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, accounting for o ver 10 per cent of the country¶s GDP and around 8 per cent of the employment. The Retail Industry in India has come forth as one of the most dynamic and fast paced industries with several players entering the market. But all of them have not yet tasted success because of the heavy initial investments that are required to break even with other companies and compete with them. The India Retail Industry is gradually inching its way towards becoming the next boom industry. The total concept and idea of shopping has undergone an attention drawing change in terms of format and consumer buying behavior, ushering in a revolution in shopping in India. Modern retailing has entered into the Retail market in India as is observed in the form of bustling shopping centers, multi storied malls and the huge complexes that offer shopping, entertainment and food all under one roof. A large young working population with median age of 24 years, nuclear families in urban areas, along with increasing workingwomen population and emerging opportunities in the services sector are going to be the key factors in the growth of the organized Retail sector in India. The growth pattern in organized retailing and in the consumption made by the Indian population will follow a rising graph helping the newer businessmen to enter the India Retail Industry. In India the vast middle class and its almost un tapped retail industry are the key attractive forces for global retail giants wanting to enter into newer markets, which in turn will help the India Retail Industry to grow faster. Indian retail is expected to grow 25 per cent annually. Modern retail in In dia could be worth US$ 175-200 billion by 2016. The Food Retail Industry in India dominates the shopping basket. The Mobile phone Retail Industry in India is already a US$ 16.7 billion business, growing at over 20 per cent per year. The future of the India Retail Industry looks promising with the growing of the market, with the government policies becoming more favorable and the emerging technologies facilitating operations. THE INDIAN RETAIL SCENE India is the country having the most unorganized retail market. Traditionally it is a family¶s livelihood, with their shop in the front and house at the back, while they run the retail bus iness. More than 99% retailer¶s function in less than 500 square feet of shopping space. Global retail consultants KSA Technopak have estimated that organized retailing in India is expected to touch Rs 35,000 crore in the year 2005-06. The Indian retail sector is estimated at around Rs 900,000 crore, of which the organized sector accounts for a mere 2 per cent indicating a huge potential market opportunity that is lying in the waiting for the consumer-savvy organized retailer. Purchasing power of Indian urban consumer is growing and branded merchandise in categories like Apparels, Cosmetics, Shoes, Watches, Beverages, Food and even Jewellery, are slowly becoming lifestyle products that are widely accepted by the urban Indian consumer. Indian retailers need to advantage of this growth and aiming to grow, diversify and introduce new formats have to pay more attention to the brand building process. The emphasis here is on retail as a brand rather than retailers selling brands. The focus should be on branding the retail business itself. In their preparation to face fierce competitive pressure, Indian retailers must come to recognize t he value of building their own stores as brands to reinforce their marketing positioning, to communicate quality as well as value for money. Sustainable competitive advantage will be dependent on translating core values combining products, image and reputation into a coherent retail brand strategy. There is no doubt that the Indian retail scene is booming. A number of large corporate houses Tata¶s, Raheja¶s, Piramals¶s, Goenka¶s have already made their foray into this arena, with beauty and health stores, supermarkets, self-service music stores, new age book stores, every-day-low-price stores, computers and peripherals stores, office equipment stores and home/building construction stores. Today the organized players have attacked every retail category. The Indian retail scene has witnessed too many players in too short a time, crowding several categories without looking at their core competencies, or having a well thought out branding strategy.
