate"0) much 'ou"ht after b0 the retai$er',
(1) In terms of geography 'ome entre%reneur' 'hou$d %ut effort' in creatin" cu'tom-
deve$o%ed 'o$ution' for ta%%in" the rura$ and 'emi-urban '%endin" %otentia$, 7ven in non-
metro urban centre') there are ver0 "ood o%%ortunitie' in $oo+in" at 'tartin" or e3%andin"
o%eration', 4ome citie' that 'hou$d 'ee "reater or"ani'ed retai$ action in the future .ou$d
be Iudhiana) <handi"arh) Iuc+no.) @a"%ur) 2hmedabad) 4urat) 9une) Kochi)
-hiruvanantha%uram) Gu.ahati and /hubane'h.ar,
(2) In terms of format ma$$' have a 'u'tainab$e com%etitive advanta"e over other
format', <on'umer %reference' are 'hiftin" to.ard' ma$$' from traditiona$ mar+et', 2' a
re'u$t of con'umer 'hift') retai$er' a$'o %refer to be $ocated in ma$$' in antici%ation of
hi"her footfa$$ and increa'in"$0 con'umer' %refer >2$$ Under 8ne &oofN de'tination for
'ho%%in" a' .e$$ a' eatin" out and entertainment, -he'e findin"' to"ether indicate an
e3ce$$ent %otentia$ for a ma$$ .ith the fo$$o.in" feature'D-
a 'u%erior .e$$-mana"ed $ei'ure e3%erience
Qtar"eted at a$$ member' of the hou'eho$d
Qcom%ri'in" of 'ho%%in") dinin" and entertainment) a$$ under one roof
Qa .ide ran"e of %roduct' and 'ervice'
Q%ro3imit0 to home'
HIM (2007-09) *
An Emerging middle-class: Great prospects
-he income di'tribution of hou'eho$d' ha' a$'o under"one a 'ea chan"e in recent 0ear',
-he con'o$idated %urcha'in" %o.er of the countr0 ha' "one u%) and the trend i' %rojected
to continue, 2 'i"nificant 'hare of %o%u$ation .i$$ move u% the affordabi$it0 and
aff$uence $adder b0 200; - 07
!ith about 60 citie' that have a %o%u$ation of more than F mi$$ion) India i' a ver0
attractive mar+et for $ar"e retai$ %$a0er', /oth di'%o'ab$e income' and con'umer
'%endin" are ri'in", -he'e are the fundamenta$' drivin" the chan"e .ithin IndiaC' retai$
'ector, -he "ro.th of or"ani#ed retai$in" ho$d' immen'e o%%ortunitie' for retai$er')
deve$o%er') in'titution' and inve'tor',
-he or"ani#ed retai$ 'ector in India "ro''ed over &', 20)000 cr in 2002) a mere 2 %er cent
of tota$ retai$ 'a$e', -hi' i' e3%ected to "ro. to ; %er cent b0 200;-2007) .hen the 'ector
i' e3%ected to "ro'' more than &', 60)000 cr, -he to% F0 citie' account for 9( %er cent of
HIM (2007-09) *6
or"ani#ed retai$ bu'ine'' and the to% 'i3 for over *0 %er cent, -he tota$ additiona$ rea$
e'tate demand from or"ani#ed retai$in" acro'' the to% 'i3 citie' b0 2007 i' e3%ected to be
about 2( mi$$ion '5, ft, Ma$$ deve$o%ment' are e3%ected to account for over *0 %er cent of
thi' o%%ortunit0,
4evera$ factor' are re'%on'bi$e for the '$o. tran'ition to or"ani#ed retai$in" in India,
-he'e inc$ude the '$o. %ro$iferation of retai$ brand') ta3 advanta"e' to the unor"ani#ed
'ector) $ac+ of man0 attractive catchment') and the re$ative$0 unor"ani#ed and
un'tructured nature of rea$ e'tate mar+et', If the'e factor' are 'et ri"ht) .e cou$d have a
differentiated retai$ rea$ e'tate mar+et .ith $o. renta$ rate' and a hi"h $eve$ of %roduct
innovation,
4o far) a%%are$ and food have dominated or"ani#ed retai$in" in India, Mo't e3i'tin"
%$a0er' %$an to doub$eAtreb$e their inve'tment' in the ne3t three to four 0ear', Man0
cor%orate %$a0er' have entered or"ani#ed retai$in" bu'ine'' and more are e3%ected to
enter in the comin" 0ear', Mo't of the'e are nationa$ %$a0er', =orei"n retai$er' have 'o far
7ntered the mar+et throu"h the franchi'e route,
-he emer"ence of India a' the %referred 'ourcin" ba'e for 'ome of the .or$dC' to%
retai$er' i' $eadin" to a ri'e in the manufacturer'C $earnin" curve thereb0 re'u$tin" in
"reater %roduct %ro$iferation, -hi' .i$$ be a vita$ factor .hen $ar"e internationa$ retai$er'
9$an their fora0' into India, !hi$e the %a't three 0ear' have 'een $ar"e "ro.th and entr0
b0 a number of %$a0er' into retai$in") mo't of the activit0 remain' concentrated in the to%
five-'i3 citie', 2' the mar+et' .ithin the to% citie' mature) more and more o%%ortunitie'
.i$$ emer"e in the 'econd tier urban c$u'ter', In addition) 'ma$$er to.n' a$'o have
o%%ortunitie' for a differentiated retai$ %$a0,
In the to% citie') mo't or"ani#ed retai$ deve$o%ment' occurred in a 'cenario .here
demand for retai$ '%ace e3ceeded 'u%%$0, In future .e cou$d .itne'' a 'cenario .here
'har%$0 differentiated rea$ e'tate offerin"' .i$$ fir't come to the mar+et) and thi' .i$$ in
HIM (2007-09) *(
turn create demand for '%ace, -hi' .i$$ ho$d true e'%ecia$$0 in the under-'erved 'econd
tier mar+et') and the under'erved catchment' .ithin to% tier citie',
-herefore) ana$0'i' of the $ocation) u%-to-date mar+et information re"ardin" the nature of
'%ace re5uirement) u'a"e %attern') etc .i$$ a''ume "reat im%ortance) '%ecia$$0 in the
under-'erved retai$ mar+et',
73i'tin" u%-mar+et retai$ $ocation' .i$$ .itne'' ne.er format', &etai$er' cou$d enter into
joint venture' .ith $and$ord') thereb0 'harin") and thu' reducin") the $atterC' ri'+', &ea$
e'tate renta$' cou$d "et %e""ed to the amount of 'a$e' or to 'ome other common
denominator, /ut thi' format .i$$ emer"e .hen retai$ mar+et' mature and ma$$
deve$o%er' o%erate in a com%etitive environment for "ainin" a $ar"er 'hare of the retai$
%ie,
Mo't ma$$ deve$o%ment' are %$anned on the bac+ of confirmed demand from major
anchor' and 'ub-anchor', 2$'o) the %ace of entr0 b0 '%ecia$it0 retai$er' i' on the ri'e
o.in" to chan"in" demo"ra%hic', !hi$e 'ome %oc+et' in the to% citie' cou$d "et over-
'erved and ma0 .itne'' a fa$$ in %rice') thi' .i$$ $ead to a .in-.in 'ituation for
deve$o%er' a' .e$$ a' retai$er' a' the mar+et' .ou$d "et corrected, 2 correction in renta$'
due to com%etition cou$d re'u$t in a more 'tructured rea$ e'tate mar+et that .ou$d a$$o.