Mart . the rise in the working population which is young. Simla. Also. The Growth of Retail Companies in India is most pronounced in the metro cities of Ind ia. Reasons for the fast Growth of Retail Companies in India: The retail companies are found to be rising in India at a remarkable speed with the years and this have brought a revolutionary change in the shopping attitude of the Indian customers. The global retail giants who are entering the organized retail sector in India are: y Wal. the Indian organized retailing sector accounted for more than 4. more disposable income and customer aspiration.packets which are hefty. Growth of Retail Companies in India exhibits the boom in the retail industry in India over the years. The South Indian zone have adopted the process of shopping in the supermarkets for their daily requirements and this has also been influencing other cities as well where many hypermarkets are coming up day to day. Global retail giants are also entering the retail industry in India and this is also one of the factors in the growth of the organized retail sector in India. western influences and growth in expenditure for luxury items. most of the retail companies are sections of other industries that have stepped in the retail sector for a better business. The increase in the purchasing power of the Indian middle classes and the influx of the foreign investments has been encouraging in the Growth of Retail Companies in India. In 2003. Coimbatore. effect of globalization 5. Gurgaon.5 million sq. Growth of Retail Companies in India : Overview Growth of Retail Companies in India is still not yet in a matured stage with great potentials within this sector still to be explored. Reliance Industries Limited is planning to invest US$ 6 billion in the organized retail sector in India by opening 1500 supermarkets and 1000 hypermarkets. In fact. more nuclear families in urban areas. however the smaller towns are also not lagging behind in this. The Growth of Retail Companies in India is facilitated by certain factors like 1. Cochin. ft of space absorption by malls. Pantaloons is planning to invest US$ 1 billion in order to increase its retail space to 30 million square feet. the Indian organized retail sector is expected to rise to US$ 23 billion. heavy influx of FDI in the retail sectors in India Growth Factors in Indian Organized Retail sector The growth factors in Indian organized sector are various but it is mainly due to the fact that India's economy is booming. and others. the retail industry in India amounted to US$ 200 billion and out of this. Bharti Telecoms is planning a joint venture worth £ 750 million with Tesco a global retail giant. Baroda. Trivandrum.GROWTH OF RETAIL COMPANIES IN INDIA. Chandigarh. By 2010. India retail industry is the fastest growing industry in India and it accounts for 10% of the country's GDP.4 billion. In 2006. The retail companies are not only targeting the four metros in India but also is considering the second graded upcoming cities like Ahmedabad. existing Indian middle classes with an increased purchasing power 2. All these are the factors for the growth in Indian organized retail sector. Such huge investments is also a factor in the growth of the organized retail sector in India. Many Indian companies have entered the retail industry in India and this is also a factor in the growth of Indian organized retail sector. rise of upcoming business sectors like the IT and engineering firms 3. Apart from t he retail company like Nilgiri's of Bangalore. Ludhiana. rise in the number of women working. the organized retail sector in India amounted to US$ 6. change in the taste and attitude of the Indians 4. pay. Pune.
the growth of t he Indian retail sector would help in making the country ready for big retailers by 2015. If all these areas are given immediate attention then the growth phase of Indian retail sector would continue at a very fast pace. by 2011. However developments in supply chain in Indian retail sector has been quite slow. by 2011. these supermarkets and hypermarkets will also witness fast erosions in their margins.2016. the retail sector has a highly developed system of supply chain. The share of the modern retail in the Indian Retail Sector is also estimated to increase from 4% in 2008. 3. Growth Phase of Indian Retail Sector to Continue The phase of high growth of Indian retail sector is expected to Continue due to huge amounts of investments and breaking up of traditional concepts in this sector. apparel and footwear for this will help the retail companies to curtail their expenses substantially. in 2006 to US$ 493 billion. However. the convenient stores that are located in the local neighborhood will continue to survive.y y y Tesco Carrefour SA Metro AG The factors for growth in Indian organized retail sector are many and thats the reason behind its massive growth.and. These are leading to various changes and are providing further boost to the growth of the Indian Retail Sector. Other areas that need attention for the growth of the Indian retail sector to continue includes duty and tax structures. Further. Also another area that requires attention is manpower f or it is estimated that the Sector of Indian Retail will suffer from shortage of manpower by about a million people. The Indian Retail Sector that includes the traditional retail and the modern retail is estimated to grow at a very fast pace from US$ 336 billion. The chains in the Indian retail sector need to frequently change their stocks and also adopt concepts like home delivery. The traditional retail sector is expected to increase from US$ 324 billion. The "cash. In the western countries. Trend forecasting needs to be done in the country especially in the segments of cosmetics. The maximum amount of growth in the Indian Retail Sector will be registered in the topmost 50 to 60 markets that are located in the urban areas. Haats Mandies Company/Multi Brand store etc Established Formats : . The Indian retail sector would then witness the setting up of retail parks that are flourishing in Europe. infrastructure. These markets would be mostly supermarkets and hypermarkets. Further.carry" activities are expected to receive the majority of investments. rising land prices and effective trend forecasting. in 2006 to US$ 590 billion. to 16% in the next five years. it is estimated that in the longer run. Salesman 2. This exceptional growth is expected to take place in the retail sector due to large amounts of investment which is estimated to be about US$ 35 billion in the next five years. But for this to continue both the Indian retailers and the government will have to work together. 4. by 2012. A major focus area in the Indian retail sector is the supply chain management. RETAILING FORMAT IN INDIA (MAJOR RETAIL FORMATS) Traditional Format : 1.