the retai$er' a hi"her mar"in on their rea$ e'tate inve'tment') thereb0 enab$in" them to
e3%and fa'ter, -he re$ative$0 over'erved citie' cou$d .itne'' hi"her activit0) a' rea$ e'tate
'%ace "et' more affordab$e, -hi' .ou$d reduce the brea+-even time of retai$er', 2t
%re'ent) the brea+-even time i' a%%ro3imate$0 t.o 0ear') and three to four 0ear' are
re5uired for "ettin" a %o'itive return on inve'tment, -he'e are the mar+et' that .i$$ 'ee
the creation of hi"h$0 differentiated retai$ '%ace' in future,
-he abi$it0 to attract anchor' and 'ub-anchor' .i$$ determine the 'ucce'' of a ma$$ - the
hi"her the better, /ut .hat ha%%en' to the deve$o%erC' %rofit mar"in if the bu$+ of '%ace
i' $ea'ed to anchor' that %a0 'ub-mar+et renta$', -o avoid thi') ma$$' in to% urban citie'
.i$$ need to create differentiation in term' of 'i#e) %rovide the crucia$ %ar+in"
infra'tructure that i' often under-e'timated) and 'o on,
HIM (2007-09) *;
-he under-'erved mar+et' cou$d .itne'' a fren#0 of retai$ deve$o%ment %roject' in the
form of redeve$o%ment of bro.nfie$d 'ite' a' .e$$ a' "reenfie$d %roject', =or the retai$er)
'ome under-'erved mar+et' cou$d %rovide enou"h mar"in' to com%en'ate for the $o'' of
mar"in' in to% urban mar+et', Under-'erved mar+et' - %rimari$0 the tier 2 citie' - .i$$
.itne'' increa'ed intere't in the ne3t -6 0ear' a' the'e are na'cent territorie' that offer
attractive o%%ortunitie' to deve$o%er') inve'tor' and retai$er',
!hat i' re5uired to en'ure that the %ace of retai$ activit0 remain' 'tron" in both the'e
mar+et'M 2 number of i''ue' 'uch a' the rationa$i#ation of rea$ e'tate mar+et') $o.erin"
of entertainment ta3e') increa'ed 'ource' of fundin" for rea$ e'tate) a$$o.in" =BI)
chan"in" im%ort norm') and uniformit0 in ta3e' for the or"ani#ed and unor"ani#ed
'ector') need attention,
=or their %art) retai$er' need to be hi"h$0 f$e3ib$e, -he0 mu't time their entr0 .e$$) and
'e$ect a 'tore format and bu'ine'' mode$ be't 'uited to the %articu$ar area, -he 'i#e of the
retai$ 'tore and the %ace of e3%an'ion .i$$ determine the financia$ 'ucce'' of retai$er' over
the $on" run,
2 $ot .i$$ de%end on the %erformance of e3i'tin" ma$$' and of tho'e comin" to the mar+et
in the ne3t t.o 0ear', -he %erformance of the'e ma$$' .i$$ de%end on a ho't of factor'D
ri"ht %o'itionin") de'i"n) tenant mi3) maintenance) etc) and a$'o on the 5ua$it0 and co't of
rea$ e'tate, -he o%erationa$ and financia$ 'ucce'' of o%eratin" ma$$' .i$$ in turn affect the
"ro.th of the or"ani#ed retai$ 'ector) and .i$$ be c$o'e$0 benchmar+ed for the %$annin" of
ne.er retai$ format',
8ther factor' remainin" con'tant) it remain' to be 'een ho. much rea$ e'tate reform' ta+e
%$ace and retai$ renta$' become affordab$e in the comin" 0ear' 'o that the0 'u%%ort the
im%endin" boom in or"ani#ed retai$, 2$$o.in" =BI in the retai$ 'ector .i$$ "o a $on" .a0
to.ard' boo'tin" the 'ector a' man0 internationa$ retai$er' a.ait the re$a3ation in =BI
norm' for enterin" the Indian mar+et,
HIM (2007-09) *7
CHALLENGES OF RETAIL VISION 2010
Courtesy: ...,thoma'net,com
Challenges in Retail In-Store Environments
&=IB '0'tem' '%endin" for retai$ in-'tore a%%$ication' reached near$0 E** mi$$ion
"$oba$$0 in 200() accordin" to a recent$0 re$ea'ed re%ort b0 Henture Beve$o%ment