The economic factors relate to changes in the wider economy such as economic growth.GDP Growth. Hyderabad Convenience/Departmental Store Pan/Beedi Shop Malls/Special Malls Company/Multi Brand Store Emerging Format : 1.Corporate Social Responsibility. interest rates. population growth rate. 3. 2. 2007. economic. 2. . etc.Foreign Investments. Hypermarket International Retailer Malls/Special Malls Multiplexes PESTEL ANALYSIS.ERP System. PEST is an acronym f or political. trade restrictions and tariffs etc. Our product also presents a brief profile of the industry comprising of current market. POLITICAL 1. 3. laws and regulations. 3. etc. 4. social and technological analysis. Kirana stores The Indian Commerce Association 27-29 December. 2. Political factors include government policies relating to the industry. 5. 4. 6.1. TECHNOLOGY 1. tax policies.Retail media networks(RMN). exchange rates and inflation rate. 2.Money Supply. 3. technology incentives and the rate of technological change. Low access to banking facilities ECONOMIC 1. Social factors often look at the cultural aspects and include health consciousness. changes in tastes and buying patterns. helping them in analyzing the forces that are driving their industry and how these factors will influence their businesses and the whole industry in general.Inflation. Taxation policy ± VAT. Synergyst's PEST Analysis is a perfect tool for managers and policy makers. Strong opposition to FDI in India¶s retail sector. 5. The technological factors relate to the application of new inventions and ideas such as R&D activity. 3. 3. age distribution.Online Shopping. automation. PEST analysis of any industry sector investigates the important factors that are affecting the industry and influencing the companies operating in that sector.Environmental Safety. competition in it and future prospects of that sector. 2. Exclusive Retail Outlet 2.Ease of shopping. SOCIAL 1. 4.
1 FDI Policy in the Retail Sector India has kept the retail sector largely closed to outsiders to safeguard the livelihood of nearly 15 million small storeowners and only allows 51 per cent foreign investment in single brand retail with prior Government permission. INVESTMENT POLICY AND INITIATIVES 3. Home Improvement and Consumer Durables: Over 20 per cent p. Currently. Single-brand retailers such as Louis Vuitton. Lladro (porcelain goods). OPPORTUNITIES AND CHALLENGES 1 Investment Opportunities in the Retail Sector India is the least competitive as well as least saturated of all major global markets. India also has significant potential to emerge as a sourcing base for a wide variety of goods for international retail companies . cutlery.a. A 12-billion euro French luxury industry is also eyeing the domestic luxury segment to make a presence through retailing directly. according to experts.Real Estate. Fendi. and building equipment. Metro is already operating through the cash-and-carry wholesale\ mode. This implies that there are significantly low entry barriers for players trying to setup base in India. FDI is also allowed in the wholesale business. Fendi (luxury products). travel accessories. The policy of permitting 51 per cent FDI in single-brand product retailing has led to the entry of only a few global brands such as Nike (footwear). who operate through a franchisee model. Apparel and Eating Out: 13 per cent p. Government is considering opening up of the retail \ trading for select sectors such as electronic goods.To u r i s m . 2. textiles ready-to wear). unlimited opportunities. The retail industry in India. catapulting modern retail in the country to $175-200 billion by 2016. electronics and stationery is also being contemplated.a. Carrefour. The migration of population to higher income segments with increasing per capita incomes 2. The Government has to walk a tight rope to ensure a `level playing field' for everyone. huge markets and availability of quality raw materials at cheaper costs is expected to make India overtake the world's best retail economies by 2042. stationery. SUPPORTIVE SECTORS 1. Louis Vuitton (shoes. The Potential of the Indian Retail Sector The high growth projected in domestic retail demand will be fuelled by: 1. according to Technopak estimates. Argenterie Greggio (silverware. would most likely switch to a hybrid ownership structure. ties. The sector is expected to see an investment of over $30 billion within the next 4-5 years. The growth of the population in the 20 to 49 years age band There is retail opportunity in most product categories and for all types of formats 5. into retail trading. sports goods. according to industry players. the market share of organised modern retail is just over 4 per cent of the total retail industry.4. Tesco and Casino would take advantage of the more favourable FDI rules that are likely in India and enter the country through partnerships with local retailers. Changing consumer attitudes especially the increasing use of credit cards 4. thereby leaving a huge untapped opportunity.Media. Food and Grocery: The largest category. The global retailers such as Wal-Mart. Foreign direct investment (FDI) in retail space. A good talent pool. Nike and Toyota can operate now on their own. CAGR estimated in the next 10 years 7. Other retailers such as Marks & Spencer and the Benetton Group.\ traditional home accessories and gift items) and Toyota (retail trading of cars). will be a major employment generator in the future. The policy makers continue to explore areas where FDI can be invited without hurting the interest of local retail community. largely unorganised today 6. Damro (knock-down furniture). watches. specialized goods retailing like sports goods. CAGR projected over 10 years Opportunities for investment in supply chain infrastructure: Cold chain and logistics 8.CRM System. in terms of the competitive landscape. LLadro.I T. 3. 4. An increase in urbanisation 3.
The behaviour pattern of the Indian consumer has undergone a major change. Trained manpower shortage is a challenge facing the organized retail sector in India. The Indian government in 2005 allowed foreign direct investment (FDI) in single brand retail to 51%. fashion retailing has indeed been responsible for single-handedly driving the business of retail in India. Total fashion sector was estimated at Rs 1.packages. The opportunities in Indian organized retail sector are many for this sector is witnessing a boom. women working force is increasing. GAP. a large number of women are working.914 billion and forms about 15 per cent of the country's retail market of Rs 12.2 Challenges in Retailing The challenges facing the Indian organized retail sector are various and these are stopping the Indian retail industry from reaching its full potential.000 billion. and 1500 supermarkets are being built which shows the tremendous opportunities in the organized retail sector in India. The global retail giants who are entering the Indian organized retail sector are: y y y y Tesco Wal. and more disposable income have opened a lot of opportunities in Indian organized retail sector. The biggest challenge facing the Indian organized retail sector is the lack of retail space. He now wants to eat. In fact 325 departmental stores. it is p osing a challenge to its growth. With Indian retailers having to shell out more for retail space it is effecting there overall profitability in retail. 9. eat and get entertainment in one place and is have also given Indian organized retail sector an opportunity to grow. Many Indian companies seeing the various opportunities in organized retail sector in India have entered it. The various opportunities in the organized retail sector in India are mainly there for the Indian consumers behavior pattern has changed. which translates into nearly 55 per cent of the organised retail segment in the country. western influences. western influences.Mart Metro AG Carrefour SA The opportunities in Indian organized retail sector are varied and it must be fully exploited by the Indian retailers.500 supermarkets and 1000 hypermarkets.Many international retailers including Wal-Mart.4 billion. All these have lead the Indian organized retail sector to give more in order to satisfy the Indian customer. This again brings down the Indian retailers profit levels. Bharti Telecoms is planning a joint venture with Telco a global retail giant worth £ 750 million. and out of this amount the Indian organized retail sector amounted to US$ 6. and get entertained under the same roof. The opportunities in the organized retail sector in India have also increased with the desire of many global retail giants to set up shop here. 300 new malls. JC Penney etc. It is planning to invest US$ 6 billion in order to open 1. Reliance Industries Limited is targeting for annual sales of US$ 25 billion by 2011. The Indian retailers have difficultly in finding trained person and also have to pay more in order to retain them. The retail industry in India amounted to US$ 200 billion in 2006. shop. 4. With real estate prices escalating due to increase in demand from the Indian organized retail sector. Now the Indian consumer gets more hefty pay. The Indian consumer wants to shop. This has happened for the Indian consumer is earning more now.80 billion. . Pantaloons have decided to increase its retail space to 30 million square feet with an investment of US$ 1 billion. This have opened up a lot of opportunities in India organized retail sector. desire for luxury items and better quality. the business of fashion accounts for Rs 300. is younger. are already procuring from India. Corporate Catalyst India A report on Indian Retail Industry Of the total organised retail market of Rs 550 billion. Commanding such a large chunk of the organised retail business in India. The opportunities in India organized retail sector can be judged from the fact that by 2010 it is expected to rise to US$ 23 billion.