<or%oration (HB<), HB< foreca't' "ro.th of more than (G %er 0ear in retai$er
'%endin" on &=IB for in-'tore %oint-of-'a$e (984) a%%$ication' throu"h 20F0) .hen the
mar+et i' e3%ected to reach near$0 E600 mi$$ion,
G$oba$ 4hi%ment' of &=IB 40'tem' for the &etai$ 984 Hertica$ 4e"mented b0 9roduct
<ate"or0 (Mi$$ion' of Bo$$ar')
200( Hard.areD E(*, 4oft.areD E7,9 4ervice'D E2F,*
20F0 Hard.areD E26F,( 4oft.areD EF,* 4ervice'D EF22,F
/i" retai$er intere't in and commitment' to &=IB have been .e$$ documented, -heir
technica$ a%%roache' and a%%$ication %rioritie' are .ide$0 diver"ent) but their "oa$' are
fair$0 con'i'tent, HB< te$e%hone 'urve0' of retai$er' conducted durin" ?F 200; revea$ a
common vi'ion for &=IB retai$ 984 a%%$ication' that inc$ude' the fo$$o.in"D
o 2ccurate and efficient inventor0 contro$:
HIM (2007-09) **
o <on'e5uent co't reduction' re$ated to better inventor0 mana"ement: - 8%tima$ 'toc+
$eve$' ba'ed on rea$-time cu'tomer activit0Ademand: - &eduction of out-of-'toc+': -
Io.er .arehou'in" co't' via automated %roce''e' and im%roved trac+in" efficiencie':
o Im%roved mar"in' a''ociated .ith the co't reduction' cited above,
-he +e0 to &=IB for retai$ in-'tore a%%$ication' i' the co't-effectivene'') re$iabi$it0) and
ea'e-of-u'e of item-$eve$ ta""in" 'o$ution', !ithout item-$eve$ ta""in") HB< be$ieve'
that mo't va$ue %ro%o'ition') revenue enhancement "oa$') and mar"in im%rovement
objective' .i$$ not be attainab$e, 4ome of the mo't 'i"nificant cha$$en"e' to item-$eve$
'o$ution deve$o%ment) de%$o0ment) and o%eration inc$udeD
o 4oft.are codin" and %ro%er '0'tem' inte"rationD <onver'ion code need' to be .ritten
to convert a$$ e3i'tin" databa'e' 'o that a retai$er can cart 79< information, Mana"in" the
enormou' vo$ume' of data "enerated b0 &=IB '0'tem' i' e3%ected to be a com%$e3 ta'+)
re5uirin" 'i"nificant retai$er attention:
o Un'0nchroni#ed ado%tion acro'' the 'u%%$0 chainD &etai$er' are concerned that their I-
'u%%$ier' and di'tributor' ma0 not be 5uic+ to im%$ement &=IB, &etai$er' and
manufacturer' need to co$$aborate on &=IB effort' to receive the fu$$ benefit) inc$udin"
determinin" ho. be't to %$aceA%o'ition &=IB tran'%onder' onto %roduct' or into %ac+a"e'
in the mo't co't-effective and efficient .a0:
o 73ten'ive trainin" re5uirement' of ne. '0'tem'D &etai$ %er'onne$ mu't be trained on
ho. to u'e the ne. '0'tem' and to $earn ne. job function', In addition) 'ome retai$er'
ma0 need to rene"otiate $abor contract' due to co$$ective bar"ainin" a"reement'
re"ardin" .or+ ru$e' for em%$o0ee': and
o <o't of techno$o"0 re%$acementD In addition to the co't' of '0'tem com%onent' and
bu'ine'' %roce'' chan"e') there i' a$'o the %otentia$ e3%en'e of re%$acin" e3i'tin"
HIM (2007-09) *9
'canner' in 'tore' .ith ne. device' that are both bar code ma"netic 'tri%e and &=IB
enab$ed, !ith retai$er' 'u%%ortin" more and more chec+out $ane' acro'' hundred' of
'tore') the number of device' that .i$$ %otentia$$0 be re%$acedAu%"raded i' 'i"nificant,
2ccordin" Michae$ J, Iiard) Birector of HB<1' &=IB 2nnua$ &e'earch 4ervice) >Item-
$eve$ ta""in" .i$$ be ro$$ed out '$o.$0) over time, Be%$o0ment deci'ion' .i$$ be
determined a' much b0 the va$ue (or $iabi$it0) of item' merchandi'ed) a' b0 the vo$ume of