The next problem in setting up organized retail operations is that of supply chain logistics. Further. retailing is yet to become a preferred career option for most of India¶s educated class that has chosen sectors like IT. Providing great experience to customers can easily be said than done. Pantaloons. BPO and financial services. The concept of container trucks. Due to these constraints. The industry is facing a severe shortage of talented professionals. In addition to fragmented supply chain. In India. Many Indian companies are also entering the Indian organized retail sector like Reliance Industries Limited. especially at the middle-management level. each endeavor to offer experiential shopping. Corporate Catalyst India A report on Indian Retail Industry . This has made the entry of global retail giants to organized retail sector in India difficult. This too brings down the profit of the Indian retailers.The Indian government have allowed 51% foreign direct investment (FDI) in the India retail sector to one brand shops only. allocation and assortment techniques. Getting the right mix of product.National distributor . multiple clearances are required by the same company for opening new outlets adding to the costs incurred and time taken to expand presence in the country. The retail sector does not have µindustry¶ status yet making it difficult for retailers t o raise finance from banks to fund their expansion plans. Merchandising planning is one of the biggest challenges that any multi store retailer faces. . This implies that global retail chains will have to build a supply chai n network from scratch. Most Indian retail players are under serious pressure to make their supply chains more efficient in order to deliver the levels of quality and service that consumers are demanding. which is store specific across organization. Further. and Metro AG are entering the organized retail sector in India indirectly through franchisee agreement and cash and carry wholesale trading. raising costs and prices. Even though the Government is attempting to implement a uniform value-added tax across states. Also lack of clear ownership titles and high stamp duty has resulted in disorganized nature of transactions The Hidden Challenges Modern retailing is all about directly having "first hand experience" with customers. cold chains and ports has further led to the impediment of a pan-India network of suppliers. But the global retail giants like Tesco. the trucking and transportation system is antiquated. As a result discounting is becoming an accepted practice. This might run foul with the existing supply chain operators. electricity. One of the key observations by customers is that it is very difficult to find the uniqueness of retail stores. retail chains have to resort to multiple vendors for their requirements.Local wholesaler .Regional distributor . and Bharti Telecoms. merchandising mix. The problem:retail differentiation. This is a challenge being faced by the Indian organized retail sector. giving them such a satiable experience that they would like to enjoy again and again. India lacks a strong supply chain when compared to Europe or the USA. The available talent pool does not back retail sector as the sector has only recently emerged from its nascent phase. The existing supply chain has too many intermediaries: Typical supply chain looks like: Manufacturer . Government restrictions on the FDI are leading to an absence of foreign players resulting into limited exposure to best practices. The challenges facing the Indian organized retail sector are there but it will have to be dealt with and only then this sector can prosper. But they are facing stiff competition from these global retail giants.Retailer Consumer. is a combination of customer insight. as we are moving to the next phase of retail development. Long intermediation chains would increase the costs by 15 per cent. Stringent labor laws govern the number of hours worked and minimum wages to be paid leading to limited flexibility of operations and employment of part-time employees. Thus challenges like retail differentiation. supply chain management and competition from supplier's brands are the talk of the day. Wal-Mart. Lack of adequate infrastructure with respect to roads. All these are posing as challenges facing the Indian organized retail sector. thereby. the system is currently plagued with differential tax rates for various states leading to increased costs and complexities in establishing an effective distribution network. automated warehousing is yet to take root i n India.Non-availability of Government land and zonal restrictions has made it difficult to find a good real estate in terms of location and size. The result: significant losses/damages during shipping .
signages and specialized props. 4. 5. accessibility of supplier's brand.0 Conclusion: . The merchandise presentation ought to be very creative and displays are often on non-standard fixtures and forms to generate interest and add on attitude to the merchandise. lighting. 4. Theme or lifestyle displays using stylized mannequins and props. the mall developer must add a personal touch to his message by carrying out a door-to-door campaign in order to reinforce the message. The message should also clearly convey to the target audience that the mall offers them exactly what they call the complete shopping-cum-entertainment point that meets all their expectations. 4. lean systems and staff should help retailers to get advantage over competitors. the communication has to be more of relative nature. production planning. Retailer has to provide more assortments for private level brands to compete with supplier's brand. which are based on a season or an event. Retailer has to develop innovative solution for managing the supply chain problems.Once the message is being conveyed through these channels.3: Strong Supply Chain Critical components of supply chain planning applications can help manufacturers meet retailers' service levels and maintain profit margins. celebrity endorsement. 4. persuade them to visit the mall and remind them about the mall. New product development. are used to promote collections and have to change to keep touch with the trend. So supplier's brand wiil take their own way because they have a established brand image from last decades and the reasons can be attributed to better customer experience.0 Strategies 4. The mall developer can create awareness about the offering among the target customers in a number of ways. The visual communication strategy might be planned and also be brand positioned. press releases and viral marketing . inventory planning. price.The private label will continue to compete with brand leaders. use of print media. buzz marketing (WoM). This implies that the message conveyed to the target customers must be effective enough in differentiating the mall's offering from that of its competitors without even naming them. aspiration. value vs. demand planning. Various communication tools available to the mall developer for this purpose may include advertising. The core purpose is to inform the target customers about the offering of the mall.2: Effective Visual Communication Retailer has to give more emphasis on display visual merchandising. At this stage.1: Right Positioning The effectiveness of the mall developer's communication of the offering to the target customers determines how well the mall gets positioned in their minds. aggressive retail mix as well as everyday low pricing strategy can be the strategy to get edge over supplier's brand.4: Changing the Perception Retailers benefit only if consumers perceive their store brands to have consistent and comparable quality and availability in relation to branded products. Innovative solutions like performance management. frequent sales operation management. innovation.
in the retail sector.In their preparation to face fierce competitive pressure. STRATEGIES USED BY SOME COMPANIES IN THAT INDUSTRY TO CONVERT THEIR THREATS INTO OPPORTUNITIES: Back ground Pantaloon Retail (India) Limited is India¶s largest leading retailers. and Top 10. image and reputation into a coherent retail brand strategy. Category killers: small specialty stores that offer a variety of categories. IN SHORT THE CHALLENGES FACING INDIAN RETAIL INDUSTRY y y y y y y y y The tax structure in India favors small retail business Lack of adequate infrastructure facilities High cost of real estate Dissimilarity in consumer groups Restrictions in Foreign Direct Investment Shortage of retail study options Shortage of trained manpower Low retail management skill Retail formats in India Hypermarts/supermarkets: large self-servicing outlets offering products from a variety of categories. Company head quarters located in Mumbai. Big bazaar. Retailing includes retail formats like Pantaloons. This is also known as Multi Brand Outlets or MBO's. Departmental stores: are general retail merchandisers offering quality products and services. Sustainable competitive advantage will be dependent on translating core values combining products. y y y y y y y y Mom-and-pop stores: they are family owned business catering to small sections. Here beverages. Specialty stores: are retail chains dealing in specific categories and provide deep assortment. The company is in aspect of giving retailing a modern looks with reachable for middle and middle lower class people. brand factory. such as electronics and sporting goods. Food bazaar. As on Feb 2009 Company operates over 12 million square feet of retail space. The company also operates on online y . They are known as category killers as they focus on specific categories. E-trailers: are retailers providing online buying and selling of products and services. Discount stores: these are factory outlets that give discount on the MRP. they are individually handled retail outlets and have a personal touch. Vending: it is a relatively new entry. Mumbai's Crossword Book Store and RPG's Music World are a couple of examples. 1000 stores in 71 cities with employee strength of 30. It operates on multiple platforms like Value and life style segment in the Indian consumers market. malls offers customers a mix of all types of products and services including entertainment and food under a single roof. to communicate quality as well as value for money. Blue sky. snacks and other small items can be bought via vending machine. Indian retailers must come to recognize the value of building their own stores as brands to reinforce t heir marketing Positioning. Convenience stores: are located in residential areas with slightly higher prices goods due to the convenience offered. Shopping malls: the biggest form of retail in India.000 people. Star & sitar and e zone.