unit' 'o$d, <urrent im%$ementation co't' - %articu$ar$0 ta" %rice') are 'im%$0 too hi"h for
.ide'%read ado%tion,>
About VDC
Henture Beve$o%ment <or%oration (HB<) i' an inde%endent techno$o"0 mar+et re'earch
and 'trate"0 con'u$tin" firm that '%ecia$i#e' in a number of retai$ automation) &=IB)
2IB<) embedded) com%onent) indu'tria$) and defen'e mar+et', HB< ha' been o%eratin"
'ince F97F) .hen the firm .a' founded b0 "raduate' of the Harvard /u'ine'' 4choo$ and
Ma''achu'ett' In'titute of -echno$o"0, -oda0) .e em%$o0 a ta$ented co$$ection of
ana$0't' and con'u$tant' .ho offer a rare combination of e3%erti'e in the mar+et re'earch
%roce'': e3%erience in techno$o"0 %roduct and %ro"ram mana"ement: and forma$ trainin"
in en"ineerin" and mar+etin", HB<1' c$ient' inc$ude thou'and' of the $ar"e't and fa'te't-
"ro.in" tech 'u%%$ier' in the .or$d and the mo't 'ucce''fu$ inve'tor' %artici%atin" in the
mar+et' .e cover,
HIM (2007-09) 90
QUESTIONNAIRE
~RETAIL INDUSTRY
Name: WWWWWWWWWWWWWWWWWWWW Occupation: WWWWWWWWWWWWWWWWWWWW
Age : WWWWWWWWWWWWWWWWWWWW Area : WWWWWWWWWWWWWWWWWWWW
Marital Status: WWWWWWWWWWWWWW
(Here in the ran+in" F indicate' the hi"he't ran+ and decrea'e' .ith increa'e in number')
1. Bo 0ou vi'it ma$$'M
Se' @o
2. Ho. man0 ma$$' are there in 0our area or nearb0 areaM
3. In the ma$$' in 0our area or nearb0 area are there 4toreC' $i+eD
7,", /i" ba#aar) =ood ba#aar) 9anta$oon') Hi'ha$ Me"amart) !e't'ide etc,

Se' @o
4. Bo 0ou $i+e bu0in" c$othe' and acce''orie' from the'e Ma$$' or from the %$ace' $i+e
4arojini @a"ar) Kam$a @a"ar) Karo$ ba"h) Kache0 5uarter etc, Give rea'on'M
a) Ma$$'
Reasons
2mbience 4ervice /rand
b) Ioca$ Mar+et'
Reasons
9rice Hariet0 2cce''ibi$it0
c) /oth Ma$$' and Ioca$ mar+et'
5. Ho. often do 0ou vi'it the'e ma$$'Aretai$ 'tore'M
HIM (2007-09) 9F

Bai$0 !ee+$0 Month$0 8cca'iona$$0

6. !hat i' the %ur%o'e of vi'itin" the'e %$ace'M
=rea+-out 9$anned 4ho%%in" !indo. 'ho%%in"
Batin" 8ther rea'on'XXXXXX,
7. !hat do 0ou %refer to bu0 from the'e %$ace'M &an+ in order of %referenceM
Buying Rank
<$othe'
2cce''orie'
Grocerie'
8. !hat %ro%e$' 0ou to bu0 c$othe' and acce''orie' from the'e retai$ 'tore'M
@eed Bi'count 4a$e Hariet0 ?ua$it0

10. !here do 0ou $i+e bu0in" "rocerie' fromM &an+ in order of %referenceM
Preference Rank
&etai$ 4tore'
Kirana 4ho%
Ioca$ He"etab$e
Hendor'
Reasons:
?ua$it0 Hariet0 Bi'counted %rice 2cce''ibi$it0
11. !i$$ the'e Ma$$'A&etai$ 4tore' "ro. over a %eriod of timeM

Se' @o
Give reasons:
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
HIM (2007-09) 92
Analysis
F, Bo 0ou $i+e bu0in" c$othe' and acce''orie' from the'e ma$$' or from the %$ace'
4arojini @a"ar) Kam$a @a"ar etc,
Ma$$' O 2F Ioca$ Mar+et O ( /oth O 6
21, 35%
5, 8%
34, 57%
Malls
local markets
Both
The above pie chart shows that the highest population goes for both malls
and the local market for their shopping requirements. This show, how malls
as well as local markets are equally important. 34.57 of the population goes
to both local market and the malls because the RFID system of the Retail
Stores is not yet successful as per challenges of retail vision 2010. So the
accessibility of the consumers towards the malls is not yet very convenient.
Apart from that price and variety are the other factors. Some more reasons
are showed below in the pie chart:
&ea'on' for Ma$$'
2mbience O 9 4ervice - 9 /rand O F6
HIM (2007-09) 9
Reasons for Malls
28%
28%
44%
Ambience
Service
Brand
-he above %ie chart 'ho.' that 66G of the %o%u$ation .ho vi'it' the &etai$ 4tore'
in the Ma$$' "oe' for the branded %roduct') a' the0 are Hi"h @et !orth Income
Grou% con'umer', -he'e con'umer' never ma+e an0 %urcha'e' from the Ioca$
Mar+et', 2$on" .ith that the 2mbience and the 4ervice %rovided in the &etai$
4tore' are u% to the mar+,
&ea'on' for Ioca$ Mar+et'
9rice O 6 Hariet0 O F 2cce''ibi$it0 O 6
Reasons for Local Market
45%
11%
44%
Price
ariet!
Accessibilit!
-he above %ie chart 'ho.' that 66G of the con'umer ma+e' their %urcha'e' from
the $oca$ mar+et' a' the mar+et are ea'i$0 acce''ib$e, 9rice i' a$.a0' a factor for
them a' the0 are Midd$e <$a'' con'umer', -he0 a$.a0' "et a .ide ran"e of
variet0 at a $o.er %rice in the Ioca$ Mar+et,
HIM (2007-09) 96
2, Ho. often do 0ou vi'it the'e ma$$'Aretai$ 'tore'M
Bai$0 O 6 !ee+$0 O 0 Month$0 O F9 8cca'iona$$0 O 7
7%
4"%
32%
12%
#ail!
$eekl!
Monthl!
%ccasionall!
The above pie chart shows the frequency of the population of visiting malls. The
highest population i.e. 49 of the population visits malls weekly for various
purposes e.g. shopping, freak out, dating etc. 32 of the population who visits malls
monthly, they normally goes for planned shopping and sometimes for freak out
only.
, !hat i' the %ur%o'e of vi'itin" the'e ma$$'M
=rea+out O 2; 9$anned 4ho%%in" O 6F !indo. 4ho%%in" O F(
Batin" O F* other' O (
HIM (2007-09) 9(
25%
3"%
14%
17%
5%
&reako't
Planned sho((in)
$indo* sho((in)
#atin)
%thers
The above pie chart shows that the highest population i.e. 39 visits these
malls/retail stores for planned shopping. These consumers falls in the
category of HNI group, while others mostly for freak-out followed by dating,
window shopping and other reasons as well.
6, !hat %ro%e$' 0ou to bu0 c$othe' and acce''orie' from the'e retai$ 'tore'M
@eed O 7 Bi'count 4a$e O 27 Hariet0 O 22 ?ua$it0 O 2*
8%
32%
2+%
34%
,eed
#isco'nt sale
ariet!
-'alit!
The above pie chart shows that 34 of the consumers goes for quality while
purchasing clothes and accessories, 32 consumers goes for discounted sale,
as they get the same quality at a lower price, while 26 of the consumers
believes in variety and the rest 8 makes their purchases only when they
HIM (2007-09) 9;
are in need. But apart from the 34 consumer who believes in quality only,
the rest of the 32, 26 and 8 consumers also lie on quality and value for
money.
(, !i$$ the'e ma$$'Aretai$ 'tore' "ro. over a %eriod of timeM
Se' O (; @o O 6
"3%
7%
.es
,o
The above pie chart shows that 93 of the population of the sample size
believes that the malls and the retail stores will definitely grow over a period
of time, as this industry is going to generate a huge number of employment,
places for recreation and it will also help in grooming other industries viz:
Real Estate, Banking, Food, Power etc. This is like the theory of
DEPENDENCY. One industry depends on the other to grow.