group subsidiaries are present in consumer finance. Mr.The company diversified and acquired a large business in organic and inorganic way. Diversification is done in two main categoriesRETAIL FORMATS and SPECIALIZED BUSINESs. Classes destination strategy Future group has diversified its business keeping the retiling as common goal.Company is very conscious about culture andregional consumption pattern.2 Strategies The company observes retail customer trend and changing consumption tastes. Based on analysis its business strategies can be categorized in 3 major groups. unlearning and relearning is applied to update the quick changingstrategies across the organization. a business group catering tothe entire Indian consumption space. As Kishore Biyani MD Pantaloon retail India LTD says³Retail is like riding bicycle. retail media and logistics. To set andconcentrate on one stratum is main objective of this strategy. Butcompany did not forget ripe its strategy and values in the diversified company.The continues of learning. 1. Strategies change frequently due to orient to the customers needs. Pantaloon Retail is the flagship company of Future Group.brand development. Home Town a large-format home solutions store. In uphill if you stop pedaling you will slide down´. insurance. Company has . They are Diversification strategy Classes destination strategy Maximum market shares strategy Diversification strategy The company started its business as textile manufactures but growth in modernorganized retailing attracted the company to switch diversify to the next consumption pattern. The statement express the need of continues learning process to form the strategies.futurebazzar. is one of India s leading business houses with multiple businesses spanningacross the consumption space. retail real estate development. While retail forms the core business activity of Future Group. In every new business company started to rewrite the rules by retaining values.Kishore Biyani. The company in latter stage organized to support each other by physical material flow if required. Each business is set to operate ondefined strata. Future Group led by its founder and Group CEO. leisure and entertainment. capital.com for upper class that can get internet connectivity. Organizationis customer driven opposed to product driven .
INDIA TWO has not changed it conception level. Theycan t afford for beater living style. Each has different values. This is the people who make service INDIA ONE class. brand factory. INDIATHREE has seen 10 % decline. This are considered as learning. Home town and starGalaxy entertainment. Futuremoney and other retail formats are presented.Earning capacity ofthis class is 60% lesser than INDIA ONE. According Maslow s theory ofhierarchy the 14% people are in self actualization and Esteem needs in the pyramid.The Company does not bothers about short termprofit or loss by a strategy. The business will sell at marginalprofit some times to attract the new customer who will prove potential customers in future. Figure 3 shows change in consumption patter by different class in 2001-02 and 2007-08. Central. In the needs hierarchy they are located in for Social and security . This segment doesn t contribute much in the contributioncycle. INDIA THREE. The company¶s schemes are categorized in following groups ¡ ¡ ¡ 1. Maximum market shares strategy The retail chain by pantaloon in all business patterns tries to achieve maximum marketshare in all the products or service it provides .Till recenttimes the modern retiling formats is offered for this class. Theproduct value will be associated with external factors. Food bazaar.INDIAONE has changed from 25% to 35% normally the total profit in this segment will comparatively20% more than they are sold in next segment.VALUE PRICING This approach is used where external factors such as recession or increasedcompetition force companies to provide 'value' products and services to retain sales. . The present business modelis not addressing this class. For this class as the big bazaar.INDIA TWO. Thecompany offers numerous schemes to attract the new customer as well as to retain the present customers. The need of the segment is local as they are finding it cheaper. INDIA ONE.divided Indian customers in three different groups. E zone. As ambiance is factor and other pleasuring nonvalue added services are necessary. The class led life on hand to mouth existence. products and quality requirements. For thisclass pantaloon patterned Future bazaar. INDIA ONE or consuming class . Thestrategy achieved by focusing pricing factors in INDAI TWO and on service and quality inINDIA ONE. The population of this class is morethan 30%. Pricing strategies Pricing is strategy used by Pantaloon retail chain to attain maximum market shares. INDIA TWO or the serving class it includes people like house hold helpers.The population of this constitutes only 14%. INDIA THREE or struggling class. office peonetc.
Self production facilities with small number of suppliers. BTGO (Buy Two Get One Free) etc. Organization utilizes thisapproach when product has emotional value rather than rational value. learning while doing. Example a productis priced for 99 instead of 100. Reduces cost. The company has learnt it from strategy madeon public holiday 26-Feb.3 Levers issues Human resource Well trained staff. Placed in major cities. Brand ambassador Organization structure & controls . Capital driven. Large.BUNDLING Bundling is marketing tool sell two or more complementary product as a package with attractive price. . Example: A Person needs one soap for a period of time But bundling with attractive price with more than 3 soaps can attract them. No rigid organizational structure. Balanced Score card approach Retail control Semi Centralized. With such experience crowded management is essential so to divert potential customers ³Wednesday bazaar´ where it will offer less profit margin sales.TIME PRICING The innovative way of attract the customer is Timely pricing it is known thatduring holidays rate of customer is more. new strategies and process innovations Facilities Special propose. 1. Empowered individuals. Use scenario planning as a tool for quick decision making. Appetite for taking risks is encouraged.PROMOTIONAL PRICING Pricing to promote a product is a very common application. The application of this done by BOGO (Buy one Get One). Reduction of profit margin with lot ofadvertisement will invite new customers. Appearance.Consumer looks at 3 digits to 2 digits rather than exact value.PHYSIOLOGICAL DISCOUNTING In India this approach is called as Bata rating system.2. Complex Sourcing E-touch with supplier. organization design approach.LOW INTEREST RATE FINANCING Future money helps in asset purchase at 0% interest.When board shows price reduction from 100 to 99. The price is will lesser then individual selling price. 5. 4. 3. Devolved internally.The entrepreneurial culture and spirit prevails in the company. Short term contracts (based on lowest bid) Process Modern hard technology. 6. When the turnover of the day reached 30 cores where averageis 5 cores.
image and reputation into a coherent retail brand strategy. .0 Conclusion: In their preparation to face fierce competitive pressure. .The organization deploys the cultural and regional strategies to attract the customers. The reasons fornot selecting this system is probably 1 2 3 4 5 6 .8 Conclusion Pantaloon retail India evolved its business strategy based on under studying customers. . Targeted on INDIA ONE initially . Sustainable competitive advantage will be dependent on translating core values combining product s. Indian retailers must come to recognize the value of building their own stores as brands to reinforce their marketing Positioning.Apart from having so many advantages company had no focused on this pattern. .Why not e-retailing The organization focused on mall base selling rather than e business in initial stages. . Who are away from internet services Supplier base and support was not so strong Absence of good software support in supplier management E business threat of cash jams in initial days Face to face communication is tradition of Indian retailing from many years The threat or cyber crime 2. Thechanging emotions of customers are tracked and they are linked with the power of modernretailing environment. . But still the company has introduce modern retailing malls to the socialclass people of India it has fear of threat of business decline from the competitors like Reliancefresh and Aditya birla moreWho are potential competitor 5. to communicate quality as well as value for money. .
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