According to VDA report of ~Challenges of Retail Vision 2010 the Retail
Industry will grow due to following reasons:
&=IB '0'tem' '%endin" for retai$ in-'tore a%%$ication'
2ccurate and efficient inventor0 contro$
o <on'e5uent co't reduction' re$ated to better inventor0 mana"ement
8%tima$ 'toc+ $eve$' ba'ed on rea$-time cu'tomer activit0Ademand
&eduction of out-of-'toc+'
HIM (2007-09) 97
Io.er .arehou'in" co't' via automated %roce''e' and im%roved trac+in"
efficiencie'
Im%roved mar"in' a''ociated .ith the co't reduction' cited above,
4oft.are codin" and %ro%er '0'tem' inte"ration
Un'0nchroni#ed ado%tion acro'' the 'u%%$0 chain
73ten'ive trainin" re5uirement' of ne. '0'tem'
<o't of techno$o"0 re%$acement
Conclusion - How can it be done
=or a 'tart) the'e retai$er' need to inve't much more in ca%turin" more '%ecific mar+et
inte$$i"ence a' .e$$ a' a$mo't rea$-time cu'tomer %urcha'e behaviour information, -he
retai$er' a$'o need to ma+e 'ub'tantia$ inve'tment' in under'tandin"Aac5uirin" 'ome
advanced e3%erti'e in deve$o%in" more accurate and 'cientific demand foreca'tin"
mode$',
&e-en"ineerin" of %roduct-'ourcin" %hi$o'o%hie' - a$i"ned more to.ard' co$$aborative
%$annin" and re%$eni'hment 'hou$d then be ne3t on their a"enda, -he me''a"e) therefore)
for the e3i'tin" 'ma$$ and medium inde%endent retai$er' i' to c$o'e$0 e3amine .hat
chan"e' are ta+in" %$ace in their immediate vicinit0) and ana$0'e .hether their current
mar+et offer' a %otentia$ redeve$o%ment of the area into a more modern mu$ti-o%tion
de'tination, If it doe') and mo't commercia$ area' in India do have thi' %otentia$) it .ou$d
be ver0 u'efu$ to form a con'ortium of other 'uch 'ma$$ retai$er' in that vicinit0 and ta+e
a %ro-active a%%roach to %oo$ in re'ource' and im%rove the overa$$ infra'tructure, -he
ne3t effort 'hou$d be to encoura"e retai$er' to ma+e 'ome inve'tment in im%rovin" the
interior' of their re'%ective e'tab$i'hment' to ma+e 'ho%%in" an enjo0ab$e e3%erience for
the cu'tomer,
HIM (2007-09) 9*
Appendix
NPA : - @on %erformin" a''e't,
PAN :- 9ermanent account number,
SSN :- 4ocia$ 4ecurit0 number,
ROI : - &eturn on Inve'tment,
PAT : - 9rofit after ta3,
FDI : O =orei"n direct Inve'tment,
POS : - 9oint of 'a$e,
ERP : - 7ntre%reneur re'ource %$annin",
CRM : - <u'tomer re$ation'hi% mana"ement,
OLAP : - 8n-Iine 2na$0tica$ %roce''in",
DC : - Be$iver0 <entre,
CPFR : - <o$$aborative %$annin" and foreca'tin" too$,
WAP :- !ire$e'' a%%$ication %rotoco$,
PDA :- 9er'ona$ di"ita$ a''i'tant',
CAM :- <ommon 2rea Maintenance
RFID :- &adio =re5uenc0 Identification Bevice
VDC :- Henture Beve$o%ment <or%oration
POS :- 9oint of 4a$e
HNI :- Hi"h @et !orth Income
HIM (2007-09) 99
BIBLIOGRAPHY
MARKETING MANAGEMENT -PHILIP KOTLER
WWW.GOOGLE.COM
WWW.THOMASNET.COM
WWW.KSA.COM
WWW.VDC-CORP.COM
OFFICIAL WEBSITES OF
O WALMART
O TARGET
O EBONY
O BIG1OS
O OTHER SUCCESSFUL RETAILERS
MAGAZINES, NEWSPAPER
HIM (2007-09) F00

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